Kadant (KAI) 10-Q 11 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 02, 2016	Apr. 29, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	KADANT INC
Entity Central Index Key	886,346
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 2, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		10,854,322

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Current Assets:
Cash and cash equivalents	$ 104,517	$ 65,530
Restricted cash	1,522	1,406
Accounts receivable, less allowances of $2,262 and $2,163	62,029	64,321
Inventories	58,681	56,758
Unbilled contract costs and fees	2,319	6,580
Other current assets	15,518	10,525
Total Current Assets	244,586	205,120
Property, Plant, and Equipment, at Cost	119,270	118,014
Less: accumulated depreciation and amortization	77,145	75,721
Property, Plant and Equipment, at Cost, Net	42,125	42,293
Other Assets	11,081	11,002
Intangible Assets, Net	38,147	38,032
Goodwill	121,681	119,051
Total Assets	457,620	415,498
Current Liabilities:
Short-term obligations	5,125	5,250
Accounts payable	23,796	24,418
Accrued payroll and employee benefits	14,492	19,583
Customer deposits	19,085	20,123
Accrued income taxes	2,091	5,333
Other current liabilities	19,590	21,921
Total Current Liabilities	84,179	96,628
Long-Term Deferred Income Taxes	11,680	8,992
Other Long-Term Liabilities	17,112	15,933
Long-Term Obligations	$ 67,046	$ 26,000
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	97,897	100,536
Retained earnings	302,071	297,258
Treasury stock at cost, 3,769,837 and 3,850,779 shares	(92,376)	(94,359)
Accumulated other comprehensive items	(31,645)	(36,972)
Total Kadant Stockholders' Equity	276,093	266,609
Noncontrolling interest	1,510	1,336
Total Stockholders' Equity	277,603	267,945
Total Liabilities and Stockholders' Equity	$ 457,620	$ 415,498

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Current Assets:
Accounts receivable, allowances	$ 2,262	$ 2,163
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)	3,769,837	3,850,779

Condensed Consolidated Statemen

Condensed Consolidated Statement of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Income Statement [Abstract]
Revenues	$ 96,538	$ 92,251
Costs and Operating Expenses:
Cost of revenues	52,562	47,914
Selling, general, and administrative expenses	32,496	32,222
Research and development expenses	1,704	1,660
Restructuring costs and other income	(317)	84
Total Costs and Operating Expenses	86,445	81,880
Operating Income	10,093	10,371
Interest Income	55	53
Interest Expense	(269)	(231)
Income from Continuing Operations Before Provision for Income Taxes	9,879	10,193
Provision for Income Taxes	2,888	3,268
Income from Continuing Operations	6,991	6,925
Income from Discontinued Operation (net of income tax provision of $41)	0	65
Net Income	6,991	6,990
Net Income Attributable to Noncontrolling Interest	(115)	(93)
Net Income Attributable to Kadant	6,876	6,897
Amounts Attributable to Kadant:
Income from Continuing Operations	6,876	6,832
Income from Discontinued Operation	0	65
Net Income Attributable to Kadant	$ 6,876	$ 6,897
Earnings per Share from Continuing Operations Attributable to Kadant:
Basic (in dollars per share)	$ 0.64	$ 0.63
Diluted (in dollars per share)	0.62	0.62
Earnings per Share Attributable to Kadant:
Basic (in dollars per share)	0.64	0.63
Diluted (in dollars per share)	$ 0.62	$ 0.62
Weighted Average Shares:
Basic (in shares)	10,793	10,892
Diluted (in shares)	11,018	11,086
Cash Dividends Declared per Common Share (in dollars per share)	$ 0.19	$ 0.17

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Income Statement [Abstract]
Income from discontinued operation, net of income tax provision	$ 0	$ 41

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Statement of Comprehensive Income [Abstract]
Net Income	$ 6,991	$ 6,990
Other Comprehensive Items:
Foreign currency translation adjustment	5,930	(12,102)
Pension and other post-retirement liability adjustments (net of tax benefit of $236 in 2016 and tax provision of $92 in 2015)	(418)	173
Deferred loss on hedging instruments (net of tax benefit of $72 in 2016 and tax provision of $17 in 2015)	(126)	(508)
Other Comprehensive Items	5,386	(12,437)
Comprehensive Income (Loss)	12,377	(5,447)
Comprehensive (Income) Loss Attributable to Noncontrolling Interest	(174)	39
Comprehensive Income (Loss) Attributable to Kadant	$ 12,203	$ (5,408)

