Kadant (KAI) 10-Q 12 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 03, 2015	Oct. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	KADANT INC
Entity Central Index Key	886,346
Current Fiscal Year End Date	--01-02
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Oct. 3, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		10,779,807

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Current Assets:
Cash and cash equivalents	$ 56,142	$ 45,378
Restricted cash	724	415
Accounts receivable, less allowances of $2,138 and $2,198	56,898	58,508
Inventories	67,532	55,223
Unbilled contract costs and fees	7,741	5,436
Other current assets	21,162	18,598
Assets of discontinued operation	96	116
Total Current Assets	210,295	183,674
Property, Plant, and Equipment, at Cost	117,922	118,902
Less: accumulated depreciation and amortization	75,230	73,937
Property, Plant and Equipment, at Cost, Net	42,692	44,965
Other Assets	8,959	10,272
Intangible Assets, Net	39,933	46,954
Goodwill	121,007	127,882
Total Assets	422,886	413,747
Current Liabilities:
Short-term obligations	5,375	611
Accounts payable	27,199	27,233
Accrued payroll and employee benefits	17,561	19,943
Customer deposits	31,167	18,452
Other current liabilities	20,550	20,718
Liabilities of discontinued operation	100	213
Total Current Liabilities	101,952	87,170
Other Long-Term Liabilities	34,060	35,868
Long-Term Obligations	$ 24,000	$ 25,250
Commitments and Contingencies
Stockholders' Equity:
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	99,271	98,769
Retained earnings	288,704	270,249
Treasury stock at cost, 3,844,352 and 3,760,019 shares	(93,829)	(87,727)
Accumulated other comprehensive items	(32,723)	(17,146)
Total Kadant Stockholders' Equity	261,569	264,291
Noncontrolling interest	1,305	1,168
Total Stockholders' Equity	262,874	265,459
Total Liabilities and Stockholders' Equity	$ 422,886	$ 413,747

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Current Assets:
Accounts receivable, allowances	$ 2,138	$ 2,198
Stockholders' Equity:
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)	3,844,352	3,760,019

Condensed Consolidated Statemen

Condensed Consolidated Statement of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Income Statement [Abstract]
Revenues	$ 91,929	$ 98,719	$ 282,507	$ 296,921
Costs and Operating Expenses:
Cost of revenues	48,261	54,607	148,775	165,547
Selling, general, and administrative expenses	29,200	31,872	92,490	95,942
Research and development expenses	1,787	1,555	5,247	4,696
Restructuring costs	0	534	300	928
Total Costs and Operating Expenses	79,248	88,568	246,812	267,113
Operating Income	12,681	10,151	35,695	29,808
Interest Income	54	42	150	346
Interest Expense	(239)	(210)	(701)	(766)
Income from Continuing Operations Before Provision for Income Taxes	12,496	9,983	35,144	29,388
Provision for Income Taxes	3,782	3,246	10,964	9,468
Income from Continuing Operations	8,714	6,737	24,180	19,920
Loss from Discontinued Operation (net of income tax benefit of $2 and $(36) for the three and nine months ended October 3, 2015 and $3 and $11 for the three and nine months ended September 27, 2014)	(4)	(4)	56	(18)
Net Income	8,710	6,733	24,236	19,902
Net Income Attributable to Noncontrolling Interest	(67)	(86)	(232)	(344)
Net Income Attributable to Kadant	8,643	6,647	24,004	19,558
Amounts Attributable to Kadant:
Income from Continuing Operations	8,647	6,651	23,948	19,576
Loss from Discontinued Operation	(4)	(4)	56	(18)
Net Income Attributable to Kadant	$ 8,643	$ 6,647	$ 24,004	$ 19,558
Earnings per Share from Continuing Operations Attributable to Kadant:
Basic (in dollars per share)	$ 0.80	$ 0.61	$ 2.20	$ 1.78
Diluted (in dollars per share)	0.78	0.60	2.15	1.74
Earnings per Share Attributable to Kadant:
Basic (in dollars per share)	0.80	0.61	2.20	1.77
Diluted (in dollars per share)	$ 0.78	$ 0.60	$ 2.16	$ 1.74
Weighted Average Shares:
Basic (in shares)	10,861	10,898	10,900	11,026
Diluted (in shares)	11,096	11,133	11,119	11,231
Cash Dividend Declared per Common Share	$ 0.17	$ 0.15	$ 0.51	$ 0.45

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Income Statement [Abstract]
Income (loss) from discontinued operation, net of income tax (provision) benefit	$ 2	$ 3	$ (36)	$ 11

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Statement of Comprehensive Income [Abstract]
Net Income	$ 8,710	$ 6,733	$ 24,236	$ 19,902
Other Comprehensive Items:
Foreign Currency Translation Adjustment	(6,263)	(7,474)	(16,101)	(7,652)
Pension and Other Post-Retirement Liability Adjustments (net of tax provision of $66 and $221 in the three and nine months ended October 3, 2015, respectively, and $57 and $118 in the three and nine months ended September 27, 2014, respectively)	124	105	412	215
Deferred Gain (Loss) on Hedging Instruments (net of tax (benefit) provision of ($43) and $35 in the three and nine months ended October 3, 2015, respectively, and $41 and $93 in the three and nine months ended September 27, 2014, respectively)	97	(66)	17	(73)
Other Comprehensive Items	(6,042)	(7,435)	(15,672)	(7,510)
Comprehensive Income (Loss)	2,668	(702)	8,564	12,392
Comprehensive Income Attributable to Noncontrolling Interest	(78)	(8)	(137)	(259)
Comprehensive Income (Loss) Attributable to Kadant	$ 2,590	$ (710)	$ 8,427	$ 12,133

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Other Comprehensive Items:
Pension and other post-retirement liability adjustments, tax effect	$ 66	$ 57	$ 221	$ 118
Deferred gain (loss) on hedging instruments, tax effect	$ (43)	$ 41	$ 35	$ 93

Condensed Consolidated Stateme8

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014
Operating Activities:
Net Income Attributable to Kadant	$ 24,004	$ 19,558
Net income attributable to noncontrolling interest	232	344
(Income) loss from discontinued operation	(56)	18
Income from continuing operations	24,180	19,920
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	8,247	8,558
Stock-based compensation expense	4,495	4,251
Tax benefits from stock-based compensation awards	(875)	(711)
Provision for losses on accounts receivable	205	283
Loss (gain) on the sale of property, plant, and equipment	3	(158)
Other items, net	(91)	1,184
Contributions to pension plan	(810)	(810)
Changes in current assets and liabilities, net of effects of acquisitions:
Accounts receivable	(2,052)	935
Unbilled contract costs and fees	(2,601)	(1,414)
Inventories	(16,045)	3,189
Other current assets	(1,529)	(272)
Accounts payable	813	459
Other current liabilities	11,641	(5,012)
Net cash provided by continuing operations	25,581	30,402
Net cash (used in) provided by discontinued operation	(36)	2
Net cash provided by operating activities	25,545	30,404
Investing Activities:
Acquisitions, net of cash acquired	0	(2,974)
Purchases of property, plant, and equipment	(4,068)	(3,145)
Proceeds from sale of property, plant, and equipment	33	231
Net cash used in continuing operations for investing activities	(4,035)	(5,888)
Financing Activities:
Proceeds from issuance of long-term obligations	20,000	15,401
Repayments of short-and long-term obligations	(16,486)	(30,709)
Purchases of Company common stock	(8,920)	(13,159)
Dividends paid	(5,346)	(4,706)
Proceeds from issuance of Company common stock	285	639
Change in restricted cash	(368)	(437)
Tax benefits from stock-based compensation awards	875	711
Net cash used in continuing operations for financing activities	(9,960)	(32,260)
Exchange Rate Effect on Cash and Cash Equivalents from Continuing Operations	(786)	(1,167)
Increase (Decrease) in Cash and Cash Equivalents from Continuing Operations	10,764	(8,911)
Cash and Cash Equivalents at Beginning of Period	45,378	50,032
Cash and Cash Equivalents at End of Period	$ 56,142	$ 41,121

Condensed Consolidated Stateme9

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock [Member]	Capital in Excess of Par Value [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Items [Member]	Noncontrolling Interest [Member]
Beginning balance (in shares) at Dec. 28, 2013		14,624,159			3,524,742
Beginning balance at Dec. 28, 2013	$ 270,421	$ 146	$ 96,809	$ 248,170	$ (76,339)	$ 710	$ 925
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	19,902			19,558			344
Dividends declared	(4,950)			(4,950)
Activity under stock plans (in shares)					(142,591)
Activity under stock plans	2,832		(280)		$ 3,112
Tax benefits related to employees' and directors' stock plans	712		712
Purchases of Company common stock (in shares)					355,135
Purchases of Company common stock	(13,159)				$ (13,159)
Other comprehensive items	(7,510)					(7,425)	(85)
Ending balance (in shares) at Sep. 27, 2014		14,624,159			3,737,286
Ending balance at Sep. 27, 2014	268,248	$ 146	97,241	262,778	$ (86,386)	(6,715)	1,184
Beginning balance (in shares) at Jan. 03, 2015		14,624,159			3,760,019
Beginning balance at Jan. 03, 2015	265,459	$ 146	98,769	270,249	$ (87,727)	(17,146)	1,168
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	24,236			24,004			232
Dividends declared	(5,549)			(5,549)
Activity under stock plans (in shares)					(120,427)
Activity under stock plans	2,445		(373)		$ 2,818
Tax benefits related to employees' and directors' stock plans	875		875
Purchases of Company common stock (in shares)					204,760
Purchases of Company common stock	(8,920)				$ (8,920)
Other comprehensive items	(15,672)					(15,577)	(95)
Ending balance (in shares) at Oct. 03, 2015		14,624,159			3,844,352
Ending balance at Oct. 03, 2015	$ 262,874	$ 146	$ 99,271	$ 288,704	$ (93,829)	$ (32,723)	$ 1,305

