Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Feb. 14, 2014 | Jun. 29, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Kadant Inc. | ' | ' |
Entity Central Index Key | '0000886346 | ' | ' |
Current Fiscal Year End Date | '--12-28 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $328,122,000 |
Entity Common Stock, Shares Outstanding | ' | 11,119,726 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $50,032 | $54,553 |
Restricted cash | 168 | 0 |
Accounts receivable, less allowances of $2,689 and $2,306 | 70,271 | 59,359 |
Inventories | 62,805 | 42,077 |
Unbilled contract costs and fees | 3,679 | 2,800 |
Other current assets | 19,189 | 16,291 |
Assets of discontinued operation | 144 | 513 |
Total Current Assets | 206,288 | 175,593 |
Property, Plant and Equipment, at Cost, Net | 44,885 | 39,168 |
Other Assets | 11,230 | 10,145 |
Intangible Assets | 47,850 | 26,095 |
Goodwill | 131,915 | 107,947 |
Total Assets | 442,168 | 358,948 |
Current Liabilities: | ' | ' |
Current maturities of long-term obligations (Note 6) | 625 | 625 |
Accounts payable | 28,388 | 23,124 |
Accrued payroll and employee benefits | 19,116 | 16,358 |
Customer deposits | 28,174 | 14,811 |
Accrued warranty costs | 4,571 | 4,462 |
Deferred revenue | 4,402 | 3,918 |
Other current liabilities | 14,313 | 11,615 |
Liabilities of discontinued operation | 213 | 379 |
Total Current Liabilities | 99,802 | 75,292 |
Long-Term Deferred Income Taxes (Note 5) | 17,457 | 8,793 |
Other Long-Term Liabilities (Note 3) | 16,478 | 18,646 |
Long-Term Obligations (Note 6) | 38,010 | 6,250 |
Commitments and Contingencies (Note 7) | ' | ' |
Stockholders' Equity (Notes 3 and 4): | ' | ' |
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $.01 par value, 150,000,000 shares authorized; 14,624,159 shares issued | 146 | 146 |
Capital in excess of par value | 96,809 | 95,448 |
Retained earnings | 248,170 | 230,329 |
Treasury stock at cost, 3,524,742 and 3,493,546 shares | -76,339 | -74,025 |
Accumulated other comprehensive items (Note 14) | 710 | -3,315 |
Total Kadant Stockholders' Equity | 269,496 | 248,583 |
Noncontrolling interest | 925 | 1,384 |
Total Stockholders' Equity | 270,421 | 249,967 |
Total Liabilities and Stockholders' Equity | $442,168 | $358,948 |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Current Assets: | ' | ' |
Accounts receivable, allowances | $2,689 | $2,306 |
Stockholders' Equity (Notes 3 and 4): | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 14,624,159 | 14,624,159 |
Treasury stock (in shares) | 3,524,742 | 3,493,546 |
Consolidated_Statement_of_Inco
Consolidated Statement of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Consolidated Statement of Income [Abstract] | ' | ' | ' |
Revenues (Note 12) | $344,499 | $331,751 | $335,460 |
Costs and Operating Expenses: | ' | ' | ' |
Cost of revenues | 186,795 | 185,949 | 190,247 |
Selling, general, and administrative expenses | 117,581 | 103,101 | 102,660 |
Research and development expenses | 6,717 | 5,950 | 5,717 |
Restructuring and other expense (income), net (Note 8) | 103 | 307 | -1,874 |
Total Costs and Operating Expenses | 311,196 | 295,307 | 296,750 |
Operating Income | 33,303 | 36,444 | 38,710 |
Interest Income | 623 | 319 | 499 |
Interest Expense | -900 | -833 | -1,066 |
Income from Continuing Operations Before Provision for Income Taxes | 33,026 | 35,930 | 38,143 |
Provision for Income Taxes (Note 5) | 9,316 | 4,852 | 4,285 |
Income from Continuing Operations | 23,710 | 31,078 | 33,858 |
(Loss) Income from Discontinued Operation (net of income tax benefit (expense) of $34, $(451), and $1,511 in 2013, 2012, and 2011, respectively; Note 9) | -62 | 743 | -9 |
Net Income | 23,648 | 31,821 | 33,849 |
Net Income Attributable to Noncontrolling Interest | -229 | -198 | -274 |
Net Income Attributable to Kadant | 23,419 | 31,623 | 33,575 |
Amounts Attributable to Kadant: | ' | ' | ' |
Income from Continuing Operations | 23,481 | 30,880 | 33,584 |
(Loss) Income from Discontinued Operation | -62 | 743 | -9 |
Net Income Attributable to Kadant | $23,419 | $31,623 | $33,575 |
Earnings per Share from Continuing Operations Attributable to Kadant (Note 13) | ' | ' | ' |
Basic (in dollars per share) | $2.11 | $2.70 | $2.77 |
Diluted (in dollars per share) | $2.07 | $2.66 | $2.74 |
Earnings per Share Attributable to Kadant (Note 13) | ' | ' | ' |
Basic (in dollars per share) | $2.10 | $2.76 | $2.77 |
Diluted (in dollars per share) | $2.07 | $2.73 | $2.74 |
Weighted Average Shares (Note 13) | ' | ' | ' |
Basic (in shares) | 11,153 | 11,456 | 12,124 |
Diluted (in shares) | 11,340 | 11,590 | 12,261 |
Cash Dividend Declared per Common Share | $0.50 | $0 | $0 |
Consolidated_Statement_of_Inco1
Consolidated Statement of Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Consolidated Statement of Income [Abstract] | ' | ' | ' |
(Loss) Income from Discontinued Operation, income tax benefit (expense) | $34 | ($451) | $1,511 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Consolidated Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net Income | $23,648 | $31,821 | $33,849 |
Other Comprehensive Items: | ' | ' | ' |
Foreign currency translation gain (loss) | 838 | 4,324 | -1,808 |
Pension and other post-retirement liability adjustments, net (net of tax of $1,564, $28, and $1,331 in 2013, 2012, and 2011, respectively) | 2,817 | -35 | -2,374 |
Deferred gain (loss) on hedging instruments (net of tax of $1, $206, and $89 in 2013, 2012, and 2011, respectively) | 413 | 387 | -193 |
Other Comprehensive Items | 4,068 | 4,676 | -4,375 |
Comprehensive Income | 27,716 | 36,497 | 29,474 |
Comprehensive Income Attributable to Noncontrolling Interest | -272 | -234 | -268 |
Comprehensive Income Attributable to Kadant | $27,444 | $36,263 | $29,206 |
Consolidated_Statement_of_Comp1
Consolidated Statement of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Other Comprehensive Items: | ' | ' | ' |
Pension and other post-retirement liability adjustments, tax effect | $1,564 | $28 | $1,331 |
Deferred gain (loss) on hedging instruments, tax effect | $1 | $206 | $89 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Operating Activities | ' | ' | ' |
Net Income Attributable to Kadant | $23,419 | $31,623 | $33,575 |
Net income attributable to noncontrolling interest | 229 | 198 | 274 |
Loss (Income) from discontinued operation | 62 | -743 | 9 |
Income from continuing operations | 23,710 | 31,078 | 33,858 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 9,775 | 8,384 | 7,936 |
Stock-based compensation expense | 5,216 | 4,766 | 3,934 |
Gain on sale of property, plant and equipment | -2,012 | -214 | -2,294 |
Provision (Benefit) for losses on accounts receivable | 374 | -14 | 1,249 |
Deferred income tax benefit | -1,061 | -4,868 | -1,886 |
Other items, net | 1,485 | 1,107 | -809 |
Contributions to pension plan | -1,080 | -960 | -900 |
Changes in current assets and liabilities, net of effects of acquisitions: | ' | ' | ' |
Accounts receivable | -2,197 | 1,157 | -9,909 |
Unbilled contract costs and fees | -840 | 236 | -1,753 |
Inventories | -2,005 | 9,156 | -6,966 |
Other current assets | 113 | -696 | -1,897 |
Accounts payable | 2,552 | -5,868 | 4,469 |
Other current liabilities | 5,905 | -12,808 | 9,330 |
Net cash provided by continuing operations | 39,935 | 30,456 | 34,362 |
Net cash provided by (used in) discontinued operation | 141 | -1,348 | -47 |
Net cash provided by operating activities | 40,076 | 29,108 | 34,315 |
Investing Activities | ' | ' | ' |
Acquisitions, net of cash acquired | -65,594 | 85 | -15,694 |
Purchases of property, plant, and equipment | -6,261 | -4,250 | -8,030 |
Proceeds from sale of property, plant, and equipment | 3,459 | 803 | 2,360 |
Dividend paid to noncontrolling interest | -731 | 0 | -579 |
Other, net | 971 | -3 | 58 |
Net cash used in continuing operations for investing activities | -68,156 | -3,365 | -21,885 |
Financing Activities | ' | ' | ' |
Proceeds from issuance of long-term obligations | 53,609 | 5,000 | 5,000 |
Repayments of short- and long-term obligations | -21,849 | -10,375 | -16,017 |
Purchases of Company common stock | -5,367 | -14,491 | -16,088 |
Dividends paid | -4,189 | 0 | 0 |
Change in restricted cash | -168 | 700 | -700 |
Payment of debt issuance costs | -154 | -644 | 0 |
Proceeds from issuance of Company common stock | 337 | 358 | 390 |
Excess tax benefits from stock-based compensation awards | 351 | 132 | 371 |
Net cash provided by (used in) continuing operations for financing activities | 22,570 | -19,320 | -27,044 |
Exchange Rate Effect on Cash from Continuing Operations | 989 | 1,180 | -241 |
(Decrease) Increase in Cash and Cash Equivalents from Continuing Operations | -4,521 | 7,603 | -14,855 |
Cash and Cash Equivalents at Beginning of Year | 54,553 | 46,950 | 61,805 |
Cash and Cash Equivalents at End of Year | $50,032 | $54,553 | $46,950 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Common Stock [Member] | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Items [Member] | Noncontrolling Interest [Member] | Total |
In Thousands, except Share data, unless otherwise specified | |||||||
Beginning balance at Jan. 01, 2011 | $146 | $92,935 | $165,131 | ($48,786) | ($3,586) | $1,461 | $207,301 |
Beginning balance (in shares) at Jan. 01, 2011 | 14,624,159 | ' | ' | 2,369,422 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net Income | 0 | 0 | 33,575 | 0 | 0 | 274 | 33,849 |
Dividend paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | -579 | -579 |
Activity under stock plans | 0 | 395 | 0 | 2,756 | 0 | 0 | 3,151 |
Activity under stock plans (in shares) | 0 | ' | ' | -133,411 | ' | ' | ' |
Tax benefits related to employees' and directors' stock plans | 0 | 371 | 0 | 0 | 0 | 0 | 371 |
Purchases of Company common stock | 0 | 0 | 0 | -16,088 | 0 | 0 | -16,088 |
Purchases of Company common stock (in shares) | 0 | ' | ' | 747,706 | ' | ' | ' |
Other Comprehensive Items | 0 | 0 | 0 | 0 | -4,369 | -6 | -4,375 |
Ending balance at Dec. 31, 2011 | 146 | 93,701 | 198,706 | -62,118 | -7,955 | 1,150 | 223,630 |
Ending balance (in shares) at Dec. 31, 2011 | 14,624,159 | ' | ' | 2,983,717 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net Income | 0 | 0 | 31,623 | 0 | 0 | 198 | 31,821 |
Activity under stock plans | 0 | 1,615 | 0 | 2,584 | 0 | 0 | 4,199 |
Activity under stock plans (in shares) | 0 | ' | ' | -123,752 | ' | ' | ' |
Tax benefits related to employees' and directors' stock plans | 0 | 132 | 0 | 0 | 0 | 0 | 132 |
Purchases of Company common stock | 0 | 0 | 0 | -14,491 | 0 | 0 | -14,491 |
Purchases of Company common stock (in shares) | 0 | ' | ' | 633,581 | ' | ' | ' |
Other Comprehensive Items | 0 | 0 | 0 | 0 | 4,640 | 36 | 4,676 |
Ending balance at Dec. 29, 2012 | 146 | 95,448 | 230,329 | -74,025 | -3,315 | 1,384 | 249,967 |
Ending balance (in shares) at Dec. 29, 2012 | 14,624,159 | ' | ' | 3,493,546 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net Income | 0 | 0 | 23,419 | 0 | 0 | 229 | 23,648 |
Dividends declared | 0 | 0 | -5,578 | 0 | 0 | 0 | -5,578 |
Dividend paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | -731 | -731 |
Activity under stock plans | 0 | 1,010 | 0 | 3,053 | 0 | 0 | 4,063 |
Activity under stock plans (in shares) | 0 | ' | ' | -143,804 | ' | ' | ' |
Tax benefits related to employees' and directors' stock plans | 0 | 351 | 0 | 0 | 0 | 0 | 351 |
Purchases of Company common stock | 0 | 0 | 0 | -5,367 | 0 | 0 | -5,367 |
Purchases of Company common stock (in shares) | 0 | ' | ' | 175,000 | ' | ' | ' |
Other Comprehensive Items | 0 | 0 | 0 | 0 | 4,025 | 43 | 4,068 |
Ending balance at Dec. 28, 2013 | $146 | $96,809 | $248,170 | ($76,339) | $710 | $925 | $270,421 |
Ending balance (in shares) at Dec. 28, 2013 | 14,624,159 | ' | ' | 3,524,742 | ' | ' | ' |
Nature_of_Operations_and_Summa
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | ' | ||||||||||||||||
1 | Nature of Operations and Summary of Significant Accounting Policies | ||||||||||||||||
Nature of Operations | |||||||||||||||||
Kadant Inc. was incorporated in Delaware in November 1991 and currently trades on the New York Stock Exchange under the ticker symbol "KAI." | |||||||||||||||||
Kadant Inc. and its subsidiaries' (collectively, the Company) continuing operations include two reportable operating segments, Papermaking Systems and Wood Processing Systems, and a separate product line, Fiber-based Products. | |||||||||||||||||
Through its Papermaking Systems segment, the Company develops, manufactures, and markets a range of equipment and products primarily for the global papermaking and paper recycling and process industries. The Company's principal products in this segment include custom-engineered stock-preparation systems and equipment for the preparation of wastepaper for conversion into recycled paper; fluid-handling systems used primarily in the dryer section of the papermaking process and during the production of corrugated boxboard, metals, plastics, rubber, textiles, chemicals, and food; doctoring systems and equipment and related consumables important to the efficient operation of paper machines; and cleaning and filtration systems essential for draining, purifying, and recycling process water and cleaning paper machine fabrics and rolls. | |||||||||||||||||
Through its Wood Processing Systems segment, the Company designs and manufactures stranders and related equipment used in the production of oriented strand board (OSB), an engineered wood panel product used primarily in home construction. This segment also supplies debarking and wood chipping equipment used in the forest products and the pulp and paper industries. | |||||||||||||||||
Through its Fiber-based Products business, the Company manufactures and sells granules derived from papermaking byproducts primarily for use as agricultural carriers and for home lawn and garden applications, as well as for oil and grease absorption. | |||||||||||||||||
Discontinued Operation | |||||||||||||||||
In 2005, the Company's Kadant Composites LLC subsidiary (Composites LLC) sold substantially all of its assets to a third party. Under the terms of the asset purchase agreement, Composites LLC retained certain liabilities associated with the operation of the business prior to the sale, including the warranty obligations associated with products manufactured prior to the sale date. All activity related to this business is classified in the results of the discontinued operation in the accompanying consolidated financial statements. | |||||||||||||||||
On October 24, 2011, the Company, Composites LLC, and other co-defendants entered into an agreement to settle a nationwide class action lawsuit related to allegedly defective composites decking building products manufactured by Composites LLC between April 2002 and October 2003. In 2012, the Company paid $647,000 in approved claims under the class action settlement. | |||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The accompanying consolidated financial statements of the Company include the accounts of its wholly and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. | |||||||||||||||||
Fiscal Year | |||||||||||||||||
The Company has adopted a fiscal year ending on the Saturday nearest to December 31. References to 2013, 2012, and 2011 are for the fiscal years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively. | |||||||||||||||||
Use of Estimates and Critical Accounting Policies | |||||||||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. | |||||||||||||||||
Critical accounting policies are defined as those that entail significant judgments and estimates, and could potentially result in materially different results under different assumptions and conditions. The Company believes that the most critical accounting policies upon which its financial position depends, and which involve the most complex or subjective decisions or assessments, concern revenue recognition and accounts receivable, warranty obligations, income taxes, the valuation of goodwill and intangible assets, inventories, and pension obligations. A discussion on the application of these and other accounting policies is included in Notes 1 and 3. | |||||||||||||||||
Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its consolidated financial statements or in the application of accounting policies, if business conditions were different, or if the Company used different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's consolidated financial statements. | |||||||||||||||||
Revenue Recognition and Accounts Receivable | |||||||||||||||||
The Company recognizes revenue under Accounting Standards Codification (ASC) 605, "Revenue Recognition," (ASC 605) when the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or service has been rendered, the sales price is fixed or determinable, and collectability is reasonably assured. When the terms of the sale include customer acceptance provisions, and compliance with those provisions cannot be demonstrated until customer acceptance, revenues are recognized upon such acceptance. The Company includes in revenue amounts invoiced for shipping and handling with the corresponding costs reflected in cost of revenues. Provisions for discounts, warranties, returns and other adjustments are provided for in the period in which the related sales are recorded. | |||||||||||||||||
Most of the Company's revenue is recognized in accordance with the accounting policies in the preceding paragraph. However, when a sale arrangement involves multiple elements, such as equipment and installation, the Company considers the guidance in ASC 605. Such transactions are evaluated to determine whether the deliverables in the arrangement represent separate units of accounting based on the following criteria: the delivered item has value to the customer on a stand-alone basis, and if the contract includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially under the control of the Company. Revenue is allocated to each unit of accounting or element based on relative selling prices. The Company determines relative selling prices by using either vendor-specific objective evidence (VSOE) if that exists, or third-party evidence of selling price. When neither VSOE or third-party evidence of selling price exists for a deliverable, the Company uses its best estimate of the selling price for that deliverable. In cases in which elements cannot be treated as separate units of accounting, the elements are combined into a single unit of accounting for revenue recognition purposes. | |||||||||||||||||
In addition, revenues and profits on certain long-term contracts are recognized using the percentage-of-completion method or the completed contract method of accounting pursuant to ASC 605. Revenues recorded under the percentage-of-completion method were $19,758,000 in 2013, $42,190,000 in 2012, and $29,207,000 in 2011. The percentage of completion is determined by comparing the actual costs incurred to date to an estimate of total costs to be incurred on each contract. If a loss is indicated on any contract in process, a provision is made currently for the entire estimated loss. The Company's contracts generally provide for billing of customers upon the attainment of certain milestones specified in each contract. Revenues earned on contracts in process in excess of billings are classified as unbilled contract costs and fees, and amounts billed in excess of revenues earned are classified as billings in excess of contract costs and fees, which are included in other current liabilities in the accompanying balance sheet. There are no significant amounts included in the accompanying balance sheet that are not expected to be recovered from existing contracts at current contract values, or that are not expected to be collected within one year, including amounts that are billed but not paid under retainage provisions. For long-term contracts that do not meet the criteria under ASC 605-35 to be accounted for under the percentage-of-completion method, the Company recognizes revenue using the completed contract method. When using the completed contract method, the Company recognizes revenue when the contract has been substantially completed, the product has been delivered, and, if applicable, the customer acceptance criteria have been met. | |||||||||||||||||
Accounts receivable are recorded at invoiced amount and do not bear interest. The Company exercises judgment in determining its allowance for bad debts, which is based on its historical collection experience, current trends, credit policies, specific customer collection issues, and accounts receivable aging categories. In determining this allowance, the Company looks at historical writeoffs of its receivables. The Company also looks at current trends in the credit quality of its customer base as well as changes in its credit policies. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and each customer's current creditworthiness. The Company continuously monitors collections and payments from its customers. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. In some instances, the Company utilizes letters of credit as a way to mitigate its credit exposure. | |||||||||||||||||
The Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The banker's acceptance drafts are non-interest bearing and mature within six months of the origination date. The Company has the ability to sell the drafts at a discount or transfer the drafts in settlement of current accounts payable prior to the scheduled maturity date. These drafts, which totaled $10,765,000 and $9,794,000 at year-end 2013 and year-end 2012, respectively, are reflected in accounts receivable in the accompanying consolidated balance sheet until the subsidiary discounts or transfers the banker's acceptance drafts in settlement of current accounts payable prior to maturity or obtains cash payment on the scheduled maturity date. | |||||||||||||||||
Warranty Obligations | |||||||||||||||||
The Company provides for the estimated cost of product warranties at the time of sale based on the actual historical occurrence rates and repair costs. The Company typically negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications. While the Company engages in extensive product quality programs and processes, the Company's warranty obligation is affected by product failure rates, repair costs, service delivery costs incurred in correcting a product failure, and supplier warranties on parts delivered to the Company. Should actual product failure rates, repair costs, service delivery costs, or supplier warranties on parts differ from the Company's estimates, revisions to the estimated warranty liability would be required. | |||||||||||||||||
The changes in the carrying amount of accrued warranty costs are as follows: | |||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||
Balance at Beginning of Year | $ | 4,462 | $ | 4,129 | |||||||||||||
Provision charged to income | 1,565 | 1,775 | |||||||||||||||
Usage | (2,114 | ) | (1,544 | ) | |||||||||||||
Acquired | 567 | – | |||||||||||||||
Currency translation | 91 | 102 | |||||||||||||||
Balance at End of Year | $ | 4,571 | $ | 4,462 | |||||||||||||
Income Taxes | |||||||||||||||||
In accordance with ASC 740, "Income Taxes," (ASC 740), the Company recognizes deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which these differences are expected to reverse. A tax valuation allowance is established, as needed, to reduce deferred tax assets to the amount expected to be realized. In the period in which it becomes more likely than not that some or all of the deferred tax assets will be realized, the valuation allowance will be adjusted. | |||||||||||||||||
It is the Company's policy to provide for uncertain tax positions and the related interest and penalties based upon management's assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. At December 28, 2013, the Company believes that it has appropriately accounted for any liability for unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established, the statute of limitations expires for a tax jurisdiction year, or the Company is required to pay amounts in excess of the liability, its effective tax rate in a given financial statement period may be affected. | |||||||||||||||||
Earnings per Share | |||||||||||||||||
Basic earnings per share has been computed by dividing net income attributable to Kadant by the weighted average number of shares outstanding during the year. Diluted earnings per share was computed using the treasury stock method assuming the effect of all potentially dilutive securities, including stock options, restricted stock units and employee stock purchase plan shares, as well as their related tax effects. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
At year-end 2013 and 2012, the Company's cash equivalents included investments in money market funds and other marketable securities, which had maturities of three months or less at the date of purchase. The carrying amounts of cash equivalents approximate their fair values due to the short-term nature of these instruments. | |||||||||||||||||
Restricted Cash | |||||||||||||||||
At year-end 2013, the Company had approximately $168,000 of restricted cash. This cash serves as collateral for bank guarantees primarily associated with providing assurance to customers that the Company will fulfill certain customer obligations entered into in the normal course of business. All of the bank guarantees will expire in 2014. | |||||||||||||||||
Supplemental Cash Flow Information | |||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Cash Paid for Interest | $ | 961 | $ | 856 | $ | 1,106 | |||||||||||
Cash Paid for Income Taxes | $ | 8,375 | $ | 9,326 | $ | 6,677 | |||||||||||
Non-Cash Investing Activities: | |||||||||||||||||
Fair Value of Assets Acquired | $ | 88,398 | $ | – | $ | 21,808 | |||||||||||
Cash Paid for Acquired Businesses | (67,453 | ) | – | (16,104 | ) | ||||||||||||
Liabilities Assumed of Acquired Businesses | $ | 20,945 | $ | – | $ | 5,704 | |||||||||||
Non-Cash Financing Activities: | |||||||||||||||||
Issuance of Company Common Stock | $ | 2,677 | $ | 2,106 | $ | 2,296 | |||||||||||
Dividends Declared but Unpaid | $ | 1,389 | $ | – | $ | – | |||||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost (on a first-in, first-out; or weighted average basis) or market value and include materials, labor, and manufacturing overhead. The Company periodically reviews its quantities of inventories on hand and compares these amounts to the expected usage of each particular product or product line. The Company records as a charge to cost of revenues any amounts required to reduce the carrying value of inventories to net realizable value. | |||||||||||||||||
The components of inventories are as follows: | |||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||
Raw Materials and Supplies | $ | 20,836 | $ | 19,561 | |||||||||||||
Work in Process | 21,051 | 8,371 | |||||||||||||||
Finished Goods (includes $2,941 and $2,310 at customer locations) | 20,918 | 14,145 | |||||||||||||||
$ | 62,805 | $ | 42,077 | ||||||||||||||
Property, Plant, and Equipment | |||||||||||||||||
Property, plant, and equipment are stated at cost. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. The Company provides for depreciation and amortization primarily using the straight-line method over the estimated useful lives of the property as follows: buildings, 10 to 40 years; machinery and equipment, 2 to 10 years; and leasehold improvements, the shorter of the term of the lease or the life of the asset. | |||||||||||||||||
Property, plant, and equipment consist of the following: | |||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||
Land | $ | 4,797 | $ | 3,968 | |||||||||||||
Buildings | 38,363 | 36,823 | |||||||||||||||
Machinery, Equipment, and Leasehold Improvements | 74,837 | 68,255 | |||||||||||||||
117,997 | 109,046 | ||||||||||||||||
Less: Accumulated Depreciation and Amortization | 73,112 | 69,878 | |||||||||||||||
$ | 44,885 | $ | 39,168 | ||||||||||||||
Depreciation and amortization expense related to property, plant, and equipment was $5,088,000, $5,015,000, and $4,953,000 in 2013, 2012, and 2011, respectively. | |||||||||||||||||
Intangible Assets | |||||||||||||||||
Intangible assets in the accompanying balance sheet include the costs of acquired intellectual property, tradenames, patents, customer relationships, non-compete agreements and other specifically identifiable intangible assets. An intangible asset of $8,100,000 associated with the acquisition of the Johnson tradename as part of the Company's acquisition of The Johnson Corporation in 2005 has an indefinite life and is not being amortized. The remaining intangible assets have been amortized as the underlying economic benefits are realized with a weighted-average amortization period of 11 years. The intangible asset lives have been determined based on the anticipated period over which the Company will derive future cash flow benefits from the intangible assets. The Company has considered the effects of legal, regulatory, contractual, competitive, and other economic factors in determining these useful lives. | |||||||||||||||||
Acquired intangible assets are as follows: | |||||||||||||||||
(In thousands) | Gross | Currency | Accumulated | Net | |||||||||||||
Translation | Amortization | ||||||||||||||||
28-Dec-13 | |||||||||||||||||
Customer relationships | $ | 37,964 | $ | 1,074 | $ | (11,446 | ) | $ | 27,592 | ||||||||
Intellectual property | 20,350 | (225 | ) | (12,276 | ) | 7,849 | |||||||||||
Tradenames | 10,198 | (60 | ) | (252 | ) | 9,886 | |||||||||||
Non-compete agreements | 3,388 | (10 | ) | (3,203 | ) | 175 | |||||||||||
Distribution network | 2,400 | – | (1,238 | ) | 1,162 | ||||||||||||
Licensing agreements | 400 | – | (173 | ) | 227 | ||||||||||||
Other | 2,809 | (65 | ) | (1,785 | ) | 959 | |||||||||||
$ | 77,509 | $ | 714 | $ | (30,373 | ) | $ | 47,850 | |||||||||
29-Dec-12 | |||||||||||||||||
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 | |||||||||
Amortization of acquired intangible assets was $4,687,000 in 2013, $3,369,000 in 2012, and $2,983,000 in 2011. The estimated future amortization expense of acquired intangible assets is $5,513,000 in 2014; $4,588,000 in 2015; $4,296,000 in 2016; $4,058,000 in 2017; $3,979,000 in 2018; and $17,316,000 in the aggregate thereafter. | |||||||||||||||||
Goodwill | |||||||||||||||||
The changes in the carrying amount of goodwill by segment are as follows: | |||||||||||||||||
(In thousands) | Papermaking Systems Segment | Wood Processing Systems Segment | Total | ||||||||||||||
Balance as of December 31, 2011: | |||||||||||||||||
Gross Balance | $ | 191,468 | $ | – | $ | 191,468 | |||||||||||
Accumulated Impairment Losses | (85,509 | ) | – | (85,509 | ) | ||||||||||||
Net Balance | 105,959 | – | 105,959 | ||||||||||||||
Increase due to acquisitions | – | – | – | ||||||||||||||
Currency translation adjustment | 1,988 | – | 1,988 | ||||||||||||||
Total 2012 Adjustments | 1,988 | – | 1,988 | ||||||||||||||
Balance at December 29, 2012: | |||||||||||||||||
Gross Balance | 193,456 | – | 193,456 | ||||||||||||||
Accumulated Impairment Losses | (85,509 | ) | – | (85,509 | ) | ||||||||||||
Net Balance | 107,947 | – | 107,947 | ||||||||||||||
Increase due to acquisitions | 2,545 | 21,480 | 24,025 | ||||||||||||||
Currency translation adjustment | 338 | (395 | ) | (57 | ) | ||||||||||||
Total 2013 Adjustments | 2,883 | 21,085 | 23,968 | ||||||||||||||
Balance at December 28, 2013: | |||||||||||||||||
Gross Balance | 196,339 | 21,085 | 217,424 | ||||||||||||||
Accumulated Impairment Losses | (85,509 | ) | – | (85,509 | ) | ||||||||||||
Net Balance | $ | 110,830 | $ | 21,085 | $ | 131,915 | |||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
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 28, 2013 and December 29, 2012, the Company performed a qualitative goodwill impairment analysis. These 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 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 28, 2013 and December 29, 2012, the Company performed a quantitative impairment analysis on our indefinite-lived intangible asset, the Johnson tradename totaling $8,100,000, and determined that the asset was not impaired. | |||||||||||||||||
Goodwill by reporting unit is as follows: | |||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||