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Other Comprehensive Items:
Pension and other post-retirement liability adjustments, tax effect	$ (236)	$ 92
Deferred loss on hedging instruments, tax effect	$ (72)	$ 17

Condensed Consolidated Stateme8

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Operating Activities:
Net Income Attributable to Kadant	$ 6,876	$ 6,897
Net income attributable to noncontrolling interest	115	93
Income from discontinued operation	0	(65)
Income from continuing operations	6,991	6,925
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	2,564	2,910
Stock-based compensation expense	1,323	1,588
Tax benefits from stock-based compensation awards	0	(687)
Provision for losses on accounts receivable	76	185
Gain on the sale of property, plant, and equipment	(346)	0
Other items, net	781	(836)
Contributions to pension plan	(270)	(270)
Changes in current assets and liabilities:
Accounts receivable	3,259	(5,247)
Unbilled contract costs and fees	4,313	1,817
Inventories	(604)	(7,660)
Other current assets	(1,808)	(1,908)
Accounts payable	(1,234)	375
Other current liabilities	(9,527)	589
Net cash provided by (used in) continuing operations	5,518	(2,219)
Net cash used in discontinued operation	0	(41)
Net cash provided by (used in) operating activities	5,518	(2,260)
Investing Activities:
Issuance of note receivable	(2,813)	0
Purchases of property, plant, and equipment	(524)	(1,216)
Proceeds from sale of property, plant, and equipment	385	5
Net cash used in continuing operations for investing activities	(2,952)	(1,211)
Financing Activities:
Proceeds from issuance of long-term obligations	41,046	10,000
Repayments of short-and long-term obligations	(125)	(5,111)
Tax withholding payments related to stock-based compensation	(1,980)	(2,304)
Dividends paid	(1,831)	(1,630)
Payment of contingent consideration	(1,091)	0
Tax benefits from stock-based compensation awards	0	687
Proceeds from issuance of company common stock	0	148
Change in restricted cash	(58)	0
Net cash provided by continuing operations for financing activities	35,961	1,790
Exchange Rate Effect on Cash and Cash Equivalents from Continuing Operations	460	(857)
Increase (Decrease) in Cash and Cash Equivalents from Continuing Operations	38,987	(2,538)
Cash and Cash Equivalents at Beginning of Period	65,530	45,378
Cash and Cash Equivalents at End of Period	$ 104,517	$ 42,840

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 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	6,990			6,897			93
Dividends declared	(1,864)			(1,864)
Activity under stock plans (in shares)					(102,346)
Activity under stock plans	(568)		(2,956)		$ 2,388
Tax benefits related to employees' and directors' stock plans	687		687
Other comprehensive items	(12,437)					(12,305)	(132)
Ending balance (in shares) at Apr. 04, 2015		14,624,159			3,657,673
Ending balance at Apr. 04, 2015	258,267	$ 146	96,500	275,282	$ (85,339)	(29,451)	1,129
Beginning balance (in shares) at Jan. 02, 2016		14,624,159			3,850,779
Beginning balance at Jan. 02, 2016	267,945	$ 146	100,536	297,258	$ (94,359)	(36,972)	1,336
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	6,991			6,876			115
Dividends declared	(2,063)			(2,063)
Activity under stock plans (in shares)					(80,942)
Activity under stock plans	(656)		(2,639)		$ 1,983
Other comprehensive items	5,386					5,327	59
Ending balance (in shares) at Apr. 02, 2016		14,624,159			3,769,837
Ending balance at Apr. 02, 2016	$ 277,603	$ 146	$ 97,897	$ 302,071	$ (92,376)	$ (31,645)	$ 1,510