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	9 Months Ended
	Oct. 03, 2015
Accounting Policies [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Kadant Inc. (collectively, "we," "Kadant," "the Company," or "the Registrant") was incorporated in Delaware in November 1991 and currently trades on the New York Stock Exchange under the ticker symbol "KAI." The Company and its subsidiaries' 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, 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 machines used in papermaking and other process industries; and cleaning and filtration systems essential for draining, filtering, 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, 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. Interim Financial Statements The interim condensed consolidated financial statements and related notes presented have been prepared by the Company, are unaudited, and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair statement of the Company's financial position at October 3, 2015 and its results of operations, comprehensive income, cash flows, and stockholders' equity, for the three and nine month periods ended October 3, 2015 and September 27, 2014 . Interim results are not necessarily indicative of results for a full year or for any other interim period. The condensed consolidated balance sheet presented as of January 3, 2015 has been derived from the consolidated financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2015 . The condensed consolidated financial statements and related notes are presented as permitted by the Securities and Exchange Commission (SEC) rules and regulations for Form 10-Q and do not contain certain information included in the annual consolidated financial statements and related notes of the Company. The condensed consolidated financial statements and notes included herein should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2015 , filed with the SEC. Fiscal Year Typically, the Company's fiscal quarters and fiscal year consist of 13 and 52 weeks, respectively, ending on the Saturday closest to the end of the corresponding calendar quarter for the Company's first three fiscal quarters and on the Saturday closest to December 31 for the Company's fourth fiscal quarter and fiscal year. As a result of the difference between the fiscal and calendar periods, a 53rd week is added to the Company's fiscal year every five or six years. In a 53-week fiscal year, the Company's fourth fiscal quarter contains 14 weeks. The Company's fiscal year ended January 3, 2015 (fiscal 2014) contained 53 weeks and the Company's fiscal year ending January 2, 2016 (fiscal 2015) contains 52 weeks. Each quarter of fiscal 2014 and 2015 contains 13 weeks, except the fourth quarter of 2014, which contained 14 weeks. Critical Accounting Policies 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 of the application of these and other accounting policies is included in Notes 1 and 3 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2015 . Use of Estimates 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. Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its condensed consolidated financial statements and in the application of accounting policies, if business conditions were different, or if the Company were to use different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's condensed consolidated financial statements. Supplemental Cash Flow Information Nine Months Ended (In thousands) October 3, September 27, Non-Cash Investing Activities: Fair Value of Assets Acquired $ — $ 5,635 Cash Paid for Acquired Businesses — (3,648 ) Liabilities Assumed of Acquired Businesses $ — $ 1,987 Non-Cash Financing Activities: Issuance of Company Common Stock $ 3,195 $ 2,957 Dividends Declared but Unpaid $ 1,833 $ 1,634 Certain reclassifications have been made to prior periods to conform with current reporting. On the condensed consolidated statement of cash flows the tax benefits from stock-based compensation awards within operating activities have been reclassified from other items, net and are now presented separately. Restricted Cash As of October 3, 2015 and January 3, 2015 , the Company had restricted cash of $724,000 and $415,000 , respectively. 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 the bank guarantees will expire by the end of 2015. Banker's Acceptance Drafts 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 obligations of the issuing bank and mature within six months of the origination date. The Company has the ability to sell the drafts at a discount to a third-party financial institution or transfer the drafts to vendors in settlement of current accounts payable prior to the scheduled maturity date. These drafts, which totaled $6,470,000 and $6,334,000 at October 3, 2015 and January 3, 2015 , respectively, are included in accounts receivable in the accompanying condensed consolidated balance sheet until the subsidiary sells the drafts to a bank and receives a discounted amount, transfers the banker's acceptance drafts in settlement of accounts payable prior to maturity, or obtains cash payment on the scheduled maturity dates. Inventories The components of inventories are as follows: October 3, January 3, (In thousands) Raw Materials and Supplies $ 24,781 $ 24,403 Work in Process 18,093 11,259 Finished Goods 24,658 19,561 $ 67,532 $ 55,223 Intangible Assets, Net Acquired intangible assets are as follows: October 3, January 3, (In thousands) Indefinite-Lived Intangible Asset $ 8,100 $ 8,100 Definite-Lived Intangible Assets, Gross $ 77,052 $ 77,052 Accumulated Amortization (39,772 ) (35,901 ) Currency Translation (5,447 ) (2,297 ) Definite-Lived Intangible Assets, Net $ 31,833 $ 38,854 Total Intangible Assets, Net $ 39,933 $ 46,954 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, as well as knowledge of any specific warranty problems that indicate that projected warranty costs may vary from historical patterns. 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 included in other current liabilities in the accompanying condensed consolidated balance sheet are as follows: Nine Months Ended (In thousands) October 3, September 27, Balance at beginning of period $ 3,875 $ 4,571 Provision 1,625 1,681 Usage (1,813 ) (2,016 ) Currency translation (226 ) (190 ) Balance at end of period $ 3,461 $ 4,046 Recent Accounting Pronouncements Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, which provides new guidance on reporting discontinued operations and disclosures of disposals. Under the new guidance, only disposals representing a strategic shift in operations will be presented as discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of the company that does not qualify for discontinued operations reporting. The Company adopted this ASU in the first quarter of 2015 and it did not have an impact on the Company's consolidated financial position, results of operations or cash flows. Revenue from Contracts with Customers (Topic 606) Section A-Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). In May 2014, the FASB issued ASU No. 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new guidance is effective for the Company beginning in fiscal 2018. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the effect that ASU No. 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. Compensation-Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. In June 2014, the FASB issued ASU No. 2014-12, which clarifies the proper method of accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. Under the new guidance, a performance target that affects vesting and could be achieved after completion of the service period should be treated as a performance condition under FASB Accounting Standards Codification (ASC) 718 and, as a result, should not be included in the estimation of the grant-date fair value of the award. An entity should recognize compensation cost for the award when it becomes probable that the performance target will be achieved. In the event that an entity determines that it is probable that a performance target will be achieved before the end of the service period, the compensation cost of the award should be recognized prospectively over the remaining service period. The new guidance is effective for the Company beginning in fiscal 2016. Early adoption is permitted. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Preparation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In August 2014, the FASB issued ASU No. 2014-15, which states that under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this ASU should be followed to determine whether to disclose information about the relevant conditions and events. The new guidance is effective for the Company beginning in fiscal 2017, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company will evaluate the going concern considerations in this ASU; however, management does not currently believe that the Company will meet the conditions that would subject its financial statements to additional disclosure. Income Statement-Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In January 2015, the FASB issued ASU No. 2015-01, which eliminates the concept of extraordinary items in an entity’s income statement. Extraordinary classification of an item outside of income from continuing operations was previously considered only when evidence clearly supported its classification as an extraordinary item. Extraordinary items were events and transactions that were distinguished by their unusual nature and by the infrequency of their occurrence. The ASU eliminates the need to separately classify, present, and disclose extraordinary events. The disclosure of events or transactions that are unusual or infrequent in nature will be included in other guidance. This new guidance is effective for the Company beginning in fiscal 2016. Early adoption is permitted. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In April 2015, the FASB issued ASU No. 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. This new disclosure guidance is effective for the Company beginning in fiscal 2016. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Compensation-Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets. In April 2015, the FASB issued ASU No. 2015-04, which provides a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if an entity has more than one plan. If a contribution or significant event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity’s fiscal year-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. However, an entity should not adjust the measurement of defined benefit plan assets and obligations for other events that occur between the month-end measurement and the entity’s fiscal year-end that are not caused by the entity (for example, changes in market prices or interest rates). This new guidance is effective for the Company beginning in fiscal 2016. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . In April 2015, the FASB issued ASU No. 2015-05, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This new guidance is effective for the Company beginning in fiscal 2016. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Inventory (Topic 330), Simplifying the Measurement of Inventory . In July 2015, the FASB issued ASU No. 2015-11, which requires that an entity measure inventory within the scope of this ASU at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Substantial and unusual losses that result from subsequent measurement of inventory should be disclosed in the financial statements. This new guidance is effective for the Company beginning in fiscal 2017. The Company is currently evaluating the effect that adoption of ASU No. 2015-11 will have on the Company's consolidated financial position, results of operations or cash flows. Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments . In September 2015, the FASB issued ASU No. 2015-16, which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present, separately on the face of the income statement or through disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This new guidance is effective for the Company beginning in fiscal 2016. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows.