Stock-Preparation | $ | 18,290 | $ | 17,583 | |||||||||||||
Doctoring, Cleaning, & Filtration | 34,658 | 33,081 | |||||||||||||||
Fluid-Handling | 57,882 | 57,283 | |||||||||||||||
Wood Processing Systems | 21,085 | - | |||||||||||||||
$ | 131,915 | $ | 107,947 | ||||||||||||||
The Company assesses its long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever facts and circumstances indicate that the carrying amounts may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining lives of such assets. If these projected cash flows were less than the carrying amounts, an impairment loss would be recognized, resulting in a write-down of the assets with a corresponding charge to earnings. The impairment loss would be measured based upon the difference between the carrying amounts and the fair values of the assets. No indicators of impairment were identified in 2013 or 2012. | |||||||||||||||||
Foreign Currency Translation and Transactions | |||||||||||||||||
All assets and liabilities of the Company's foreign subsidiaries are translated at year-end exchange rates, and revenues and expenses are translated at average exchange rates for each quarter in accordance with ASC 830, "Foreign Currency Matters." Resulting translation adjustments are reflected in the "accumulated other comprehensive items" component of stockholders' equity (see Note 14). Foreign currency transaction gains and losses are included in the accompanying consolidated statement of income and are not material for the three years presented. | |||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The Company recognizes compensation cost for all stock-based awards granted to employees and directors based on the grant date estimate of fair value for those awards. The Company uses the grant date trading price of the Company's common stock to determine the fair value for restricted stock units (RSUs) and the Black-Scholes option-pricing model to determine the fair value for stock option grants. For stock options and time-based RSUs, compensation expense is recognized ratably over the requisite service period for the entire award net of forfeitures. For performance-based RSUs, compensation expense is recognized ratably over the requisite service period for each separately-vesting portion of the award net of forfeitures and remeasured at each reporting period until the total number of RSUs to be issued is known. | |||||||||||||||||
Derivatives | |||||||||||||||||
The Company uses derivative instruments primarily to reduce its exposure to changes in currency exchange rates and interest rates. When the Company enters into a derivative contract, the Company makes a determination as to whether the transaction is deemed to be a hedge for accounting purposes. For a contract deemed to be a hedge, the Company formally documents the relationship between the derivative instrument and the risk being hedged. In this documentation, the Company specifically identifies the asset, liability, forecasted transaction, cash flow, or net investment that has been designated as the hedged item, and evaluates whether the derivative instrument is expected to reduce the risks associated with the hedged item. To the extent these criteria are not met, the Company does not use hedge accounting for the derivative. The changes in the fair value of a derivative not deemed to be a hedge are recorded currently in earnings. The Company does not hold or engage in transactions involving derivative instruments for purposes other than risk management. | |||||||||||||||||
ASC 815, "Derivatives and Hedging," requires that all derivatives be recognized on the balance sheet at fair value. For derivatives designated as cash flow hedges, the related gains or losses on these contracts are deferred as a component of accumulated other comprehensive items (AOCI). These deferred gains and losses are recognized in the period in which the underlying anticipated transaction occurs. For derivatives designated as fair value hedges, the unrealized gains and losses resulting from the impact of currency exchange rate movements are recognized in earnings in the period in which the exchange rates change and offset the currency gains and losses on the underlying exposures being hedged. The Company performs an evaluation of the effectiveness of the hedge both at inception and on an ongoing basis. The ineffective portion of a hedge, if any, and changes in the fair value of a derivative not deemed to be a hedge, are recorded in the consolidated statement of income. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-11. Currently, GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This ASU clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows: to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU applies to all entities that have unrecognized | |||||||||||||||||
tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, although early adoption is permitted. This ASU will be applied prospectively to all unrecognized tax benefits that exist at the effective date. The Company has not yet adopted this ASU and is currently evaluating the effect the adoption will have on its consolidated financial statements. | |||||||||||||||||
Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. In July 2013, the FASB issued ASU No. 2013-10. This ASU permits the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the U.S. government treasury obligation rate and the London Interbank Offered Rate (LIBOR). This ASU also removes the restriction on using different benchmark rates for similar hedges. This ASU is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Company adopted this ASU in the third quarter of 2013 and the adoption did not have an effect on its consolidated financial statements. The Company will consider the guidance in this ASU for future transactions in which the Company elects to apply hedge accounting of the benchmark interest rate. | |||||||||||||||||
Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. In March 2013, the FASB issued ASU No. 2013-05. When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity, the parent is required to apply the guidance in subtopic 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. This ASU is effective prospectively for fiscal years and interim periods beginning after December 15, 2013. This ASU will be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material effect on its consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | ||||
Dec. 28, 2013 | |||||
Acquisitions [Abstract] | ' | ||||
Acquisitions | ' | ||||
2 | Acquisitions | ||||
On April 12, 2013, the Company acquired all the outstanding stock of Companhia Brasileira de Tecnologia Industrial (CBTI) for approximately $8,140,000 in cash and $484,000 in assumed liabilities owed to Kadant. CBTI was a long-time licensee of the Company's doctoring, cleaning, filtration, and stock preparation products and is also a supplier of industrial drying systems. This acquisition furthers the Company's strategy of expanding its presence in emerging markets. At the closing date, approximately $3,550,000 of the purchase price was deposited into an escrow fund to secure certain indemnification obligations of the sellers. Approximately $1,248,000 of the escrow fund was released to the sellers in February 2014, and the balance will be released on various dates over a five-year period ending on the fifth anniversary of the closing date, less the amount of any claims. | |||||
On May 3, 2013, the Company acquired certain assets of the Noss Group (Noss), a Sweden-based developer and supplier of high-efficiency cleaners and approach flow systems, for approximately $7,094,000 in cash. This acquisition expands the Company's product offerings in its Stock-Preparation product line, particularly for virgin pulp and approach flow applications. In addition, Noss has a large installed base and a high proportion of its revenues are parts and consumables products. At the closing date, approximately $1,970,000 of the purchase price was deposited into an escrow fund to secure certain indemnification obligations of the sellers. The escrow fund, less any claims made, will be released to the sellers in two installments on the first and second anniversaries of the closing date. | |||||
On November 6, 2013, the Company acquired all the outstanding shares of Carmanah Design and Manufacturing Inc. (Carmanah) for approximately $51,564,000 in cash and $171,000 of assumed liabilities owed to Kadant. The purchase price is subject to a post-closing adjustment. Carmanah is a designer and manufacturer of stranders and related equipment used in the production of oriented strand board, an engineered wood panel product used primarily in home construction. At the closing date, $6,705,000 of the purchase price was deposited into an escrow fund to secure certain tax, environmental, and other indemnification obligations of the sellers. The escrow fund, less any claims made, will be released to the sellers in two installments on the 12-month and 18-month anniversaries of the closing. The acquisition of Carmanah will extend Kadant's presence into the forest products industry and advance the Company's strategy of increasing its parts and consumables business. | |||||
2 | Acquisitions (continued) | ||||
The following table summarizes the purchase method of accounting for the acquisitions made in 2013 and the estimated fair values of assets acquired and liabilities assumed (in thousands): | |||||
Cash and cash equivalents | $ | 1,966 | |||
Accounts receivable | 8,523 | ||||
Inventories | 18,169 | ||||
Other current assets | 1,726 | ||||
Property, plant & equipment | 5,891 | ||||
Other assets | 1,063 | ||||
Intangibles | 27,035 | ||||
Goodwill | 24,025 | ||||
Total assets acquired | 88,398 | ||||
Accounts payable | 2,238 | ||||
Customer deposits | 7,064 | ||||
Long-term deferred tax liabilities | 6,062 | ||||
Other liabilities | 5,581 | ||||
Total liabilities assumed | 20,945 | ||||
Net assets acquired | $ | 67,453 | |||
Consideration: | |||||
Cash | $ | 39,717 | |||
Cash paid to seller borrowed under the 2012 Credit Agreement | 27,081 | ||||
Short-term obligations | 655 | ||||
Total consideration | $ | 67,453 | |||
The allocation of the purchase price for each acquisition was based on estimates of the fair value of the assets acquired and is subject to adjustment upon finalization of the purchase price allocation. Intangibles of $27,035,000 relate primarily to customer relationships and intellectual property and are being amortized over a weighted-average period of 10 years. The excess of the purchase price for the acquisitions made in 2013 over the tangible and identifiable intangible assets was recorded as goodwill and amounted to approximately $24,025,000, the majority of which is not deductible for tax purposes. | |||||
These acquisitions have been accounted for using the purchase method of accounting and the results have been included in the accompanying financial statements from the dates of the acquisitions. The Company recorded acquisition transaction costs of approximately $1,802,000 in 2013 in selling, general, and administrative expenses related to acquisitions. The fair values are subject to adjustment upon finalization of the valuations, and therefore the current measurements of intangible assets, acquired goodwill, and assumed assets and liabilities are subject to change. | |||||
On May 27, 2011, a subsidiary in the Company's Papermaking Systems segment acquired all of the stock of m-clean papertech holding AB (M-Clean), a European-based supplier of equipment used to clean paper machine fabrics and rolls. The aggregate purchase price for this acquisition was $16,072,000, net of post-closing adjustments. The purchase price included $910,000 of cash acquired and $517,000 of debt assumed. | |||||
This acquisition has been accounted for using the purchase method of accounting and the results of M-Clean have been included in the accompanying financial statements from the date of its acquisition. The Company recorded acquisition transaction costs of approximately $249,000 in 2011 in selling, general, and administrative expenses. Allocation of the purchase price for the acquisition was based on estimates of the fair values of the net assets acquired. The purchase price allocation includes identifiable intangible assets acquired of $5,777,000, which are being amortized over a weighted-average period of 8 years. The excess of the acquisition purchase price over the tangible and identifiable intangible assets was recorded as goodwill and totaled $9,641,000, none of which is deductible for tax purposes. | |||||
The Company's acquisitions have historically been made at prices above the fair value of the acquired assets, resulting in goodwill, due to expectations of synergies from combining the businesses. The Company anticipates several synergies in connection with these acquisitions, including the use of the Company's existing distribution channels to expand sales of the products of the acquired businesses. | |||||
Pro forma disclosures of the results of operations are not required, as the acquisitions are not considered material business combinations as outlined in FASB ASC 805, "Business Combinations." |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||||||
Employee Benefit Plans [Abstract] | ' | ||||||||||||||||||||||||
Employee Benefit Plans | ' | ||||||||||||||||||||||||
3 | Employee Benefit Plans | ||||||||||||||||||||||||
Stock-Based Compensation Plans | |||||||||||||||||||||||||
The Company maintains stock-based compensation plans primarily for its key employees and directors, although the plans permit awards to others expected to make significant contributions to the future of the Company. The plans authorize the compensation committee of the Company's board of directors (the board committee) to award a variety of stock and stock-based incentives, such as restricted stock, restricted stock units, nonqualified and incentive stock options, stock bonus shares, or performance-based shares. The award recipients and the terms of awards, including price, granted under these plans are determined by the board committee. Upon a change of control, as defined in the plans, all options or other awards become fully vested and all restrictions lapse. The Company had 274,921 shares available for grant under stock-based compensation plans at year-end 2013. The Company generally issues its common stock out of treasury stock, to the extent available, for share issuances related to its stock-based compensation plans. | |||||||||||||||||||||||||
The Company recognizes compensation cost for all stock-based awards granted to employees based on the grant date estimate of fair value for those awards. Total stock-based compensation expense was $5,216,000, $4,766,000, and $3,934,000 in 2013, 2012, and 2011, respectively, and is included in selling, general, and administrative expenses in the accompanying consolidated statement of income. | |||||||||||||||||||||||||
The components of pre-tax stock-based compensation expense are as follows: | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Restricted Stock Unit Awards | $ | 4,102 | $ | 3,731 | $ | 3,212 | |||||||||||||||||||
Stock Option Awards | 1,015 | 954 | 628 | ||||||||||||||||||||||
Employee Stock Purchase Plan Awards | 99 | 81 | 94 | ||||||||||||||||||||||
Total | $ | 5,216 | $ | 4,766 | $ | 3,934 | |||||||||||||||||||
The Company has elected to recognize excess income tax benefits from stock option exercises and the vesting of restricted stock units in capital in excess of par value using the tax return ordering approach. The Company measures the tax benefit associated with excess tax deductions related to stock-based compensation expense by multiplying the excess tax deductions by the statutory tax rates. The Company recognized income tax benefits in capital in excess of par value of $351,000, $132,000, and $371,000 in 2013, 2012, and 2011, respectively, associated with stock-based compensation. | |||||||||||||||||||||||||
Non-Employee Director Restricted Stock Units | |||||||||||||||||||||||||
In general, the Company grants 5,000 restricted stock units (RSUs) to each of its non-employee directors in the first quarter of each fiscal year. The shares vest ratably on the last day of each fiscal quarter within the year. In addition, the Company has granted 10,000 RSUs to each of its non-employee directors, which will only vest and compensation expense will only be recognized upon a change in control as defined in the Company's 2006 equity incentive plan. These RSUs, which total 50,000 outstanding in the aggregate and have a grant date fair value of $1,009,000, will be forfeited if a change in control does not occur before the last day of the first quarter of 2015. | |||||||||||||||||||||||||
The Company grants restricted stock units to non-employee directors, and certain employees. Holders of restricted stock units have no voting rights and are not entitled to receive cash dividends. | |||||||||||||||||||||||||
Performance-Based Restricted Stock Units | |||||||||||||||||||||||||
The Company grants performance-based RSUs to executive officers of the Company. Each performance-based RSU represents the right to receive one share of the Company's common stock upon vesting. The RSUs are subject to adjustment based on the achievement of a performance measure selected for the fiscal year, which is a specified target for adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) generated from continuing operations. Following adjustment, the RSUs are subject to additional time-based vesting, and vest in three equal annual installments, provided that the executive officer is employed by the Company on the applicable vesting dates. | |||||||||||||||||||||||||
The Company recognizes compensation expense associated with performance-based RSUs ratably over the requisite service period for each separately-vesting portion of the award based on the grant date fair value. Compensation expense recognized is net of forfeitures and remeasured each reporting period until the total number of RSUs to be issued is known. Unrecognized compensation expense related to the unvested performance-based RSUs totaled approximately $1,441,000 at year-end 2013, and will be recognized over a weighted average period of 1.4 years. | |||||||||||||||||||||||||
The performance-based RSU agreements provide for forfeiture in certain events, such as voluntary or involuntary termination of employment, and for acceleration of vesting in certain events, such as death, disability or a change in control of the Company. If death, disability, or a change in control occurs prior to the end of the performance period, the officer will receive the target RSU amount; otherwise, the officer will receive the number of deliverable RSUs based on the achievement of the performance goal, as stated in the RSU agreements. | |||||||||||||||||||||||||
Time-Based Restricted Stock Units | |||||||||||||||||||||||||
The Company grants time-based RSUs to certain employees of the Company. Each time-based RSU represents the right to receive one share of the Company's common stock upon vesting. The Company is recognizing compensation expense associated with these time-based RSUs ratably over the requisite service period for the entire award based on the grant date fair value and net of forfeitures. The time-based RSU agreement provides for forfeiture in certain events, such as voluntary or involuntary termination of employment, and for acceleration of vesting in certain events, such as death, disability, or a change in control of the Company. Unrecognized compensation expense related to the time-based RSUs totaled approximately $1,760,000 at year-end 2013, and will be recognized over a weighted average period of 1.7 years. | |||||||||||||||||||||||||
A summary of the activity of the Company's unvested restricted stock units for 2011, 2012, and 2013 is as follows: | |||||||||||||||||||||||||
Unvested Restricted Stock Units | Units | Weighted | |||||||||||||||||||||||
(In thousands) | Average Grant- | ||||||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||||||
Unvested RSUs at January 1, 2011 | 312 | $ | 16.77 | ||||||||||||||||||||||
Granted | 184 | $ | 24.91 | ||||||||||||||||||||||
Vested | (159 | ) | $ | 19.9 | |||||||||||||||||||||
Forfeited / Expired | (8 | ) | $ | 8.81 | |||||||||||||||||||||
Unvested RSUs at December 31, 2011 | 329 | $ | 20.02 | ||||||||||||||||||||||
Granted | 179 | $ | 21.95 | ||||||||||||||||||||||
Vested | (144 | ) | $ | 19.97 | |||||||||||||||||||||
Forfeited / Expired | (1 | ) | $ | 27.74 | |||||||||||||||||||||
Unvested RSUs at December 29, 2012 | 363 | $ | 20.98 | ||||||||||||||||||||||
Granted | 176 | $ | 25.53 | ||||||||||||||||||||||
Vested | (182 | ) | $ | 22.84 | |||||||||||||||||||||
Forfeited / Expired | (14 | ) | $ | 16.97 | |||||||||||||||||||||
Unvested RSUs at December 28, 2013 | 343 | $ | 22.5 | ||||||||||||||||||||||
The total fair value of shares vested was $4,997,000, $3,321,000, and $4,071,000 in 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||
Options granted from 2011 through 2013 have been nonqualified options that vest over three years and are not exercisable until vested. To date, all options have been granted at an exercise price equal to the fair market value of the Company's common stock on the date of grant. The stock options vest in three equal annual installments beginning on the first anniversary of the grant date, provided that the recipient remains employed by the Company on the applicable vesting dates. The Company is recognizing compensation expense associated with these stock options ratably over the requisite service period for the entire award based on the grant date fair value and net of forfeitures. Unrecognized compensation expense related to these stock options totaled approximately $1,219,000 at December 28, 2013, and will be recognized over a weighted average period of 1.8 years. | |||||||||||||||||||||||||
The fair value of each option grant was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted-average Exercise Price | $ | 25.98 | $ | 21.91 | $ | 24.9 | |||||||||||||||||||
Weighted-average Grant Date Fair Value | $ | 11.33 | $ | 11.69 | $ | 12.85 | |||||||||||||||||||
Volatility | 51 | % | 50 | % | 45 | % | |||||||||||||||||||
Expected Annual Dividend | 1.92 | % | – | – | |||||||||||||||||||||
Risk-Free Interest Rate | 1.25 | % | 1.38 | % | 2.86 | % | |||||||||||||||||||
Expected Life of Options | 7.6 years | 7.6 years | 7.4 years | ||||||||||||||||||||||
The Black-Scholes option-pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option-pricing models require the input of highly subjective assumptions, including expected stock price volatility. Expected stock price volatility was calculated based on a review of the Company's actual historic stock prices commensurate with the expected life of the award. The expected option life was derived based on a review of the Company's historic option holding periods, including consideration of the holding period inherent in currently vested but unexercised options. The expected annual dividend rate was calculated by dividing the Company's annual dividend by the closing stock price on the grant date. The risk-free interest rate is based on the yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected term of the option. The compensation expense recognized for all equity-based awards is net of estimated forfeitures. Forfeitures are estimated based on an analysis of actual option forfeitures. | |||||||||||||||||||||||||
A summary of the Company's stock option activity for 2011, 2012, and 2013 is as follows: | |||||||||||||||||||||||||
(in thousands, except per share amounts) | Number | Weighted | Weighted | Aggregate | |||||||||||||||||||||
of | Average | Average | Intrinsic | ||||||||||||||||||||||
Shares | Exercise | Remaining | Value (a) | ||||||||||||||||||||||
Price | Contractual | ||||||||||||||||||||||||
Life | |||||||||||||||||||||||||
Options Outstanding at January 1, 2011 | 161 | $ | 14.82 | ||||||||||||||||||||||
Granted | 82 | $ | 24.9 | ||||||||||||||||||||||
Exercised | (8 | ) | 20.01 | ||||||||||||||||||||||
Options Outstanding at December 31, 2011 | 235 | $ | 18.15 | ||||||||||||||||||||||
Granted | 83 | $ | 21.91 | ||||||||||||||||||||||
Exercised | (18 | ) | $ | 17.54 | |||||||||||||||||||||
Options Outstanding at December 29, 2012 | 300 | $ | 19.23 | ||||||||||||||||||||||
Granted | 93 | $ | 25.98 | ||||||||||||||||||||||
Options Outstanding at December 28, 2013 | 393 | $ | 20.82 | 7.5 years | $ | 7,841 | |||||||||||||||||||
Vested and Unvested Expected to Vest, End of Year | 393 | $ | 20.82 | 7.5 years | $ | 7,841 | |||||||||||||||||||
Options Exercisable, End of Year | 217 | $ | 17.84 | 6.7 years | $ | 4,992 | |||||||||||||||||||
(a) | The closing price per share on the last trading day prior to December 28, 2013 was $40.79. | ||||||||||||||||||||||||
A summary of the Company's stock option exercises in 2013, 2012, and 2011 is as follows. | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Total intrinsic value of options exercised | $ | - | $ | 119 | $ | 39 | |||||||||||||||||||
Cash received from options exercised | $ | - | $ | 319 | $ | 150 | |||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||||||
The Company's eligible U.S. employees may elect to participate in its employee stock purchase plan. Under the plan, shares of the Company's common stock may be purchased at a 15% discount from the fair market value at the beginning or end of the purchase period, whichever is lower. Shares purchased under the plan are subject to a one-year resale restriction and are purchased through payroll deductions of up to 10% of each participating employee's gross wages. For the 2013, 2012, and 2011 plan years, the Company issued 16,325, 17,490, and 12,509 shares, respectively, of its common stock under this plan. | |||||||||||||||||||||||||
401(k) Savings and Other Defined Contribution Plans | |||||||||||||||||||||||||
The Company's U.S. subsidiaries participate in the Kadant Inc. 401(k) Retirement Savings Plan sponsored by the Company. Contributions to the plan are made by both the employee and the Company and are immediately vested. Company contributions are based upon the level of employee contributions. | |||||||||||||||||||||||||
Certain of the Company's subsidiaries offer other retirement plans, the majority of which are defined contribution plans. Company contributions to these plans are based on formulas determined by the Company. | |||||||||||||||||||||||||
For these plans, the Company contributed and charged to expense approximately $2,607,000, $2,466,000, and $2,294,000 in 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||||
Defined Benefit Pension Plan and Post-Retirement Welfare Benefits Plans | |||||||||||||||||||||||||
The Company sponsors a noncontributory defined benefit retirement plan for the benefit of eligible employees at its Kadant Solutions division and the corporate office. Benefits under the plan are based on years of service and employee compensation. Funds are contributed to a trustee as necessary to provide for current service and for any unfunded projected benefit obligation over a reasonable period. Effective December 31, 2005, this plan was closed to new participants. The Company also has a post-retirement welfare benefits plan for the benefit of eligible employees at its Kadant Solutions division (included in the table below in "Other Benefits"). No future retirees are eligible for this post-retirement welfare benefits plan, and the plans include limits on the employer's contributions. | |||||||||||||||||||||||||
In March 2011, the Company approved a Restoration Plan (included in the table below in "Other Benefits") for the benefit of certain executive officers who are also participants of the noncontributory defined benefit retirement plan. This plan provides a benefit equal to the benefits lost under the noncontributory defined benefit retirement plan as a consequence of applicable Internal Revenue Service limits on the levels of contributions and benefits. | |||||||||||||||||||||||||
The Company's Kadant Lamort subsidiary sponsors a defined benefit pension plan (included in the table below in "Other Benefits"). Benefits under this plan are based on years of service and projected employee compensation. | |||||||||||||||||||||||||
The Company's Kadant Johnson subsidiary also offers a post-retirement welfare benefits plan (included in the table below in "Other Benefits") to its U.S. employees upon attainment of eligible retirement age. This plan was closed to employees who did not meet its retirement eligibility requirements on January 1, 2012. | |||||||||||||||||||||||||
In accordance with ASC 715, "Compensation–Retirement Benefits," (ASC 715), an employer is required to recognize the overfunded or underfunded status of a defined benefit post-retirement plan as an asset or liability in its balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. These amounts will be subsequently recognized as net periodic pension cost pursuant to the Company's historical accounting policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic pension cost in the same periods will be recognized as a component of accumulated other comprehensive items. The actuarial loss and prior service loss included in accumulated other comprehensive items and expected to be recognized in net periodic pension cost in 2014 are $368,000 and $142,000, respectively. | |||||||||||||||||||||||||
The following table summarizes the change in benefit obligation; the change in plan assets; the unfunded status; and the amounts recognized in the balance sheet for the Company's pension benefits and other benefits plans. The measurement date for all items set forth below is the last day of the fiscal year presented. | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in Benefit Obligation: | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 31,743 | $ | 31,594 | $ | 5,968 | $ | 5,402 | |||||||||||||||||
Service cost | 892 | 991 | 171 | 143 | |||||||||||||||||||||
Interest cost | 1,167 | 1,313 | 207 | 225 | |||||||||||||||||||||
Actuarial (gain) loss | (4,617 | ) | 1,046 | (551 | ) | 425 | |||||||||||||||||||
Benefits paid | (1,394 | ) | (3,201 | ) | (299 | ) | (275 | ) | |||||||||||||||||
Effect of currency translation | – | – | 87 | 48 | |||||||||||||||||||||
Benefit obligation at end of year | $ | 27,791 | $ | 31,743 | $ | 5,583 | $ | 5,968 | |||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 26,728 | $ | 26,393 | $ | – | $ | – | |||||||||||||||||
Actual return on plan assets | (358 | ) | 2,576 | – | – | ||||||||||||||||||||
Employer contribution | 1,080 | 960 | 299 | 275 | |||||||||||||||||||||
Benefits paid | (1,394 | ) | (3,201 | ) | (299 | ) | (275 | ) | |||||||||||||||||
Fair value of plan assets at end of year | $ | 26,056 | $ | 26,728 | $ | – | $ | – | |||||||||||||||||
Unfunded status | $ | (1,735 | ) | $ | (5,015 | ) | $ | (5,583 | ) | $ | (5,968 | ) | |||||||||||||
Accumulated benefit obligation as of year-end | $ | 23,494 | $ | 26,270 | $ | 1,876 | $ | 1,777 | |||||||||||||||||
Amounts Recognized in the Balance Sheet Consist of: | |||||||||||||||||||||||||
Current liability | $ | – | $ | – | $ | (233 | ) | $ | (251 | ) | |||||||||||||||
Non-current liability | $ | (1,735 | ) | $ | (5,015 | ) | $ | (5,350 | ) | $ | (5,717 | ) | |||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Items Before Tax Consist of: | |||||||||||||||||||||||||
Unrecognized net actuarial loss | $ | (6,264 | ) | $ | (9,656 | ) | $ | (662 | ) | $ | (1,251 | ) | |||||||||||||
Unrecognized prior service cost | (218 | ) | (273 | ) | (799 | ) | (882 | ) | |||||||||||||||||
Total | $ | (6,482 | ) | $ | (9,929 | ) | $ | (1,461 | ) | $ | (2,133 | ) | |||||||||||||
Changes in Amounts Recognized in Accumulated Other Comprehensive Items Before Tax: | |||||||||||||||||||||||||
Current year unrecognized net actuarial gain (loss) | $ | 2,859 | $ | (85 | ) | $ | 551 | $ | (425 | ) | |||||||||||||||
Amortization of unrecognized prior service cost | 55 | 56 | 85 | 28 | |||||||||||||||||||||
Amortization of unrecognized net actuarial loss | 533 | 634 | 62 | 36 | |||||||||||||||||||||
Effect of currency translation | – | – | (26 | ) | (7 | ) | |||||||||||||||||||
Total | $ | 3,447 | $ | 605 | $ | 672 | $ | (368 | ) | ||||||||||||||||