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	3 Months Ended
	Apr. 02, 2016
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 other process industries. The Company's principal products in this segment include custom-engineered stock-preparation systems and equipment for the preparation of wastepaper for conversion into recycled paper; fluid-handling systems used primarily in the dryer section of the papermaking process and during the production of corrugated boxboard, metals, plastics, rubber, textiles, chemicals, and food; doctoring systems and equipment and related consumables important to the efficient operation of paper machines; and cleaning and filtration systems essential for draining, purifying, and recycling process water and cleaning paper machine fabrics and rolls. Through its Wood Processing Systems segment, the Company designs and manufactures stranders and related equipment used in the production of oriented strand board (OSB), an engineered wood panel product used primarily in home construction. This segment also supplies debarking and wood chipping equipment used in the forest products and the pulp and paper industries. Through its Fiber-based Products business, the Company manufactures and sells granules derived from papermaking byproducts primarily for use as agricultural carriers and for home lawn and garden applications, as well as for oil and grease absorption. 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 April 2, 2016 and its results of operations, comprehensive income (loss), cash flows, and stockholders' equity for the three-month periods ended April 2, 2016 and April 4, 2015 . 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 2, 2016 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 2, 2016 . 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 2, 2016 , filed with the SEC. Financial Statement Presentation Certain reclassifications have been made to prior periods to conform with current reporting. As a result of the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-09, tax withholding payments made related to stock-based compensation awards have been reclassified from other current liabilities within operating activities on the condensed consolidated statement of cash flows and presented separately within financing activities. In addition, on the condensed consolidated statement of cash flows, the tax benefits from stock-based compensation awards within operating activities for the three-month period ended April 4, 2015 have been reclassified from other items, net, and are now presented separately. 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 2, 2016 . 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 or 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 Three Months Ended (In thousands) April 2, April 4, Non-Cash Financing Activities: Issuance of Company Common Stock $ 2,854 $ 2,633 Dividends Declared but Unpaid $ 2,063 $ 1,864 Restricted Cash As of April 2, 2016 and January 2, 2016 , the Company had restricted cash of $1,522,000 and $1,406,000 , 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 of the bank guarantees will expire by the end of 2017. Banker's Acceptance Drafts The Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for outstanding 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 $7,853,000 and $8,314,000 at April 2, 2016 and January 2, 2016 , 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 date. Inventories The components of inventories are as follows: April 2, January 2, (In thousands) Raw Materials and Supplies $ 22,415 $ 22,324 Work in Process 11,769 13,819 Finished Goods 24,497 20,615 $ 58,681 $ 56,758 Intangible Assets, Net Acquired intangible assets are as follows: April 2, January 2, (In thousands) Indefinite-Lived Intangible Asset $ 8,100 $ 8,100 Definite-Lived Intangible Assets, Gross $ 77,052 $ 77,052 Accumulated Amortization (42,030 ) (40,908 ) Currency Translation (4,975 ) (6,212 ) Definite-Lived Intangible Assets, Net $ 30,047 $ 29,932 Total Intangible Assets, Net $ 38,147 $ 38,032 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: Three Months Ended (In thousands) April 2, April 4, Balance at beginning of period $ 3,670 $ 3,875 Provision charged to income 560 408 Usage (526 ) (543 ) Currency translation 81 (192 ) Balance at end of period $ 3,785 $ 3,548 Recent Accounting Pronouncements 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. In March 2016, the FASB issued ASU No. 2016-08, which further clarifies the guidance on the principal versus agent considerations within ASU No. 2014-09. In April 2016, the FASB issued ASU No. 2016-10 to expand the guidance on identifying performance obligations and licensing within ASU 2014-09. These new ASUs are effective for the Company beginning in fiscal 2018. Early adoption is permitted in fiscal 2017. The guidance permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the effect that these ASUs 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 Company adopted this guidance at the beginning of fiscal 2016. The adoption of this ASU did not have an impact on the Company’s condensed consolidated financial statements. 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. In addition, in June 2015, the FASB issued ASU No. 2015-15, which allows an entity to defer the requirements of ASU No. 2015-03 on deferred issuance costs related to line-of-credit arrangements. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in these ASUs. These new disclosure items are effective for the Company beginning in fiscal 2016. The Company adopted these ASUs at the beginning of fiscal 2016. Adoption of these ASUs did not have an impact on the Company’s condensed consolidated financial statements. Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) . In May 2015, the FASB issued ASU No. 2015-07, which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. This ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The Company adopted the disclosure requirements in this guidance at the beginning of fiscal 2016. As this ASU is disclosure-related only, its adoption did not have an effect on the Company’s condensed consolidated financial statements. 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. Early adoption is permitted. The Company is currently evaluating the effect that this ASU will have on its condensed consolidated financial statements. 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 disclosure 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. The Company adopted this guidance at the beginning of fiscal 2016. Adoption of this ASU did not have an impact on the Company’s condensed consolidated financial statements. Leases (Topic 842) . In February 2016, the FASB issued ASU No. 2016-02, which requires a lessee to recognize a right-of-use asset and a lease liability for operating leases, initially measured at the present value of the future lease payments, in its balance sheet. This ASU also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. This new guidance is effective for the Company in fiscal 2019. Early adoption is permitted. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements. Compensation -Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In March 2016, the FASB issued ASU No. 2016-09, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The Company early adopted this ASU at the beginning of fiscal 2016. This ASU requires that excess income tax benefits and tax deficiencies related to stock-based compensation arrangements be recognized as discrete items within the provision for income taxes instead of additional paid in capital in the reporting period in which they occur. As a result of the adoption of this ASU, the Company recognized an income tax benefit of $205,000 , or $0.02 per diluted share, in the Company’s condensed consolidated statement of income in the first quarter of 2016. The Company prospectively adopted the requirement to classify the excess tax benefits from stock-compensation awards within operating activities in the condensed consolidated statement of cash flows in the first quarter of 2016. Prior period amounts were not restated. The Company also adopted the guidance in this ASU that requires that taxes paid related to the withholding of common stock upon the vesting of employee stock awards be presented separately within financing activities in the condensed consolidated statement of cash flows. The Company has retrospectively restated the 2015 period to reclassify the comparative amount, which was previously presented in other current liabilities within operating activities. There were no other material effects from adoption of this ASU on the Company’s condensed consolidated financial statements.