Restructuring Costs

Restructuring Costs	9 Months Ended
	Oct. 03, 2015
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs In the first nine months of 2015, the Company's Papermaking Systems segment recorded restructuring costs of $ 300,000 for severance costs associated with the reduction of nine employees in Canada and Sweden. These actions were taken to streamline the Company's operations in those locations. In the first nine months of 2014, the Company's Papermaking Systems segment recorded total restructuring costs of $ 928,000 , including facility-related costs of $ 553,000 and severance and associated costs of $ 375,000 . A summary of the changes in accrued restructuring costs are as follows: (In thousands) Severance Costs Balance at January 3, 2015 $ 103 Provision 300 Usage (194 ) Currency translation (15 ) Balance at October 3, 2015 $ 194 The Company expects to pay the remaining accrued restructuring costs by the end of 2015.

Earnings per Share

Earnings per Share	9 Months Ended
	Oct. 03, 2015
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic and diluted earnings per share are calculated as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands, except per share amounts) Amounts Attributable to Kadant: Income from Continuing Operations $ 8,647 $ 6,651 $ 23,948 $ 19,576 (Loss) Income from Discontinued Operation (4 ) (4 ) 56 (18 ) Net Income $ 8,643 $ 6,647 $ 24,004 $ 19,558 Basic Weighted Average Shares 10,861 10,898 10,900 11,026 Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan 235 235 219 205 Diluted Weighted Average Shares 11,096 11,133 11,119 11,231 Basic Earnings per Share: Continuing Operations $ 0.80 $ 0.61 $ 2.20 $ 1.78 Discontinued Operation $ — $ — $ 0.01 $ — Net Income per Basic Share $ 0.80 $ 0.61 $ 2.20 $ 1.77 Diluted Earnings per Share: Continuing Operations $ 0.78 $ 0.60 $ 2.15 $ 1.74 Discontinued Operation $ — $ — $ 0.01 $ — Net Income per Diluted Share $ 0.78 $ 0.60 $ 2.16 $ 1.74 Unvested restricted stock units equivalent to approximately 5,000 and 6,000 shares of common stock for the third quarters of 2015 and 2014 , respectively, and approximately 31,000 and 44,000 shares of common stock for the first nine months of 2015 and 2014, respectively, were not included in the computation of diluted earnings per share because either the effect of their inclusion would have been anti-dilutive, or for unvested performance-based restricted stock units, the performance conditions had not been met as of the end of the reporting period.

Provision for Income Taxes

Provision for Income Taxes	9 Months Ended
	Oct. 03, 2015
Income Tax Disclosure [Abstract]
Provision for Income Taxes	Provision for Income Taxes The provision for income taxes was $10,964,000 and $9,468,000 , in the first nine months of 2015 and 2014, respectively, and represented 31% and 32% of pre-tax income. The effective tax rate of 31% in the first nine months of 2015 was lower than the Company's statutory tax rate primarily due to the distribution of the Company's worldwide earnings and an adjustment to increase deferred tax assets, which was offset in part by an increase in non-deductible expenses, state tax expense, and the U.S. tax cost of foreign operations. The effective tax rate of 32% in the first nine months of 2014 was lower than the Company's statutory tax rate primarily due to the distribution of the Company's worldwide earnings, the release of tax reserves that resulted from the expiration of tax statutes of limitations, and the release of state tax reserves in the U.S. These tax benefits were offset in part by tax expense associated with an increase in nondeductible expenses and a reduction in deferred tax assets.

Short- and Long-Term Obligation

Short- and Long-Term Obligations	9 Months Ended
	Oct. 03, 2015
Debt Disclosure [Abstract]
Short-and Long-Term Obligations	Short- and Long-Term Obligations Short- and long-term obligations are as follows: October 3, January 3, (In thousands) Revolving Credit Facility, due 2018 $ 24,000 $ 20,000 Variable Rate Term Loan, due from 2015 to 2016 5,375 5,750 Borrowings Under Overdraft — 111 Total Short- and Long-Term Obligations 29,375 25,861 Less: Short-Term Obligations (5,375 ) (611 ) Long-Term Obligations $ 24,000 $ 25,250 The weighted average interest rate for the Company's long-term obligations was 2.61% as of October 3, 2015 . 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 earnings before interest, taxes, depreciation, and amortization (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. There were $24,000,000 of borrowings outstanding under the 2012 Credit Agreement at October 3, 2015 . 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, 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 October 3, 2015 , 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 October 3, 2015 , the Company had $73,874,000 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.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Oct. 03, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company recognized stock-based compensation expense of $1,254,000 and $1,440,000 in the third quarters of 2015 and 2014, respectively, and $4,495,000 and $4,251,000 in the first nine months of 2015 and 2014, respectively, within selling, general, and administrative (SG&A) expenses in the accompanying condensed consolidated statement of income. 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 fair value of restricted stock units (RSUs) is based on the grant date trading price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period. For 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. Unrecognized compensation expense related to stock-based compensation totaled approximately $4,998,000 at October 3, 2015 , and will be recognized over a weighted average period of 1.7 years .

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Oct. 03, 2015
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Employee Benefit Plans The Company sponsors a noncontributory defined benefit retirement plan for the benefit of eligible employees at its Kadant Solutions division and its corporate office (included in the table below under "Pension Benefits"). The Company also sponsors a restoration plan for the benefit of certain executive officers who also participate in the noncontributory defined benefit retirement plan (included in the table below under "Other Benefits"). In addition, employees at certain of the Company's subsidiaries participate in defined benefit retirement and post-retirement welfare benefit plans (included in the table below under "Other Benefits"). The components of the net periodic benefit cost for the pension benefits and other benefits plans are as follows: Three Months Ended Three Months Ended (In thousands) Pension Benefits Other Benefits Pension Benefits Other Benefits Components of Net Periodic Benefit Cost: Service cost $ 211 $ 55 $ 213 $ 73 Interest cost 307 62 321 74 Expected return on plan assets (356 ) (10 ) (370 ) (12 ) Recognized net actuarial loss 127 17 79 9 Amortization of prior service cost 15 22 14 22 Net periodic benefit cost $ 304 $ 146 $ 257 $ 166 The weighted average assumptions used to determine net periodic benefit cost are as follows: Discount rate 3.87 % 3.72 % 4.79 % 4.28 % Expected long-term return on plan assets 5.25 % — 5.75 % — Rate of compensation increase 3.00 % 2.98 % 3.50 % 3.23 % Nine Months Ended Nine Months Ended (In thousands) Pension Other Pension Other Components of Net Periodic Benefit Cost: Service cost $ 633 $ 167 $ 639 $ 223 Interest cost 921 190 963 220 Expected return on plan assets (1,068 ) (31 ) (1,110 ) (36 ) Recognized net actuarial loss 381 52 237 27 Amortization of prior service cost 42 68 42 67 Net periodic benefit cost $ 909 $ 446 $ 771 $ 501 The weighted average assumptions used to determine net periodic benefit cost are as follows: Discount rate 3.87 % 3.74 % 4.79 % 4.28 % Expected long-term return on plan assets 5.25 % — 5.75 % — Rate of compensation increase 3.00 % 2.99 % 3.50 % 3.23 % The Company made cash contributions of $810,000 to its Kadant Solutions division's noncontributory defined benefit retirement plan in the first nine months of 2015 and expects to make cash contributions of $270,000 over the remainder of 2015. For the remaining pension and post-retirement welfare benefits plans, the Company does not expect to make cash contributions other than to fund current benefit payments.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Items	9 Months Ended
	Oct. 03, 2015
Equity [Abstract]
Accumulated Other Comprehensive Items	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 condensed 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 (AOCI), net of tax, in the accompanying condensed consolidated balance sheet 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 January 3, 2015 $ (7,371 ) $ (589 ) $ (8,394 ) $ (792 ) $ (17,146 ) Other comprehensive (loss) income before reclassifications (16,006 ) 3 57 1,325 (14,621 ) Reclassifications from AOCI — 70 282 (1,308 ) (956 ) Net current period other comprehensive (loss) income (16,006 ) 73 339 17 (15,577 ) Balance at October 3, 2015 $ (23,377 ) $ (516 ) $ (8,055 ) $ (775 ) $ (32,723 ) Balance at December 28, 2013 $ 8,919 $ (657 ) $ (6,919 ) $ (633 ) $ 710 Other comprehensive (loss) income before reclassifications (7,567 ) (64 ) 21 153 (7,457 ) Reclassifications from AOCI — 86 172 (226 ) 32 Net current period other comprehensive (loss) income (7,567 ) 22 193 (73 ) (7,425 ) Balance at September 27, 2014 $ 1,352 $ (635 ) $ (6,726 ) $ (706 ) $ (6,715 ) Amounts reclassified out of AOCI are as follows: Three Months Ended Nine Months Ended Statement of Income (In thousands) October 3, September 27, October 3, September 27, Line Item Pension and Other Post-Retirement Plans: (1) Amortization of prior service cost $ (37 ) $ (36 ) $ (110 ) $ (109 ) SG&A expenses Amortization of actuarial losses (144 ) (88 ) (433 ) (264 ) SG&A expenses Total expense before income taxes (181 ) (124 ) (543 ) (373 ) Income tax benefit 64 28 191 115 Provision for income taxes (117 ) (96 ) (352 ) (258 ) Cash Flow Hedges: (2) Interest rate swap agreements (106 ) (83 ) (317 ) (251 ) Interest expense Forward currency-exchange contracts — 31 — 31 Revenues Forward currency-exchange contracts 237 701 1,743 423 SG&A expenses Total income before income taxes 131 649 1,426 203 Benefit (provision) for income taxes 6 (74 ) (118 ) 23 Provision for income taxes 137 575 1,308 226 Total reclassifications $ 20 $ 479 $ 956 $ (32 ) (1) Included in the computation of net periodic benefit costs. See Note 7 for additional information. (2) See Note 9 for additional information.