The weighted-average assumptions used to determine the benefit obligation as of year-end were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 4.79 | % | 3.89 | % | 4.04 | % | 3.52 | % | |||||||||||||||||
Rate of compensation increase | 3.5 | % | 3.5 | % | 3 | % | 3.15 | % | |||||||||||||||||
The projected benefit obligations and fair value of plan assets for the Company's pension plans with projected benefit obligations in excess of plan assets were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets: | |||||||||||||||||||||||||
Projected benefit obligation | $ | 27,791 | $ | 31,743 | $ | 2,469 | $ | 2,456 | |||||||||||||||||
Fair value of plan assets | $ | 26,056 | $ | 26,728 | $ | – | $ | – | |||||||||||||||||
The accumulated benefit obligations and fair values of plan assets for the Company's pension plans with accumulated benefit obligations in excess of plan assets were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets: | |||||||||||||||||||||||||
Accumulated benefit obligation | $ | – | $ | – | $ | 1,876 | $ | 1,777 | |||||||||||||||||
Fair value of plan assets | $ | – | $ | – | $ | – | $ | – | |||||||||||||||||
The components of net periodic benefit cost were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Components of Net Periodic Benefit Cost: | |||||||||||||||||||||||||
Service cost | $ | 998 | $ | 991 | $ | 855 | $ | 171 | $ | 143 | $ | 187 | |||||||||||||
Interest cost | 1,167 | 1,313 | 1,298 | 207 | 225 | 237 | |||||||||||||||||||
Expected return on plan assets | (1,506 | ) | (1,616 | ) | (1,429 | ) | – | – | – | ||||||||||||||||
Recognized net actuarial loss | 533 | 634 | 433 | 62 | 36 | 28 | |||||||||||||||||||
Amortization of prior service cost | 55 | 56 | 55 | 85 | 28 | 15 | |||||||||||||||||||
Net periodic benefit cost | $ | 1,247 | $ | 1,378 | $ | 1,212 | $ | 525 | $ | 432 | $ | 467 | |||||||||||||
The weighted-average assumptions used to determine net periodic benefit cost were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Discount rate | 3.89 | % | 4.28 | % | 5.25 | % | 3.53 | % | 4.44 | % | 5.04 | % | |||||||||||||
Expected long-term return on plan assets | 5.75 | % | 6.25 | % | 6.25 | % | – | – | – | ||||||||||||||||
Rate of compensation increase | 3.5 | % | 4 | % | 4 | % | 3.25 | % | 3.57 | % | 3.28 | % | |||||||||||||
In developing the overall expected long-term return on plan assets assumption, a building block approach was used in which rates of return in excess of inflation were considered separately for equity securities, debt securities, and other assets. The excess returns were weighted by the representative target allocation and added along with an appropriate rate of inflation to develop the overall expected long-term return on plan assets assumption. The Company believes this determination is consistent with ASC 715. | |||||||||||||||||||||||||
Assumed weighted-average healthcare cost trend rates as of year-end were as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Healthcare cost trend rate assumed for next year | 8 | % | 8 | % | |||||||||||||||||||||
Ultimate healthcare cost trend rate | 0 | % | 0 | % | |||||||||||||||||||||
Year assumed rate reaches ultimate rate | 2018 | 2018 | |||||||||||||||||||||||
A one-percentage point increase or decrease in assumed healthcare cost trend rates would have had an immaterial effect on service and interest cost components in 2013 and the post-retirement obligation at year-end 2013. | |||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
The fair values of the Company's noncontributory defined benefit retirement plan assets at year-end 2013 and 2012 by asset category are as follows: | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Total | |||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Mutual Funds: | |||||||||||||||||||||||||
U.S. Equity (a) | $ | 3,205 | $ | – | $ | – | $ | 3,205 | |||||||||||||||||
International Equity (a) | 817 | – | – | 817 | |||||||||||||||||||||
Fixed Income (b) | 14,374 | 7,660 | – | 22,034 | |||||||||||||||||||||
Total Assets | $ | 18,396 | $ | 7,660 | $ | – | $ | 26,056 | |||||||||||||||||
2012 | |||||||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Total | |||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Mutual Funds: | |||||||||||||||||||||||||
U.S. Equity (a) | $ | 3,331 | $ | – | $ | – | $ | 3,331 | |||||||||||||||||
International Equity (a) | 848 | – | – | 848 | |||||||||||||||||||||
Fixed Income (b) | 14,641 | 7,908 | – | 22,549 | |||||||||||||||||||||
Total Assets | $ | 18,820 | $ | 7,908 | $ | – | $ | 26,728 | |||||||||||||||||
______________________________ | |||||||||||||||||||||||||
(a) | Common stock index funds. | ||||||||||||||||||||||||
(b) | Investments in commingled funds that invest in a diversified blend of investment and non-investment grade fixed income securities. | ||||||||||||||||||||||||
Description of Fair Value Measurements | |||||||||||||||||||||||||
Level 1 – Quoted, active market prices for identical assets. Share prices of the funds, referred to as a fund's Net Asset Value (NAV), are calculated daily based on the closing market prices and accruals of securities in the fund's total portfolio (total value of the fund) divided by the number of fund shares currently issued and outstanding. Redemptions of the mutual funds occur by contract at the respective fund's redemption date NAV. | |||||||||||||||||||||||||
Level 2 – Observable inputs other than Level 1 prices, based on model-derived valuations in which all significant inputs are observable in active markets. The NAVs of the funds are calculated monthly based on the closing market prices and accruals of securities in the fund's total portfolio (total value of the fund) divided by the number of fund shares currently issued and outstanding. Redemptions of the mutual funds occur by contract at the respective fund's redemption date NAV. | |||||||||||||||||||||||||
Level 3 – Unobservable inputs based on the Company's own assumptions. | |||||||||||||||||||||||||
The Company has developed an investment policy for its noncontributory defined benefit retirement plan. The investment strategy is to emphasize total return, that is, the aggregate return from capital appreciation and dividend and interest income. The primary objective of the investment management for the plan's assets is the emphasis on consistent growth, specifically, growth in a manner that protects the plan's assets from excessive volatility in market value from year to year. The investment policy takes into consideration the benefit obligations, including timing of distributions. | |||||||||||||||||||||||||
The primary objective for the noncontributory defined benefit retirement plan is to provide long-term capital appreciation through investment in equity and debt securities. The following target asset allocation has been established for the plan: | |||||||||||||||||||||||||
Asset Category | Minimum | Neutral | Maximum | ||||||||||||||||||||||
Equity securities | 10 | % | 15 | % | 20 | % | |||||||||||||||||||
Debt securities | 80 | % | 85 | % | 90 | % | |||||||||||||||||||
Total | 100 | % | |||||||||||||||||||||||
All equity securities must be drawn from recognized securities exchanges. Debt securities must be weighted to reflect a portfolio average maturity of not more than ten years, with average benchmark duration of five years. The credit quality must equal or exceed high investment grade quality ("Baa" or better). | |||||||||||||||||||||||||
Cash Flows | |||||||||||||||||||||||||
Contributions | |||||||||||||||||||||||||
The Company expects to make cash contributions of $1,080,000 to its noncontributory defined benefit retirement plan in 2014. For the remaining pension and post-retirement welfare benefits plans, no cash contributions other than to fund current benefit payments are expected in 2014. | |||||||||||||||||||||||||
Estimated Future Benefit Payments | |||||||||||||||||||||||||
The following benefit payments, which reflect future service as appropriate, are expected to be paid. The benefit payments are based on the same assumptions used to measure the Company's benefit obligation at year-end 2013. | |||||||||||||||||||||||||
(In thousands) | Pension | Other | |||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2014 | $ | 1,143 | $ | 234 | |||||||||||||||||||||
2015 | 1,237 | 425 | |||||||||||||||||||||||
2016 | 1,286 | 202 | |||||||||||||||||||||||
2017 | 2,668 | 753 | |||||||||||||||||||||||
2018 | 2,034 | 433 | |||||||||||||||||||||||
2019-2023 | 11,269 | 1,977 | |||||||||||||||||||||||
Information and Assumptions for the Post-Retirement Welfare Benefits Plan | |||||||||||||||||||||||||
All eligible retirees of the Company's Kadant Solutions division are currently participating in a post-retirement welfare benefits plan, with no future retirees eligible to participate. Effective September 1, 2003, the monthly contribution to the plan was capped at $358 per participant. For the majority of the retirees in the plan, no healthcare cost trend rate is assumed, as the Company cap applies. For the remainder, the healthcare cost trend rate is assumed to be 8% in 2014 and an ultimate rate of 0% in 2018, at which time the plan caps on benefits are expected to apply to all benefits. | |||||||||||||||||||||||||
All eligible retirees of the Company's Kadant Johnson Inc. subsidiary are currently participating in a post-retirement welfare benefits plan. Kadant Johnson pays 75% of all plan costs for retirees with a retirement date prior to January 1, 2005, and 50% of all plan costs for retirees with a retirement date after January 1, 2005, with no limits on its contributions up to annual employee and plan stop loss limitations. This plan was closed to employees who did not meet its retirement eligibility requirements on January 1, 2012. The medical healthcare cost trend rate no longer affects the amounts reported for the health care benefits in this plan. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |
Dec. 28, 2013 | ||
Preferred and Common Stock [Abstract] | ' | |
Preferred and Common Stock | ' | |
4 | Stockholders' Equity | |
Preferred Stock | ||
The Company's Certificate of Incorporation authorizes up to 5,000,000 shares of preferred stock, $.01 par value per share, for issuance by the Company's board of directors without further shareholder approval. | ||
Common Stock | ||
At year-end 2013, the Company had reserved 1,124,480 unissued shares of its common stock for possible issuance under its stock-based compensation plans. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
5 | Income Taxes | ||||||||||||
The components of income from continuing operations before provision for income taxes are as follows: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Domestic | $ | 8,913 | $ | 11,445 | $ | 9,823 | |||||||
Foreign | 24,113 | 24,485 | 28,320 | ||||||||||
$ | 33,026 | $ | 35,930 | $ | 38,143 | ||||||||
The components of the provision for income taxes from continuing operations are as follows: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Current Provision: | |||||||||||||
Federal | $ | 1,986 | $ | 1,798 | $ | 123 | |||||||
Foreign | 7,955 | 7,363 | 5,575 | ||||||||||
State | 436 | 559 | 473 | ||||||||||
10,377 | 9,720 | 6,171 | |||||||||||
Deferred (Benefit) Provision: | |||||||||||||
Federal | 1,325 | (3,980 | ) | (317 | ) | ||||||||
Foreign | (2,354 | ) | (782 | ) | (1,309 | ) | |||||||
State | (32 | ) | (106 | ) | (260 | ) | |||||||
(1,061 | ) | (4,868 | ) | (1,886 | ) | ||||||||
$ | 9,316 | $ | 4,852 | $ | 4,285 | ||||||||
The provision for income taxes included in the accompanying statement of income is as follows: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Continuing Operations | $ | 9,316 | $ | 4,852 | $ | 4,285 | |||||||
Discontinued Operation | (34 | ) | 451 | (1,511 | ) | ||||||||
$ | 9,282 | $ | 5,303 | $ | 2,774 | ||||||||
The Company receives a tax deduction upon the exercise of nonqualified stock options and the vesting of restricted stock units. The current provision for income taxes in the consolidated statement of income does not reflect $351,000, $132,000, and $371,000 of such excess tax benefits in 2013, 2012, and 2011, respectively, from the exercise of stock options and vesting of restricted stock units. | |||||||||||||
The provision for income taxes from continuing operations in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate of 35% to income from continuing operations before provision for income taxes due to the following: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Provision for Income Taxes at Statutory Rate | $ | 11,559 | $ | 12,576 | $ | 13,350 | |||||||
Increases (Decreases) Resulting From: | |||||||||||||
State income taxes, net of federal tax | 304 | 295 | (140 | ) | |||||||||
U.S. tax (benefit) cost of foreign earnings | (119 | ) | 791 | (53 | ) | ||||||||
Foreign tax rate differential | (2,681 | ) | (2,298 | ) | (3,094 | ) | |||||||
Provision (reversal) of tax benefit reserves, net | 853 | 624 | (1,596 | ) | |||||||||
Change in valuation allowance | (968 | ) | (7,051 | ) | (4,183 | ) | |||||||
Nondeductible expenses | 1,580 | 775 | 746 | ||||||||||
Research and development tax credits | (638 | ) | (623 | ) | (324 | ) | |||||||
Other | (574 | ) | (237 | ) | (421 | ) | |||||||
$ | 9,316 | $ | 4,852 | $ | 4,285 | ||||||||
Net deferred tax (liability) asset in the accompanying consolidated balance sheet consists of the following: | |||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Deferred Tax Asset: | |||||||||||||
Foreign and alternative minimum tax credit carryforwards | $ | 3,819 | $ | 5,659 | |||||||||
Reserves and accruals | 5,125 | 6,493 | |||||||||||
Net operating loss carryforwards | 16,452 | 15,147 | |||||||||||
Inventory basis difference | 2,797 | 2,468 | |||||||||||
Research and development | 1,017 | 1,193 | |||||||||||
Employee compensation | 3,199 | 2,229 | |||||||||||
Allowance for doubtful accounts | 595 | 486 | |||||||||||
Revenue recognition | 253 | 286 | |||||||||||
Other | 209 | 88 | |||||||||||
Deferred Tax Asset, Gross | 33,466 | 34,049 | |||||||||||
Less: Valuation Allowance | (13,905 | ) | (14,315 | ) | |||||||||
Deferred Tax Asset, Net | 19,561 | 19,734 | |||||||||||
Deferred Tax Liability: | |||||||||||||
Goodwill and intangible assets | (20,923 | ) | (15,393 | ) | |||||||||
Fixed asset basis difference | (3,619 | ) | (2,974 | ) | |||||||||
Reserves and accruals | (207 | ) | (342 | ) | |||||||||
Other | (65 | ) | (107 | ) | |||||||||
Deferred Tax Liability | (24,814 | ) | (18,816 | ) | |||||||||
Net Deferred Tax (Liability) Asset | $ | (5,253 | ) | $ | 918 | ||||||||
The deferred tax assets and liabilities are presented in the accompanying balance sheet within other current assets, other assets, other current liabilities and long-term deferred income taxes based on when the tax benefits are expected to be realized and on a net basis by tax jurisdiction. | |||||||||||||
The Company has established valuation allowances related to certain domestic and foreign deferred tax assets on deductible temporary differences, tax losses, and tax credit carryforwards. The valuation allowance at year-end 2013 was $13,905,000, consisting of $950,000 in the U.S. and $12,955,000 in foreign jurisdictions. The decrease in the valuation allowance in 2013 of $410,000 related primarily to the release of valuation allowances in the U.S. and several foreign jurisdictions due to an increase in current year income and expected future income. Compliance with ASC 740 requires the Company to periodically evaluate the necessity of establishing or adjusting a valuation allowance for deferred tax assets depending on whether it is more likely than not that a related tax benefit will be realized in future periods. When assessing the need for a valuation allowance in a tax jurisdiction, the Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. As part of this evaluation, the Company considers its cumulative three-year history of earnings before income taxes, taxable income in prior carryback years, future reversals of existing taxable temporary differences, prudent and feasible tax planning strategies, and expected future results of operations. As of year-end 2013, the Company continued to maintain a valuation allowance in the U.S. against its state operating loss carryforwards due to the uncertainty of future profitability in state jurisdictions. As of year-end 2013, the Company maintained valuation allowances in certain foreign jurisdictions because of the uncertainty of future profitability. | |||||||||||||
At year-end 2013, the Company had domestic state and foreign net operating loss carryforwards of $28,963,000 and $59,708,000, respectively, U.S. foreign tax credit carryforwards of $2,182,000, U.S. research and development tax credits of $467,000, and U.S. alternative minimum tax credits of $1,154,000. The domestic state loss carryforwards will expire in the years 2014 through 2032. Their utilization is limited to future taxable income from the Company's domestic subsidiaries. Of the foreign net operating loss carryforwards, $11,790,000 will expire in the years 2014 through 2032, and the remainder do not expire. The U.S. foreign tax credits will expire in the years 2018 through 2019. The research and development tax credits will expire in the years 2030 through 2033 and the alternative minimum tax credits may be carried forward indefinitely. | |||||||||||||
The Company has not recognized a deferred tax liability for the difference between the book basis and the tax basis of its investment in the stock of its domestic subsidiaries, related primarily to unremitted earnings of subsidiaries, because it does not expect this basis difference to become subject to tax at the parent level. The Company believes it can implement certain tax strategies to recover its investment in its domestic subsidiaries tax-free. It is the Company's intention to reinvest indefinitely the earnings of its international subsidiaries in order to support the current and future capital needs of their operations in the foreign jurisdictions. Through year-end 2013, the Company has not provided for U.S. income taxes on approximately $145,926,000 of unremitted foreign earnings. The U.S. tax cost has not been determined due to the fact that it is not practicable to estimate at this time. The related foreign tax withholding, which would be required if the Company were to remit these foreign earnings to the U.S., would be approximately $2,000,000. | |||||||||||||
The Company operates within multiple tax jurisdictions and could be subject to audit in those jurisdictions. Such audits can involve complex income tax issues, which may require an extended period of time to resolve and may cover multiple years. In management's opinion, adequate provisions for income taxes have been made for all years subject to audit. | |||||||||||||
As of year-end 2013, the Company had $5,423,000 of unrecognized tax benefits which, if recognized, would reduce the effective tax rate. A tabular reconciliation of the beginning and ending amount of unrecognized tax benefits at year-end 2013 and 2012 is as follows: | |||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Unrecognized tax benefits, beginning of year | $ | 4,194 | $ | 3,308 | |||||||||
Gross increases—tax positions in prior periods | 449 | 185 | |||||||||||
Gross decreases—tax positions in prior periods | - | (41 | ) | ||||||||||
Gross increases—current-period tax positions | 1,086 | 1,231 | |||||||||||
Settlements | (6 | ) | (182 | ) | |||||||||
Lapses of statutes of limitations | (158 | ) | (367 | ) | |||||||||
Currency translation | (142 | ) | 60 | ||||||||||
Unrecognized tax benefits, end of year | $ | 5,423 | $ | 4,194 | |||||||||
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company has accrued $1,776,000 and $1,196,000 for the potential payment of interest and penalties at year-end 2013 and 2012, respectively. The interest and penalties included in the consolidated statement of income was an expense (benefit) of $205,000 and $(6,000) in 2013 and 2012, respectively. | |||||||||||||
The Company is currently under audit in certain non-U.S. taxing jurisdictions. It is reasonably possible that over the next fiscal year the amount of liability for unrecognized tax benefits may be reduced by up to $842,000 due to the re-evaluation of current uncertain tax positions as a result of examinations or from the expiration of tax statutes of limitations. | |||||||||||||
The Company remains subject to U.S. Federal income tax examinations for the tax years 2010 through 2013, and to non-U.S. income tax examinations for the tax years 2006 through 2013. In addition, the Company remains subject to state and local income tax examinations in the U.S. for the tax years 2002 through 2013. |
LongTerm_Obligations
Long-Term Obligations | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Long-Term Obligations [Abstract] | ' | ||||||||
Long-Term Obligations | ' | ||||||||
6 | Long-Term Obligations | ||||||||
Long-term obligations at year-end 2013 and 2012 are as follows: | |||||||||
(In thousands) | 2013 | 2012 | |||||||
Revolving Credit Facility, due 2018 | $ | 32,260 | $ | – | |||||
Variable Rate Term Loan, due from 2014 to 2016 | 6,375 | 6,875 | |||||||
Total Long-Term Obligations | 38,635 | 6,875 | |||||||
Less: Current Maturities | (625 | ) | (625 | ) | |||||
Long-Term Obligations, less Current Maturities | $ | 38,010 | $ | 6,250 | |||||
The annual payment requirements for long-term obligations are as follows: | |||||||||
(In thousands) | |||||||||
2014 | $ | 625 | |||||||
2015 | 500 | ||||||||
2016 | 5,250 | ||||||||
2017 | - | ||||||||
2018 | 32,260 | ||||||||
The weighted average interest rate for long-term obligations was 2.74% and 6.38% at year-end 2013 and 2012, respectively. | |||||||||
See Note 11 for the fair value information related to the Company's long-term obligations. | |||||||||
Revolving Credit Facility | |||||||||
The Company entered into a five-year unsecured revolving credit facility (2012 Credit Agreement) in the aggregate principal amount of up to $100,000,000 on August 3, 2012 and amended it on November 1, 2013. The 2012 Credit Agreement also includes an uncommitted unsecured incremental borrowing facility of up to an additional $50,000,000. The principal on any borrowings made under the 2012 Credit Agreement is due on November 1, 2018. Interest on any loans outstanding under the 2012 Credit Agreement accrues and is payable quarterly in arrears at one of the following rates selected by the Company: (i) the highest of (a) the federal funds rate plus 0.50% plus an applicable margin of 0% to 1%, (b) the prime rate, as defined, plus an applicable margin of 0% to 1% and (c) the Eurocurrency rate, as defined, plus 0.50% plus an applicable margin of 0% to 1% or (ii) the Eurocurrency rate, as defined, plus an applicable margin of 1% to 2%. The applicable margin is determined based upon the ratio of the Company's total debt to EBITDA, as defined in the 2012 Credit Agreement. For this purpose, total debt is defined as total debt less up to $25,000,000 of unrestricted U.S. cash. | |||||||||
The obligations of the Company under the 2012 Credit Agreement may be accelerated upon the occurrence of an event of default under the 2012 Credit Agreement, which includes customary events of default including without limitation payment defaults, defaults in the performance of affirmative and negative covenants, the inaccuracy of representations or warranties, bankruptcy- and insolvency-related defaults, defaults relating to such matters as the Employment Retirement Income Security Act (ERISA), unsatisfied judgments, the failure to pay certain indebtedness, and a change of control default. In addition, the 2012 Credit Agreement contains negative covenants applicable to the Company and its subsidiaries, including financial covenants requiring the Company to comply with a maximum consolidated leverage ratio of 3.5 to 1, a minimum consolidated interest coverage ratio of 3 to 1, and restrictions on liens, indebtedness, fundamental changes, dispositions of property, making certain restricted payments (including dividends and stock repurchases), investments, transactions with affiliates, sale and leaseback transactions, swap agreements, changing its fiscal year, arrangements affecting subsidiary distributions, entering into new lines of business, and certain actions related to the discontinued operation. As of December 28, 2013, the Company was in compliance with these covenants. | |||||||||
Loans under the 2012 Credit Agreement are guaranteed by certain domestic subsidiaries of the Company pursuant to a Guarantee Agreement, effective August 3, 2012. | |||||||||
As of year-end 2013, the outstanding balance on the 2012 Credit Agreement was $32,260,000, which was primarily used to fund the acquisition of Carmanah. As of December 28, 2013, the Company had $66,911,000 of borrowing capacity available under the committed portion of its 2012 Credit Agreement. The amount the Company is able to borrow under the 2012 Credit Agreement is the total borrowing capacity of $100,000,000 less any outstanding borrowings, letters of credit and multi-currency borrowings issued under the 2012 Credit Agreement. | |||||||||
2006 Commercial Real Estate Loan | |||||||||
On May 4, 2006, the Company borrowed $10,000,000 under a promissory note (2006 Commercial Real Estate Loan), which is repayable in quarterly installments of $125,000 over a ten-year period with the remaining principal balance of $5,000,000 due upon maturity. Interest on the 2006 Commercial Real Estate Loan accrues and is payable quarterly in arrears at one of the following rates selected by the Company: (a) the prime rate or (b) the three-month London Inter-Bank Offered Rate (LIBOR) plus a .75% margin. The 2006 Commercial Real Estate Loan is guaranteed and secured by real estate and related personal property of the Company and certain of its domestic subsidiaries, located in Theodore, Alabama; Auburn, Massachusetts; and Three Rivers, Michigan; pursuant to mortgage and security agreements dated May 4, 2006 (Mortgage and Security Agreements). As of year-end 2013, the outstanding balance on the 2006 Commercial Real Estate Loan was $6,375,000. | |||||||||
The Company's obligations under the 2006 Commercial Real Estate Loan may be accelerated upon the occurrence of an event of default under the 2006 Commercial Real Estate Loan and the Mortgage and Security Agreements, which include customary events of default including without limitation payment defaults, defaults in the performance of covenants and obligations, the inaccuracy of representations or warranties, bankruptcy- and insolvency-related defaults, liens on the properties or collateral and uninsured judgments. In addition, the occurrence of an event of default under the 2012 Credit Agreement or any successor credit facility would be an event of default under the 2006 Commercial Real Estate Loan. | |||||||||
Debt Issuance Costs | |||||||||
Debt issuance costs are being amortized to interest expense over the corresponding debt term based on the effective-interest method. As of year-end 2013, unamortized debt issuance costs, included in other assets in the accompanying consolidated balance sheet, were approximately $668,000. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Dec. 28, 2013 | ||
Commitments and Contingencies [Abstract] | ' | |
Commitments and Contingencies | ' | |
7 | Commitments and Contingencies | |
Operating Leases | ||
The Company occupies office and operating facilities under various operating leases. The accompanying consolidated statement of income includes expenses from operating leases of $2,545,000, $2,137,000, and $2,043,000 in 2013, 2012, and 2011, respectively. The future minimum payments due under noncancelable operating leases at year-end 2013 are $3,058,000 in 2014; $2,015,000 in 2015; $1,116,000 in 2016; $396,000 in 2017; $113,000 in 2018 and $20,000 thereafter. Total future minimum lease payments are $6,718,000. | ||
Letters of Credit and Bank Guarantees | ||
Outstanding letters of credit and bank guarantees issued on behalf of the Company as applicant, principally relating to performance obligations and customer deposit guarantees, totaled $10,533,000 at year-end 2013. Certain of the Company's contracts, particularly for stock-preparation and systems orders, require the Company to provide a standby letter of credit or bank guarantee to a customer as beneficiary, limited in amount to a negotiated percentage of the total contract value, in order to guarantee warranty and performance obligations of the Company under the contract. Typically, these standby letters of credit and bank guarantees expire without being drawn by the beneficiary. | ||
Right of Recourse | ||
In the ordinary course of business, the Company's subsidiaries in China may receive banker's acceptance drafts from customers in payment of outstanding accounts receivable. These banker's acceptance drafts are non-interest bearing and mature within six months of the origination date. The Company's subsidiaries in China may use these banker's acceptance drafts prior to the scheduled maturity date to settle outstanding accounts payable with vendors. Banker's acceptance drafts transferred to vendors are subject to customary right of recourse provisions prior to their scheduled maturity date. At year-end 2013, the Company had $5,688,000 of banker's acceptance drafts subject to recourse, which were transferred to vendors and had not reached their scheduled maturity date. Historically, the banker's acceptance drafts have settled upon maturity without any claim of recourse against the Company. | ||
Purchase Obligations | ||
The Company has entered into an unconditional purchase obligation, in the ordinary course of business, for business network services, which includes minimum purchase obligations of $600,000 in each of 2014 and 2015. | ||
Contingencies | ||
In the ordinary course of business, the Company is, at times, required to issue limited performance guarantees, some of which do not require the issuance of letters of credit to customers in support of these guarantees, relating to its equipment and systems. The Company typically limits its liability under these guarantees to amounts that would not exceed the value of the contract. The Company believes that it has adequate reserves for any potential liability in connection with such guarantees. | ||
Litigation | ||
From time to time, the Company is subject to various claims and legal proceedings covering a range of matters that arise in the ordinary course of business. Such litigation may include claims and counterclaims by and against the Company for breach of contract or warranty, canceled contracts, product liability, or bankruptcy-related claims. For legal proceedings in which a loss is probable and estimable, the Company accrues a loss based on the low end of the range of estimated loss when there is no better estimate within the range. If the Company were found to be liable for any of the claims or counterclaims against it, the Company would incur a charge against earnings for amounts in excess of legal accruals. |
Restructuring_Costs_and_Other_
Restructuring Costs and Other Expense (Income), Net | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Restructuring Costs and Other Expense (Income), Net [Abstract] | ' | ||||||||||||
Restructuring Costs and Other Expense (Income), Net | ' | ||||||||||||
8 | Restructuring Costs and Other Expense (Income), Net | ||||||||||||
Other Expense (Income) | |||||||||||||
In 2013, other income consisted of a pre-tax gain of $1,740,000 from the sale of real estate in China. | |||||||||||||
In 2012, other expense consisted of accelerated depreciation of $307,000 associated with the disposal of equipment in China related to a facility consolidation. | |||||||||||||
In 2011, other income consisted of a pre-tax gain of $2,282,000 from the sale of real estate in China. | |||||||||||||
2013 Restructuring Plan | |||||||||||||
The Company recorded restructuring costs of $1,843,000, including severance costs of $1,158,000 associated with the reduction of 22 employees in Brazil and severance costs of $508,000 associated with the reduction of 25 employees in Sweden. Also included in restructuring costs were facility-related costs of $177,000. These actions were taken to streamline the Company's operations as a result of the CBTI and Noss acquisitions. All of these items occurred in the Papermaking Systems segment. | |||||||||||||