Restructuring Costs and Other I

Restructuring Costs and Other Income	3 Months Ended
	Apr. 02, 2016
Restructuring and Related Activities [Abstract]
Restructuring Costs and Other Income	Restructuring Costs and Other Income Other Income In the first quarter of 2016, other income consisted of a pre-tax gain of $317,000 from the sale of real estate in Sweden for cash proceeds of $368,000 . Restructuring Costs In the first quarter of 2015, the Company's Papermaking Systems segment recorded restructuring costs related to its 2015 restructuring plan of $84,000 for severance costs associated with the reduction of five employees in Canada and Sweden. These actions were taken to streamline the Company's operations in those locations.

Earnings per Share

Earnings per Share	3 Months Ended
	Apr. 02, 2016
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic and diluted earnings per share (EPS) were calculated as follows: Three Months Ended April 2, April 4, (In thousands, except per share amounts) Amounts Attributable to Kadant: Income from Continuing Operations $ 6,876 $ 6,832 Income from Discontinued Operation — 65 Net Income $ 6,876 $ 6,897 Basic Weighted Average Shares 10,793 10,892 Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan 225 194 Diluted Weighted Average Shares 11,018 11,086 Basic Earnings per Share: Continuing Operations $ 0.64 $ 0.63 Discontinued Operation $ — $ 0.01 Net Income per Basic Share $ 0.64 $ 0.63 Diluted Earnings per Share: Continuing Operations $ 0.62 $ 0.62 Discontinued Operation $ — $ 0.01 Net Income per Diluted Share $ 0.62 $ 0.62 Unvested restricted stock units (RSUs) equivalent to approximately 147,000 and 46,000 shares of common stock for the first quarters of 2016 and 2015 , respectively, were not included in the computation of diluted EPS because either the effect of their inclusion would have been anti-dilutive, or for unvested performance-based RSUs, the performance conditions had not been met as of the end of the reporting period.

Provision for Income Taxes

Provision for Income Taxes	3 Months Ended
	Apr. 02, 2016
Income Tax Disclosure [Abstract]
Provision for Income Taxes	Provision for Income Taxes The provision for income taxes was $2,888,000 and $3,268,000 in the first quarters of 2016 and 2015, respectively, and represented 29% and 32% of pre-tax income. The effective tax rate of 29% in the first quarter of 2016 was lower than the Company's statutory tax rate primarily due to the distribution of the Company's worldwide earnings and the adoption of ASU No. 2016-09 that resulted in a favorable adjustment for the net excess income tax benefits from stock-based compensation arrangements. These items were offset in part by an increase in tax related to non-deductible expenses and state taxes. The effective tax rate of 32% in the first quarter of 2015 was lower than the Company's statutory tax rate primarily due to the distribution of the Company's worldwide earnings, which was offset in part by an increase in state taxes, tax expense related to an increase in non-deductible expenses, and the U.S. tax cost of foreign operations.