Derivatives

Derivatives	9 Months Ended
	Oct. 03, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
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. 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 condensed consolidated statement of income. Interest Rate Swaps On January 16, 2015 , the Company entered into a swap agreement (2015 Swap Agreement) to hedge its exposure to movements in the three-month LIBOR rate on outstanding debt. The 2015 Swap Agreement expires on March 27, 2020 and has a $10,000,000 notional value. Under the 2015 Swap Agreement, on a quarterly basis, the Company receives a three-month LIBOR rate and pays a fixed rate of interest of 1.50% plus an applicable margin. The Company has designated the 2015 Swap Agreement as a cash flow hedge. The Company entered into a swap agreement in 2006 (the 2006 Swap Agreement) to convert a portion of the Company's outstanding variable rate term loan from a floating to a fixed rate of interest. The 2006 Swap Agreement matures in 2016, 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 for these instruments as of October 3, 2015 is included in other current and other long-term liabilities, with an offset to AOCI (net of tax) in the accompanying condensed 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 outstanding swap agreements is remote based on the Company's financial position and the creditworthiness of the financial institution issuing the swap agreements. The counterparty to the swap agreements could demand an early termination of the swap agreements 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 coverage ratio of 3 to 1. As of October 3, 2015 , the Company was in compliance with these covenants. The net unrealized loss of $295,000 as of October 3, 2015 , represents the estimated amount that the Company would pay to the counter-party 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 24 -month period, using forward currency-exchange contracts that have maturities of 24 months or less. Forward currency-exchange contracts that hedge forecasted foreign currency exposures are designated as cash flow hedges. The fair values for these instruments are included in other current assets and other assets for unrecognized gains and in other current liabilities and other long-term 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 a gain of $ 46,000 and a loss of $ 2,000 in the third quarters of 2015 and 2014, respectively, and gains of $53,000 and $34,000 in the first nine months of 2015 and 2014 , respectively, included in SG&A 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 values 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 condensed consolidated balance sheet: October 3, 2015 January 3, 2015 Balance Sheet Location Asset (Liability) (a) Notional Amount (b) Asset (Liability) (a) Notional Amount (In thousands) Derivatives Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contracts Other Current Assets $ 1,997 $ 14,907 $ — $ — Forward currency-exchange contracts Other Assets $ 279 $ 1,513 $ 775 $ 17,012 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (41 ) $ 2,718 $ — $ — Interest rate swap agreement Other Current Liabilities $ (168 ) $ 5,375 $ — $ — Interest rate swap agreement Other Long-Term Liabilities $ (127 ) $ 10,000 $ (377 ) $ 5,750 Derivatives Not Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contract Other Current Assets $ 53 $ 758 $ — $ — Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (6 ) $ 379 $ (12 ) $ 784 (a) See Note 10 for the fair value measurements related to these financial instruments. (b) The total notional amount is indicative of the level of the Company's derivative activity during the first nine months of 2015. The following table summarizes the activity in AOCI associated with the Company's derivative instruments designated as cash flow hedges as of and for the period ended October 3, 2015 : (In thousands) Interest Rate Swap Agreements Forward Currency- Exchange Contracts Total Unrealized loss, net of tax, at January 3, 2015 $ (366 ) $ (426 ) $ (792 ) Loss (gain) reclassified to earnings 204 (1,512 ) (1,308 ) (Loss) gain recognized in AOCI (150 ) 1,475 1,325 Unrealized loss, net of tax, at October 3, 2015 $ (312 ) $ (463 ) $ (775 ) As of October 3, 2015 , $640,000 of the net unrealized loss included in AOCI is expected to be reclassified to earnings over the next twelve months.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Oct. 03, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair value measurement is defined as the price that would be received for selling 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 the 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 October 3, 2015 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 9,421 $ — $ — $ 9,421 Banker's acceptance drafts (a) $ — $ 6,470 $ — $ 6,470 Forward currency-exchange contracts $ — $ 2,329 $ — $ 2,329 Liabilities: Forward currency-exchange contracts $ — $ 47 $ — $ 47 Interest rate swap agreements $ — $ 295 $ — $ 295 Contingent consideration (b) $ — $ — $ 1,117 $ 1,117 Fair Value as of January 3, 2015 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 9,264 $ — $ — $ 9,264 Banker's acceptance drafts (a) $ — $ 6,334 $ — $ 6,334 Forward currency-exchange contracts $ — $ 775 $ — $ 775 Liabilities: Forward currency-exchange contracts $ — $ 12 $ — $ 12 Interest rate swap agreement $ — $ 377 $ — $ 377 Contingent consideration (b) $ — $ — $ 1,133 $ 1,133 (a) Included in accounts receivable in the accompanying condensed consolidated balance sheet. (b) Included in other current liabilities in the accompanying condensed 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 the first nine months of 2015 . The Company's financial assets and liabilities carried at fair value include 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 are comprised of money market funds and bank deposits that are highly liquid and easily tradable. These investments are valued using inputs observable in active markets for identical securities. The carrying value of the banker's acceptance drafts approximates their fair value due to the short-term nature of the negotiable instruments. 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 Company recorded contingent consideration as part of its acquisition of a European manufacturer on December 30, 2013. The fair value of the contingent consideration is based on the present value of the estimated future cash flows. Changes to the fair value of the contingent consideration are recorded in SG&A expense. The following table provides a rollforward of the fair value, as determined by Level 3 inputs, of the contingent consideration: Nine Months Ended (In thousands) Balance at beginning of period $ 1,133 Current period expense 71 Currency translation (87 ) Balance at end of period $ 1,117 The carrying value and fair value of the Company's long-term debt obligations are as follows: October 3, 2015 January 3, 2015 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt obligations $ 24,000 $ 24,000 $ 25,250 $ 25,250 The carrying value of long-term debt obligations approximates fair value as the obligations bear variable rates of interest, which adjust quarterly based on prevailing market rates.

Business Segment Information

Business Segment Information	9 Months Ended
	Oct. 03, 2015
Segment Reporting [Abstract]
Business Segment Information	Business Segment 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. Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) 2015 2014 2015 2014 Revenues: Papermaking Systems $ 80,789 $ 88,369 $ 248,069 $ 258,528 Wood Processing Systems 9,119 8,480 25,910 29,590 Fiber-based Products 2,021 1,870 8,528 8,803 $ 91,929 $ 98,719 $ 282,507 $ 296,921 Income from Continuing Operations Before Provision for Income Taxes: Papermaking Systems $ 14,246 $ 13,006 $ 41,559 $ 36,219 Wood Processing Systems 2,724 1,648 7,512 4,497 Corporate and Fiber-based Products (a) (4,289 ) (4,503 ) (13,376 ) (10,908 ) Total Operating Income 12,681 10,151 35,695 29,808 Interest Expense, Net (185 ) (168 ) (551 ) (420 ) $ 12,496 $ 9,983 $ 35,144 $ 29,388 Capital Expenditures: Papermaking Systems $ 1,258 $ 1,325 $ 3,412 $ 2,614 Other 159 378 656 531 $ 1,417 $ 1,703 $ 4,068 $ 3,145 (a) Corporate primarily includes general and administrative expenses.

Contingencies and Litigation

Contingencies and Litigation	9 Months Ended
	Oct. 03, 2015
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Litigation	Contingencies and Litigation 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. As of October 3, 2015 and January 3, 2015 , the Company had $8,003,000 and $5,642,000 , respectively, of banker's acceptance drafts subject to recourse, which were transferred to vendors and had not reached their scheduled maturity dates. Historically, the banker's acceptance drafts have settled upon maturity without any claim of recourse against the Company. General 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.