2011 Restructuring Plan | |||||||||||||
The Company recorded restructuring costs of $408,000 in 2011 in its Papermaking Systems segment consisting of severance and associated costs related to the reduction of 73 employees in China to adjust our cost structure and streamline our operations. | |||||||||||||
2008 Restructuring Plan | |||||||||||||
The Company recorded total restructuring costs of $4,507,000 in 2008 through 2012 associated with its 2008 Restructuring Plan. These restructuring costs included facility-related costs of $385,000 and severance and associated costs of $4,122,000 related to the reduction of 329 employees in China, North America, Latin America, and Europe, all in its Papermaking Systems segment. The Company took these actions to adjust its cost structure and streamline its operations in response to the weak economic environment at the time. | |||||||||||||
A summary of the changes in accrued restructuring costs are as follows: | |||||||||||||
(In thousands) | Severance | Other | Total | ||||||||||
Costs | Costs | Costs | |||||||||||
2013 Restructuring Plan | |||||||||||||
Provision | $ | 1,666 | $ | 177 | $ | 1,843 | |||||||
Usage | (1,038 | ) | (177 | ) | (1,215 | ) | |||||||
Currency translation | (161 | ) | – | (161 | ) | ||||||||
Balance at December 28, 2013 | $ | 467 | $ | – | $ | 467 | |||||||
2011 Restructuring Plan | |||||||||||||
Balance at January 1, 2011 | $ | – | $ | – | $ | – | |||||||
Provision | 408 | – | 408 | ||||||||||
Balance at December 31, 2011 | $ | 408 | $ | – | $ | 408 | |||||||
Provision reversal | (67 | ) | – | (67 | ) | ||||||||
Usage | (256 | ) | – | (256 | ) | ||||||||
Currency translation | 3 | – | 3 | ||||||||||
Balance at December 29, 2012 | $ | 88 | $ | – | $ | 88 | |||||||
Usage | (38 | ) | – | (38 | ) | ||||||||
Currency translation | 2 | – | 2 | ||||||||||
Balance at December 28, 2013 | $ | 52 | $ | – | $ | 52 | |||||||
2008 Restructuring Plan | |||||||||||||
Balance at January 1, 2011 | $ | 433 | $ | – | $ | 433 | |||||||
Usage | (94 | ) | – | (94 | ) | ||||||||
Currency translation | 15 | – | 15 | ||||||||||
Balance at December 31, 2011 | $ | 354 | $ | – | $ | 354 | |||||||
Provision reversal | (8 | ) | – | (8 | ) | ||||||||
Usage | (182 | ) | – | (182 | ) | ||||||||
Currency translation | 2 | – | 2 | ||||||||||
Balance at December 29, 2012 | $ | 166 | $ | – | $ | 166 | |||||||
Usage | (141 | ) | – | (141 | ) | ||||||||
Currency translation | 6 | – | 6 | ||||||||||
Balance at December 28, 2013 | $ | 31 | $ | – | $ | 31 | |||||||
The Company expects to pay the remaining accrued restructuring costs from 2014 to 2016. |
Discontinued_Operation
Discontinued Operation | 12 Months Ended | |
Dec. 28, 2013 | ||
Discontinued Operation [Abstract] | ' | |
Discontinued Operation | ' | |
9 | Discontinued Operation | |
In 2005, the Company's Kadant Composites LLC subsidiary (Composites LLC) sold substantially all of its assets to a third party. Through the sale date of October 21, 2005, Composites LLC offered a standard limited warranty to the owner of its decking and roofing products, limited to repair or replacement of the defective product or a refund of the original purchase price. Under the terms of the asset purchase agreement, Composites LLC retained certain liabilities associated with the operation of the business prior to the sale, including the warranty obligations associated with products manufactured prior to the sale date. All activity related to this business is classified in the results of the discontinued operation in the accompanying consolidated financial statements. | ||
On October 24, 2011, the Company, Composites LLC, and other co-defendants entered into an agreement to settle a nationwide class action lawsuit related to allegedly defective composites decking building products manufactured by Composites LLC between April 2002 and October 2003. As of December 31, 2011, the Company had accrued $2,577,000 for the estimated payment of claims, which was reduced by $1,574,000 in 2012. In 2012, the Company paid $647,000 in approved claims under the class action settlement. | ||
The discontinued operation had a pre-tax operating loss of $96,000 in 2013, pre-tax operating income of $1,194,000 in 2012 and a pre-tax operating loss of $1,520,000 in 2011. |
Derivatives
Derivatives | 12 Months Ended | |||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||
Derivatives [Abstract] | ' | |||||||||||||||||
Derivatives | ' | |||||||||||||||||
10 | Derivatives | |||||||||||||||||
Interest Rate Swaps | ||||||||||||||||||
The Company entered into interest rate swap agreements in 2008 and 2006 to hedge its exposure to variable-rate debt and has designated these agreements as cash flow hedges. On February 13, 2008, the Company entered into a swap agreement (2008 Swap Agreement) to hedge the exposure to movements in the three-month LIBOR rate on future outstanding debt. The 2008 Swap Agreement had a five-year term and a $15,000,000 notional value, which decreased to $10,000,000 on December 31, 2010, and to $5,000,000 on December 30, 2011. Under the 2008 Swap Agreement, on a quarterly basis the Company received a three-month LIBOR rate and paid a fixed rate of interest of 3.265% plus the applicable margin. The 2008 Swap Agreement expired on February 13, 2013. | ||||||||||||||||||
The Company entered into a swap agreement in 2006 (the 2006 Swap Agreement) to convert a portion of the Company's outstanding debt from a floating to a fixed rate of interest. The swap agreement has the same terms and quarterly payment dates as the corresponding debt, and reduces proportionately in line with the amortization of the debt. Under the 2006 Swap Agreement, the Company receives a three-month LIBOR rate and pays a fixed rate of interest of 5.63% plus an applicable margin. The fair value of the 2006 Swap Agreement as of December 28, 2013 is included in other liabilities, with an offset to accumulated other comprehensive items (net of tax) in the accompanying consolidated balance sheet. | ||||||||||||||||||
The Company has structured the interest rate swap agreements to be 100% effective, and as a result, there is no current impact to earnings resulting from hedge ineffectiveness. Management believes that any credit risk associated with the swap agreement is remote based on the Company's financial position and the creditworthiness of the financial institution issuing the swap agreement. | ||||||||||||||||||
The counterparty to the swap agreement could demand an early termination of the swap agreement if the Company is in default under the 2012 Credit Agreement, or any agreement that amends or replaces the 2012 Credit Agreement in which the counterparty is a member, and the Company is unable to cure the default. An event of default under the 2012 Credit Agreement includes customary events of default and failure to comply with financial covenants, including a maximum consolidated leverage ratio of 3.5 to 1 and a minimum consolidated interest charge coverage ratio of 3 to 1. As of December 28, 2013, the Company was in compliance with these covenants. The unrealized loss associated with the swap agreement was $773,000 as of December 28, 2013, which represents the estimated amount that the Company would pay to the counterparty in the event of an early termination. | ||||||||||||||||||
Forward Currency-Exchange Contracts | ||||||||||||||||||
The Company uses forward currency-exchange contracts primarily to hedge exposures resulting from fluctuations in currency exchange rates. Such exposures result primarily from portions of the Company's operations and assets and liabilities that are denominated in currencies other than the functional currencies of the businesses conducting the operations or holding the assets and liabilities. The Company typically manages its level of exposure to the risk of currency-exchange fluctuations by hedging a portion of its currency exposures anticipated over the ensuing 12-month period, using forward currency-exchange contracts that have maturities of 12 months or less. | ||||||||||||||||||
Forward currency-exchange contracts that hedge forecasted accounts receivable or accounts payable are designated as cash flow hedges. The fair values for these instruments are included in other current assets for unrecognized gains and in other current liabilities for unrecognized losses, with an offset in accumulated other comprehensive items (net of tax). For forward currency-exchange contracts that are designated as fair value hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item are recognized currently in earnings. The fair values of forward currency-exchange contracts that are not designated as hedges are recorded currently in earnings. The Company recognized gains of $146,000, $12,000 and $4,000 in 2013, 2012 and 2011, respectively, included in selling, general, and administrative expenses associated with forward currency-exchange contracts that were not designated as hedges. Management believes that any credit risk associated with forward currency-exchange contracts is remote based on the Company's financial position and the creditworthiness of the financial institutions issuing the contracts. | ||||||||||||||||||
The following table summarizes the fair value of the Company's derivative instruments designated and not designated as hedging instruments, the notional values of the associated derivative contracts, and the location of these instruments in the consolidated balance sheet: | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
(In thousands) | Balance Sheet | Asset | Notional | Asset | Notional | |||||||||||||
Location | (Liability) | Amount | (Liability) | Amount | ||||||||||||||
(a) | (b) | (a) | (b) | |||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||
Derivatives in an Asset Position: | ||||||||||||||||||
Forward currency-exchange contracts | Other Current | $ | – | $ | – | $ | 5 | $ | 269 | |||||||||
Assets | ||||||||||||||||||
Derivatives in a Liability Position: | ||||||||||||||||||
Forward currency-exchange contracts | Other Current | $ | (22 | ) | $ | 1,340 | $ | (161 | ) | $ | 3,180 | |||||||
Liabilities | ||||||||||||||||||
Interest rate swap agreement | Other Current | $ | – | $ | – | $ | (19 | ) | $ | 5,000 | ||||||||
Liabilities | ||||||||||||||||||
Interest rate swap agreement | Other Long-Term | $ | (773 | ) | $ | 6,375 | $ | (1,029 | ) | $ | 6,875 | |||||||
Liabilities | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||
Derivatives in an Asset Position: | ||||||||||||||||||
Forward currency-exchange contracts | Other Current | $ | 97 | $ | 1,419 | $ | 24 | $ | 1,013 | |||||||||
Assets | ||||||||||||||||||
Derivatives in a Liability Position: | ||||||||||||||||||
Forward currency-exchange contracts | Other Current | $ | (1 | ) | $ | 288 | $ | (12 | ) | $ | 815 | |||||||
Liabilities | ||||||||||||||||||
(a) | See Note 11 for the fair value measurements relating to these financial instruments. | |||||||||||||||||
(b) | The total notional amount is indicative of the level of the Company's derivative activity during 2013 and 2012. | |||||||||||||||||
The following table summarizes the activity in accumulated other comprehensive items (OCI) associated with the Company's derivative instruments designated as cash flow hedges as of and for the period ended December 28, 2013: | ||||||||||||||||||
(In thousands) | Interest Rate Swap | Forward Currency- | Total | |||||||||||||||
Agreements | Exchange Contracts | |||||||||||||||||
Unrealized loss, net of tax, at December 29, 2012 | $ | 939 | $ | 107 | $ | 1,046 | ||||||||||||
Loss reclassified to earnings (a) | (383 | ) | (102 | ) | (485 | ) | ||||||||||||
Loss recognized in OCI | 62 | 10 | 72 | |||||||||||||||
Unrealized loss, net of tax, at December 28, 2013 | $ | 618 | $ | 15 | $ | 633 | ||||||||||||
(a) | Included in interest expense for interest rate swap agreements and in revenues for forward currency-exchange contracts in the accompanying consolidated statement of income. | |||||||||||||||||
As of December 28, 2013, $281,000 of the net unrealized loss included in OCI is expected to be reclassified to earnings over the next twelve months. |
Fair_Value_Measurements_and_Fa
Fair Value Measurements and Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Fair Value Measurements and Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||
Fair Value Measurements and Fair Value of Financial Instruments | ' | ||||||||||||||||
11 | Fair Value Measurements and Fair Value of Financial Instruments | ||||||||||||||||
Fair value measurement is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: | |||||||||||||||||
• | Level 1—Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly. | ||||||||||||||||
• | Level 3—Unobservable inputs based on the Company's own assumptions. | ||||||||||||||||
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||
Fair Value as of December 28, 2013 | |||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Money market funds and time deposits | $ | 17,090 | $ | – | $ | – | $ | 17,090 | |||||||||
Forward currency-exchange contracts | $ | – | $ | 97 | $ | – | $ | 97 | |||||||||
Banker's acceptance drafts (a) | $ | – | $ | 10,765 | $ | – | $ | 10,765 | |||||||||
Liabilities: | |||||||||||||||||
Forward currency-exchange contracts | $ | – | $ | 23 | $ | – | $ | 23 | |||||||||
Interest rate swap agreement | $ | – | $ | 773 | $ | – | $ | 773 | |||||||||
Fair Value as of December 29, 2012 | |||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Money market funds and time deposits | $ | 19,768 | $ | – | $ | – | $ | 19,768 | |||||||||
Forward currency-exchange contracts | $ | – | $ | 29 | $ | – | $ | 29 | |||||||||
Banker's acceptance drafts (a) | $ | – | $ | 9,794 | $ | – | $ | 9,794 | |||||||||
Liabilities: | |||||||||||||||||
Forward currency-exchange contracts | $ | – | $ | 173 | $ | – | $ | 173 | |||||||||
Interest rate swap agreements | $ | – | $ | 1,048 | $ | – | $ | 1,048 | |||||||||
(a) | Included in accounts receivable in the accompanying consolidated balance sheet. | ||||||||||||||||
The Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during 2013. The Company's financial assets and liabilities carried at fair value comprise cash equivalents, banker's acceptance drafts, and derivative instruments used to hedge the Company's foreign currency and interest rate risks. The Company's cash equivalents include money market funds and bank deposits which are highly liquid and easily tradable. These investments are valued using inputs observable in active markets for identical securities. The carrying value of banker's acceptance drafts approximates their fair value due to the short-term nature of the negotiable instrument. The fair values of the Company's interest rate swap agreements are based on LIBOR yield curves at the reporting date. The fair values of the Company's forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date. The forward currency-exchange contracts and interest rate swap agreements are hedges of either recorded assets or liabilities or anticipated transactions. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above. | |||||||||||||||||
The carrying amount and fair value of the Company's debt obligations are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | ||||||||||||||
Long-term debt obligations | $ | 38,010 | $ | 38,010 | $ | 6,250 | $ | 6,250 | |||||||||
The carrying amounts of long-term debt obligations approximate fair value as the obligations bear variable rates of interest, which adjust quarterly based on prevailing market rates. |
Business_Segment_and_Geographi
Business Segment and Geographical Information | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Business Segment and Geographical Information [Abstract] | ' | ||||||||||||
Business Segment and Geographical Information | ' | ||||||||||||
12 | 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 aggregated businesses with similar economic characteristics, products and services, production processes, customers, and methods of distribution. | |||||||||||||
The Company's Papermaking Systems segment develops, manufactures, and markets stock-preparation systems and equipment; fluid-handling systems; and doctoring, cleaning, and filtration systems and related consumables for the pulp and paper industry worldwide. Principal products manufactured by this segment include: custom-engineered systems and equipment for the preparation of wastepaper for conversion into recycled paper; fluid-handling systems used primarily in the dryer section of the papermaking process and during the production of corrugated boxboard, metals, plastics, rubber, textiles, chemicals, and food; doctoring systems and equipment and related consumables important to the efficient operation of paper machines; and cleaning and filtration systems essential for draining, purifying, and recycling process water and cleaning paper machine fabrics and rolls. The Wood Processing Systems segment designs and manufactures stranders and related equipment used in the production of oriented strand board, an engineered wood panel product used primarily in home construction. This segment also supplies debarking and wood chipping equipment used in the forest products and the pulp and paper industries. The Fiber-based Products business produces biodegradable absorbent granules from papermaking byproducts. These granules are primarily used 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) | 2013 | 2012 | 2011 | ||||||||||
Business Segment Information | |||||||||||||
Revenues by Product Line: | |||||||||||||
Papermaking Systems: | |||||||||||||
Stock-Preparation | $ | 122,704 | $ | 123,952 | $ | 131,914 | |||||||
Doctoring, Cleaning, & Filtration | 112,600 | 104,493 | 92,333 | ||||||||||
Fluid-Handling | 93,404 | 92,581 | 100,618 | ||||||||||
Papermaking Systems | $ | 328,708 | $ | 321,026 | $ | 324,865 | |||||||
Wood Processing Systems | 4,573 | – | – | ||||||||||
Fiber-based Products | 11,218 | 10,725 | 10,595 | ||||||||||
$ | 344,499 | $ | 331,751 | $ | 335,460 | ||||||||
Income from Continuing Operations Before Provision for Income Taxes: | |||||||||||||
Papermaking Systems (a) | $ | 47,144 | $ | 48,618 | $ | 50,869 | |||||||
Wood Processing Systems | (382 | ) | – | – | |||||||||
Corporate and Fiber-based Products | (13,459 | ) | (12,174 | ) | (12,159 | ) | |||||||
Total operating income | 33,303 | 36,444 | 38,710 | ||||||||||
Interest expense, net | (277 | ) | (514 | ) | (567 | ) | |||||||
$ | 33,026 | $ | 35,930 | $ | 38,143 | ||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Total Assets: | |||||||||||||
Papermaking Systems | $ | 364,102 | $ | 347,540 | $ | 340,227 | |||||||
Wood Processing Systems | 63,493 | - | - | ||||||||||
Corporate and Fiber-based Products (b) | 14,429 | 10,895 | 16,496 | ||||||||||
Total Assets from Continuing Operations | 442,024 | 358,435 | 356,723 | ||||||||||
Total Assets from Discontinued Operation | 144 | 513 | 1,675 | ||||||||||
$ | 442,168 | $ | 358,948 | $ | 358,398 | ||||||||
Depreciation and Amortization: | |||||||||||||
Papermaking Systems | $ | 8,434 | $ | 7,903 | $ | 7,455 | |||||||
Other | 1,341 | 481 | 481 | ||||||||||
$ | 9,775 | $ | 8,384 | $ | 7,936 | ||||||||
Capital Expenditures: | |||||||||||||
Papermaking Systems | $ | 5,843 | $ | 3,982 | $ | 7,751 | |||||||
Other | 418 | 268 | 279 | ||||||||||
$ | 6,261 | $ | 4,250 | $ | 8,030 | ||||||||
Geographical Information | |||||||||||||
Revenues (c): | |||||||||||||
United States | $ | 129,131 | $ | 128,663 | $ | 123,614 | |||||||
China | 50,678 | 53,242 | 62,615 | ||||||||||
Other | 164,690 | 149,846 | 149,231 | ||||||||||
$ | 344,499 | $ | 331,751 | $ | 335,460 | ||||||||
Long-lived Assets (d): | |||||||||||||
United States | $ | 14,118 | $ | 13,702 | $ | 14,578 | |||||||
China | 14,603 | 15,136 | 15,789 | ||||||||||
Other | 16,164 | 10,330 | 9,728 | ||||||||||
$ | 44,885 | $ | 39,168 | $ | 40,095 | ||||||||
Export Revenues Included in United States Revenues Above (e) | $ | 9,685 | $ | 20,871 | $ | 16,512 | |||||||
(a) | Includes restructuring costs and other expense (income), net, including costs of $0.1 million and $0.3 million in 2013 and 2012, respectively, and income of $1.9 million in 2011 (see Note 8). | ||||||||||||
(b) | Primarily includes cash and cash equivalents and property, plant, and equipment. | ||||||||||||
(c) | Revenues are attributed to countries based on customer location. | ||||||||||||
(d) | Represents property, plant, and equipment, net. | ||||||||||||
(e) | In general, export revenues are denominated in U.S. dollars. |
Earnings_per_Share
Earnings per Share | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Earnings per Share [Abstract] | ' | ||||||||||||
Earnings per Share | ' | ||||||||||||
13 | Earnings per Share | ||||||||||||
Basic and diluted earnings per share were calculated as follows: | |||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Amounts Attributable to Kadant: | |||||||||||||
Income from Continuing Operations | $ | 23,481 | $ | 30,880 | $ | 33,584 | |||||||
(Loss) Income from Discontinued Operation | (62 | ) | 743 | (9 | ) | ||||||||
Net Income | $ | 23,419 | $ | 31,623 | $ | 33,575 | |||||||
Basic Weighted Average Shares | 11,153 | 11,456 | 12,124 | ||||||||||
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan | 187 | 134 | 137 | ||||||||||
Diluted Weighted Average Shares | 11,340 | 11,590 | 12,261 | ||||||||||
Basic Earnings per Share: | |||||||||||||
Continuing Operations | $ | 2.11 | $ | 2.7 | $ | 2.77 | |||||||
Discontinued Operation | $ | (0.01 | ) | $ | 0.06 | $ | – | ||||||
Net Income per Basic Share | $ | 2.1 | $ | 2.76 | $ | 2.77 | |||||||
Diluted Earnings per Share: | |||||||||||||
Continuing Operations | $ | 2.07 | $ | 2.66 | $ | 2.74 | |||||||
Discontinued Operation | $ | (0.01 | ) | $ | 0.06 | $ | – | ||||||
Net Income per Diluted Share | $ | 2.07 | $ | 2.73 | $ | 2.74 | |||||||
Options to purchase 74,300 shares, 150,000 shares, and 67,500 shares of common stock were not included in the computation of diluted earnings per share for 2013, 2012, and 2011, respectively, because the options' exercise prices were greater than the average market price for the common stock and the effect would have been antidilutive. In addition, the dilutive effect of restricted stock units totaling 20,400, 28,500, and 45,700 shares of common stock was not included in the computation of diluted earnings per share in 2013, 2012, and 2011, respectively, as the effect would have been antidilutive or, for unvested performance-based restricted stock units, the performance conditions had not been met as of the end of the reporting periods during the year. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Items | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Items [Abstract] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Items | ' | ||||||||||||||||||||
14 | Accumulated Other Comprehensive Items | ||||||||||||||||||||
Comprehensive income combines net income and other comprehensive items, which represent certain amounts that are reported as components of stockholders' equity in the accompanying consolidated balance sheet, including foreign currency translation adjustments, deferred losses and unrecognized prior service cost associated with pension and other post-retirement plans, and deferred losses on hedging instruments. | |||||||||||||||||||||
Changes in each component of accumulated other comprehensive items, net of tax are as follows: | |||||||||||||||||||||
(In thousands) | Foreign Currency Translation Adjustment | Unrecognized Prior Service Cost | Deferred Loss on Pension and Other Post-Retirement Plans | Deferred Loss on Hedging Instruments | Accumulated Other Comprehensive Items | ||||||||||||||||
Balance at December 29, 2012 | $ | 8,124 | $ | (748 | ) | $ | (9,645 | ) | $ | (1,046 | ) | $ | (3,315 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 795 | - | 2,320 | (72 | ) | 3,043 | |||||||||||||||
Reclassifications from AOCI | – | 91 | 406 | 485 | 982 | ||||||||||||||||
Net current period other comprehensive income | 795 | 91 | 2,726 | 413 | 4,025 | ||||||||||||||||
Balance at December 28, 2013 | $ | 8,919 | $ | (657 | ) | $ | (6,919 | ) | $ | (633 | ) | $ | 710 | ||||||||
14. Accumulated Other Comprehensive Items (continued) | |||||||||||||||||||||
Amounts reclassified out of accumulated other comprehensive items were as follows: | |||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | Income Statement | |||||||||||||||||
Line Item | |||||||||||||||||||||
Pension and Other Post-retirement Plans | |||||||||||||||||||||
Amortization of prior service costs (1) | $ | (141 | ) | $ | (85 | ) | $ | (72 | ) | Selling, General and Administrative | |||||||||||
Amortization of actuarial losses (1) | (620 | ) | (683 | ) | (467 | ) | Selling, General and Administrative | ||||||||||||||
Total expense before income taxes | (761 | ) | (768 | ) | (539 | ) | |||||||||||||||
Income tax benefit | 264 | 274 | 192 | Provision for income taxes | |||||||||||||||||
(497 | ) | (494 | ) | (347 | ) | ||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||
Interest rate swap agreements (2) | (374 | ) | (513 | ) | (706 | ) | Interest expense | ||||||||||||||
Forward currency-exchange contracts (2) | (153 | ) | (396 | ) | 253 | Revenues | |||||||||||||||
Total expense before income taxes | (527 | ) | (909 | ) | (453 | ) | |||||||||||||||
Income tax benefit | 42 | 317 | 36 | Provision for income taxes | |||||||||||||||||
(485 | ) | (592 | ) | (417 | ) | ||||||||||||||||
Total Reclassifications | $ | (982 | ) | $ | (1,086 | ) | $ | (764 | ) | ||||||||||||
-1 | Included in the computation of net periodic pension costs. See Note 3 for additional information. | ||||||||||||||||||||
-2 | See Note 10 for additional information. |
Unaudited_Quarterly_Informatio
Unaudited Quarterly Information | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Unaudited Quarterly Information [Abstract] | ' | ||||||||||||||||
Unaudited Quarterly Information | ' | ||||||||||||||||
15 | Unaudited Quarterly Information | ||||||||||||||||
2013 (In thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Revenues | $ | 76,204 | $ | 82,165 | $ | 91,315 | $ | 94,815 | |||||||||
Gross Profit | 36,026 | 39,940 | 40,121 | 41,617 | |||||||||||||
Amounts Attributable to Kadant: | |||||||||||||||||
Income from Continuing Operations | 5,313 | 5,772 | 6,461 | 5,935 | |||||||||||||
Loss from Discontinued Operation | (29 | ) | (12 | ) | (14 | ) | (7 | ) | |||||||||
Net Income Attributable to Kadant | $ | 5,284 | $ | 5,760 | $ | 6,447 | $ | 5,928 | |||||||||
Basic Earnings per Share: | |||||||||||||||||
Continuing Operations | $ | 0.48 | $ | 0.52 | $ | 0.58 | $ | 0.53 | |||||||||
Net Income Attributable to Kadant | $ | 0.47 | $ | 0.52 | $ | 0.58 | $ | 0.53 | |||||||||
Diluted Earnings per Share: | |||||||||||||||||
Continuing Operations | $ | 0.47 | $ | 0.51 | $ | 0.57 | $ | 0.52 | |||||||||
Net Income Attributable to Kadant | $ | 0.47 | $ | 0.51 | $ | 0.57 | $ | 0.52 | |||||||||
Cash Dividend Declared per Common Share | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 | |||||||||
2012 (In thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Revenues | $ | 84,113 | $ | 82,982 | $ | 86,601 | $ | 78,055 | |||||||||
Gross Profit | 38,372 | 36,298 | 37,596 | 33,536 | |||||||||||||
Amounts Attributable to Kadant: | |||||||||||||||||
Income from Continuing Operations | 7,114 | 6,546 | 7,617 | 9,603 | |||||||||||||
(Loss) Income from Discontinued Operation (a) | (61 | ) | (3 | ) | 844 | (37 | ) | ||||||||||
Net Income Attributable to Kadant | $ | 7,053 | $ | 6,543 | $ | 8,461 | $ | 9,566 | |||||||||
Basic Earnings per Share: | |||||||||||||||||
Continuing Operations | $ | 0.61 | $ | 0.57 | $ | 0.67 | $ | 0.85 | |||||||||
Net Income Attributable to Kadant | $ | 0.61 | $ | 0.57 | $ | 0.75 | $ | 0.85 | |||||||||
Diluted Earnings per Share: | |||||||||||||||||
Continuing Operations | $ | 0.61 | $ | 0.56 | $ | 0.66 | $ | 0.84 | |||||||||
Net Income Attributable to Kadant | $ | 0.6 | $ | 0.56 | $ | 0.74 | $ | 0.83 | |||||||||
(a) | Includes a $1.5 million reduction to the estimated liability for the claims under the class action lawsuit in the third quarter of 2012. |
Subsequent_Event
Subsequent Event | 12 Months Ended | |
Dec. 28, 2013 | ||
Subsequent Event [Abstract] | ' | |
Subsequent Event | ' | |
16 | Subsequent Event | |
On December 30, 2013, the Company acquired all of the outstanding shares of a European producer of creping and coating blades for approximately $2,627,000. An additional 1,000,000 euros, or approximately $1,369,000, of contingent consideration is due to the sellers within two years of the closing date if certain conditions are met, as defined in the purchase agreement. |
SCHEDULE_II_Valuation_and_Qual
SCHEDULE II Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||||||
SCHEDULE II Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||||||
SCHEDULE II Valuation and Qualifying Accounts | ' | ||||||||||||||||||||||||
Description | Balance at | Provision | Accounts | Accounts | Currency | Balance at | |||||||||||||||||||
Beginning | Charged to | Recovered | Written | Translation | End | ||||||||||||||||||||
of Year | Expense | Off | of Year | ||||||||||||||||||||||
(Income) | |||||||||||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||||||||
Year Ended December 28, 2013 | $ | 2,306 | $ | 374 | $ | 109 | $ | (152 | ) | $ | 52 | $ | 2,689 | ||||||||||||
Year Ended December 29, 2012 | $ | 2,308 | $ | (14 | ) | $ | 30 | $ | (56 | ) | $ | 38 | $ | 2,306 | |||||||||||
Year Ended December 31, 2011 | $ | 2,185 | $ | 1,249 | $ | 92 | $ | (1,213 | ) | $ | (5 | ) | $ | 2,308 | |||||||||||
Description | Balance at | Provision | Activity | Currency | Balance at | ||||||||||||||||||||
Beginning | Charged to | Charged to | Translation | End | |||||||||||||||||||||
of Year | Expense | Reserve | of Year | ||||||||||||||||||||||
(Income) | |||||||||||||||||||||||||
Accrued Restructuring Costs (a) | |||||||||||||||||||||||||
Year Ended December 28, 2013 | $ | 254 | $ | 1,843 | $ | (1,394 | ) | $ | (153 | ) | $ | 550 | |||||||||||||
Year Ended December 29, 2012 | $ | 762 | $ | (75 | ) | $ | (438 | ) | $ | 5 | $ | 254 | |||||||||||||
Year Ended December 31, 2011 | $ | 433 | $ | 408 | $ | (94 | ) | $ | 15 | $ | 762 | ||||||||||||||
_________________________________ | |||||||||||||||||||||||||
(a) | The nature of the activity in this account is described in Note 8 to the consolidated financial statements. |
Nature_of_Operations_and_Summa1
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Principles of Consolidation | ' | ||||||||
Principles of Consolidation | |||||||||
The accompanying consolidated financial statements of the Company include the accounts of its wholly and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. | |||||||||
Fiscal Year | ' | ||||||||
Fiscal Year | |||||||||
The Company has adopted a fiscal year ending on the Saturday nearest to December 31. References to 2013, 2012, and 2011 are for the fiscal years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively. | |||||||||
Use of Estimates and Critical Accounting Policies | ' | ||||||||
Use of Estimates and Critical Accounting Policies | |||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. | |||||||||
Critical accounting policies are defined as those that entail significant judgments and estimates, and could potentially result in materially different results under different assumptions and conditions. The Company believes that the most critical accounting policies upon which its financial position depends, and which involve the most complex or subjective decisions or assessments, concern revenue recognition and accounts receivable, warranty obligations, income taxes, the valuation of goodwill and intangible assets, inventories, and pension obligations. A discussion on the application of these and other accounting policies is included in Notes 1 and 3. | |||||||||
Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its consolidated financial statements or in the application of accounting policies, if business conditions were different, or if the Company used different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's consolidated financial statements. | |||||||||
Revenue Recognition and Accounts Receivable | ' | ||||||||
Revenue Recognition and Accounts Receivable | |||||||||