Short- and Long-Term Obligation

Short- and Long-Term Obligations	3 Months Ended
	Apr. 02, 2016
Debt Disclosure [Abstract]
Short-and Long-Term Obligations	Short- and Long-Term Obligations Short- and long-term obligations are as follows: April 2, January 2, (In thousands) Revolving Credit Facility, due 2018 $ 67,046 $ 26,000 Commercial Real Estate Loan, due 2016 5,125 5,250 Total Short- and Long-Term Obligations 72,171 31,250 Less: Short-Term Obligations (5,125 ) (5,250 ) Long-Term Obligations $ 67,046 $ 26,000 The weighted average interest rate for the Company's short-and long-term obligations was 1.72% as of April 2, 2016 . 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 and March 29, 2016. 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. 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 April 2, 2016 , 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. The Company borrowed $41,046,000 under the 2012 Credit Agreement in the first quarter of 2016, of which $29,866,000 was a euro-denominated borrowing used to fund the acquisition of RT Holding GmbH, the parent corporation of a group of companies known as the PAALGROUP (PAAL), which occurred at the beginning of the second quarter of 2016. As of April 2, 2016 , the outstanding balance under the 2012 Credit Agreement was $67,046,000 . As of April 2, 2016 , the Company had $32,151,000 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	3 Months Ended
	Apr. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company recognized stock-based compensation expense of $1,323,000 and $1,588,000 in the first quarters of 2016 and 2015, 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 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 $7,830,000 at April 2, 2016 , and will be recognized over a weighted average period of 2.0 years. On March 8, 2016 , the Company granted to its executive officers performance-based RSUs, which represented, in aggregate, the right to receive 53,811 shares (the target RSU amount), subject to adjustment, with an aggregate grant date fair value of $2,173,000 . The RSUs are subject to adjustment based on the achievement of the performance measure selected for the 2016 fiscal year, which is a specified target for adjusted EBITDA generated from continuing operations for the 2016 fiscal year. The RSUs are adjusted by comparing the actual adjusted EBITDA for the performance period to the target adjusted EBITDA. Actual adjusted EBITDA between 50% and 100% of the target adjusted EBITDA results in an adjustment of 50% to 100% of the RSU amount. Actual adjusted EBITDA between 100% and 115% of the target adjusted EBITDA results in an adjustment using a straight-line linear scale between 100% and 150% of the RSU amount. If actual adjusted EBITDA is below 50% of the target adjusted EBITDA for the 2016 fiscal year, all performance-based RSUs will be forfeited. In the first quarter of 2016, the Company recognized compensation expense based on the probable number of performance-based RSUs expected to vest, which was 100% of the target RSU amount. Following the adjustment, the performance-based RSUs will be subject to additional time-based vesting, and will vest in three equal annual installments on March 10 of 2017, 2018, and 2019, provided that the executive officer is employed by the Company on the applicable vesting dates. On March 8, 2016, the Company also granted time-based RSUs representing 58,438 shares to its executive officers and employees with an aggregate grant date fair value of $2,359,000 . These time-based RSUs generally vest in three equal annual installments on March 10 of 2017, 2018, and 2019, provided the employee remains employed by the Company on the applicable vesting dates. On March 9, 2016 , the Company granted 20,000 RSUs in the aggregate to its non-employee directors with a grant date fair value of $812,000 . The RSUs will vest ratably on the last day of each fiscal quarter of 2016.