Nature of Operations and Summ22

Nature of Operations and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 03, 2015
Accounting Policies [Abstract]
Fiscal Year	Fiscal Year Typically, the Company's fiscal quarters and fiscal year consist of 13 and 52 weeks, respectively, ending on the Saturday closest to the end of the corresponding calendar quarter for the Company's first three fiscal quarters and on the Saturday closest to December 31 for the Company's fourth fiscal quarter and fiscal year. As a result of the difference between the fiscal and calendar periods, a 53rd week is added to the Company's fiscal year every five or six years. In a 53-week fiscal year, the Company's fourth fiscal quarter contains 14 weeks. The Company's fiscal year ended January 3, 2015 (fiscal 2014) contained 53 weeks and the Company's fiscal year ending January 2, 2016 (fiscal 2015) contains 52 weeks. Each quarter of fiscal 2014 and 2015 contains 13 weeks, except the fourth quarter of 2014, which contained 14 weeks.
Critical Accounting Policies	Critical Accounting Policies 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 of the application of these and other accounting policies is included in Notes 1 and 3 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 2015 .
Use of Estimates	Use of Estimates 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. Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its condensed consolidated financial statements and in the application of accounting policies, if business conditions were different, or if the Company were to use different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's condensed consolidated financial statements.
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, as well as knowledge of any specific warranty problems that indicate that projected warranty costs may vary from historical patterns. 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, which provides new guidance on reporting discontinued operations and disclosures of disposals. Under the new guidance, only disposals representing a strategic shift in operations will be presented as discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of the company that does not qualify for discontinued operations reporting. The Company adopted this ASU in the first quarter of 2015 and it did not have an impact on the Company's consolidated financial position, results of operations or cash flows. Revenue from Contracts with Customers (Topic 606) Section A-Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). In May 2014, the FASB issued ASU No. 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. The new guidance is effective for the Company beginning in fiscal 2018. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the effect that ASU No. 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. Compensation-Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. In June 2014, the FASB issued ASU No. 2014-12, which clarifies the proper method of accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. Under the new guidance, a performance target that affects vesting and could be achieved after completion of the service period should be treated as a performance condition under FASB Accounting Standards Codification (ASC) 718 and, as a result, should not be included in the estimation of the grant-date fair value of the award. An entity should recognize compensation cost for the award when it becomes probable that the performance target will be achieved. In the event that an entity determines that it is probable that a performance target will be achieved before the end of the service period, the compensation cost of the award should be recognized prospectively over the remaining service period. The new guidance is effective for the Company beginning in fiscal 2016. Early adoption is permitted. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Preparation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In August 2014, the FASB issued ASU No. 2014-15, which states that under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this ASU should be followed to determine whether to disclose information about the relevant conditions and events. The new guidance is effective for the Company beginning in fiscal 2017, and for annual periods and interim periods thereafter. Early adoption is permitted. The Company will evaluate the going concern considerations in this ASU; however, management does not currently believe that the Company will meet the conditions that would subject its financial statements to additional disclosure. Income Statement-Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In January 2015, the FASB issued ASU No. 2015-01, which eliminates the concept of extraordinary items in an entity’s income statement. Extraordinary classification of an item outside of income from continuing operations was previously considered only when evidence clearly supported its classification as an extraordinary item. Extraordinary items were events and transactions that were distinguished by their unusual nature and by the infrequency of their occurrence. The ASU eliminates the need to separately classify, present, and disclose extraordinary events. The disclosure of events or transactions that are unusual or infrequent in nature will be included in other guidance. This new guidance is effective for the Company beginning in fiscal 2016. Early adoption is permitted. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. In April 2015, the FASB issued ASU No. 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. This new disclosure guidance is effective for the Company beginning in fiscal 2016. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Compensation-Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets. In April 2015, the FASB issued ASU No. 2015-04, which provides a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if an entity has more than one plan. If a contribution or significant event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity’s fiscal year-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. However, an entity should not adjust the measurement of defined benefit plan assets and obligations for other events that occur between the month-end measurement and the entity’s fiscal year-end that are not caused by the entity (for example, changes in market prices or interest rates). This new guidance is effective for the Company beginning in fiscal 2016. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . In April 2015, the FASB issued ASU No. 2015-05, which provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. This new guidance is effective for the Company beginning in fiscal 2016. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows. Inventory (Topic 330), Simplifying the Measurement of Inventory . In July 2015, the FASB issued ASU No. 2015-11, which requires that an entity measure inventory within the scope of this ASU at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Substantial and unusual losses that result from subsequent measurement of inventory should be disclosed in the financial statements. This new guidance is effective for the Company beginning in fiscal 2017. The Company is currently evaluating the effect that adoption of ASU No. 2015-11 will have on the Company's consolidated financial position, results of operations or cash flows. Business Combinations (Topic 805), Simplifying the Accounting for Measurement-Period Adjustments . In September 2015, the FASB issued ASU No. 2015-16, which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present, separately on the face of the income statement or through disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This new guidance is effective for the Company beginning in fiscal 2016. Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial position, results of operations or cash flows.
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. 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 condensed consolidated statement of income.
Fair Value Measurement	The carrying value of long-term debt obligations approximates fair value as the obligations bear variable rates of interest, which adjust quarterly based on prevailing market rates. The Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during the first nine months of 2015 . The Company's financial assets and liabilities carried at fair value include 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 are comprised of money market funds and bank deposits that are highly liquid and easily tradable. These investments are valued using inputs observable in active markets for identical securities. The carrying value of the banker's acceptance drafts approximates their fair value due to the short-term nature of the negotiable instruments. 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 Company recorded contingent consideration as part of its acquisition of a European manufacturer on December 30, 2013. The fair value of the contingent consideration is based on the present value of the estimated future cash flows. Changes to the fair value of the contingent consideration are recorded in SG&A expense.

Nature of Operations and Summ23

Nature of Operations and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Oct. 03, 2015
Accounting Policies [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Nine Months Ended (In thousands) October 3, September 27, Non-Cash Investing Activities: Fair Value of Assets Acquired $ — $ 5,635 Cash Paid for Acquired Businesses — (3,648 ) Liabilities Assumed of Acquired Businesses $ — $ 1,987 Non-Cash Financing Activities: Issuance of Company Common Stock $ 3,195 $ 2,957 Dividends Declared but Unpaid $ 1,833 $ 1,634
Inventories	The components of inventories are as follows: October 3, January 3, (In thousands) Raw Materials and Supplies $ 24,781 $ 24,403 Work in Process 18,093 11,259 Finished Goods 24,658 19,561 $ 67,532 $ 55,223
Intangible Assets, Net	Acquired intangible assets are as follows: October 3, January 3, (In thousands) Indefinite-Lived Intangible Asset $ 8,100 $ 8,100 Definite-Lived Intangible Assets, Gross $ 77,052 $ 77,052 Accumulated Amortization (39,772 ) (35,901 ) Currency Translation (5,447 ) (2,297 ) Definite-Lived Intangible Assets, Net $ 31,833 $ 38,854 Total Intangible Assets, Net $ 39,933 $ 46,954
Warranty Obligations	The changes in the carrying amount of accrued warranty costs included in other current liabilities in the accompanying condensed consolidated balance sheet are as follows: Nine Months Ended (In thousands) October 3, September 27, Balance at beginning of period $ 3,875 $ 4,571 Provision 1,625 1,681 Usage (1,813 ) (2,016 ) Currency translation (226 ) (190 ) Balance at end of period $ 3,461 $ 4,046

Restructuring Costs (Tables)

Restructuring Costs (Tables)	9 Months Ended
	Oct. 03, 2015
Restructuring and Related Activities [Abstract]
Summary of Changes in Accrued Restructuring Costs	A summary of the changes in accrued restructuring costs are as follows: (In thousands) Severance Costs Balance at January 3, 2015 $ 103 Provision 300 Usage (194 ) Currency translation (15 ) Balance at October 3, 2015 $ 194

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Oct. 03, 2015
Earnings Per Share [Abstract]
Basic and Diluted Earnings Per Share	Basic and diluted earnings per share are calculated as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands, except per share amounts) Amounts Attributable to Kadant: Income from Continuing Operations $ 8,647 $ 6,651 $ 23,948 $ 19,576 (Loss) Income from Discontinued Operation (4 ) (4 ) 56 (18 ) Net Income $ 8,643 $ 6,647 $ 24,004 $ 19,558 Basic Weighted Average Shares 10,861 10,898 10,900 11,026 Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan 235 235 219 205 Diluted Weighted Average Shares 11,096 11,133 11,119 11,231 Basic Earnings per Share: Continuing Operations $ 0.80 $ 0.61 $ 2.20 $ 1.78 Discontinued Operation $ — $ — $ 0.01 $ — Net Income per Basic Share $ 0.80 $ 0.61 $ 2.20 $ 1.77 Diluted Earnings per Share: Continuing Operations $ 0.78 $ 0.60 $ 2.15 $ 1.74 Discontinued Operation $ — $ — $ 0.01 $ — Net Income per Diluted Share $ 0.78 $ 0.60 $ 2.16 $ 1.74

Short- and Long-Term Obligati26

Short- and Long-Term Obligations (Tables)	9 Months Ended
	Oct. 03, 2015
Debt Disclosure [Abstract]
Schedule of Short and Long-Term Obligations	Short- and long-term obligations are as follows: October 3, January 3, (In thousands) Revolving Credit Facility, due 2018 $ 24,000 $ 20,000 Variable Rate Term Loan, due from 2015 to 2016 5,375 5,750 Borrowings Under Overdraft — 111 Total Short- and Long-Term Obligations 29,375 25,861 Less: Short-Term Obligations (5,375 ) (611 ) Long-Term Obligations $ 24,000 $ 25,250