The Company recognizes revenue under Accounting Standards Codification (ASC) 605, "Revenue Recognition," (ASC 605) when the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or service has been rendered, the sales price is fixed or determinable, and collectability is reasonably assured. When the terms of the sale include customer acceptance provisions, and compliance with those provisions cannot be demonstrated until customer acceptance, revenues are recognized upon such acceptance. The Company includes in revenue amounts invoiced for shipping and handling with the corresponding costs reflected in cost of revenues. Provisions for discounts, warranties, returns and other adjustments are provided for in the period in which the related sales are recorded. | |||||||||
Most of the Company's revenue is recognized in accordance with the accounting policies in the preceding paragraph. However, when a sale arrangement involves multiple elements, such as equipment and installation, the Company considers the guidance in ASC 605. Such transactions are evaluated to determine whether the deliverables in the arrangement represent separate units of accounting based on the following criteria: the delivered item has value to the customer on a stand-alone basis, and if the contract includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially under the control of the Company. Revenue is allocated to each unit of accounting or element based on relative selling prices. The Company determines relative selling prices by using either vendor-specific objective evidence (VSOE) if that exists, or third-party evidence of selling price. When neither VSOE or third-party evidence of selling price exists for a deliverable, the Company uses its best estimate of the selling price for that deliverable. In cases in which elements cannot be treated as separate units of accounting, the elements are combined into a single unit of accounting for revenue recognition purposes. | |||||||||
In addition, revenues and profits on certain long-term contracts are recognized using the percentage-of-completion method or the completed contract method of accounting pursuant to ASC 605. Revenues recorded under the percentage-of-completion method were $19,758,000 in 2013, $42,190,000 in 2012, and $29,207,000 in 2011. The percentage of completion is determined by comparing the actual costs incurred to date to an estimate of total costs to be incurred on each contract. If a loss is indicated on any contract in process, a provision is made currently for the entire estimated loss. The Company's contracts generally provide for billing of customers upon the attainment of certain milestones specified in each contract. Revenues earned on contracts in process in excess of billings are classified as unbilled contract costs and fees, and amounts billed in excess of revenues earned are classified as billings in excess of contract costs and fees, which are included in other current liabilities in the accompanying balance sheet. There are no significant amounts included in the accompanying balance sheet that are not expected to be recovered from existing contracts at current contract values, or that are not expected to be collected within one year, including amounts that are billed but not paid under retainage provisions. For long-term contracts that do not meet the criteria under ASC 605-35 to be accounted for under the percentage-of-completion method, the Company recognizes revenue using the completed contract method. When using the completed contract method, the Company recognizes revenue when the contract has been substantially completed, the product has been delivered, and, if applicable, the customer acceptance criteria have been met. | |||||||||
Accounts receivable are recorded at invoiced amount and do not bear interest. The Company exercises judgment in determining its allowance for bad debts, which is based on its historical collection experience, current trends, credit policies, specific customer collection issues, and accounts receivable aging categories. In determining this allowance, the Company looks at historical writeoffs of its receivables. The Company also looks at current trends in the credit quality of its customer base as well as changes in its credit policies. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and each customer's current creditworthiness. The Company continuously monitors collections and payments from its customers. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. In some instances, the Company utilizes letters of credit as a way to mitigate its credit exposure. | |||||||||
The Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The banker's acceptance drafts are non-interest bearing and mature within six months of the origination date. The Company has the ability to sell the drafts at a discount or transfer the drafts in settlement of current accounts payable prior to the scheduled maturity date. These drafts, which totaled $10,765,000 and $9,794,000 at year-end 2013 and year-end 2012, respectively, are reflected in accounts receivable in the accompanying consolidated balance sheet until the subsidiary discounts or transfers the banker's acceptance drafts in settlement of current accounts payable prior to maturity or obtains cash payment on the scheduled maturity date. | |||||||||
Warranty Obligations | ' | ||||||||
Warranty Obligations | |||||||||
The Company provides for the estimated cost of product warranties at the time of sale based on the actual historical occurrence rates and repair costs. The Company typically negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications. While the Company engages in extensive product quality programs and processes, the Company's warranty obligation is affected by product failure rates, repair costs, service delivery costs incurred in correcting a product failure, and supplier warranties on parts delivered to the Company. Should actual product failure rates, repair costs, service delivery costs, or supplier warranties on parts differ from the Company's estimates, revisions to the estimated warranty liability would be required. | |||||||||
Income Taxes | ' | ||||||||
Income Taxes | |||||||||
In accordance with ASC 740, "Income Taxes," (ASC 740), the Company recognizes deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which these differences are expected to reverse. A tax valuation allowance is established, as needed, to reduce deferred tax assets to the amount expected to be realized. In the period in which it becomes more likely than not that some or all of the deferred tax assets will be realized, the valuation allowance will be adjusted. | |||||||||
It is the Company's policy to provide for uncertain tax positions and the related interest and penalties based upon management's assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. At December 28, 2013, the Company believes that it has appropriately accounted for any liability for unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established, the statute of limitations expires for a tax jurisdiction year, or the Company is required to pay amounts in excess of the liability, its effective tax rate in a given financial statement period may be affected. | |||||||||
Earnings per Share | ' | ||||||||
Earnings per Share | |||||||||
Basic earnings per share has been computed by dividing net income attributable to Kadant by the weighted average number of shares outstanding during the year. Diluted earnings per share was computed using the treasury stock method assuming the effect of all potentially dilutive securities, including stock options, restricted stock units and employee stock purchase plan shares, as well as their related tax effects. | |||||||||
Cash and Cash Equivalents | ' | ||||||||
Cash and Cash Equivalents | |||||||||
At year-end 2013 and 2012, the Company's cash equivalents included investments in money market funds and other marketable securities, which had maturities of three months or less at the date of purchase. The carrying amounts of cash equivalents approximate their fair values due to the short-term nature of these instruments. | |||||||||
Restricted Cash | ' | ||||||||
Restricted Cash | |||||||||
At year-end 2013, the Company had approximately $168,000 of restricted cash. This cash serves as collateral for bank guarantees primarily associated with providing assurance to customers that the Company will fulfill certain customer obligations entered into in the normal course of business. All of the bank guarantees will expire in 2014. | |||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories are stated at the lower of cost (on a first-in, first-out; or weighted average basis) or market value and include materials, labor, and manufacturing overhead. The Company periodically reviews its quantities of inventories on hand and compares these amounts to the expected usage of each particular product or product line. The Company records as a charge to cost of revenues any amounts required to reduce the carrying value of inventories to net realizable value. | |||||||||
Property, Plant, and Equipment | ' | ||||||||
Property, Plant, and Equipment | |||||||||
Property, plant, and equipment are stated at cost. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. The Company provides for depreciation and amortization primarily using the straight-line method over the estimated useful lives of the property as follows: buildings, 10 to 40 years; machinery and equipment, 2 to 10 years; and leasehold improvements, the shorter of the term of the lease or the life of the asset. | |||||||||
Depreciation and amortization expense related to property, plant, and equipment was $5,088,000, $5,015,000, and $4,953,000 in 2013, 2012, and 2011, respectively. | |||||||||
Intangible Assets | ' | ||||||||
Intangible Assets | |||||||||
Intangible assets in the accompanying balance sheet include the costs of acquired intellectual property, tradenames, patents, customer relationships, non-compete agreements and other specifically identifiable intangible assets. An intangible asset of $8,100,000 associated with the acquisition of the Johnson tradename as part of the Company's acquisition of The Johnson Corporation in 2005 has an indefinite life and is not being amortized. The remaining intangible assets have been amortized as the underlying economic benefits are realized with a weighted-average amortization period of 11 years. The intangible asset lives have been determined based on the anticipated period over which the Company will derive future cash flow benefits from the intangible assets. The Company has considered the effects of legal, regulatory, contractual, competitive, and other economic factors in determining these useful lives. | |||||||||
Amortization of acquired intangible assets was $4,687,000 in 2013, $3,369,000 in 2012, and $2,983,000 in 2011. The estimated future amortization expense of acquired intangible assets is $5,513,000 in 2014; $4,588,000 in 2015; $4,296,000 in 2016; $4,058,000 in 2017; $3,979,000 in 2018; and $17,316,000 in the aggregate thereafter. | |||||||||
Impairment of Long-Lived Assets | ' | ||||||||
Impairment of Long-Lived Assets | |||||||||
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 28, 2013 and December 29, 2012, the Company performed a qualitative goodwill impairment analysis. These 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 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 28, 2013 and December 29, 2012, the Company performed a quantitative impairment analysis on our indefinite-lived intangible asset, the Johnson tradename totaling $8,100,000, and determined that the asset was not impaired. | |||||||||
Goodwill by reporting unit is as follows: | |||||||||
(In thousands) | 2013 | 2012 | |||||||
Stock-Preparation | $ | 18,290 | $ | 17,583 | |||||
Doctoring, Cleaning, & Filtration | 34,658 | 33,081 | |||||||
Fluid-Handling | 57,882 | 57,283 | |||||||
Wood Processing Systems | 21,085 | - | |||||||
$ | 131,915 | $ | 107,947 | ||||||
The Company assesses its long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever facts and circumstances indicate that the carrying amounts may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining lives of such assets. If these projected cash flows were less than the carrying amounts, an impairment loss would be recognized, resulting in a write-down of the assets with a corresponding charge to earnings. The impairment loss would be measured based upon the difference between the carrying amounts and the fair values of the assets. No indicators of impairment were identified in 2013 or 2012. | |||||||||
Foreign Currency Translation and Transactions | ' | ||||||||
Foreign Currency Translation and Transactions | |||||||||
All assets and liabilities of the Company's foreign subsidiaries are translated at year-end exchange rates, and revenues and expenses are translated at average exchange rates for each quarter in accordance with ASC 830, "Foreign Currency Matters." Resulting translation adjustments are reflected in the "accumulated other comprehensive items" component of stockholders' equity (see Note 14). Foreign currency transaction gains and losses are included in the accompanying consolidated statement of income and are not material for the three years presented. | |||||||||
Stock-Based Compensation | ' | ||||||||
Stock-Based Compensation | |||||||||
The Company recognizes compensation cost for all stock-based awards granted to employees and directors based on the grant date estimate of fair value for those awards. The Company uses the grant date trading price of the Company's common stock to determine the fair value for restricted stock units (RSUs) and the Black-Scholes option-pricing model to determine the fair value for stock option grants. For stock options and time-based RSUs, compensation expense is recognized ratably over the requisite service period for the entire award net of forfeitures. For performance-based RSUs, compensation expense is recognized ratably over the requisite service period for each separately-vesting portion of the award net of forfeitures and remeasured at each reporting period until the total number of RSUs to be issued is known. | |||||||||
Derivatives | ' | ||||||||
Derivatives | |||||||||
The Company uses derivative instruments primarily to reduce its exposure to changes in currency exchange rates and interest rates. When the Company enters into a derivative contract, the Company makes a determination as to whether the transaction is deemed to be a hedge for accounting purposes. For a contract deemed to be a hedge, the Company formally documents the relationship between the derivative instrument and the risk being hedged. In this documentation, the Company specifically identifies the asset, liability, forecasted transaction, cash flow, or net investment that has been designated as the hedged item, and evaluates whether the derivative instrument is expected to reduce the risks associated with the hedged item. To the extent these criteria are not met, the Company does not use hedge accounting for the derivative. The changes in the fair value of a derivative not deemed to be a hedge are recorded currently in earnings. The Company does not hold or engage in transactions involving derivative instruments for purposes other than risk management. | |||||||||
ASC 815, "Derivatives and Hedging," requires that all derivatives be recognized on the balance sheet at fair value. For derivatives designated as cash flow hedges, the related gains or losses on these contracts are deferred as a component of accumulated other comprehensive items (AOCI). These deferred gains and losses are recognized in the period in which the underlying anticipated transaction occurs. For derivatives designated as fair value hedges, the unrealized gains and losses resulting from the impact of currency exchange rate movements are recognized in earnings in the period in which the exchange rates change and offset the currency gains and losses on the underlying exposures being hedged. The Company performs an evaluation of the effectiveness of the hedge both at inception and on an ongoing basis. The ineffective portion of a hedge, if any, and changes in the fair value of a derivative not deemed to be a hedge, are recorded in the consolidated statement of income. |
Nature_of_Operations_and_Summa2
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
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) | 2013 | 2012 | |||||||||||||||
Balance at Beginning of Year | $ | 4,462 | $ | 4,129 | |||||||||||||
Provision charged to income | 1,565 | 1,775 | |||||||||||||||
Usage | (2,114 | ) | (1,544 | ) | |||||||||||||
Acquired | 567 | – | |||||||||||||||
Currency translation | 91 | 102 | |||||||||||||||
Balance at End of Year | $ | 4,571 | $ | 4,462 | |||||||||||||
Supplemental Cash Flow Information | ' | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||
Cash Paid for Interest | $ | 961 | $ | 856 | $ | 1,106 | |||||||||||
Cash Paid for Income Taxes | $ | 8,375 | $ | 9,326 | $ | 6,677 | |||||||||||
Non-Cash Investing Activities: | |||||||||||||||||
Fair Value of Assets Acquired | $ | 88,398 | $ | – | $ | 21,808 | |||||||||||
Cash Paid for Acquired Businesses | (67,453 | ) | – | (16,104 | ) | ||||||||||||
Liabilities Assumed of Acquired Businesses | $ | 20,945 | $ | – | $ | 5,704 | |||||||||||
Non-Cash Financing Activities: | |||||||||||||||||
Issuance of Company Common Stock | $ | 2,677 | $ | 2,106 | $ | 2,296 | |||||||||||
Dividends Declared but Unpaid | $ | 1,389 | $ | – | $ | – | |||||||||||
Components of Inventory | ' | ||||||||||||||||
The components of inventories are as follows: | |||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||
Raw Materials and Supplies | $ | 20,836 | $ | 19,561 | |||||||||||||
Work in Process | 21,051 | 8,371 | |||||||||||||||
Finished Goods (includes $2,941 and $2,310 at customer locations) | 20,918 | 14,145 | |||||||||||||||
$ | 62,805 | $ | 42,077 | ||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||
Property, plant, and equipment consist of the following: | |||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||
Land | $ | 4,797 | $ | 3,968 | |||||||||||||
Buildings | 38,363 | 36,823 | |||||||||||||||
Machinery, Equipment, and Leasehold Improvements | 74,837 | 68,255 | |||||||||||||||
117,997 | 109,046 | ||||||||||||||||
Less: Accumulated Depreciation and Amortization | 73,112 | 69,878 | |||||||||||||||
$ | 44,885 | $ | 39,168 | ||||||||||||||
Acquired Intangible Assets | ' | ||||||||||||||||
Acquired intangible assets are as follows: | |||||||||||||||||
(In thousands) | Gross | Currency | Accumulated | Net | |||||||||||||
Translation | Amortization | ||||||||||||||||
28-Dec-13 | |||||||||||||||||
Customer relationships | $ | 37,964 | $ | 1,074 | $ | (11,446 | ) | $ | 27,592 | ||||||||
Intellectual property | 20,350 | (225 | ) | (12,276 | ) | 7,849 | |||||||||||
Tradenames | 10,198 | (60 | ) | (252 | ) | 9,886 | |||||||||||
Non-compete agreements | 3,388 | (10 | ) | (3,203 | ) | 175 | |||||||||||
Distribution network | 2,400 | – | (1,238 | ) | 1,162 | ||||||||||||
Licensing agreements | 400 | – | (173 | ) | 227 | ||||||||||||
Other | 2,809 | (65 | ) | (1,785 | ) | 959 | |||||||||||
$ | 77,509 | $ | 714 | $ | (30,373 | ) | $ | 47,850 | |||||||||
29-Dec-12 | |||||||||||||||||
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 | |||||||||
Changes in the Carrying Amount of Goodwill | ' | ||||||||||||||||
The changes in the carrying amount of goodwill by segment are as follows: | |||||||||||||||||
(In thousands) | Papermaking Systems Segment | Wood Processing Systems Segment | Total | ||||||||||||||
Balance as of December 31, 2011: | |||||||||||||||||
Gross Balance | $ | 191,468 | $ | – | $ | 191,468 | |||||||||||
Accumulated Impairment Losses | (85,509 | ) | – | (85,509 | ) | ||||||||||||
Net Balance | 105,959 | – | 105,959 | ||||||||||||||
Increase due to acquisitions | – | – | – | ||||||||||||||
Currency translation adjustment | 1,988 | – | 1,988 | ||||||||||||||
Total 2012 Adjustments | 1,988 | – | 1,988 | ||||||||||||||
Balance at December 29, 2012: | |||||||||||||||||
Gross Balance | 193,456 | – | 193,456 | ||||||||||||||
Accumulated Impairment Losses | (85,509 | ) | – | (85,509 | ) | ||||||||||||
Net Balance | 107,947 | – | 107,947 | ||||||||||||||
Increase due to acquisitions | 2,545 | 21,480 | 24,025 | ||||||||||||||
Currency translation adjustment | 338 | (395 | ) | (57 | ) | ||||||||||||
Total 2013 Adjustments | 2,883 | 21,085 | 23,968 | ||||||||||||||
Balance at December 28, 2013: | |||||||||||||||||
Gross Balance | 196,339 | 21,085 | 217,424 | ||||||||||||||
Accumulated Impairment Losses | (85,509 | ) | – | (85,509 | ) | ||||||||||||
Net Balance | $ | 110,830 | $ | 21,085 | $ | 131,915 | |||||||||||
Goodwill by Reporting Unit | ' | ||||||||||||||||
Goodwill by reporting unit is as follows: | |||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||
Stock-Preparation | $ | 18,290 | $ | 17,583 | |||||||||||||
Doctoring, Cleaning, & Filtration | 34,658 | 33,081 | |||||||||||||||
Fluid-Handling | 57,882 | 57,283 | |||||||||||||||
Wood Processing Systems | 21,085 | - | |||||||||||||||
$ | 131,915 | $ | 107,947 |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||
Dec. 28, 2013 | |||||
Acquisitions [Abstract] | ' | ||||
Purchase Price Allocation | ' | ||||
2 | Acquisitions (continued) | ||||
The following table summarizes the purchase method of accounting for the acquisitions made in 2013 and the estimated fair values of assets acquired and liabilities assumed (in thousands): | |||||
Cash and cash equivalents | $ | 1,966 | |||
Accounts receivable | 8,523 | ||||
Inventories | 18,169 | ||||
Other current assets | 1,726 | ||||
Property, plant & equipment | 5,891 | ||||
Other assets | 1,063 | ||||
Intangibles | 27,035 | ||||
Goodwill | 24,025 | ||||
Total assets acquired | 88,398 | ||||
Accounts payable | 2,238 | ||||
Customer deposits | 7,064 | ||||
Long-term deferred tax liabilities | 6,062 | ||||
Other liabilities | 5,581 | ||||
Total liabilities assumed | 20,945 | ||||
Net assets acquired | $ | 67,453 | |||
Consideration: | |||||
Cash | $ | 39,717 | |||
Cash paid to seller borrowed under the 2012 Credit Agreement | 27,081 | ||||
Short-term obligations | 655 | ||||
Total consideration | $ | 67,453 |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||||||
Employee Benefit Plans [Abstract] | ' | ||||||||||||||||||||||||
The components of pre-tax stock-based compensation expense | ' | ||||||||||||||||||||||||
The components of pre-tax stock-based compensation expense are as follows: | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Restricted Stock Unit Awards | $ | 4,102 | $ | 3,731 | $ | 3,212 | |||||||||||||||||||
Stock Option Awards | 1,015 | 954 | 628 | ||||||||||||||||||||||
Employee Stock Purchase Plan Awards | 99 | 81 | 94 | ||||||||||||||||||||||
Total | $ | 5,216 | $ | 4,766 | $ | 3,934 | |||||||||||||||||||
Summary of Activity of the Unvested Restricted Stock Units | ' | ||||||||||||||||||||||||
A summary of the activity of the Company's unvested restricted stock units for 2011, 2012, and 2013 is as follows: | |||||||||||||||||||||||||
Unvested Restricted Stock Units | Units | Weighted | |||||||||||||||||||||||
(In thousands) | Average Grant- | ||||||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||||||
Unvested RSUs at January 1, 2011 | 312 | $ | 16.77 | ||||||||||||||||||||||
Granted | 184 | $ | 24.91 | ||||||||||||||||||||||
Vested | (159 | ) | $ | 19.9 | |||||||||||||||||||||
Forfeited / Expired | (8 | ) | $ | 8.81 | |||||||||||||||||||||
Unvested RSUs at December 31, 2011 | 329 | $ | 20.02 | ||||||||||||||||||||||
Granted | 179 | $ | 21.95 | ||||||||||||||||||||||
Vested | (144 | ) | $ | 19.97 | |||||||||||||||||||||
Forfeited / Expired | (1 | ) | $ | 27.74 | |||||||||||||||||||||
Unvested RSUs at December 29, 2012 | 363 | $ | 20.98 | ||||||||||||||||||||||
Granted | 176 | $ | 25.53 | ||||||||||||||||||||||
Vested | (182 | ) | $ | 22.84 | |||||||||||||||||||||
Forfeited / Expired | (14 | ) | $ | 16.97 | |||||||||||||||||||||
Unvested RSUs at December 28, 2013 | 343 | $ | 22.5 | ||||||||||||||||||||||
Summary of Valuation Assumptions | ' | ||||||||||||||||||||||||
The fair value of each option grant was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Weighted-average Exercise Price | $ | 25.98 | $ | 21.91 | $ | 24.9 | |||||||||||||||||||
Weighted-average Grant Date Fair Value | $ | 11.33 | $ | 11.69 | $ | 12.85 | |||||||||||||||||||
Volatility | 51 | % | 50 | % | 45 | % | |||||||||||||||||||
Expected Annual Dividend | 1.92 | % | – | – | |||||||||||||||||||||
Risk-Free Interest Rate | 1.25 | % | 1.38 | % | 2.86 | % | |||||||||||||||||||
Expected Life of Options | 7.6 years | 7.6 years | 7.4 years | ||||||||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||||||||||
A summary of the Company's stock option activity for 2011, 2012, and 2013 is as follows: | |||||||||||||||||||||||||
Summary of Stock Option Exercises | ' | ||||||||||||||||||||||||
A summary of the Company's stock option exercises in 2013, 2012, and 2011 is as follows. | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Total intrinsic value of options exercised | $ | - | $ | 119 | $ | 39 | |||||||||||||||||||
Cash received from options exercised | $ | - | $ | 319 | $ | 150 | |||||||||||||||||||
Changes In Projected Benefit Obligations, Plan Assets, Unfunded Status, and Accumulated Other Comprehensive Items | ' | ||||||||||||||||||||||||
The following table summarizes the change in benefit obligation; the change in plan assets; the unfunded status; and the amounts recognized in the balance sheet for the Company's pension benefits and other benefits plans. The measurement date for all items set forth below is the last day of the fiscal year presented. | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Change in Benefit Obligation: | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 31,743 | $ | 31,594 | $ | 5,968 | $ | 5,402 | |||||||||||||||||
Service cost | 892 | 991 | 171 | 143 | |||||||||||||||||||||
Interest cost | 1,167 | 1,313 | 207 | 225 | |||||||||||||||||||||
Actuarial (gain) loss | (4,617 | ) | 1,046 | (551 | ) | 425 | |||||||||||||||||||
Benefits paid | (1,394 | ) | (3,201 | ) | (299 | ) | (275 | ) | |||||||||||||||||
Effect of currency translation | – | – | 87 | 48 | |||||||||||||||||||||
Benefit obligation at end of year | $ | 27,791 | $ | 31,743 | $ | 5,583 | $ | 5,968 | |||||||||||||||||
Change in Plan Assets: | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 26,728 | $ | 26,393 | $ | – | $ | – | |||||||||||||||||
Actual return on plan assets | (358 | ) | 2,576 | – | – | ||||||||||||||||||||
Employer contribution | 1,080 | 960 | 299 | 275 | |||||||||||||||||||||
Benefits paid | (1,394 | ) | (3,201 | ) | (299 | ) | (275 | ) | |||||||||||||||||
Fair value of plan assets at end of year | $ | 26,056 | $ | 26,728 | $ | – | $ | – | |||||||||||||||||
Unfunded status | $ | (1,735 | ) | $ | (5,015 | ) | $ | (5,583 | ) | $ | (5,968 | ) | |||||||||||||
Accumulated benefit obligation as of year-end | $ | 23,494 | $ | 26,270 | $ | 1,876 | $ | 1,777 | |||||||||||||||||
Amounts Recognized in the Balance Sheet Consist of: | |||||||||||||||||||||||||
Current liability | $ | – | $ | – | $ | (233 | ) | $ | (251 | ) | |||||||||||||||
Non-current liability | $ | (1,735 | ) | $ | (5,015 | ) | $ | (5,350 | ) | $ | (5,717 | ) | |||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Items Before Tax Consist of: | |||||||||||||||||||||||||
Unrecognized net actuarial loss | $ | (6,264 | ) | $ | (9,656 | ) | $ | (662 | ) | $ | (1,251 | ) | |||||||||||||
Unrecognized prior service cost | (218 | ) | (273 | ) | (799 | ) | (882 | ) | |||||||||||||||||
Total | $ | (6,482 | ) | $ | (9,929 | ) | $ | (1,461 | ) | $ | (2,133 | ) | |||||||||||||
Changes in Amounts Recognized in Accumulated Other Comprehensive Items Before Tax: | |||||||||||||||||||||||||
Current year unrecognized net actuarial gain (loss) | $ | 2,859 | $ | (85 | ) | $ | 551 | $ | (425 | ) | |||||||||||||||
Amortization of unrecognized prior service cost | 55 | 56 | 85 | 28 | |||||||||||||||||||||
Amortization of unrecognized net actuarial loss | 533 | 634 | 62 | 36 | |||||||||||||||||||||
Effect of currency translation | – | – | (26 | ) | (7 | ) | |||||||||||||||||||
Total | $ | 3,447 | $ | 605 | $ | 672 | $ | (368 | ) | ||||||||||||||||
Weighted-Average Assumptions Used to Determine the Benefit Obligation and Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||
The weighted-average assumptions used to determine the benefit obligation as of year-end were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 4.79 | % | 3.89 | % | 4.04 | % | 3.52 | % | |||||||||||||||||
Rate of compensation increase | 3.5 | % | 3.5 | % | 3 | % | 3.15 | % | |||||||||||||||||
Benefit Obligations in Excess of Fair Value of Plan Assets | ' | ||||||||||||||||||||||||
The projected benefit obligations and fair value of plan assets for the Company's pension plans with projected benefit obligations in excess of plan assets were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets: | |||||||||||||||||||||||||
Projected benefit obligation | $ | 27,791 | $ | 31,743 | $ | 2,469 | $ | 2,456 | |||||||||||||||||
Fair value of plan assets | $ | 26,056 | $ | 26,728 | $ | – | $ | – | |||||||||||||||||
Accumulated Benefit Obligations in Excess of Plan Assets | ' | ||||||||||||||||||||||||
The accumulated benefit obligations and fair values of plan assets for the Company's pension plans with accumulated benefit obligations in excess of plan assets were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets: | |||||||||||||||||||||||||
Accumulated benefit obligation | $ | – | $ | – | $ | 1,876 | $ | 1,777 | |||||||||||||||||
Fair value of plan assets | $ | – | $ | – | $ | – | $ | – | |||||||||||||||||
Components of Net Periodic Benefit Cost (Income) | ' | ||||||||||||||||||||||||
The components of net periodic benefit cost were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Components of Net Periodic Benefit Cost: | |||||||||||||||||||||||||
Service cost | $ | 998 | $ | 991 | $ | 855 | $ | 171 | $ | 143 | $ | 187 | |||||||||||||
Interest cost | 1,167 | 1,313 | 1,298 | 207 | 225 | 237 | |||||||||||||||||||
Expected return on plan assets | (1,506 | ) | (1,616 | ) | (1,429 | ) | – | – | – | ||||||||||||||||
Recognized net actuarial loss | 533 | 634 | 433 | 62 | 36 | 28 | |||||||||||||||||||
Amortization of prior service cost | 55 | 56 | 55 | 85 | 28 | 15 | |||||||||||||||||||
Net periodic benefit cost | $ | 1,247 | $ | 1,378 | $ | 1,212 | $ | 525 | $ | 432 | $ | 467 | |||||||||||||
Weighted-Average Health Care Cost Trend Rates | ' | ||||||||||||||||||||||||
The weighted-average assumptions used to determine net periodic benefit cost were as follows: | |||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Discount rate | 3.89 | % | 4.28 | % | 5.25 | % | 3.53 | % | 4.44 | % | 5.04 | % | |||||||||||||
Expected long-term return on plan assets | 5.75 | % | 6.25 | % | 6.25 | % | – | – | – | ||||||||||||||||
Rate of compensation increase | 3.5 | % | 4 | % | 4 | % | 3.25 | % | 3.57 | % | 3.28 | % | |||||||||||||
Assumed weighted-average healthcare cost trend rates as of year-end were as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Healthcare cost trend rate assumed for next year | 8 | % | 8 | % | |||||||||||||||||||||
Ultimate healthcare cost trend rate | 0 | % | 0 | % | |||||||||||||||||||||
Year assumed rate reaches ultimate rate | 2018 | 2018 | |||||||||||||||||||||||
Fair Values of Plan Assets | ' | ||||||||||||||||||||||||
The fair values of the Company's noncontributory defined benefit retirement plan assets at year-end 2013 and 2012 by asset category are as follows: | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Total | |||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Mutual Funds: | |||||||||||||||||||||||||
U.S. Equity (a) | $ | 3,205 | $ | – | $ | – | $ | 3,205 | |||||||||||||||||
International Equity (a) | 817 | – | – | 817 | |||||||||||||||||||||
Fixed Income (b) | 14,374 | 7,660 | – | 22,034 | |||||||||||||||||||||
Total Assets | $ | 18,396 | $ | 7,660 | $ | – | $ | 26,056 | |||||||||||||||||
2012 | |||||||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||||||
(In thousands) | Quoted Prices in | Significant | Significant | Total | |||||||||||||||||||||
Active Markets | Observable | Unobservable | |||||||||||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||
Mutual Funds: | |||||||||||||||||||||||||
U.S. Equity (a) | $ | 3,331 | $ | – | $ | – | $ | 3,331 | |||||||||||||||||
International Equity (a) | 848 | – | – | 848 | |||||||||||||||||||||
Fixed Income (b) | 14,641 | 7,908 | – | 22,549 | |||||||||||||||||||||
Total Assets | $ | 18,820 | $ | 7,908 | $ | – | $ | 26,728 | |||||||||||||||||
______________________________ | |||||||||||||||||||||||||
(a) | Common stock index funds. | ||||||||||||||||||||||||
(b) | Investments in commingled funds that invest in a diversified blend of investment and non-investment grade fixed income securities. | ||||||||||||||||||||||||
Target Asset Allocation of Plan Assets | ' | ||||||||||||||||||||||||
The primary objective for the noncontributory defined benefit retirement plan is to provide long-term capital appreciation through investment in equity and debt securities. The following target asset allocation has been established for the plan: | |||||||||||||||||||||||||
Asset Category | Minimum | Neutral | Maximum | ||||||||||||||||||||||
Equity securities | 10 | % | 15 | % | 20 | % | |||||||||||||||||||
Debt securities | 80 | % | 85 | % | 90 | % | |||||||||||||||||||
Total | 100 | % | |||||||||||||||||||||||
Estimated Future Benefit Payments | ' | ||||||||||||||||||||||||
(In thousands) | Pension | Other | |||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2014 | $ | 1,143 | $ | 234 | |||||||||||||||||||||
2015 | 1,237 | 425 | |||||||||||||||||||||||
2016 | 1,286 | 202 | |||||||||||||||||||||||
2017 | 2,668 | 753 | |||||||||||||||||||||||
2018 | 2,034 | 433 | |||||||||||||||||||||||
2019-2023 | 11,269 | 1,977 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
Components of Income from Continuing Operations Before Income Taxes | ' | ||||||||||||
The components of income from continuing operations before provision for income taxes are as follows: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Domestic | $ | 8,913 | $ | 11,445 | $ | 9,823 | |||||||
Foreign | 24,113 | 24,485 | 28,320 | ||||||||||
$ | 33,026 | $ | 35,930 | $ | 38,143 | ||||||||
Components of the Provision for Income Taxes from Continuing Operations | ' | ||||||||||||
The components of the provision for income taxes from continuing operations are as follows: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Current Provision: | |||||||||||||
Federal | $ | 1,986 | $ | 1,798 | $ | 123 | |||||||
Foreign | 7,955 | 7,363 | 5,575 | ||||||||||
State | 436 | 559 | 473 | ||||||||||
10,377 | 9,720 | 6,171 | |||||||||||
Deferred (Benefit) Provision: | |||||||||||||
Federal | 1,325 | (3,980 | ) | (317 | ) | ||||||||
Foreign | (2,354 | ) | (782 | ) | (1,309 | ) | |||||||
State | (32 | ) | (106 | ) | (260 | ) | |||||||
(1,061 | ) | (4,868 | ) | (1,886 | ) | ||||||||
$ | 9,316 | $ | 4,852 | $ | 4,285 | ||||||||
Provision for Income Taxes by Continuing and Discontinued Operation | ' | ||||||||||||
The provision for income taxes included in the accompanying statement of income is as follows: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Continuing Operations | $ | 9,316 | $ | 4,852 | $ | 4,285 | |||||||
Discontinued Operation | (34 | ) | 451 | (1,511 | ) | ||||||||
$ | 9,282 | $ | 5,303 | $ | 2,774 | ||||||||
Income Tax Reconciliation | ' | ||||||||||||
The provision for income taxes from continuing operations in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate of 35% to income from continuing operations before provision for income taxes due to the following: | |||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Provision for Income Taxes at Statutory Rate | $ | 11,559 | $ | 12,576 | $ | 13,350 | |||||||
Increases (Decreases) Resulting From: | |||||||||||||
State income taxes, net of federal tax | 304 | 295 | (140 | ) | |||||||||
U.S. tax (benefit) cost of foreign earnings | (119 | ) | 791 | (53 | ) | ||||||||
Foreign tax rate differential | (2,681 | ) | (2,298 | ) | (3,094 | ) | |||||||
Provision (reversal) of tax benefit reserves, net | 853 | 624 | (1,596 | ) | |||||||||
Change in valuation allowance | (968 | ) | (7,051 | ) | (4,183 | ) | |||||||
Nondeductible expenses | 1,580 | 775 | 746 | ||||||||||
Research and development tax credits | (638 | ) | (623 | ) | (324 | ) | |||||||
Other | (574 | ) | (237 | ) | (421 | ) | |||||||
$ | 9,316 | $ | 4,852 | $ | 4,285 | ||||||||
Net Deferred Tax (Liability) Asset | ' | ||||||||||||
Net deferred tax (liability) asset in the accompanying consolidated balance sheet consists of the following: | |||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Deferred Tax Asset: | |||||||||||||
Foreign and alternative minimum tax credit carryforwards | $ | 3,819 | $ | 5,659 | |||||||||
Reserves and accruals | 5,125 | 6,493 | |||||||||||
Net operating loss carryforwards | 16,452 | 15,147 | |||||||||||
Inventory basis difference | 2,797 | 2,468 | |||||||||||
Research and development | 1,017 | 1,193 | |||||||||||
Employee compensation | 3,199 | 2,229 | |||||||||||
Allowance for doubtful accounts | 595 | 486 | |||||||||||
Revenue recognition | 253 | 286 | |||||||||||
Other | 209 | 88 | |||||||||||
Deferred Tax Asset, Gross | 33,466 | 34,049 | |||||||||||
Less: Valuation Allowance | (13,905 | ) | (14,315 | ) | |||||||||
Deferred Tax Asset, Net | 19,561 | 19,734 | |||||||||||
Deferred Tax Liability: | |||||||||||||
Goodwill and intangible assets | (20,923 | ) | (15,393 | ) | |||||||||
Fixed asset basis difference | (3,619 | ) | (2,974 | ) | |||||||||
Reserves and accruals | (207 | ) | (342 | ) | |||||||||
Other | (65 | ) | (107 | ) | |||||||||
Deferred Tax Liability | (24,814 | ) | (18,816 | ) | |||||||||
Net Deferred Tax (Liability) Asset | $ | (5,253 | ) | $ | 918 | ||||||||
Unrecognized Tax Benefits | ' | ||||||||||||
As of year-end 2013, the Company had $5,423,000 of unrecognized tax benefits which, if recognized, would reduce the effective tax rate. A tabular reconciliation of the beginning and ending amount of unrecognized tax benefits at year-end 2013 and 2012 is as follows: | |||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||
Unrecognized tax benefits, beginning of year | $ | 4,194 | $ | 3,308 | |||||||||
Gross increases—tax positions in prior periods | 449 | 185 | |||||||||||
Gross decreases—tax positions in prior periods | - | (41 | ) | ||||||||||
Gross increases—current-period tax positions | 1,086 | 1,231 | |||||||||||
Settlements | (6 | ) | (182 | ) | |||||||||
Lapses of statutes of limitations | (158 | ) | (367 | ) | |||||||||
Currency translation | (142 | ) | 60 | ||||||||||
Unrecognized tax benefits, end of year | $ | 5,423 | $ | 4,194 |
LongTerm_Obligations_Tables
Long-Term Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Long-Term Obligations [Abstract] | ' | ||||||||
Long-term obligations | ' | ||||||||
Long-term obligations at year-end 2013 and 2012 are as follows: | |||||||||
(In thousands) | 2013 | 2012 | |||||||
Revolving Credit Facility, due 2018 | $ | 32,260 | $ | – | |||||
Variable Rate Term Loan, due from 2014 to 2016 | 6,375 | 6,875 | |||||||
Total Long-Term Obligations | 38,635 | 6,875 | |||||||
Less: Current Maturities | (625 | ) | (625 | ) | |||||
Long-Term Obligations, less Current Maturities | $ | 38,010 | $ | 6,250 | |||||
Annual payment requirements for long-term obligations | ' | ||||||||
The annual payment requirements for long-term obligations are as follows: | |||||||||
(In thousands) | |||||||||
2014 | $ | 625 | |||||||
2015 | 500 | ||||||||
2016 | 5,250 | ||||||||
2017 | - | ||||||||
2018 | 32,260 | ||||||||
The weighted average interest rate for long-term obligations was 2.74% and 6.38% at year-end 2013 and 2012, respectively. | |||||||||
See Note 11 for the fair value information related to the Company's long-term obligations. |
Restructuring_Costs_and_Other_1
Restructuring Costs and Other Expense (Income), Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Restructuring Costs and Other Expense (Income), Net [Abstract] | ' | ||||||||||||
Summary of changes in accrued restructuring costs | ' | ||||||||||||
A summary of the changes in accrued restructuring costs are as follows: | |||||||||||||
(In thousands) | Severance | Other | Total | ||||||||||
Costs | Costs | Costs | |||||||||||
2013 Restructuring Plan | |||||||||||||
Provision | $ | 1,666 | $ | 177 | $ | 1,843 | |||||||
Usage | (1,038 | ) | (177 | ) | (1,215 | ) | |||||||
Currency translation | (161 | ) | – | (161 | ) | ||||||||
Balance at December 28, 2013 | $ | 467 | $ | – | $ | 467 | |||||||
2011 Restructuring Plan | |||||||||||||
Balance at January 1, 2011 | $ | – | $ | – | $ | – | |||||||
Provision | 408 | – | 408 | ||||||||||
Balance at December 31, 2011 | $ | 408 | $ | – | $ | 408 | |||||||
Provision reversal | (67 | ) | – | (67 | ) | ||||||||
Usage | (256 | ) | – | (256 | ) | ||||||||
Currency translation | 3 | – | 3 | ||||||||||
Balance at December 29, 2012 | $ | 88 | $ | – | $ | 88 | |||||||
Usage | (38 | ) | – | (38 | ) | ||||||||
Currency translation | 2 | – | 2 | ||||||||||
Balance at December 28, 2013 | $ | 52 | $ | – | $ | 52 | |||||||
2008 Restructuring Plan | |||||||||||||
Balance at January 1, 2011 | $ | 433 | $ | – | $ | 433 | |||||||
Usage | (94 | ) | – | (94 | ) | ||||||||
Currency translation | 15 | – | 15 | ||||||||||
Balance at December 31, 2011 | $ | 354 | $ | – | $ | 354 | |||||||
Provision reversal | (8 | ) | – | (8 | ) | ||||||||
Usage | (182 | ) | – | (182 | ) | ||||||||
Currency translation | 2 | – | 2 | ||||||||||
Balance at December 29, 2012 | $ | 166 | $ | – | $ | 166 | |||||||
Usage | (141 | ) | – | (141 | ) | ||||||||
Currency translation | 6 | – | 6 | ||||||||||
Balance at December 28, 2013 | $ | 31 | $ | – | $ | 31 |
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||
Derivatives [Abstract] | ' | |||||||||||||||||
Fair value of derivative instruments | ' | |||||||||||||||||
The following table summarizes the fair value of the Company's derivative instruments designated and not designated as hedging instruments, the notional values of the associated derivative contracts, and the location of these instruments in the consolidated balance sheet: | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
(In thousands) | Balance Sheet | Asset | Notional | Asset | Notional | |||||||||||||
Location | (Liability) | Amount | (Liability) | Amount | ||||||||||||||
(a) | (b) | (a) | (b) | |||||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||
Derivatives in an Asset Position: | ||||||||||||||||||
Forward currency-exchange contracts | Other Current | $ | – | $ | – | $ | 5 | $ | 269 | |||||||||
Assets | ||||||||||||||||||
Derivatives in a Liability Position: | ||||||||||||||||||
Forward currency-exchange contracts | Other Current | $ | (22 | ) | $ | 1,340 | $ | (161 | ) | $ | 3,180 | |||||||
Liabilities | ||||||||||||||||||
Interest rate swap agreement | Other Current | $ | – | $ | – | $ | (19 | ) | $ | 5,000 | ||||||||
Liabilities | ||||||||||||||||||
Interest rate swap agreement | Other Long-Term | $ | (773 | ) | $ | 6,375 | $ | (1,029 | ) | $ | 6,875 | |||||||
Liabilities | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||
Derivatives in an Asset Position: | ||||||||||||||||||
Forward currency-exchange contracts | Other Current | $ | 97 | $ | 1,419 | $ | 24 | $ | 1,013 | |||||||||
Assets | ||||||||||||||||||
Derivatives in a Liability Position: | ||||||||||||||||||
Forward currency-exchange contracts | Other Current | $ | (1 | ) | $ | 288 | $ | (12 | ) | $ | 815 | |||||||
Liabilities | ||||||||||||||||||
(a) | See Note 11 for the fair value measurements relating to these financial instruments. | |||||||||||||||||
(b) | The total notional amount is indicative of the level of the Company's derivative activity during 2013 and 2012. | |||||||||||||||||
Activity in accumulated other comprehensive items (OCI) | ' | |||||||||||||||||
The following table summarizes the activity in accumulated other comprehensive items (OCI) associated with the Company's derivative instruments designated as cash flow hedges as of and for the period ended December 28, 2013: | ||||||||||||||||||
(In thousands) | Interest Rate Swap | Forward Currency- | Total | |||||||||||||||
Agreements | Exchange Contracts | |||||||||||||||||
Unrealized loss, net of tax, at December 29, 2012 | $ | 939 | $ | 107 | $ | 1,046 | ||||||||||||
Loss reclassified to earnings (a) | (383 | ) | (102 | ) | (485 | ) | ||||||||||||
Loss recognized in OCI | 62 | 10 | 72 | |||||||||||||||
Unrealized loss, net of tax, at December 28, 2013 | $ | 618 | $ | 15 | $ | 633 | ||||||||||||
(a) | Included in interest expense for interest rate swap agreements and in revenues for forward currency-exchange contracts in the accompanying consolidated statement of income. |
Fair_Value_Measurements_and_Fa1
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Fair Value Measurements and Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||
Fair value of assets and liabilities measured on a recurring basis | ' | ||||||||||||||||
The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||
Fair Value as of December 28, 2013 | |||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Money market funds and time deposits | $ | 17,090 | $ | – | $ | – | $ | 17,090 | |||||||||
Forward currency-exchange contracts | $ | – | $ | 97 | $ | – | $ | 97 | |||||||||
Banker's acceptance drafts (a) | $ | – | $ | 10,765 | $ | – | $ | 10,765 | |||||||||
Liabilities: | |||||||||||||||||
Forward currency-exchange contracts | $ | – | $ | 23 | $ | – | $ | 23 | |||||||||
Interest rate swap agreement | $ | – | $ | 773 | $ | – | $ | 773 | |||||||||
Fair Value as of December 29, 2012 | |||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Money market funds and time deposits | $ | 19,768 | $ | – | $ | – | $ | 19,768 | |||||||||
Forward currency-exchange contracts | $ | – | $ | 29 | $ | – | $ | 29 | |||||||||
Banker's acceptance drafts (a) | $ | – | $ | 9,794 | $ | – | $ | 9,794 | |||||||||
Liabilities: | |||||||||||||||||
Forward currency-exchange contracts | $ | – | $ | 173 | $ | – | $ | 173 | |||||||||
Interest rate swap agreements | $ | – | $ | 1,048 | $ | – | $ | 1,048 | |||||||||
(a) | Included in accounts receivable in the accompanying consolidated balance sheet. | ||||||||||||||||
Carrying value and fair value of debt obligations | ' | ||||||||||||||||
The carrying amount and fair value of the Company's debt obligations are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | ||||||||||||||
Long-term debt obligations | $ | 38,010 | $ | 38,010 | $ | 6,250 | $ | 6,250 |
Business_Segment_and_Geographi1
Business Segment and Geographical Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Business Segment and Geographical Information [Abstract] | ' | ||||||||||||
Business segment information | ' | ||||||||||||
The Company's Papermaking Systems segment develops, manufactures, and markets stock-preparation systems and equipment; fluid-handling systems; and doctoring, cleaning, and filtration systems and related consumables for the pulp and paper industry worldwide. Principal products manufactured by this segment include: custom-engineered systems and equipment for the preparation of wastepaper for conversion into recycled paper; fluid-handling systems used primarily in the dryer section of the papermaking process and during the production of corrugated boxboard, metals, plastics, rubber, textiles, chemicals, and food; doctoring systems and equipment and related consumables important to the efficient operation of paper machines; and cleaning and filtration systems essential for draining, purifying, and recycling process water and cleaning paper machine fabrics and rolls. The Wood Processing Systems segment designs and manufactures stranders and related equipment used in the production of oriented strand board, an engineered wood panel product used primarily in home construction. This segment also supplies debarking and wood chipping equipment used in the forest products and the pulp and paper industries. The Fiber-based Products business produces biodegradable absorbent granules from papermaking byproducts. These granules are primarily used 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) | 2013 | 2012 | 2011 | ||||||||||
Business Segment Information | |||||||||||||
Revenues by Product Line: | |||||||||||||
Papermaking Systems: | |||||||||||||
Stock-Preparation | $ | 122,704 | $ | 123,952 | $ | 131,914 | |||||||
Doctoring, Cleaning, & Filtration | 112,600 | 104,493 | 92,333 | ||||||||||
Fluid-Handling | 93,404 | 92,581 | 100,618 | ||||||||||
Papermaking Systems | $ | 328,708 | $ | 321,026 | $ | 324,865 | |||||||
Wood Processing Systems | 4,573 | – | – | ||||||||||
Fiber-based Products | 11,218 | 10,725 | 10,595 | ||||||||||
$ | 344,499 | $ | 331,751 | $ | 335,460 | ||||||||
Income from Continuing Operations Before Provision for Income Taxes: | |||||||||||||
Papermaking Systems (a) | $ | 47,144 | $ | 48,618 | $ | 50,869 | |||||||
Wood Processing Systems | (382 | ) | – | – | |||||||||
Corporate and Fiber-based Products | (13,459 | ) | (12,174 | ) | (12,159 | ) | |||||||
Total operating income | 33,303 | 36,444 | 38,710 | ||||||||||
Interest expense, net | (277 | ) | (514 | ) | (567 | ) | |||||||
$ | 33,026 | $ | 35,930 | $ | 38,143 | ||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||
Total Assets: | |||||||||||||
Papermaking Systems | $ | 364,102 | $ | 347,540 | $ | 340,227 | |||||||
Wood Processing Systems | 63,493 | - | - | ||||||||||
Corporate and Fiber-based Products (b) | 14,429 | 10,895 | 16,496 | ||||||||||
Total Assets from Continuing Operations | 442,024 | 358,435 | 356,723 | ||||||||||
Total Assets from Discontinued Operation | 144 | 513 | 1,675 | ||||||||||
$ | 442,168 | $ | 358,948 | $ | 358,398 | ||||||||
Depreciation and Amortization: | |||||||||||||
Papermaking Systems | $ | 8,434 | $ | 7,903 | $ | 7,455 | |||||||
Other | 1,341 | 481 | 481 | ||||||||||
$ | 9,775 | $ | 8,384 | $ | 7,936 | ||||||||
Capital Expenditures: | |||||||||||||
Papermaking Systems | $ | 5,843 | $ | 3,982 | $ | 7,751 | |||||||
Other | 418 | 268 | 279 | ||||||||||
$ | 6,261 | $ | 4,250 | $ | 8,030 | ||||||||
Geographical Information | |||||||||||||
Revenues (c): | |||||||||||||
United States | $ | 129,131 | $ | 128,663 | $ | 123,614 | |||||||
China | 50,678 | 53,242 | 62,615 | ||||||||||
Other | 164,690 | 149,846 | 149,231 | ||||||||||
$ | 344,499 | $ | 331,751 | $ | 335,460 | ||||||||
Long-lived Assets (d): | |||||||||||||
United States | $ | 14,118 | $ | 13,702 | $ | 14,578 | |||||||
China | 14,603 | 15,136 | 15,789 | ||||||||||
Other | 16,164 | 10,330 | 9,728 | ||||||||||
$ | 44,885 | $ | 39,168 | $ | 40,095 | ||||||||
Export Revenues Included in United States Revenues Above (e) | $ | 9,685 | $ | 20,871 | $ | 16,512 | |||||||
(a) | Includes restructuring costs and other expense (income), net, including costs of $0.1 million and $0.3 million in 2013 and 2012, respectively, and income of $1.9 million in 2011 (see Note 8). | ||||||||||||
(b) | Primarily includes cash and cash equivalents and property, plant, and equipment. | ||||||||||||
(c) | Revenues are attributed to countries based on customer location. | ||||||||||||
(d) | Represents property, plant, and equipment, net. | ||||||||||||
(e) | In general, export revenues are denominated in U.S. dollars. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Earnings per Share [Abstract] | ' | ||||||||||||
Basic and diluted earnings per share | ' | ||||||||||||
Basic and diluted earnings per share were calculated as follows: | |||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Amounts Attributable to Kadant: | |||||||||||||
Income from Continuing Operations | $ | 23,481 | $ | 30,880 | $ | 33,584 | |||||||
(Loss) Income from Discontinued Operation | (62 | ) | 743 | (9 | ) | ||||||||
Net Income | $ | 23,419 | $ | 31,623 | $ | 33,575 | |||||||
Basic Weighted Average Shares | 11,153 | 11,456 | 12,124 | ||||||||||
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan | 187 | 134 | 137 | ||||||||||
Diluted Weighted Average Shares | 11,340 | 11,590 | 12,261 | ||||||||||
Basic Earnings per Share: | |||||||||||||
Continuing Operations | $ | 2.11 | $ | 2.7 | $ | 2.77 | |||||||
Discontinued Operation | $ | (0.01 | ) | $ | 0.06 | $ | – | ||||||
Net Income per Basic Share | $ | 2.1 | $ | 2.76 | $ | 2.77 | |||||||
Diluted Earnings per Share: | |||||||||||||
Continuing Operations | $ | 2.07 | $ | 2.66 | $ | 2.74 | |||||||
Discontinued Operation | $ | (0.01 | ) | $ | 0.06 | $ | – | ||||||
Net Income per Diluted Share | $ | 2.07 | $ | 2.73 | $ | 2.74 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Items (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Items [Abstract] | ' | ||||||||||||||||||||
Components of accumulated other Comprehensive Items in the balance sheet | ' | ||||||||||||||||||||
(In thousands) | Foreign Currency Translation Adjustment | Unrecognized Prior Service Cost | Deferred Loss on Pension and Other Post-Retirement Plans | Deferred Loss on Hedging Instruments | Accumulated Other Comprehensive Items | ||||||||||||||||
Balance at December 29, 2012 | $ | 8,124 | $ | (748 | ) | $ | (9,645 | ) | $ | (1,046 | ) | $ | (3,315 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 795 | - | 2,320 | (72 | ) | 3,043 | |||||||||||||||
Reclassifications from AOCI | – | 91 | 406 | 485 | 982 | ||||||||||||||||
Net current period other comprehensive income | 795 | 91 | 2,726 | 413 | 4,025 | ||||||||||||||||
Balance at December 28, 2013 | $ | 8,919 | $ | (657 | ) | $ | (6,919 | ) | $ | (633 | ) | $ | 710 | ||||||||
Reclassification out of accumulated other comprehensive items | ' | ||||||||||||||||||||
Amounts reclassified out of accumulated other comprehensive items were as follows: | |||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | Income Statement | |||||||||||||||||
Line Item | |||||||||||||||||||||
Pension and Other Post-retirement Plans | |||||||||||||||||||||
Amortization of prior service costs (1) | $ | (141 | ) | $ | (85 | ) | $ | (72 | ) | Selling, General and Administrative | |||||||||||
Amortization of actuarial losses (1) | (620 | ) | (683 | ) | (467 | ) | Selling, General and Administrative | ||||||||||||||
Total expense before income taxes | (761 | ) | (768 | ) | (539 | ) | |||||||||||||||
Income tax benefit | 264 | 274 | 192 | Provision for income taxes | |||||||||||||||||
(497 | ) | (494 | ) | (347 | ) | ||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||
Interest rate swap agreements (2) | (374 | ) | (513 | ) | (706 | ) | Interest expense | ||||||||||||||
Forward currency-exchange contracts (2) | (153 | ) | (396 | ) | 253 | Revenues | |||||||||||||||
Total expense before income taxes | (527 | ) | (909 | ) | (453 | ) | |||||||||||||||
Income tax benefit | 42 | 317 | 36 | Provision for income taxes | |||||||||||||||||
(485 | ) | (592 | ) | (417 | ) | ||||||||||||||||
Total Reclassifications | $ | (982 | ) | $ | (1,086 | ) | $ | (764 | ) | ||||||||||||
-1 | Included in the computation of net periodic pension costs. See Note 3 for additional information. | ||||||||||||||||||||
-2 | See Note 10 for additional information. |
Unaudited_Quarterly_Informatio1
Unaudited Quarterly Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Unaudited Quarterly Information [Abstract] | ' | ||||||||||||||||
Unaudited quarterly financial information | ' | ||||||||||||||||
2013 (In thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Revenues | $ | 76,204 | $ | 82,165 | $ | 91,315 | $ | 94,815 | |||||||||
Gross Profit | 36,026 | 39,940 | 40,121 | 41,617 | |||||||||||||
Amounts Attributable to Kadant: | |||||||||||||||||
Income from Continuing Operations | 5,313 | 5,772 | 6,461 | 5,935 | |||||||||||||
Loss from Discontinued Operation | (29 | ) | (12 | ) | (14 | ) | (7 | ) | |||||||||
Net Income Attributable to Kadant | $ | 5,284 | $ | 5,760 | $ | 6,447 | $ | 5,928 | |||||||||
Basic Earnings per Share: | |||||||||||||||||
Continuing Operations | $ | 0.48 | $ | 0.52 | $ | 0.58 | $ | 0.53 | |||||||||
Net Income Attributable to Kadant | $ | 0.47 | $ | 0.52 | $ | 0.58 | $ | 0.53 | |||||||||
Diluted Earnings per Share: | |||||||||||||||||
Continuing Operations | $ | 0.47 | $ | 0.51 | $ | 0.57 | $ | 0.52 | |||||||||
Net Income Attributable to Kadant | $ | 0.47 | $ | 0.51 | $ | 0.57 | $ | 0.52 | |||||||||
Cash Dividend Declared per Common Share | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 | |||||||||
2012 (In thousands, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Revenues | $ | 84,113 | $ | 82,982 | $ | 86,601 | $ | 78,055 | |||||||||
Gross Profit | 38,372 | 36,298 | 37,596 | 33,536 | |||||||||||||
Amounts Attributable to Kadant: | |||||||||||||||||
Income from Continuing Operations | 7,114 | 6,546 | 7,617 | 9,603 | |||||||||||||
(Loss) Income from Discontinued Operation (a) | (61 | ) | (3 | ) | 844 | (37 | ) | ||||||||||
Net Income Attributable to Kadant | $ | 7,053 | $ | 6,543 | $ | 8,461 | $ | 9,566 | |||||||||
Basic Earnings per Share: | |||||||||||||||||
Continuing Operations | $ | 0.61 | $ | 0.57 | $ | 0.67 | $ | 0.85 | |||||||||
Net Income Attributable to Kadant | $ | 0.61 | $ | 0.57 | $ | 0.75 | $ | 0.85 | |||||||||
Diluted Earnings per Share: | |||||||||||||||||
Continuing Operations | $ | 0.61 | $ | 0.56 | $ | 0.66 | $ | 0.84 | |||||||||
Net Income Attributable to Kadant | $ | 0.6 | $ | 0.56 | $ | 0.74 | $ | 0.83 | |||||||||
(a) | Includes a $1.5 million reduction to the estimated liability for the claims under the class action lawsuit in the third quarter of 2012. |
Nature_of_Operations_and_Summa3
Nature of Operations and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Segment | |||
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | ' | ' | ' |
Number of reportable segments | 2 | ' | ' |
Revenue Recognition and Accounts Receivable [Abstract] | ' | ' | ' |
Percentage of completion revenue | $19,758,000 | $42,190,000 | $29,207,000 |
Banker's acceptance drafts | 10,765,000 | 9,794,000 | ' |
Changes in the carrying amount of accrued warranty costs [Roll Forward] | ' | ' | ' |
Balance at beginning of year | 4,462,000 | 4,129,000 | ' |
Provision charged to income | 1,565,000 | 1,775,000 | ' |
Usage | -2,114,000 | -1,544,000 | ' |
Acquired | 567,000 | 0 | ' |
Currency translation | 91,000 | 102,000 | ' |
Balance at end of year | 4,571,000 | 4,462,000 | 4,129,000 |
Restricted Cash [Abstract] | ' | ' | ' |
Restricted cash | 168,000 | 0 | ' |
Supplemental Cash Flow Information [Abstract] | ' | ' | ' |
Cash Paid for Interest | 961,000 | 856,000 | 1,106,000 |
Cash Paid for Income Taxes | 8,375,000 | 9,326,000 | 6,677,000 |
Non-Cash Investing Activities [Abstract] | ' | ' | ' |
Fair value of assets acquired | 88,398,000 | 0 | 21,808,000 |
Cash paid for acquired businesses | -67,453,000 | 0 | -16,104,000 |
Liabilities assumed of acquired businesses | 20,945,000 | 0 | 5,704,000 |
Non-Cash Financing Activities [Abstract] | ' | ' | ' |
Issuance of company common stock | 2,677,000 | 2,106,000 | 2,296,000 |
Dividends Declared but Unpaid | 1,389,000 | 0 | 0 |
Inventories [Abstract] | ' | ' | ' |
Raw materials and supplies | 20,836,000 | 19,561,000 | ' |
Work in process | 21,051,000 | 8,371,000 | ' |
Finished goods | 20,918,000 | 14,145,000 | ' |
Inventories | 62,805,000 | 42,077,000 | ' |
Finished goods at customer locations | 2,941,000 | 2,310,000 | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 117,997,000 | 109,046,000 | ' |
Less: accumulated depreciation and amortization | 73,112,000 | 69,878,000 | ' |
Property, plant and equipment, net | 44,885,000 | 39,168,000 | ' |
Depreciation and amortization expense | 5,088,000 | 5,015,000 | 4,953,000 |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 4,797,000 | 3,968,000 | ' |
Buildings [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 38,363,000 | 36,823,000 | ' |
Buildings [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '10 years | ' | ' |
Buildings [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '40 years | ' | ' |
Machinery and Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '2 years | ' | ' |
Machinery and Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Estimated useful lives | '10 years | ' | ' |
Machinery, Equipment and Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 74,837,000 | 68,255,000 | ' |
Composites LLC [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Amount paid for lawsuit claim | ' | $647,000 | ' |
Nature_of_Operations_and_Summa4
Nature of Operations and Summary of Significant Accounting Policies, Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted average useful life | '11 years | ' | ' |
Acquired intangible assets, gross | $77,509,000 | $50,474,000 | ' |
Currency translation | 714,000 | 1,307,000 | ' |
Accumulated amortization | -30,373,000 | -25,686,000 | ' |
Net | 47,850,000 | 26,095,000 | ' |
Amortization expense of acquired intangible assets | 4,687,000 | 3,369,000 | 2,983,000 |
Estimated Future Amortization Expense [Abstract] | ' | ' | ' |
2014 | 5,513,000 | ' | ' |
2015 | 4,588,000 | ' | ' |
2016 | 4,296,000 | ' | ' |
2017 | 4,058,000 | ' | ' |
2018 | 3,979,000 | ' | ' |
Thereafter | 17,316,000 | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Gross balance at beginning of period | 193,456,000 | 191,468,000 | ' |
Accumulated Impairment Losses at beginning of period | -85,509,000 | -85,509,000 | ' |
Net balance at beginning of period | 107,947,000 | 105,959,000 | ' |
Increase due to acquisitions | 24,025,000 | 0 | ' |
Currency translation adjustment | -57,000 | 1,988,000 | ' |
Total adjustments | 23,968,000 | 1,988,000 | ' |
Gross balance at end of period | 217,424,000 | 193,456,000 | 191,468,000 |
Accumulated Impairment Losses at end of period | -85,509,000 | -85,509,000 | -85,509,000 |
Net balance at end of period | 131,915,000 | 107,947,000 | 105,959,000 |
Goodwill Reporting By Reporting Unit [Abstract] | ' | ' | ' |
Goodwill | 131,915,000 | 107,947,000 | 105,959,000 |
Papermaking Systems Segment [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Gross balance at beginning of period | 193,456,000 | 191,468,000 | ' |
Accumulated Impairment Losses at beginning of period | -85,509,000 | -85,509,000 | ' |
Net balance at beginning of period | 107,947,000 | 105,959,000 | ' |
Increase due to acquisitions | 2,545,000 | 0 | ' |
Currency translation adjustment | 338,000 | 1,988,000 | ' |
Total adjustments | 2,883,000 | 1,988,000 | ' |
Gross balance at end of period | 196,339,000 | 193,456,000 | ' |
Accumulated Impairment Losses at end of period | -85,509,000 | -85,509,000 | ' |
Net balance at end of period | 110,830,000 | 107,947,000 | ' |
Goodwill Reporting By Reporting Unit [Abstract] | ' | ' | ' |
Goodwill | 110,830,000 | 107,947,000 | ' |
Stock-preparation [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Net balance at end of period | 18,290,000 | 17,583,000 | ' |
Goodwill Reporting By Reporting Unit [Abstract] | ' | ' | ' |
Goodwill | 18,290,000 | 17,583,000 | ' |
Doctoring, Cleaning and Filtration [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Net balance at end of period | 34,658,000 | 33,081,000 | ' |
Goodwill Reporting By Reporting Unit [Abstract] | ' | ' | ' |
Goodwill | 34,658,000 | 33,081,000 | ' |
Fluid-handling [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Net balance at end of period | 57,882,000 | 57,283,000 | ' |
Goodwill Reporting By Reporting Unit [Abstract] | ' | ' | ' |
Goodwill | 57,882,000 | 57,283,000 | ' |
Wood Processing Systems Segment [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Gross balance at beginning of period | 0 | 0 | ' |
Accumulated Impairment Losses at beginning of period | 0 | 0 | ' |
Net balance at beginning of period | 0 | 0 | ' |
Increase due to acquisitions | 21,480,000 | 0 | ' |
Currency translation adjustment | -395,000 | 0 | ' |
Total adjustments | 21,085,000 | 0 | ' |
Gross balance at end of period | 21,085,000 | 0 | ' |
Accumulated Impairment Losses at end of period | 0 | 0 | ' |
Net balance at end of period | 21,085,000 | 0 | ' |
Goodwill Reporting By Reporting Unit [Abstract] | ' | ' | ' |
Goodwill | 21,085,000 | 0 | ' |
Customer relationships [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Acquired intangible assets, gross | 37,964,000 | 19,054,000 | ' |
Currency translation | 1,074,000 | 1,433,000 | ' |
Accumulated amortization | -11,446,000 | -9,825,000 | ' |
Net | 27,592,000 | 10,662,000 | ' |
Intellectual property [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Acquired intangible assets, gross | 20,350,000 | 15,690,000 | ' |
Currency translation | -225,000 | -60,000 | ' |
Accumulated amortization | -12,276,000 | -10,838,000 | ' |