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Oct. 03, 2015
Compensation and Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost and Assumptions Used	The components of the net periodic benefit cost for the pension benefits and other benefits plans are as follows: Three Months Ended Three Months Ended (In thousands) Pension Benefits Other Benefits Pension Benefits Other Benefits Components of Net Periodic Benefit Cost: Service cost $ 211 $ 55 $ 213 $ 73 Interest cost 307 62 321 74 Expected return on plan assets (356 ) (10 ) (370 ) (12 ) Recognized net actuarial loss 127 17 79 9 Amortization of prior service cost 15 22 14 22 Net periodic benefit cost $ 304 $ 146 $ 257 $ 166 The weighted average assumptions used to determine net periodic benefit cost are as follows: Discount rate 3.87 % 3.72 % 4.79 % 4.28 % Expected long-term return on plan assets 5.25 % — 5.75 % — Rate of compensation increase 3.00 % 2.98 % 3.50 % 3.23 % Nine Months Ended Nine Months Ended (In thousands) Pension Other Pension Other Components of Net Periodic Benefit Cost: Service cost $ 633 $ 167 $ 639 $ 223 Interest cost 921 190 963 220 Expected return on plan assets (1,068 ) (31 ) (1,110 ) (36 ) Recognized net actuarial loss 381 52 237 27 Amortization of prior service cost 42 68 42 67 Net periodic benefit cost $ 909 $ 446 $ 771 $ 501 The weighted average assumptions used to determine net periodic benefit cost are as follows: Discount rate 3.87 % 3.74 % 4.79 % 4.28 % Expected long-term return on plan assets 5.25 % — 5.75 % — Rate of compensation increase 3.00 % 2.99 % 3.50 % 3.23 %

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Items (Tables)	9 Months Ended
	Oct. 03, 2015
Equity [Abstract]
Components of Accumulated Other Comprehensive Items	Changes in each component of accumulated other comprehensive items (AOCI), net of tax, in the accompanying condensed consolidated balance sheet 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 January 3, 2015 $ (7,371 ) $ (589 ) $ (8,394 ) $ (792 ) $ (17,146 ) Other comprehensive (loss) income before reclassifications (16,006 ) 3 57 1,325 (14,621 ) Reclassifications from AOCI — 70 282 (1,308 ) (956 ) Net current period other comprehensive (loss) income (16,006 ) 73 339 17 (15,577 ) Balance at October 3, 2015 $ (23,377 ) $ (516 ) $ (8,055 ) $ (775 ) $ (32,723 ) Balance at December 28, 2013 $ 8,919 $ (657 ) $ (6,919 ) $ (633 ) $ 710 Other comprehensive (loss) income before reclassifications (7,567 ) (64 ) 21 153 (7,457 ) Reclassifications from AOCI — 86 172 (226 ) 32 Net current period other comprehensive (loss) income (7,567 ) 22 193 (73 ) (7,425 ) Balance at September 27, 2014 $ 1,352 $ (635 ) $ (6,726 ) $ (706 ) $ (6,715 )
Reclassification Out of Accumulated Other Comprehensive Items	Amounts reclassified out of AOCI are as follows: Three Months Ended Nine Months Ended Statement of Income (In thousands) October 3, September 27, October 3, September 27, Line Item Pension and Other Post-Retirement Plans: (1) Amortization of prior service cost $ (37 ) $ (36 ) $ (110 ) $ (109 ) SG&A expenses Amortization of actuarial losses (144 ) (88 ) (433 ) (264 ) SG&A expenses Total expense before income taxes (181 ) (124 ) (543 ) (373 ) Income tax benefit 64 28 191 115 Provision for income taxes (117 ) (96 ) (352 ) (258 ) Cash Flow Hedges: (2) Interest rate swap agreements (106 ) (83 ) (317 ) (251 ) Interest expense Forward currency-exchange contracts — 31 — 31 Revenues Forward currency-exchange contracts 237 701 1,743 423 SG&A expenses Total income before income taxes 131 649 1,426 203 Benefit (provision) for income taxes 6 (74 ) (118 ) 23 Provision for income taxes 137 575 1,308 226 Total reclassifications $ 20 $ 479 $ 956 $ (32 ) (1) Included in the computation of net periodic benefit costs. See Note 7 for additional information. (2) See Note 9 for additional information.

Derivatives (Tables)

Derivatives (Tables)	9 Months Ended
	Oct. 03, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value of Derivative Instruments	The following table summarizes the fair values 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 condensed consolidated balance sheet: October 3, 2015 January 3, 2015 Balance Sheet Location Asset (Liability) (a) Notional Amount (b) Asset (Liability) (a) Notional Amount (In thousands) Derivatives Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contracts Other Current Assets $ 1,997 $ 14,907 $ — $ — Forward currency-exchange contracts Other Assets $ 279 $ 1,513 $ 775 $ 17,012 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (41 ) $ 2,718 $ — $ — Interest rate swap agreement Other Current Liabilities $ (168 ) $ 5,375 $ — $ — Interest rate swap agreement Other Long-Term Liabilities $ (127 ) $ 10,000 $ (377 ) $ 5,750 Derivatives Not Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contract Other Current Assets $ 53 $ 758 $ — $ — Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (6 ) $ 379 $ (12 ) $ 784 (a) See Note 10 for the fair value measurements related to these financial instruments. (b) The total notional amount is indicative of the level of the Company's derivative activity during the first nine months of 2015.
Activity in Accumulated Other Comprehensive Items (OCI)	The following table summarizes the activity in AOCI associated with the Company's derivative instruments designated as cash flow hedges as of and for the period ended October 3, 2015 : (In thousands) Interest Rate Swap Agreements Forward Currency- Exchange Contracts Total Unrealized loss, net of tax, at January 3, 2015 $ (366 ) $ (426 ) $ (792 ) Loss (gain) reclassified to earnings 204 (1,512 ) (1,308 ) (Loss) gain recognized in AOCI (150 ) 1,475 1,325 Unrealized loss, net of tax, at October 3, 2015 $ (312 ) $ (463 ) $ (775 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Oct. 03, 2015
Fair Value Disclosures [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 October 3, 2015 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 9,421 $ — $ — $ 9,421 Banker's acceptance drafts (a) $ — $ 6,470 $ — $ 6,470 Forward currency-exchange contracts $ — $ 2,329 $ — $ 2,329 Liabilities: Forward currency-exchange contracts $ — $ 47 $ — $ 47 Interest rate swap agreements $ — $ 295 $ — $ 295 Contingent consideration (b) $ — $ — $ 1,117 $ 1,117 Fair Value as of January 3, 2015 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 9,264 $ — $ — $ 9,264 Banker's acceptance drafts (a) $ — $ 6,334 $ — $ 6,334 Forward currency-exchange contracts $ — $ 775 $ — $ 775 Liabilities: Forward currency-exchange contracts $ — $ 12 $ — $ 12 Interest rate swap agreement $ — $ 377 $ — $ 377 Contingent consideration (b) $ — $ — $ 1,133 $ 1,133 (a) Included in accounts receivable in the accompanying condensed consolidated balance sheet. (b) Included in other current liabilities in the accompanying condensed consolidated balance sheet.
Fair Value of Liabilities Measured on a Recurring Basis, Unobservable Input Reconciliation	The following table provides a rollforward of the fair value, as determined by Level 3 inputs, of the contingent consideration: Nine Months Ended (In thousands) Balance at beginning of period $ 1,133 Current period expense 71 Currency translation (87 ) Balance at end of period $ 1,117
Carrying Value and Fair Value of Debt Obligations	The carrying value and fair value of the Company's long-term debt obligations are as follows: October 3, 2015 January 3, 2015 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt obligations $ 24,000 $ 24,000 $ 25,250 $ 25,250

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Oct. 03, 2015
Segment Reporting [Abstract]
Business Segment Reporting Information	Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, (In thousands) 2015 2014 2015 2014 Revenues: Papermaking Systems $ 80,789 $ 88,369 $ 248,069 $ 258,528 Wood Processing Systems 9,119 8,480 25,910 29,590 Fiber-based Products 2,021 1,870 8,528 8,803 $ 91,929 $ 98,719 $ 282,507 $ 296,921 Income from Continuing Operations Before Provision for Income Taxes: Papermaking Systems $ 14,246 $ 13,006 $ 41,559 $ 36,219 Wood Processing Systems 2,724 1,648 7,512 4,497 Corporate and Fiber-based Products (a) (4,289 ) (4,503 ) (13,376 ) (10,908 ) Total Operating Income 12,681 10,151 35,695 29,808 Interest Expense, Net (185 ) (168 ) (551 ) (420 ) $ 12,496 $ 9,983 $ 35,144 $ 29,388 Capital Expenditures: Papermaking Systems $ 1,258 $ 1,325 $ 3,412 $ 2,614 Other 159 378 656 531 $ 1,417 $ 1,703 $ 4,068 $ 3,145 (a) Corporate primarily includes general and administrative expenses.