Net | 7,849,000 | 4,792,000 | ' |
Tradenames [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Acquired intangible assets, gross | 10,198,000 | 8,879,000 | ' |
Currency translation | -60,000 | -30,000 | ' |
Accumulated amortization | -252,000 | -125,000 | ' |
Net | 9,886,000 | 8,724,000 | ' |
Non-compete agreements [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Acquired intangible assets, gross | 3,388,000 | 3,362,000 | ' |
Currency translation | -10,000 | -9,000 | ' |
Accumulated amortization | -3,203,000 | -3,159,000 | ' |
Net | 175,000 | 194,000 | ' |
Distribution network [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Acquired intangible assets, gross | 2,400,000 | 2,400,000 | ' |
Currency translation | 0 | 0 | ' |
Accumulated amortization | -1,238,000 | -1,094,000 | ' |
Net | 1,162,000 | 1,306,000 | ' |
Licensing agreements [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Acquired intangible assets, gross | 400,000 | 400,000 | ' |
Currency translation | 0 | 0 | ' |
Accumulated amortization | -173,000 | -153,000 | ' |
Net | 227,000 | 247,000 | ' |
Other [Member] | ' | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Acquired intangible assets, gross | 2,809,000 | 689,000 | ' |
Currency translation | -65,000 | -27,000 | ' |
Accumulated amortization | -1,785,000 | -492,000 | ' |
Net | 959,000 | 170,000 | ' |
Johnson Tradename [Member] | ' | ' | ' |
Acquired Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' |
Indefinite life intangible assets | $8,100,000 | $8,100,000 | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||
Dec. 28, 2013 | Apr. 12, 2013 | 3-May-13 | Nov. 06, 2013 | Dec. 28, 2013 | Dec. 31, 2011 | 27-May-11 | Dec. 28, 2013 | |
Companhia Brasileira de Tecnologia Industrial (CBTI) [Member] | Noss Group (Noss) [Member] | Carmanah [Member] | AB (M-Clean) [Member] | AB (M-Clean) [Member] | AB (M-Clean) [Member] | Acquisitions [Member] | ||
Installment | Installment | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate purchase price | ' | ' | ' | ' | ' | ' | $16,072,000 | $67,453,000 |
Cash Paid to Acquire Entity | ' | 8,140,000 | 7,094,000 | 51,564,000 | ' | ' | ' | 39,717,000 |
Business Acquisition, Cost of Acquired Entity, Liabilities Assumed | ' | 484,000 | ' | 171,000 | ' | ' | ' | ' |
Number of installments of escrow being released | ' | ' | 2 | 2 | ' | ' | ' | ' |
Escrow Deposit | ' | 3,550,000 | 1,970,000 | 6,705,000 | ' | ' | ' | ' |
Future Escrow Deposit Disbursements | ' | 1,248,000 | ' | ' | ' | ' | ' | ' |
Cash acquired | ' | ' | ' | ' | ' | ' | 910,000 | 1,966,000 |
Debt assumed | ' | ' | ' | ' | ' | ' | 517,000 | ' |
Acquisition transaction costs | ' | ' | ' | ' | ' | 249,000 | ' | 1,802,000 |
Identifiable intangible assets acquired | ' | ' | ' | ' | ' | ' | 5,777,000 | 27,035,000 |
Weighted average useful life of acquired intangible assets | '11 years | ' | ' | ' | '8 years | ' | ' | '10 years |
Total goodwill acquired | ' | ' | ' | ' | ' | ' | 9,641,000 | 24,025,000 |
Purchase Price Allocation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | ' | 910,000 | 1,966,000 |
Accounts receivable | ' | ' | ' | ' | ' | ' | ' | 8,523,000 |
Inventory | ' | ' | ' | ' | ' | ' | ' | 18,169,000 |
Other current assets | ' | ' | ' | ' | ' | ' | ' | 1,726,000 |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | 5,891,000 |
Other assets | ' | ' | ' | ' | ' | ' | ' | 1,063,000 |
Intangibles | ' | ' | ' | ' | ' | ' | 5,777,000 | 27,035,000 |
Goodwill | ' | ' | ' | ' | ' | ' | 9,641,000 | 24,025,000 |
Total assets acquired | ' | ' | ' | ' | ' | ' | ' | 88,398,000 |
Accounts Payable | ' | ' | ' | ' | ' | ' | ' | 2,238,000 |
Customer deposits | ' | ' | ' | ' | ' | ' | ' | 7,064,000 |
Long-term deferred tax liabilities | ' | ' | ' | ' | ' | ' | ' | 6,062,000 |
Other liabilities | ' | ' | ' | ' | ' | ' | ' | 5,581,000 |
Total liabilities assumed | ' | ' | ' | ' | ' | ' | ' | 20,945,000 |
Net assets acquired | ' | ' | ' | ' | ' | ' | ' | 67,453,000 |
Consideration [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | 8,140,000 | 7,094,000 | 51,564,000 | ' | ' | ' | 39,717,000 |
Cash paid to seller borrowed under the 2012 Credit Agreement | ' | ' | ' | ' | ' | ' | ' | 27,081,000 |
Short term obligations | ' | ' | ' | ' | ' | ' | ' | 655,000 |
Total consideration | ' | ' | ' | ' | ' | ' | $16,072,000 | $67,453,000 |
Weighted average useful life | '11 years | ' | ' | ' | '8 years | ' | ' | '10 years |
Employee_Benefit_Plans_StockBa
Employee Benefit Plans, Stock-Based Compensation Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Employee Service Share-based Compensation [Line Items] | ' | ' | ' |
Shares available for grant (in shares) | 274,921 | ' | ' |
Tax benefit in capital stock-based compensation | $351,000 | $132,000 | $371,000 |
401(k) Savings and Other Defined Contribution Plans [Abstract] | ' | ' | ' |
Contributed and charged to expense | 2,607,000 | 2,466,000 | 2,294,000 |
Employee Stock Purchase Plan Awards [Member] | ' | ' | ' |
Employee Stock Purchase Plan [Abstract] | ' | ' | ' |
Discount from fair market value on purchases (in hundredths) | 15.00% | ' | ' |
Period of restriction on resale of shares | '1 year | ' | ' |
Participation of employee's compensation, Maximum (in hundredths) | 10.00% | ' | ' |
Shares issued (in shares) | 16,325 | 17,490 | 12,509 |
Selling, General and Administrative Expenses [Member] | ' | ' | ' |
Employee Service Share-based Compensation [Line Items] | ' | ' | ' |
Share-based compensation | 5,216,000 | 4,766,000 | 3,934,000 |
Selling, General and Administrative Expenses [Member] | Restricted Stock Unit Awards [Member] | ' | ' | ' |
Employee Service Share-based Compensation [Line Items] | ' | ' | ' |
Share-based compensation | 4,102,000 | 3,731,000 | 3,212,000 |
Selling, General and Administrative Expenses [Member] | Stock Option Awards [Member] | ' | ' | ' |
Employee Service Share-based Compensation [Line Items] | ' | ' | ' |
Share-based compensation | 1,015,000 | 954,000 | 628,000 |
Selling, General and Administrative Expenses [Member] | Employee Stock Purchase Plan Awards [Member] | ' | ' | ' |
Employee Service Share-based Compensation [Line Items] | ' | ' | ' |
Share-based compensation | $99,000 | $81,000 | $94,000 |
Employee_Benefit_Plans_Restric
Employee Benefit Plans, Restricted Stock Unit Disclosures (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Non Employee Directors Restricted Stock Units [Member] | ' | ' | ' |
Employee Service Share-based Compensation [Line Items] | ' | ' | ' |
Award vesting rights | 'vest ratably on the last day of each fiscal quarter within the year | ' | ' |
Unvested Restricted Stock Units [Roll Forward] | ' | ' | ' |
Granted (in shares) | 5,000 | ' | ' |
Change of Control Restricted Stock Units [Member] | ' | ' | ' |
Employee Service Share-based Compensation [Line Items] | ' | ' | ' |
Award vesting rights | 'will only vest and compensation expense will only be recognized upon a change in control as defined in the Company's 2006 equity incentive plan | ' | ' |
Aggregate fair value of RSU's outstanding | $1,009,000 | ' | ' |
Unvested Restricted Stock Units [Roll Forward] | ' | ' | ' |
Granted (in shares) | 10,000 | ' | ' |
Unvested RSU's at end of year (in shares) | 50,000 | ' | ' |
Performance-Based Restricted Stock Units [Member] | ' | ' | ' |
Employee Service Share-based Compensation [Line Items] | ' | ' | ' |
Award vesting rights | 'vest in three equal annual installments, provided that the executive officer is employed by the Company on the applicable vesting dates | ' | ' |
Compensation cost not yet recognized | 1,441,000 | ' | ' |
Compensation cost not yet recognized, period for recognition | '1 year 4 months 24 days | ' | ' |
Time Based Restricted Stock Units [Member] | ' | ' | ' |
Employee Service Share-based Compensation [Line Items] | ' | ' | ' |
Compensation cost not yet recognized | 1,760,000 | ' | ' |
Compensation cost not yet recognized, period for recognition | '1 year 8 months 12 days | ' | ' |
Stock Option Awards [Member] | ' | ' | ' |
Employee Service Share-based Compensation [Line Items] | ' | ' | ' |
Award vesting rights | 'stock options vest in three equal annual installments beginning on the first anniversary of the grant date, provided that the recipient remains employed by the Company on the applicable vesting dates | ' | ' |
Compensation cost not yet recognized | 1,219,000 | ' | ' |
Compensation cost not yet recognized, period for recognition | '1 year 9 months 18 days | ' | ' |
Restricted Stock Unit Awards [Member] | ' | ' | ' |
Unvested Restricted Stock Units [Roll Forward] | ' | ' | ' |
Unvested RSUs at beginning of year (in shares) | 363,000 | 329,000 | 312,000 |
Granted (in shares) | 176,000 | 179,000 | 184,000 |
Vested (in shares) | -182,000 | -144,000 | -159,000 |
Forfeited / expired (in shares) | -14,000 | -1,000 | -8,000 |
Unvested RSU's at end of year (in shares) | 343,000 | 363,000 | 329,000 |
RSU's Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Weighted average grant date fair value, balance at beginning of year (in dollars per share) | $20.98 | $20.02 | $16.77 |
Weighted average grant date fair value, granted (in dollars per share) | $25.53 | $21.95 | $24.91 |
Weighted average grant date fair value, vested (in dollars per share) | $22.84 | $19.97 | $19.90 |
Weighted average grant date fair value, forfeited / expired (in dollars per share) | $16.97 | $27.74 | $8.81 |
Weighted average grant date fair value, balance at end of year (in dollars per share) | $22.50 | $20.98 | $20.02 |
Aggregate fair value of RSU's vested | $4,997,000 | $3,321,000 | $4,071,000 |
Employee_Benefit_Plans_Stock_O
Employee Benefit Plans, Stock Option Disclosures (Details) (USD $) | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Fair Value Assumptions [Abstract] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.92% | 0.00% | 0.00% |
Summary of Stock Option Activity [Roll Forward] | ' | ' | ' |
Vested and unvested expected to vest at end of year (in shares) | 393 | ' | ' |
Options exercisable at end of year (in shares) | 217 | ' | ' |
Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Options exercisable, end of year (in dollars per share) | $17.84 | ' | ' |
Additional Disclosures [Abstract] | ' | ' | ' |
Weighted average remaining contractual life, vested and unvested expected to vest, end of year | '7 years 6 months | ' | ' |
Weighted average remaining contractual life, options exercisable, end of year | '6 years 8 months 12 days | ' | ' |
Aggregate intrinsic value, vested and unvested expected to vest end of year | $7,841,000 | ' | ' |
Aggregate intrinsic value, options exercisable, end of year | 4,992,000 | ' | ' |
Share price (in dollars per share) | $40.79 | ' | ' |
Stock Option Awards [Member] | ' | ' | ' |
Employee Service Share-based Compensation [Line Items] | ' | ' | ' |
Award vesting period | 'stock options vest in three equal annual installments beginning on the first anniversary of the grant date, provided that the recipient remains employed by the Company on the applicable vesting dates | ' | ' |
Compensation cost not yet recognized | 1,219,000 | ' | ' |
Compensation cost not yet recognized, period for recognition | '1 year 9 months 18 days | ' | ' |
Fair Value Assumptions [Abstract] | ' | ' | ' |
Weighted-average exercise price (in dollars per share) | $25.98 | 21.91 | 24.9 |
Weighted average grant date fair value (in dollars per share) | $11.33 | 11.69 | 12.85 |
Volatility (in hundredths) | 51.00% | 50.00% | 45.00% |
Risk-free interest rate (in hundredths) | 1.25% | 1.38% | 2.86% |
Expected life of options | '7 years 7 months 6 days | '7 years 7 months 6 days | '7 years 4 months 24 days |
Summary of Stock Option Activity [Roll Forward] | ' | ' | ' |
Options outstanding at beginning of year (in shares) | 300 | 235 | 161 |
Granted (in shares) | 93 | 83 | 82 |
Exercised (in shares) | ' | -18 | -8 |
Options outstanding at end of period (in shares) | 393 | 300 | 235 |
Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Options outstanding at beginning of year (in dollars per share) | $19.23 | 18.15 | 14.82 |
Granted (in dollars per share) | $25.98 | 21.91 | 24.9 |
Exercised (in dollars per share) | ' | 17.54 | 20.01 |
Options outstanding at end of year (in dollars per share) | $20.82 | 19.23 | 18.15 |
Vested and unvested expected to vest at end of year (in dollars per share) | $20.82 | ' | ' |
Additional Disclosures [Abstract] | ' | ' | ' |
Weighted average remaining contractual life, options outstanding at end of year | '7 years 6 months | ' | ' |
Aggregate intrinsic value, options outstanding at end of year | 7,841,000 | ' | ' |
Summary of Stock Options Exercised [Abstract] | ' | ' | ' |
Total intrinsic value of options exercised | 0 | 119,000 | 39,000 |
Cash received from options exercised | $0 | 319,000 | 150,000 |
Employee_Benefit_Plans_Retirem
Employee Benefit Plans, Retirement Plans (Details) (USD $) | 12 Months Ended | ||||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |||
Pension Benefits [Member] | ' | ' | ' | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ||
Amortization of actuarial loss expected next year | $368,000 | ' | ' | ||
Amortization of unrecognized prior service loss expected next year | 142,000 | ' | ' | ||
Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Benefit obligation at beginning of year | 31,743,000 | 31,594,000 | ' | ||
Service cost | 892,000 | 991,000 | 855,000 | ||
Interest cost | 1,167,000 | 1,313,000 | 1,298,000 | ||
Actuarial (gain) loss | -4,617,000 | 1,046,000 | ' | ||
Benefits paid | -1,394,000 | -3,201,000 | ' | ||
Effect of currency translation | 0 | 0 | ' | ||
Benefit obligation at end of year | 27,791,000 | 31,743,000 | 31,594,000 | ||
Change in Plan Assets [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at beginning of year | 26,728,000 | 26,393,000 | ' | ||
Actual return on plan assets | -358,000 | 2,576,000 | ' | ||
Employer contribution | 1,080,000 | 960,000 | ' | ||
Benefits paid | -1,394,000 | -3,201,000 | ' | ||
Fair value of plan assets at end of year | 26,056,000 | 26,728,000 | 26,393,000 | ||
Unfunded status | -1,735,000 | -5,015,000 | ' | ||
Accumulated benefit obligation as of year end | 23,494,000 | 26,270,000 | ' | ||
Amounts recognized in the balance sheet consist of [Abstract] | ' | ' | ' | ||
Current liability | 0 | 0 | ' | ||
Non-current liability | -1,735,000 | -5,015,000 | ' | ||
Amounts Recognized in Accumulated Other Comprehensive Items Before Tax Consist of [Abstract] | ' | ' | ' | ||
Unrecognized net actuarial loss | -6,264,000 | -9,656,000 | ' | ||
Unrecognized prior service cost | -218,000 | -273,000 | ' | ||
Total | -6,482,000 | -9,929,000 | ' | ||
Change in Amounts Recognized in Accumulated Other Comprehensive Items, Before Tax [Abstract] | ' | ' | ' | ||
Current year unrecognized net actuarial gain (loss) | 2,859,000 | -85,000 | ' | ||
Amortization of unrecognized prior service cost | 55,000 | 56,000 | ' | ||
Amortization of unrecognized net actuarial loss | 533,000 | 634,000 | ' | ||
Effect of currency translation | 0 | 0 | ' | ||
Total | 3,447,000 | 605,000 | ' | ||
Weighted Average Assumptions Used to Determine Benefit Obligation [Abstract] | ' | ' | ' | ||
Discount rate (in hundredths) | 4.79% | 3.89% | ' | ||
Rate of compensation increase (in hundredths) | 3.50% | 3.50% | ' | ||
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets [Abstract] | ' | ' | ' | ||
Projected benefit obligation | 27,791,000 | 31,743,000 | ' | ||
Fair value of plan assets | 26,056,000 | 26,728,000 | ' | ||
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ' | ' | ' | ||
Accumulated benefit obligation | 0 | 0 | ' | ||
Fair value of plan assets | 0 | 0 | ' | ||
Components of Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ||
Service cost | 892,000 | 991,000 | 855,000 | ||
Service cost and Other | 998,000 | ' | ' | ||
Interest cost | 1,167,000 | 1,313,000 | 1,298,000 | ||
Expected return on plan assets | -1,506,000 | -1,616,000 | -1,429,000 | ||
Recognized net actuarial loss | 533,000 | 634,000 | 433,000 | ||
Amortization of prior service cost | 55,000 | 56,000 | 55,000 | ||
Net periodic benefit cost | 1,247,000 | 1,378,000 | 1,212,000 | ||
Weighted average assumptions used to determine net periodic benefit cost [Abstract] | ' | ' | ' | ||
Discount rate (in hundredths) | 3.89% | 4.28% | 5.25% | ||
Expected long-term return on plan assets (in hundredths) | 5.75% | 6.25% | 6.25% | ||
Rate of compensation increase (in hundredths) | 3.50% | 4.00% | 4.00% | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 26,056,000 | 26,728,000 | ' | ||
Target Asset Allocations [Abstract] | ' | ' | ' | ||
Neutral (in hundredths) | 100.00% | ' | ' | ||
Expected contributions to noncontributory defined benefit plan for the next year | 1,080,000 | ' | ' | ||
Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' | ' | ' | ||
2014 | 1,143,000 | ' | ' | ||
2015 | 1,237,000 | ' | ' | ||
2016 | 1,286,000 | ' | ' | ||
2017 | 2,668,000 | ' | ' | ||
2018 | 2,034,000 | ' | ' | ||
2019-2023 | 11,269,000 | ' | ' | ||
Other Benefits [Member] | ' | ' | ' | ||
Change in Benefit Obligation [Roll Forward] | ' | ' | ' | ||
Benefit obligation at beginning of year | 5,968,000 | 5,402,000 | ' | ||
Service cost | 171,000 | 143,000 | 187,000 | ||
Interest cost | 207,000 | 225,000 | 237,000 | ||
Actuarial (gain) loss | -551,000 | 425,000 | ' | ||
Benefits paid | -299,000 | -275,000 | ' | ||
Effect of currency translation | 87,000 | 48,000 | ' | ||
Benefit obligation at end of year | 5,583,000 | 5,968,000 | 5,402,000 | ||
Change in Plan Assets [Roll Forward] | ' | ' | ' | ||
Fair value of plan assets at beginning of year | 0 | 0 | ' | ||
Actual return on plan assets | 0 | 0 | ' | ||
Employer contribution | 299,000 | 275,000 | ' | ||
Benefits paid | -299,000 | -275,000 | ' | ||
Fair value of plan assets at end of year | 0 | 0 | 0 | ||
Unfunded status | -5,583,000 | -5,968,000 | ' | ||
Accumulated benefit obligation as of year end | 1,876,000 | 1,777,000 | ' | ||
Amounts recognized in the balance sheet consist of [Abstract] | ' | ' | ' | ||
Current liability | -233,000 | -251,000 | ' | ||
Non-current liability | -5,350,000 | -5,717,000 | ' | ||
Amounts Recognized in Accumulated Other Comprehensive Items Before Tax Consist of [Abstract] | ' | ' | ' | ||
Unrecognized net actuarial loss | -662,000 | -1,251,000 | ' | ||
Unrecognized prior service cost | -799,000 | -882,000 | ' | ||
Total | -1,461,000 | -2,133,000 | ' | ||
Change in Amounts Recognized in Accumulated Other Comprehensive Items, Before Tax [Abstract] | ' | ' | ' | ||
Current year unrecognized net actuarial gain (loss) | 551,000 | -425,000 | ' | ||
Amortization of unrecognized prior service cost | 85,000 | 28,000 | ' | ||
Amortization of unrecognized net actuarial loss | 62,000 | 36,000 | ' | ||
Effect of currency translation | -26,000 | -7,000 | ' | ||
Total | 672,000 | -368,000 | ' | ||
Weighted Average Assumptions Used to Determine Benefit Obligation [Abstract] | ' | ' | ' | ||
Discount rate (in hundredths) | 4.04% | 3.52% | ' | ||
Rate of compensation increase (in hundredths) | 3.00% | 3.15% | ' | ||
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets [Abstract] | ' | ' | ' | ||
Projected benefit obligation | 2,469,000 | 2,456,000 | ' | ||
Fair value of plan assets | 0 | 0 | ' | ||
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ' | ' | ' | ||
Accumulated benefit obligation | 1,876,000 | 1,777,000 | ' | ||
Fair value of plan assets | 0 | 0 | ' | ||
Components of Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ||
Service cost | 171,000 | 143,000 | 187,000 | ||
Interest cost | 207,000 | 225,000 | 237,000 | ||
Expected return on plan assets | 0 | 0 | 0 | ||
Recognized net actuarial loss | 62,000 | 36,000 | 28,000 | ||
Amortization of prior service cost | 85,000 | 28,000 | 15,000 | ||
Net periodic benefit cost | 525,000 | 432,000 | 467,000 | ||
Weighted average assumptions used to determine net periodic benefit cost [Abstract] | ' | ' | ' | ||
Discount rate (in hundredths) | 3.53% | 4.44% | 5.04% | ||
Expected long-term return on plan assets (in hundredths) | 0.00% | 0.00% | 0.00% | ||
Rate of compensation increase (in hundredths) | 3.25% | 3.57% | 3.28% | ||
Assumed Health Care Cost Trend Rates [Abstract] | ' | ' | ' | ||
Healthcare cost trend rate assumed for next year (in hundredths) | 8.00% | 8.00% | ' | ||
Ultimate healthcare cost trend rate (in hundredths) | 0.00% | 0.00% | ' | ||
Year assumed rate reaches ultimate rate | '2018 | '2018 | ' | ||
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | ' | ' | ' | ||
Effect on total of service and interest cost components - (expense) income - increase | ' | [1] | ' | ' | |
Effect on total of service and interest cost components - (expense) income, decrease | ' | [1] | ' | ' | |
Effect on post-retirement benefit obligation - (increase) decrease - increase | ' | [1] | ' | ' | |
Effect on post-retirement benefit obligation - (increase) decrease - decrease | ' | [1] | ' | ' | |
Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ' | ' | ' | ||
2014 | 234,000 | ' | ' | ||
2015 | 425,000 | ' | ' | ||
2016 | 202,000 | ' | ' | ||
2017 | 753,000 | ' | ' | ||
2018 | 433,000 | ' | ' | ||
2019-2023 | 1,977,000 | ' | ' | ||
Post-Retirement Welfare Benefits Plan [Member] | ' | ' | ' | ||
Post-Retirement Welfare Benefits Plan [Abstract] | ' | ' | ' | ||
Maximum monthly contribution per participant | 358 | ' | ' | ||
Percentage paid by employer for welfare benefits plan, retirement date prior to January 1, 2005 (in hundredths) | 75.00% | ' | ' | ||
Percentage paid by employer for welfare benefits plan, retirement date after January 1, 2005 (in hundredths) | 50.00% | ' | ' | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 18,396,000 | 18,820,000 | ' | ||
Significant Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 7,660,000 | 7,908,000 | ' | ||
Significant Unobservable Inputs (Level 3) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 0 | 0 | ' | ||
U.S. Equity [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 3,205,000 | [2] | 3,331,000 | [2] | ' |
U.S. Equity [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 3,205,000 | [2] | 3,331,000 | [2] | ' |
U.S. Equity [Member] | Significant Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 0 | [2] | 0 | [2] | ' |
U.S. Equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 0 | [2] | 0 | [2] | ' |
International Equity [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 817,000 | [2] | 848,000 | [2] | ' |
International Equity [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 817,000 | [2] | 848,000 | [2] | ' |
International Equity [Member] | Significant Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 0 | [2] | 0 | [2] | ' |
International Equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 0 | [2] | 0 | [2] | ' |
Fixed Income [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 22,034,000 | [3] | 22,549,000 | [3] | ' |
Fixed Income [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 14,374,000 | [3] | 14,641,000 | [3] | ' |
Fixed Income [Member] | Significant Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | 7,660,000 | [3] | 7,908,000 | [3] | ' |
Fixed Income [Member] | Significant Unobservable Inputs (Level 3) [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Mutual Funds [Abstract] | ' | ' | ' | ||
Fair value of plan assets | $0 | [3] | $0 | [3] | ' |
Equity Securities [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Target Asset Allocations [Abstract] | ' | ' | ' | ||
Minimum (in hundredths) | 10.00% | ' | ' | ||
Neutral (in hundredths) | 15.00% | ' | ' | ||
Maximum (in hundredths) | 20.00% | ' | ' | ||
Debt Securities [Member] | Pension Benefits [Member] | ' | ' | ' | ||
Target Asset Allocations [Abstract] | ' | ' | ' | ||
Minimum (in hundredths) | 80.00% | ' | ' | ||
Neutral (in hundredths) | 85.00% | ' | ' | ||
Maximum (in hundredths) | 90.00% | ' | ' | ||
Maximum average maturity of debt securities (weighted) | '10 years | ' | ' | ||
Average benchmark duration for debt securities | '5 years | ' | ' | ||
[1] | A one-percentage point increase or decrease in assumed healthcare cost trend rates would have had an immaterial effect on service and interest cost components in 2013 and the post-retirement obligation at year-end 2013. | ||||
[2] | Common stock index funds. | ||||
[3] | Investments in commingled funds that invest in a diversified blend of investment and non-investment grade fixed income securities. |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
Preferred Stock [Abstract] | ' | ' |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock [Abstract] | ' | ' |
Common stock reserved and unissued (in shares) | 1,124,480 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Components of Income from Continuing Operations before Provision for Income Taxes [Abstract] | ' | ' | ' |
Domestic | $8,913,000 | $11,445,000 | $9,823,000 |
Foreign | 24,113,000 | 24,485,000 | 28,320,000 |
Total income from continuing operations before provision for income taxes | 33,026,000 | 35,930,000 | 38,143,000 |
Current Provision [Abstract] | ' | ' | ' |
Federal | 1,986,000 | 1,798,000 | 123,000 |
Foreign | 7,955,000 | 7,363,000 | 5,575,000 |
State | 436,000 | 559,000 | 473,000 |
Current provision (benefit) | 10,377,000 | 9,720,000 | 6,171,000 |
Deferred (Benefit) Provision [Abstract] | ' | ' | ' |
Federal | 1,325,000 | -3,980,000 | -317,000 |
Foreign | -2,354,000 | -782,000 | -1,309,000 |
State | -32,000 | -106,000 | -260,000 |
Deferred (benefit) provision | -1,061,000 | -4,868,000 | -1,886,000 |
Provision for income taxes from continuing operations | 9,316,000 | 4,852,000 | 4,285,000 |
Provision for Income Taxes Including Discontinued Operation [Abstract] | ' | ' | ' |
Continuing operations | 9,316,000 | 4,852,000 | 4,285,000 |
Discontinued operation | -34,000 | 451,000 | -1,511,000 |
Provision for income taxes including discontinued operation | 9,282,000 | 5,303,000 | 2,774,000 |
Tax benefits related to employees' and directors' stock plans | 351,000 | 132,000 | 371,000 |
Federal statutory income tax rate (in hundredths) | 35.00% | ' | ' |
Tax Reconciliation From Statutory Rate to Effective Rate [Abstract] | ' | ' | ' |
Provision for Income Taxes at Statutory Rate | 11,559,000 | 12,576,000 | 13,350,000 |
Increases (Decreases) Resulting From [Abstract] | ' | ' | ' |
State income taxes, net of federal tax | 304,000 | 295,000 | -140,000 |
U.S. tax (benefit) cost of foreign earnings | -119,000 | 791,000 | -53,000 |
Foreign tax rate differential | -2,681,000 | -2,298,000 | -3,094,000 |
Provision (reversal) of tax benefit reserves, net | 853,000 | 624,000 | -1,596,000 |
Change in valuation allowance | -968,000 | -7,051,000 | -4,183,000 |
Nondeductible expenses | 1,580,000 | 775,000 | 746,000 |
Research and development tax credits | -638,000 | -623,000 | -324,000 |
Other | -574,000 | -237,000 | -421,000 |
Provision for income taxes from continuing operations | 9,316,000 | 4,852,000 | 4,285,000 |
Deferred Tax (Liability) Asset [Abstract] | ' | ' | ' |
Foreign and alternative minimum tax credit carryforwards | 3,819,000 | 5,659,000 | ' |
Reserves and accruals | 5,125,000 | 6,493,000 | ' |
Net operating loss carryforwards | 16,452,000 | 15,147,000 | ' |
Inventory basis difference | 2,797,000 | 2,468,000 | ' |
Research and development | 1,017,000 | 1,193,000 | ' |
Employee compensation | 3,199,000 | 2,229,000 | ' |
Allowance for doubtful accounts | 595,000 | 486,000 | ' |
Revenue recognition | 253,000 | 286,000 | ' |
Other | 209,000 | 88,000 | ' |
Deferred tax asset, gross | 33,466,000 | 34,049,000 | ' |
Less: valuation allowance | -13,905,000 | -14,315,000 | ' |
Deferred tax asset, net | 19,561,000 | 19,734,000 | ' |
Goodwill and intangible assets | -20,923,000 | -15,393,000 | ' |
Fixed asset basis difference | -3,619,000 | -2,974,000 | ' |
Reserves and accruals | -207,000 | -342,000 | ' |
Other | -65,000 | -107,000 | ' |
Deferred tax liability | -24,814,000 | -18,816,000 | ' |
Net Deferred Tax (Liability) Asset | -5,253,000 | 918,000 | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Decrease in valuation allowance | 410,000 | ' | ' |
Undistributed earnings of foreign subsidiaries [Abstract] | ' | ' | ' |
Undistributed earnings of foreign subsidiaries | 145,926,000 | ' | ' |
Withholding liability related to undistributed earnings of foreign subsidiaries | 2,000,000 | ' | ' |
Unrecognized Tax Benefits [Abstract] | ' | ' | ' |
Unrecognized tax benefits which, if recognized, would reduce the effective tax rate | 5,423,000 | ' | ' |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ' | ' | ' |
Unrecognized tax benefits, beginning of year | 4,194,000 | 3,308,000 | ' |
Gross increases - tax positions in prior periods | 449,000 | 185,000 | ' |
Gross decreases - tax positions in prior periods | 0 | -41,000 | ' |
Gross increases - current period tax positions | 1,086,000 | 1,231,000 | ' |
Settlements | -6,000 | -182,000 | ' |
Lapses of statutes of limitations | -158,000 | -367,000 | ' |
Currency translation | -142,000 | 60,000 | ' |
Unrecognized tax benefits, end of year | 5,423,000 | 4,194,000 | 3,308,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued [Abstract] | ' | ' | ' |
Income tax interest and penalties accrued | 1,776,000 | 1,196,000 | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | ' | ' | ' |
Expense (benefit) from income tax penalties and interest expense | 205,000 | -6,000 | ' |
Significant change in unrecognized tax benefits is reasonably possible, estimated time frame | '12 months | ' | ' |
Maximum significant change in liability for unrecognized tax benefits is reasonably possible, decrease | 842,000 | ' | ' |
Research and Development Tax Credit Carryforward [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Tax credit carryforward | 467,000 | ' | ' |
Alternative Minimum Tax Credit [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Tax credit carryforward | 1,154,000 | ' | ' |
Domestic State [Member] | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Operating loss carryforwards | 28,963,000 | ' | ' |
Foreign Jurisdictions [Member] | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Valuation allowance | 12,955,000 | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Operating loss carryforwards | 59,708,000 | ' | ' |
Operating loss carryforwards expiring in 2014 through 2032 | 11,790,000 | ' | ' |
U.S. Jurisdictions [Member] | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Valuation allowance | 950,000 | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Tax credit carryforward | $2,182,000 | ' | ' |
LongTerm_Obligations_Details
Long-Term Obligations (Details) (USD $) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Ratio | ||
Long-term obligations [Line Items] | ' | ' |
Total Long-Term Obligations | $38,635,000 | $6,875,000 |
Less: Current Maturities | -625,000 | -625,000 |
Long-Term Obligations, less Current Maturities | 38,010,000 | 6,250,000 |
Unamortized debt issuance costs | 668,000 | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
2014 | 625,000 | ' |
2015 | 500,000 | ' |
2016 | 5,250,000 | ' |
2017 | 0 | ' |
2018 | 32,260,000 | ' |
Weighted average interest rate for long-term obligations (in hundredths) | 2.74% | 6.38% |
Revolving Credit Facility [Member] | ' | ' |
Long-term obligations [Line Items] | ' | ' |
Total Long-Term Obligations | 32,260,000 | 0 |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Terms of debt agreements | '5 years | ' |
Borrowing capacity available under committed portion | 100,000,000 | ' |
Additional borrowing capacity | 50,000,000 | ' |
Maturity date | 1-Nov-18 | ' |
Interest rate description | 'Interest on any loans outstanding under the 2012 Credit Agreement accrues and is payable quarterly in arrears at one of the following rates selected by the Company: (i) the highest of (a) the federal funds rate plus 0.50% plus an applicable margin of 0% to 1%, (b) the prime rate, as defined, plus an applicable margin of 0% to 1% and (c) the Eurocurrency rate, as defined, plus 0.50% plus an applicable margin of 0% to 1% or (ii) the Eurocurrency rate, as defined, plus an applicable margin of 1% to 2%. The applicable margin is determined based upon the ratio of the Company's total debt to EBITDA, as defined in the 2012 Credit Agreement. For this purpose, total debt is defined as total debt less up to $25,000,000 of unrestricted U.S. cash. | ' |
Maximum consolidated leverage ratio | 3.5 | ' |
Minimum consolidated interest coverage ratio | 3 | ' |
Maximum Unrestricted U.S. Cash | 25,000,000 | ' |