Nature of Operations and Summ32

Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended				9 Months Ended	12 Months Ended
	Jan. 02, 2016	Oct. 03, 2015USD ($)	Jan. 03, 2015USD ($)	Sep. 27, 2014	Oct. 03, 2015USD ($)Segment	Jan. 02, 2016	Jan. 03, 2015USD ($)
Accounting Policies [Abstract]
Number of reportable segments | Segment					2
Operating Cycle [Line Items]
Operating Cycle, Quarterly		91 days	98 days	91 days
Operating Cycle, Fiscal							371 days
Restricted Cash		$ 724	$ 415		$ 724		$ 415
Banker's acceptance drafts, maturity period					6 months
Banker's acceptance drafts		$ 6,470	$ 6,334		$ 6,470		$ 6,334
Forecast [Member]
Operating Cycle [Line Items]
Operating Cycle, Quarterly	91 days
Operating Cycle, Fiscal						364 days
Minimum [Member]
Operating Cycle [Line Items]
Operating Cycle, Quarterly					91 days
Operating Cycle, Period when an extra week is added					5 years
Operating Cycle, Fiscal					364 days
Maximum [Member]
Operating Cycle [Line Items]
Operating Cycle, Quarterly					98 days
Operating Cycle, Period when an extra week is added					6 years
Operating Cycle, Fiscal					371 days

Nature of Operations and Summ33

Nature of Operations and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014
Non-Cash Investing Activities:
Fair Value of Assets Acquired	$ 0	$ 5,635
Cash Paid for Acquired Businesses	0	3,648
Liabilities Assumed of Acquired Businesses	0	1,987
Non-Cash Financing Activities:
Issuance of Company Common Stock	3,195	2,957
Dividends Declared but Unpaid	$ 1,833	$ 1,634

Nature of Operations and Summ34

Nature of Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Accounting Policies [Abstract]
Raw Materials and Supplies	$ 24,781	$ 24,403
Work in Process	18,093	11,259
Finished Goods	24,658	19,561
Inventories	$ 67,532	$ 55,223

Nature of Operations and Summ35

Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets, Net (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Oct. 03, 2015	Jan. 03, 2015
Accounting Policies [Abstract]
Indefinite-Lived Intangible Asset	$ 8,100	$ 8,100
Definite-Lived Intangible Assets, Gross	77,052	77,052
Accumulated Amortization	(39,772)	(35,901)
Currency Translation	(5,447)	(2,297)
Definite-Lived Intangible Assets, Net	31,833	38,854
Total Intangible Assets, Net	$ 39,933	$ 46,954

Nature of Operations and Summ36

Nature of Operations and Summary of Significant Accounting Policies - Warranty Obligations (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014
Changes in the carrying amount of accrued warranty costs [Roll Forward]
Balance at beginning of period	$ 3,875	$ 4,571
Provision	1,625	1,681
Usage	(1,813)	(2,016)
Currency translation	(226)	(190)
Balance at end of period	$ 3,461	$ 4,046

Restructuring Costs - Narrative

Restructuring Costs - Narrative (Details) - Papermaking Systems [Member] $ in Thousands	9 Months Ended
	Oct. 03, 2015USD ($)Employee	Sep. 27, 2014USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges (reversals)		$ 928
Severance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges (reversals)	$ 300	375
Severance Costs [Member] | Canada and Sweden [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees reduced due to restructuring | Employee	9
Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges (reversals)		$ 553

Restructuring Costs - Summary o

Restructuring Costs - Summary of Changes in Accrued Restructuring Costs (Details) - Papermaking Systems [Member] - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014
Restructuring Reserve [Roll Forward]
Provision		$ 928
Severance Costs [Member]
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 103
Provision	300	$ 375
Usage	(194)
Currency translation	(15)
Balance at end of period	$ 194

Earnings per Share - Narrative

Earnings per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Amount of antidilutive securities excluded from computation of EPS	5	6	31	44

Earnings per Share - Basic and

Earnings per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Amounts Attributable to Kadant:
Income from Continuing Operations	$ 8,647	$ 6,651	$ 23,948	$ 19,576
(Loss) Income from Discontinued Operation	(4)	(4)	56	(18)
Net Income Attributable to Kadant	$ 8,643	$ 6,647	$ 24,004	$ 19,558
Basic Weighted Average Shares (in shares)	10,861	10,898	10,900	11,026
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan	235	235	219	205
Diluted Weighted Average Shares (in shares)	11,096	11,133	11,119	11,231
Basic Earnings per Share:
Continuing operations (in dollars per share)	$ 0.80	$ 0.61	$ 2.20	$ 1.78
Discontinued operation (in dollars per share)	0	0	0.01	0
Net Income per Basic Share (in dollars per share)	0.80	0.61	2.20	1.77
Diluted Earnings per Share:
Continuing operations (in dollars per share)	0.78	0.60	2.15	1.74
Discontinued operation (in dollars per share)	0	0	0.01	0
Net Income per Diluted Share (in dollars per share)	$ 0.78	$ 0.60	$ 2.16	$ 1.74

Provision for Income Taxes - Na

Provision for Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 3,782	$ 3,246	$ 10,964	$ 9,468
Effective income tax rate (as a percentage)			31.00%	32.00%

Short- and Long-Term Obligati42

Short- and Long-Term Obligations - Narrative (Details)	Nov. 01, 2013USD ($)	Oct. 03, 2015USD ($)	Jan. 03, 2015USD ($)
Debt Instrument [Line Items]
Weighted average interest rate for long-term obligations (in hundredths)		2.61%
Maximum unrestricted domestic cash		$ 25,000,000
Total short- and long-term debt		29,375,000	$ 25,861,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Term of unsecured revolving credit facility	5 years
Borrowing capacity available under committed portion	$ 100,000,000
Additional borrowing capacity	$ 50,000,000
Maturity date	Nov. 1, 2018
Total short- and long-term debt		$ 24,000,000	$ 20,000,000
Maximum consolidated leverage ratio		3.5
Minimum consolidated interest coverage ratio		3
Remaining Borrowing Capacity		$ 73,874,000
Face amount of debt		$ 100,000,000
Revolving Credit Facility [Member] | Federal Funds Rate [Member]
Debt Instrument [Line Items]
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]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		0.00%
Revolving Credit Facility [Member] | Federal Funds Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		1.00%
Revolving Credit Facility [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		prime rate
Revolving Credit Facility [Member] | Prime Rate [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		0.00%
Revolving Credit Facility [Member] | Prime Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		1.00%
Revolving Credit Facility [Member] | Eurocurrency Rate [Member]
Debt Instrument [Line Items]
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]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		0.00%
Revolving Credit Facility [Member] | Eurocurrency Rate [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		1.00%
Revolving Credit Facility [Member] | Eurocurrency Rate Two [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		Eurocurrency rate
Revolving Credit Facility [Member] | Eurocurrency Rate Two [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		1.00%
Revolving Credit Facility [Member] | Eurocurrency Rate Two [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		2.00%

Short- and Long-Term Obligati43

Short- and Long-Term Obligations - Schedule of Long-Term Obligations (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Debt Instrument [Line Items]
Total short- and long-term debt	$ 29,375	$ 25,861
Borrowings Under Overdraft	0	111
Less: Short-Term Obligations	(5,375)	(611)
Long-Term Obligations	24,000	25,250
Line of Credit [Member]
Debt Instrument [Line Items]
Total short- and long-term debt	24,000	20,000
Commercial Real Estate Loan [Member]
Debt Instrument [Line Items]
Total short- and long-term debt	$ 5,375	$ 5,750

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense	$ 1,254	$ 1,440	$ 4,495	$ 4,251
Unrecognized compensation expense related to stock awards	$ 4,998		$ 4,998
Recognition period			1 year 8 months 12 days

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Contributions to noncontributory defined benefit plan			$ 810
Expected contributions to noncontributory defined benefit plan for the remainder of the year			270
Pension Benefits [Member]
Components of Net Periodic Benefit Cost:
Service cost	$ 211	$ 213	633	$ 639
Interest cost	307	321	921	963
Expected return on plan assets	(356)	(370)	(1,068)	(1,110)
Recognized net actuarial loss	127	79	381	237
Amortization of prior service cost	15	14	42	42
Net periodic benefit cost	$ 304	$ 257	$ 909	$ 771
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount rate (as a percentage)	3.87%	4.79%	3.87%	4.79%
Expected long-term return on plan assets (as a percentage)	5.25%	5.75%	5.25%	5.75%
Rate of compensation increase (as a percentage)	3.00%	3.50%	3.00%	3.50%
Other Benefits [Member]
Components of Net Periodic Benefit Cost:
Service cost	$ 55	$ 73	$ 167	$ 223
Interest cost	62	74	190	220
Expected return on plan assets	(10)	(12)	(31)	(36)
Recognized net actuarial loss	17	9	52	27
Amortization of prior service cost	22	22	68	67
Net periodic benefit cost	$ 146	$ 166	$ 446	$ 501
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount rate (as a percentage)	3.72%	4.28%	3.74%	4.28%
Expected long-term return on plan assets (as a percentage)	0.00%	0.00%	0.00%	0.00%
Rate of compensation increase (as a percentage)	2.98%	3.23%	2.99%	3.23%

Accumulated Other Comprehensi46

Accumulated Other Comprehensive Items - Components of Accumulated Other Comprehensive Items (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ (17,146)	$ 710
Other comprehensive (loss) income before reclassifications	(14,621)	(7,457)
Reclassifications from AOCI	(956)	32
Net current period other comprehensive (loss) income	(15,577)	(7,425)
Ending Balance	(32,723)	(6,715)
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(7,371)	8,919
Other comprehensive (loss) income before reclassifications	(16,006)	(7,567)
Reclassifications from AOCI	0	0
Net current period other comprehensive (loss) income	(16,006)	(7,567)
Ending Balance	(23,377)	1,352
Unrecognized Prior Service Cost [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(589)	(657)
Other comprehensive (loss) income before reclassifications	3	(64)
Reclassifications from AOCI	70	86
Net current period other comprehensive (loss) income	73	22
Ending Balance	(516)	(635)
Deferred Loss on Pension and Other Post Retirement Plans [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(8,394)	(6,919)
Other comprehensive (loss) income before reclassifications	57	21
Reclassifications from AOCI	282	172
Net current period other comprehensive (loss) income	339	193
Ending Balance	(8,055)	(6,726)
Deferred Loss on Hedging Instruments [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(792)	(633)
Other comprehensive (loss) income before reclassifications	1,325	153
Reclassifications from AOCI	(1,308)	(226)
Net current period other comprehensive (loss) income	17	(73)
Ending Balance	$ (775)	$ (706)

Accumulated Other Comprehensi47

Accumulated Other Comprehensive Items - Reclassification Out of Accumulated Other Comprehensive Items (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	$ (239)	$ (210)	$ (701)	$ (766)
Selling, general, and administrative expenses	(29,200)	(31,872)	(92,490)	(95,942)
Total income before income taxes	12,496	9,983	35,144	29,388
Benefit (provision) for income taxes	(3,782)	(3,246)	(10,964)	(9,468)
Income from Continuing Operations	8,714	6,737	24,180	19,920
Reclassification out of Accumulated Other Comprehensive Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income from Continuing Operations	20	479	956	(32)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Amortization of Prior Service Cost [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Selling, general, and administrative expenses	(37)	(36)	(110)	(109)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Amortization of Actuarial Losses [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Selling, general, and administrative expenses	(144)	(88)	(433)	(264)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Pension and Other Post-retirement Plans [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total income before income taxes	(181)	(124)	(543)	(373)
Benefit (provision) for income taxes	64	28	191	115
Income from Continuing Operations	(117)	(96)	(352)	(258)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total income before income taxes	131	649	1,426	203
Benefit (provision) for income taxes	6	(74)	(118)	23
Income from Continuing Operations	137	575	1,308	226
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Cash Flow Hedges [Member] | Interest Rate Swap [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense	(106)	(83)	(317)	(251)
Reclassification out of Accumulated Other Comprehensive Loss [Member] | Cash Flow Hedges [Member] | Forward Currency-Exchange Contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Revenues	0	31	0	31
Selling, general, and administrative expenses	$ 237	$ 701	$ 1,743	$ 423

Derivatives - Narrative (Detail

Derivatives - Narrative (Details)	3 Months Ended		9 Months Ended
	Oct. 03, 2015USD ($)	Sep. 27, 2014USD ($)	Oct. 03, 2015USD ($)	Sep. 27, 2014USD ($)	Jan. 16, 2015USD ($)
Forward Currency-Exchange Contracts [Abstract]
Recognized gains (losses)	$ 46,000	$ (2,000)	$ 53,000	$ 34,000
Interest Rate Swap Agreements [Member]
Interest Rate Swaps [Abstract]
Rate of effectiveness of interest rate swap agreement (in hundredths)			100.00%
Maximum consolidated leverage ratio			3.5
Minimum consolidated interest coverage ratio			3
Unrealized loss on derivatives			$ 295,000
Foreign Exchange Forward [Member]
Forward Currency-Exchange Contracts [Abstract]
Maximum period over which entity manages its level of exposure of risk			24 months
Three Month LIBOR [Member] | 2006 Swap [Member]
Interest Rate Swaps [Abstract]
Derivative, basis spread on variable rate	5.63%		5.63%
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Swap Agreement 2015 [Member]
Interest Rate Swaps [Abstract]
Derivative, notional amount					$ 10,000,000
Fixed rate of interest (in hundredths)					1.50%

Derivatives - Fair Value of Der

Derivatives - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	$ 1,997	$ 0
Notional amount, Derivative asset	14,907	0
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	279	775
Notional amount, Derivative asset	1,513	17,012
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(41)	0
Notional amount, Derivative liability	2,718	0
Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Other Current Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	168	0
Notional amount, Derivative liability	5,375	0
Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Other Noncurrent Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(127)	(377)
Notional amount, Derivative liability	10,000	5,750
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	53	0
Notional amount, Derivative asset	758	0
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(6)	(12)
Notional amount, Derivative liability	$ 379	$ 784

Derivatives - Activity in Accum

Derivatives - Activity in Accumulated Other Comprehensive Items (OCI) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
(Loss) gain recognized in AOCI	$ 97	$ (66)	$ 17	$ (73)
Net unrealized loss included in OCI expected to be reclassified to earnings over the next 12 months			640
Cash Flow Hedging [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized loss, net of tax, at January 3, 2015			(792)
Loss (gain) reclassified to earnings			(1,308)
(Loss) gain recognized in AOCI			1,325
Unrealized loss, net of tax, at October 3, 2015	(775)		(775)
Cash Flow Hedging [Member] | Interest Rate Swap Agreements [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized loss, net of tax, at January 3, 2015			(366)
Loss (gain) reclassified to earnings			204
(Loss) gain recognized in AOCI			(150)
Unrealized loss, net of tax, at October 3, 2015	(312)		(312)
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized loss, net of tax, at January 3, 2015			(426)
Loss (gain) reclassified to earnings			(1,512)
(Loss) gain recognized in AOCI			1,475
Unrealized loss, net of tax, at October 3, 2015	$ (463)		$ (463)

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Assets:
Money market funds and time deposits	$ 9,421	$ 9,264
Banker's acceptance drafts	6,470	6,334
Forward currency-exchange contracts	2,329	775
Liabilities:
Forward currency-exchange contracts	47	12
Interest rate swap agreements	295	377
Contingent consideration	1,117	1,133
Level 1 [Member]
Assets:
Money market funds and time deposits	9,421	9,264
Banker's acceptance drafts	0	0
Forward currency-exchange contracts	0	0
Liabilities:
Forward currency-exchange contracts	0	0
Interest rate swap agreements	0	0
Contingent consideration	0	0
Level 2 [Member]
Assets:
Money market funds and time deposits	0	0
Banker's acceptance drafts	6,470	6,334
Forward currency-exchange contracts	2,329	775
Liabilities:
Forward currency-exchange contracts	47	12
Interest rate swap agreements	295	377
Contingent consideration	0	0
Level 3 [Member]
Assets:
Money market funds and time deposits	0	0
Banker's acceptance drafts	0	0
Forward currency-exchange contracts	0	0
Liabilities:
Forward currency-exchange contracts	0	0
Interest rate swap agreements	0	0
Contingent consideration	$ 1,117	$ 1,133

Fair Value Measurements - Fai52

Fair Value Measurements - Fair Value of Liabilities Measured on a Recurring Basis, Unobservable Input Reconciliation (Details) $ in Thousands	9 Months Ended
	Oct. 03, 2015USD ($)
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unobservable Input [Roll Forward]
Balance at beginning of period	$ 1,133
Current period expense	71
Currency translation	(87)
Balance at end of period	$ 1,117

Fair Value Measurements - Carry

Fair Value Measurements - Carrying Value and Fair Value of Debt Obligations (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt obligations	$ 24,000	$ 25,250
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt obligations	$ 24,000	$ 25,250

Business Segment Information (D

Business Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015USD ($)	Sep. 27, 2014USD ($)	Oct. 03, 2015USD ($)Segment	Sep. 27, 2014USD ($)
Segment Reporting [Abstract]
Number of reportable segments | Segment			2
Revenues:
Revenues	$ 91,929	$ 98,719	$ 282,507	$ 296,921
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income	12,681	10,151	35,695	29,808
Interest expense, net	(185)	(168)	(551)	(420)
Income from Continuing Operations Before Provision for Income Taxes	12,496	9,983	35,144	29,388
Capital Expenditures:
Capital expenditures	1,417	1,703	4,068	3,145
Fiber-Based Products [Member]
Revenues:
Revenues	2,021	1,870	8,528	8,803
Operating Segment [Member] | Papermaking Systems [Member]
Revenues:
Revenues	80,789	88,369	248,069	258,528
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income	14,246	13,006	41,559	36,219
Capital Expenditures:
Capital expenditures	1,258	1,325	3,412	2,614
Operating Segment [Member] | Wood Processing Systems [Member]
Revenues:
Revenues	9,119	8,480	25,910	29,590
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income	2,724	1,648	7,512	4,497
Corporate and Fiber-Based Products [Member]
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income	(4,289)	(4,503)	(13,376)	(10,908)
Other [Member]
Capital Expenditures:
Capital expenditures	$ 159	$ 378	$ 656	$ 531

Contingencies and Litigation (D

Contingencies and Litigation (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Jan. 03, 2015
Commitments and Contingencies Disclosure [Abstract]
Banker's acceptance drafts, maturity period	6 months
Banker's acceptance drafts with recourse	$ 8,003	$ 5,642