Remaining borrowing capacity | 66,911,000 | ' |
Revolving Credit Facility [Member] | Federal Funds Rate [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Basis spread on variable rate | 'federal funds rate | ' |
Basis spread on variable rate (in hundredths) | 0.50% | ' |
Revolving Credit Facility [Member] | Federal Funds Rate [Member] | Minimum [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Margin rate of debt instrument (in hundredths) | 0.00% | ' |
Revolving Credit Facility [Member] | Federal Funds Rate [Member] | Maximum [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Margin rate of debt instrument (in hundredths) | 1.00% | ' |
Revolving Credit Facility [Member] | Prime Rate [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Basis spread on variable rate | 'prime rate | ' |
Revolving Credit Facility [Member] | Prime Rate [Member] | Minimum [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Margin rate of debt instrument (in hundredths) | 0.00% | ' |
Revolving Credit Facility [Member] | Prime Rate [Member] | Maximum [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Margin rate of debt instrument (in hundredths) | 1.00% | ' |
Revolving Credit Facility [Member] | Eurocurrency Rate [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Basis spread on variable rate | 'Eurocurrency rate | ' |
Basis spread on variable rate (in hundredths) | 0.50% | ' |
Revolving Credit Facility [Member] | Eurocurrency Rate [Member] | Minimum [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Margin rate of debt instrument (in hundredths) | 0.00% | ' |
Revolving Credit Facility [Member] | Eurocurrency Rate [Member] | Maximum [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Margin rate of debt instrument (in hundredths) | 1.00% | ' |
Revolving Credit Facility [Member] | Eurocurrency Rate Two [Member] | Minimum [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Margin rate of debt instrument (in hundredths) | 1.00% | ' |
Revolving Credit Facility [Member] | Eurocurrency Rate Two [Member] | Maximum [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Margin rate of debt instrument (in hundredths) | 2.00% | ' |
Commercial Real Estate Loan [Member] | ' | ' |
Long-term obligations [Line Items] | ' | ' |
Total Long-Term Obligations | 6,375,000 | 6,875,000 |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Terms of debt agreements | '10 years | ' |
Interest rate description | 'Interest on the 2006 Commercial Real Estate Loan accrues and is payable quarterly in arrears at one of the following rates selected by the Company: (a) the prime rate or (b) the three-month London Inter-Bank Offered Rate (LIBOR) plus a .75% margin | ' |
Face amount of debt | 10,000,000 | ' |
Quarterly payment of principal | 125,000 | ' |
Amount due at maturity | $5,000,000 | ' |
Commercial Real Estate Loan [Member] | Prime Rate [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Basis spread on variable rate | 'prime rate | ' |
Commercial Real Estate Loan [Member] | Three Month LIBOR [Member] | ' | ' |
Annual payment requirements for long term obligations [Abstract] | ' | ' |
Basis spread on variable rate | 'three-month London Inter-Bank Offered Rate (LIBOR) | ' |
Margin rate of debt instrument (in hundredths) | 0.75% | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Operating Leases [Abstract] | ' | ' | ' |
Rent expense | $2,545,000 | $2,137,000 | $2,043,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' |
2014 | 3,058,000 | ' | ' |
2015 | 2,015,000 | ' | ' |
2016 | 1,116,000 | ' | ' |
2017 | 396,000 | ' | ' |
2018 | 113,000 | ' | ' |
Thereafter | 20,000 | ' | ' |
Total future minimum payments | 6,718,000 | ' | ' |
Right of Recourse [Abstract] | ' | ' | ' |
Banker's acceptance drafts with recourse | 5,688,000 | ' | ' |
Purchase Obligations [Abstract] | ' | ' | ' |
Minimum purchase obligation 2014 | 600,000 | ' | ' |
Minimum purchase obligation 2015 | 600,000 | ' | ' |
Minimum purchase obligation 2016 | 0 | ' | ' |
Performance Obligations and Customer Deposit Guarantees [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Outstanding letters of credit and bank guarantees | $10,533,000 | ' | ' |
Restructuring_Costs_and_Other_2
Restructuring Costs and Other Expense (Income), Net (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Other Expense (Income) [Abstract] | ' | ' | ' |
Depreciation expense | ' | $307,000 | ' |
2013 Restructuring Plan [Member] | ' | ' | ' |
Restructuring Costs [Abstract] | ' | ' | ' |
Restructuring costs | 1,843,000 | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Provision (reversal) | 1,843,000 | ' | ' |
Usage | -1,215,000 | ' | ' |
Currency translation | -161,000 | ' | ' |
Balance at end of period | 467,000 | ' | ' |
2011 Restructuring Plan [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 88,000 | 408,000 | 0 |
Provision (reversal) | ' | -67,000 | 408,000 |
Usage | -38,000 | -256,000 | ' |
Currency translation | 2,000 | 3,000 | ' |
Balance at end of period | 52,000 | 88,000 | 408,000 |
2008 Restructuring Plan [Member] | ' | ' | ' |
Restructuring Costs [Abstract] | ' | ' | ' |
Restructuring costs | ' | 4,507,000 | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 166,000 | 354,000 | 433,000 |
Provision (reversal) | ' | -8,000 | ' |
Usage | -141,000 | -182,000 | -94,000 |
Currency translation | 6,000 | 2,000 | 15,000 |
Balance at end of period | 31,000 | 166,000 | 354,000 |
CHINA [Member] | ' | ' | ' |
Other Expense (Income) [Abstract] | ' | ' | ' |
Pre-tax gain from sale of real estate | 1,740,000 | ' | 2,282,000 |
Employee Severance [Member] | 2013 Restructuring Plan [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Provision (reversal) | 1,666,000 | ' | ' |
Usage | -1,038,000 | ' | ' |
Currency translation | -161,000 | ' | ' |
Balance at end of period | 467,000 | ' | ' |
Employee Severance [Member] | 2011 Restructuring Plan [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 88,000 | 408,000 | 0 |
Provision (reversal) | ' | -67,000 | 408,000 |
Usage | -38,000 | -256,000 | ' |
Currency translation | 2,000 | 3,000 | ' |
Balance at end of period | 52,000 | 88,000 | 408,000 |
Employee Severance [Member] | 2008 Restructuring Plan [Member] | ' | ' | ' |
Restructuring Costs [Abstract] | ' | ' | ' |
Restructuring costs | ' | 4,122,000 | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 166,000 | 354,000 | 433,000 |
Provision (reversal) | ' | -8,000 | ' |
Usage | -141,000 | -182,000 | -94,000 |
Currency translation | 6,000 | 2,000 | 15,000 |
Balance at end of period | 31,000 | 166,000 | 354,000 |
Employee Severance [Member] | BRAZIL | 2013 Restructuring Plan [Member] | ' | ' | ' |
Restructuring Costs [Abstract] | ' | ' | ' |
Restructuring costs | 1,158,000 | ' | ' |
Employee Severance [Member] | SWEDEN | 2013 Restructuring Plan [Member] | ' | ' | ' |
Other Expense (Income) [Abstract] | ' | ' | ' |
Number of employees reduced due to restructuring | 25 | ' | ' |
Restructuring Costs [Abstract] | ' | ' | ' |
Restructuring costs | 508,000 | ' | ' |
Other Costs [Member] | 2013 Restructuring Plan [Member] | ' | ' | ' |
Restructuring Costs [Abstract] | ' | ' | ' |
Restructuring costs | 177,000 | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Provision (reversal) | 177,000 | ' | ' |
Usage | -177,000 | ' | ' |
Currency translation | 0 | ' | ' |
Balance at end of period | 0 | ' | ' |
Other Costs [Member] | 2011 Restructuring Plan [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 0 | 0 | 0 |
Provision (reversal) | ' | 0 | 0 |
Usage | 0 | 0 | ' |
Currency translation | 0 | 0 | ' |
Balance at end of period | 0 | 0 | 0 |
Other Costs [Member] | 2008 Restructuring Plan [Member] | ' | ' | ' |
Restructuring Costs [Abstract] | ' | ' | ' |
Restructuring costs | ' | 385,000 | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 0 | 0 | 0 |
Provision (reversal) | ' | 0 | ' |
Usage | 0 | 0 | 0 |
Currency translation | 0 | 0 | 0 |
Balance at end of period | $0 | $0 | $0 |
Other Costs [Member] | BRAZIL | 2013 Restructuring Plan [Member] | ' | ' | ' |
Other Expense (Income) [Abstract] | ' | ' | ' |
Number of employees reduced due to restructuring | 22 | ' | ' |
Papermaking Systems Segment [Member] | Employee Severance [Member] | 2008 Restructuring Plan [Member] | ' | ' | ' |
Other Expense (Income) [Abstract] | ' | ' | ' |
Number of employees reduced due to restructuring | ' | 329 | ' |
Papermaking Systems Segment [Member] | Employee Severance [Member] | CHINA [Member] | 2011 Restructuring Plan [Member] | ' | ' | ' |
Other Expense (Income) [Abstract] | ' | ' | ' |
Number of employees reduced due to restructuring | ' | ' | 73 |
Discontinued_Operation_Details
Discontinued Operation (Details) (Composites LLC [Member], USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Composites LLC [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Settlement liabilities | ' | ' | $2,577,000 |
Loss contingency accrual carrying value adjustments | ' | 1,574,000 | ' |
Total amount paid for the claims | ' | 647,000 | ' |
Operating (loss) income | ($96,000) | $1,194,000 | ($1,520,000) |
Derivatives_Details
Derivatives (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 31, 2011 | Jan. 01, 2011 | Jan. 02, 2010 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | ||||||||||||||||
Derivatives Designated as Hedging Instruments [Member] | 2006 Swap Agreement [Member] | 2008 Swap Agreement [Member] | 2008 Swap Agreement [Member] | 2008 Swap Agreement [Member] | 2008 Swap Agreement [Member] | Interest Rate Swap Agreements [Member] | Interest Rate Swap Agreements [Member] | Interest Rate Swap Agreements [Member] | Interest Rate Swap Agreements [Member] | Interest Rate Swap Agreements [Member] | Forward Currency-Exchange Contracts [Member] | Forward Currency-Exchange Contracts [Member] | Forward Currency-Exchange Contracts [Member] | Forward Currency-Exchange Contracts [Member] | Forward Currency-Exchange Contracts [Member] | Forward Currency-Exchange Contracts [Member] | Forward Currency-Exchange Contracts [Member] | Forward Currency-Exchange Contracts [Member] | Forward Currency-Exchange Contracts [Member] | Forward Currency-Exchange Contracts [Member] | Forward Currency-Exchange Contracts [Member] | Forward Currency-Exchange Contracts [Member] | |||||||||||||||||||
Cash Flow Hedging [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Designated as Hedging Instruments [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Derivatives Not Designated as Hedging Instruments [Member] | Derivatives Not Designated as Hedging Instruments [Member] | |||||||||||||||||||
Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Other Current Liabilities [Member] | Other Current Liabilities [Member] | Other Long Term Liabilities [Member] | Other Long Term Liabilities [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | Other Current Assets [Member] | Other Current Liabilities [Member] | Other Current Liabilities [Member] | Other Current Assets [Member] | Other Current Assets [Member] | Other Current Liabilities [Member] | Other Current Liabilities [Member] | |||||||||||||||||||||||
Ratio | |||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Derivative term | ' | ' | ' | ' | ' | 'P5Y | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Interest Rate Swaps [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Notional value | ' | ' | ' | ' | ' | ' | $5,000,000 | $10,000,000 | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Description of variable rate basis | ' | ' | ' | ' | 'Under the 2006 Swap Agreement, the Company receives a three-month LIBOR rate and pays a fixed rate of interest of 5.63% plus an applicable margin. | 'Under the 2008 Swap Agreement, on a quarterly basis the Company received a three-month LIBOR rate and paid a fixed rate of interest of 3.265% plus the applicable margin. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Fixed rate of interest (in hundredths) | ' | ' | ' | ' | 5.63% | 3.27% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Rate of effectiveness of interest rate swap agreement (in hundredths) | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Financial covenants | ' | ' | ' | ' | ' | 'maximum consolidated leverage ratio of 3.5 to 1, and a minimum consolidated interest charge coverage ratio of 3 to 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Maximum consolidated leverage ratio | ' | ' | ' | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Minimum consolidated interest coverage ratio | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Unrealized loss on derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | 773,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Forward Currency-Exchange Contracts [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Maximum period over which entity manages its level of exposure of risk | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Recognized gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 146,000 | 12,000 | 4,000 | ' | ' | ' | ' | |||||||||||||||
Derivatives in an Asset Position [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Derivatives in an asset position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 5,000 | [1] | ' | ' | ' | ' | ' | 97,000 | [1] | 24,000 | [1] | ' | ' | |||||||||||
Notional amount, Derivative asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 269,000 | [2] | ' | ' | ' | ' | ' | 1,419,000 | [2] | 1,013,000 | [2] | ' | ' | |||||||||||
Derivatives in a Liability Position [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Derivatives in a liability position | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | -19,000 | [1] | -773,000 | [1] | -1,029,000 | [1] | ' | ' | ' | -22,000 | [1] | -161,000 | [1] | ' | ' | ' | ' | ' | -1,000 | [1] | -12,000 | [1] | |||||||
Notional amount, Derivative liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 5,000,000 | [2] | 6,375,000 | [2] | 6,875,000 | [2] | ' | ' | ' | 1,340,000 | [2] | 3,180,000 | [2] | ' | ' | ' | ' | ' | 288,000 | [2] | 815,000 | [2] | |||||||
Accumulated Other Comprehensive Items, Net of Tax [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Unrealized loss, net of tax, at beginning of period | ' | ' | ' | 1,046,000 | ' | ' | ' | ' | ' | 939,000 | ' | ' | ' | ' | 107,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Loss reclassified to earnings | ' | ' | ' | -485,000 | [3] | ' | ' | ' | ' | ' | -383,000 | [3] | ' | ' | ' | ' | -102,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Loss recognized in OCI | 413,000 | 387,000 | -193,000 | 72,000 | ' | ' | ' | ' | ' | 62,000 | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Unrealized loss, net of tax, at end of period | ' | ' | ' | 633,000 | ' | ' | ' | ' | ' | 618,000 | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
Net unrealized loss included in OCI expected to be reclassified to earnings over the next 12 months | ' | ' | ' | $281,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||
[1] | See Note 11 for the fair value measurements relating to these financial instruments. | ||||||||||||||||||||||||||||||||||||||||
[2] | The total notional amount is indicative of the level of the Companybs derivative activity during 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||
[3] | Included in interest expense for interest rate swap agreements and in revenues for forward currency-exchange contracts in the accompanying consolidated statement of income. |
Fair_Value_Measurements_and_Fa2
Fair Value Measurements and Fair Value of Financial Instruments (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value [Member] | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Long-term debt obligations | $38,010 | $6,250 | ||
Carrying Value [Member] | ' | ' | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' | ||
Long-term debt obligations | 38,010 | 6,250 | ||
Recurring [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Money market funds and time deposits | 17,090 | 19,768 | ||
Forward currency-exchange contracts | 97 | 29 | ||
Banker's acceptance drafts | 10,765 | [1] | 9,794 | [1] |
Liabilities [Abstract] | ' | ' | ||
Forward currency-exchange contracts | 23 | 173 | ||
Interest rate swap agreements | 773 | 1,048 | ||
Recurring [Member] | Level 1 [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Money market funds and time deposits | 17,090 | 19,768 | ||
Forward currency-exchange contracts | 0 | 0 | ||
Banker's acceptance drafts | 0 | [1] | 0 | [1] |
Liabilities [Abstract] | ' | ' | ||
Forward currency-exchange contracts | 0 | 0 | ||
Interest rate swap agreements | 0 | 0 | ||
Recurring [Member] | Level 2 [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Money market funds and time deposits | 0 | 0 | ||
Forward currency-exchange contracts | 97 | 29 | ||
Banker's acceptance drafts | 10,765 | [1] | 9,794 | [1] |
Liabilities [Abstract] | ' | ' | ||
Forward currency-exchange contracts | 23 | 173 | ||
Interest rate swap agreements | 773 | 1,048 | ||
Recurring [Member] | Level 3 [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Money market funds and time deposits | 0 | 0 | ||
Forward currency-exchange contracts | 0 | 0 | ||
Banker's acceptance drafts | 0 | [1] | 0 | [1] |
Liabilities [Abstract] | ' | ' | ||
Forward currency-exchange contracts | 0 | 0 | ||
Interest rate swap agreements | $0 | $0 | ||
[1] | Included in accounts receivable in the accompanying consolidated balance sheet. |
Business_Segment_and_Geographi2
Business Segment and Geographical Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |||||
Segment | ||||||||||||||||
Business Segment and Geographical Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Restructuring and other expense (income), net (Note 8) | ' | ' | ' | ' | ' | ' | ' | ' | $103 | $307 | ($1,874) | |||||
Revenues by Product line [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | 94,815 | 91,315 | 82,165 | 76,204 | 78,055 | 86,601 | 82,982 | 84,113 | 344,499 | 331,751 | 335,460 | |||||
Income from Continuing Operations Before Provision for Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total operating income | ' | ' | ' | ' | ' | ' | ' | ' | 33,303 | 36,444 | 38,710 | |||||
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -277 | -514 | -567 | |||||
Income from Continuing Operations Before Provision for Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 33,026 | 35,930 | 38,143 | |||||
Total Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Assets from Continuing Operations | 442,024 | ' | ' | ' | 358,435 | ' | ' | ' | 442,024 | 358,435 | 356,723 | |||||
Total Assets from Discontinued Operations | 144 | ' | ' | ' | 513 | ' | ' | ' | 144 | 513 | 1,675 | |||||
Total Assets | 442,168 | ' | ' | ' | 358,948 | ' | ' | ' | 442,168 | 358,948 | 358,398 | |||||
Depreciation and Amortization [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 9,775 | 8,384 | 7,936 | |||||
Capital Expenditures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 6,261 | 4,250 | 8,030 | |||||
Revenues and Long-Lived Assets by Geographic Area [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue from external customers by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | 344,499 | [1] | 331,751 | [1] | 335,460 | [1] | ||
Long-lived assets | 44,885 | [2] | ' | ' | ' | 39,168 | [2] | ' | ' | ' | 44,885 | [2] | 39,168 | [2] | 40,095 | [2] |
Export Revenues Included in United States Revenues Above | ' | ' | ' | ' | ' | ' | ' | ' | 9,685 | [3] | 20,871 | [3] | 16,512 | [3] | ||
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues and Long-Lived Assets by Geographic Area [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue from external customers by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | 129,131 | [1] | 128,663 | [1] | 123,614 | [1] | ||
Long-lived assets | 14,118 | [2] | ' | ' | ' | 13,702 | [2] | ' | ' | ' | 14,118 | [2] | 13,702 | [2] | 14,578 | [2] |
China [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues and Long-Lived Assets by Geographic Area [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue from external customers by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | 50,678 | [1] | 53,242 | [1] | 62,615 | [1] | ||
Long-lived assets | 14,603 | [2] | ' | ' | ' | 15,136 | [2] | ' | ' | ' | 14,603 | [2] | 15,136 | [2] | 15,789 | [2] |
Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues and Long-Lived Assets by Geographic Area [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenue from external customers by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | 164,690 | [1] | 149,846 | [1] | 149,231 | [1] | ||
Long-lived assets | 16,164 | [2] | ' | ' | ' | 10,330 | [2] | ' | ' | ' | 16,164 | [2] | 10,330 | [2] | 9,728 | [2] |
Papermaking Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Restructuring and other expense (income), net (Note 8) | ' | ' | ' | ' | ' | ' | ' | ' | 103 | 307 | -1,874 | |||||
Revenues by Product line [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 328,708 | 321,026 | 324,865 | |||||
Income from Continuing Operations Before Provision for Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income from Continuing Operations Before Provision for Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 47,144 | [4] | 48,618 | [4] | 50,869 | [4] | ||
Total Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Assets from Continuing Operations | 364,102 | ' | ' | ' | 347,540 | ' | ' | ' | 364,102 | 347,540 | 340,227 | |||||
Depreciation and Amortization [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 8,434 | 7,903 | 7,455 | |||||
Capital Expenditures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 5,843 | 3,982 | 7,751 | |||||
Papermaking Systems [Member] | Stock-preparation [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues by Product line [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 122,704 | 123,952 | 131,914 | |||||
Papermaking Systems [Member] | Doctoring, Cleaning and Filtration [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues by Product line [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 112,600 | 104,493 | 92,333 | |||||
Papermaking Systems [Member] | Fluid-handling [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues by Product line [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 93,404 | 92,581 | 100,618 | |||||
Fiber based Products [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues by Product line [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 11,218 | 10,725 | 10,595 | |||||
Corporate and Fiber-based Products [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income from Continuing Operations Before Provision for Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income from Continuing Operations Before Provision for Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -13,459 | -12,174 | -12,159 | |||||
Total Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Assets from Continuing Operations | 14,429 | [5] | ' | ' | ' | 10,895 | [5] | ' | ' | ' | 14,429 | [5] | 10,895 | [5] | 16,496 | [5] |
Depreciation and Amortization [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 1,341 | 481 | 481 | |||||
Capital Expenditures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 418 | 268 | 279 | |||||
Wood Processing Systems Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues by Product line [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 4,573 | 0 | 0 | |||||
Income from Continuing Operations Before Provision for Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income from Continuing Operations Before Provision for Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -382 | 0 | 0 | |||||
Total Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Assets from Continuing Operations | $63,493 | ' | ' | ' | $0 | ' | ' | ' | $63,493 | $0 | $0 | |||||
[1] | Revenues are attributed to countries based on customer location. | |||||||||||||||
[2] | Represents property, plant, and equipment, net. | |||||||||||||||
[3] | In general, export revenues are denominated in U.S. dollars. | |||||||||||||||
[4] | Includes restructuring costs and other expense (income) net, including costs of $0.1 million and $0.3 million in 2013 and 2012, respectively, and income of $1.9 million in 2011. | |||||||||||||||
[5] | Primarily includes cash and cash equivalents and property, plant, and equipment. |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Amounts Attributable to Kadant [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from Continuing Operations | $5,935 | $6,461 | $5,772 | $5,313 | $9,603 | $7,617 | $6,546 | $7,114 | $23,481 | $30,880 | $33,584 |
(Loss) Income from Discontinued Operation | ' | ' | ' | ' | ' | ' | ' | ' | -62 | 743 | -9 |
Net Income | $5,928 | $6,447 | $5,760 | $5,284 | $9,566 | $8,461 | $6,543 | $7,053 | $23,419 | $31,623 | $33,575 |
Basic Weighted Average Shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 11,153,000 | 11,456,000 | 12,124,000 |
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 187,000 | 134,000 | 137,000 |
Diluted Weighted Average Shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 11,340,000 | 11,590,000 | 12,261,000 |
Basic Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing Operations (in dollars per share) | $0.53 | $0.58 | $0.52 | $0.48 | $0.85 | $0.67 | $0.57 | $0.61 | $2.11 | $2.70 | $2.77 |
Discontinued operation (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ($0.01) | $0.06 | $0 |
Net Income per Basic Share (in dollars per share) | $0.53 | $0.58 | $0.52 | $0.47 | $0.85 | $0.75 | $0.57 | $0.61 | $2.10 | $2.76 | $2.77 |
Diluted Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.52 | $0.57 | $0.51 | $0.47 | $0.84 | $0.66 | $0.56 | $0.61 | $2.07 | $2.66 | $2.74 |
Discontinued operation (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ($0.01) | $0.06 | $0 |
Net Income per Diluted Share (in dollars per share) | $0.52 | $0.57 | $0.51 | $0.47 | $0.83 | $0.74 | $0.56 | $0.60 | $2.07 | $2.73 | $2.74 |
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 74,300 | 150,000 | 67,500 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 20,400 | 28,500 | 45,700 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Items (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | Foreign Currency Translation Adjustment [Member] | Unrecognized Prior Service Cost [Member] | Deferred Loss on Pension and Other Post Retirement Plans [Member] | Deferred Loss on Hedging Instruments [Member] | Accumulated Other Comprehensive Items [Member] | ||
Accumulated Other Comprehensive Items [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | $710 | ($3,315) | $8,124 | ($748) | ($9,645) | ($1,046) | ($3,315) |
Other comprehensive income (loss) before reclassifications | ' | ' | 795 | 0 | 2,320 | -72 | 3,043 |
Reclassifications from AOCI | ' | ' | 0 | 91 | 406 | 485 | 982 |
Net current period other comprehensive income | ' | ' | 795 | 91 | 2,726 | 413 | 4,025 |
Balance at end of year | $710 | ($3,315) | $8,919 | ($657) | ($6,919) | ($633) | $710 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Items, Reclassifications out of AOCI (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | ' | ' | ' | |||
Total reclassifications | ($982) | ($1,086) | ($764) | |||
Pension and Other Post-retirement Plans [Member] | ' | ' | ' | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | ' | ' | ' | |||
Other Comprehensive Income Loss Reclassification Adjustment On Defined Benefit Plans Included In Net Income Before Tax | -761 | -768 | -539 | |||
Income tax benefit | 264 | 274 | 192 | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | -497 | -494 | -347 | |||
Pension and Other Post-retirement Plans [Member] | Amortization of Prior Service Cost [Member] | ' | ' | ' | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | ' | ' | ' | |||
Amortization of prior service costs (1) | -141 | [1] | -85 | [1] | -72 | [1] |
Pension and Other Post-retirement Plans [Member] | Amortization Of Actuarial Losses [Member] | ' | ' | ' | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | ' | ' | ' | |||
Amortization of actuarial losses (1) | -620 | [1] | -683 | [1] | -467 | [1] |
Cash Flow Hedges [Member] | ' | ' | ' | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax | -527 | -909 | -453 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax | -527 | -909 | -453 | |||
Income tax benefit | 42 | 317 | 36 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | -485 | -592 | -417 | |||
Cash Flow Hedges [Member] | Interest Rate Swap [Member] | ' | ' | ' | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax | -374 | [2] | -513 | [2] | -706 | [2] |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax | -374 | [2] | -513 | [2] | -706 | [2] |
Cash Flow Hedges [Member] | Forward Currency-Exchange Contracts [Member] | ' | ' | ' | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax | -153 | [2] | -396 | [2] | 253 | [2] |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, before Tax | ($153) | [2] | ($396) | [2] | $253 | [2] |
[1] | Included in the computation of net periodic pension costs. See Note 3 for additional information. | |||||
[2] | See Note 10 for additional information. |
Unaudited_Quarterly_Informatio2
Unaudited Quarterly Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | ||
Unaudited Quarterly Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | $94,815,000 | $91,315,000 | $82,165,000 | $76,204,000 | $78,055,000 | $86,601,000 | $82,982,000 | $84,113,000 | $344,499,000 | $331,751,000 | $335,460,000 | |
Gross profit | 41,617,000 | 40,121,000 | 39,940,000 | 36,026,000 | 33,536,000 | 37,596,000 | 36,298,000 | 38,372,000 | ' | ' | ' | |
Amounts Attributable to Kadant [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Income from Continuing Operations | 5,935,000 | 6,461,000 | 5,772,000 | 5,313,000 | 9,603,000 | 7,617,000 | 6,546,000 | 7,114,000 | 23,481,000 | 30,880,000 | 33,584,000 | |
(Loss) Income from Discontinued Operation | -7,000 | -14,000 | -12,000 | -29,000 | -37,000 | 844,000 | [1] | -3,000 | -61,000 | -62,000 | 743,000 | -9,000 |
Net Income Attributable to Kadant | 5,928,000 | 6,447,000 | 5,760,000 | 5,284,000 | 9,566,000 | 8,461,000 | 6,543,000 | 7,053,000 | 23,419,000 | 31,623,000 | 33,575,000 | |
Basic Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Continuing Operations (in dollars per share) | $0.53 | $0.58 | $0.52 | $0.48 | $0.85 | $0.67 | $0.57 | $0.61 | $2.11 | $2.70 | $2.77 | |
Net Income Attributable to Kadant (in dollars per share) | $0.53 | $0.58 | $0.52 | $0.47 | $0.85 | $0.75 | $0.57 | $0.61 | $2.10 | $2.76 | $2.77 | |
Diluted Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Continuing Operations (in dollars per share) | $0.52 | $0.57 | $0.51 | $0.47 | $0.84 | $0.66 | $0.56 | $0.61 | $2.07 | $2.66 | $2.74 | |
Net Income Attributable to Kadant (in dollars per share) | $0.52 | $0.57 | $0.51 | $0.47 | $0.83 | $0.74 | $0.56 | $0.60 | $2.07 | $2.73 | $2.74 | |
Cash Dividend Declared per Common Share | $0.13 | $0.13 | $0.13 | $0.13 | ' | ' | ' | ' | $0.50 | $0 | $0 | |
Reduction in estimated liability | ' | ' | ' | ' | ' | $1,500,000 | ' | ' | ' | ' | ' | |
[1] | Includes a $1.5 million reduction to the estimated liability for the claims under the class action lawsuit in the third quarter of 2012. |
Subsequent_Event_Details
Subsequent Event (Details) (Radiance [Member]) | Dec. 30, 2013 | Dec. 30, 2013 |
USD ($) | EUR (€) | |
Subsequent Event [Line Items] | ' | ' |
Business Acquisition, Cost of Acquired Entity, Cash Paid | $2,627,000 | ' |
Business Acquisition, Contingent Consideration, Potential Cash Payment | $1,369,000 | € 1,000,000 |
SCHEDULE_II_Valuation_and_Qual1
SCHEDULE II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |||
Allowance for Doubtful Accounts [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of year | $2,306 | $2,308 | $2,185 | |||
Provision charged to expense (income) | 374 | -14 | 1,249 | |||
Accounts recovered | 109 | 30 | 92 | |||
Accounts written off/Activity charged to reserve | -152 | -56 | -1,213 | |||
Currency translation | 52 | 38 | -5 | |||
Balance at end of year | 2,689 | 2,306 | 2,308 | |||
Accrued Restructuring Costs [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at beginning of year | 254 | [1] | 762 | [1] | 433 | [1] |
Provision charged to expense (income) | 1,843 | [1] | -75 | [1] | 408 | [1] |
Accounts written off/Activity charged to reserve | -1,394 | [1] | -438 | [1] | -94 | [1] |
Currency translation | -153 | [1] | 5 | [1] | 15 | [1] |
Balance at end of year | $550 | [1] | $254 | [1] | $762 | [1] |
[1] | The nature of the activity in this account is described in Note 8 to the consolidated financial statements. |