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Apr. 02, 2016
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 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 $ 181 $ 58 $ 211 $ 57 Interest cost 318 64 307 65 Expected return on plan assets (322 ) (7 ) (356 ) (11 ) Recognized net actuarial loss 124 22 127 17 Amortization of prior service cost 14 24 14 22 Settlement loss — 114 — — Net periodic benefit cost $ 315 $ 275 $ 303 $ 150 The weighted average assumptions used to determine net periodic benefit cost are as follows: Discount rate 4.22 % 4.07 % 3.87 % 3.76 % Expected long-term return on plan assets 5.00 % — 5.25 % — Rate of compensation increase 3.00 % 3.01 % 3.00 % 2.99 % The Company made cash contributions of $270,000 to its Kadant Solutions division's noncontributory defined benefit retirement plan in the first three months of 2016 and expects to make cash contributions of $810,000 over the remainder of 2016. For the remaining pension and post-retirement welfare benefits plans, no cash contributions other than to fund current benefit payments are expected in 2016.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Items	3 Months Ended
	Apr. 02, 2016
Equity [Abstract]
Accumulated Other Comprehensive Items	Accumulated Other Comprehensive Items Comprehensive income (loss) 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 2, 2016 $ (27,932 ) $ (489 ) $ (8,322 ) $ (229 ) $ (36,972 ) Other comprehensive income (loss) before reclassifications 5,871 (2 ) (610 ) (239 ) 5,020 Reclassifications from AOCI — 24 170 113 307 Net current period other comprehensive income (loss) 5,871 22 (440 ) (126 ) 5,327 Balance at April 2, 2016 $ (22,061 ) $ (467 ) $ (8,762 ) $ (355 ) $ (31,645 ) Balance at January 3, 2015 $ (7,371 ) $ (589 ) $ (8,394 ) $ (792 ) $ (17,146 ) Other comprehensive (loss) income before reclassifications (11,970 ) 4 52 568 (11,346 ) Reclassifications from AOCI — 23 94 (1,076 ) (959 ) Net current period other comprehensive (loss) income (11,970 ) 27 146 (508 ) (12,305 ) Balance at April 4, 2015 $ (19,341 ) $ (562 ) $ (8,248 ) $ (1,300 ) $ (29,451 ) Amounts reclassified out of AOCI are as follows: Three Months Ended Statement of Income (In thousands) April 2, April 4, Line Item Pension and Other Post-Retirement Plans: (1) Amortization of prior service costs $ (38 ) $ (36 ) SG&A expenses Amortization of actuarial losses (260 ) (144 ) SG&A expenses Total expense before income taxes (298 ) (180 ) Income tax benefit 104 63 Provision for income taxes (194 ) (117 ) Cash Flow Hedges: (2) Interest rate swap agreements (89 ) (104 ) Interest expense Forward currency-exchange contracts (61 ) — Revenues Forward currency-exchange contracts (23 ) — Cost of Revenues Forward currency-exchange contracts — 1,318 SG&A expenses Total (expense) income before income taxes (173 ) 1,214 Income tax benefit (provision) 60 (138 ) Provision for income taxes (113 ) 1,076 Total Reclassifications $ (307 ) $ 959 (1) Included in the computation of net periodic pension costs. See Note 7 for additional information. (2) See Note 9 for additional information.

Derivatives

Derivatives	3 Months Ended
	Apr. 02, 2016
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 The Company entered into interest rate swap agreements in 2015 and 2006 and has designated these agreements as cash flow hedges. On January 16, 2015 , the Company entered into a swap agreement (2015 Swap Agreement) to hedge its exposure to movements in the three-month London Inter-Bank Offered Rate (LIBOR) rate on future 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 fair value of the 2015 Swap Agreement as of April 2, 2016 is included in other long-term liabilities, with an offset to accumulated other comprehensive items (net of tax) in the accompanying condensed consolidated balance sheet. The Company entered into a swap agreement in 2006 (the 2006 Swap Agreement) to convert a portion of the Company's outstanding debt from a floating to a fixed rate of interest. The swap agreement has the same terms and quarterly payment dates as the corresponding debt, and reduces proportionately in line with the amortization of the debt. Under the 2006 Swap Agreement, the Company receives a three-month LIBOR rate and pays a fixed rate of interest of 5.63% plus an applicable margin. The fair value of the 2006 Swap Agreement as of April 2, 2016 is included in other current liabilities, with an offset to accumulated other comprehensive items (net of tax) in the accompanying condensed consolidated balance sheet. The 2006 Swap Agreement expired in May 2016. The Company has structured the interest rate swap agreements to be 100% effective and as a result, there is no current impact to earnings resulting from hedge ineffectiveness. Management believes that any credit risk associated with the swap 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 April 2, 2016 , the Company was in compliance with these covenants. The unrealized loss associated with the swap agreements was $189,000 as of April 2, 2016 , which represents the estimated amount that the Company would pay to the counterparty in the event of an early termination. Forward Currency-Exchange Contracts The Company uses forward currency-exchange contracts primarily to hedge exposures resulting from fluctuations in currency exchange rates. Such exposures result primarily from portions of the Company's operations and assets and liabilities that are denominated in currencies other than the functional currencies of the businesses conducting the operations or holding the assets and liabilities. The Company typically manages its level of exposure to the risk of currency-exchange fluctuations by hedging a portion of its currency exposures anticipated over the ensuing 12 -month period, using forward currency-exchange contracts that have maturities of 12 months or less. Forward currency-exchange contracts that hedge forecasted accounts receivable or accounts payable are designated as cash flow hedges. The fair values for these instruments are included in other current assets for unrecognized gains and in other current liabilities for unrecognized losses, with an offset in accumulated other comprehensive items (net of tax). For forward currency-exchange contracts that are designated as fair value hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item are recognized currently in earnings. The fair values of forward currency-exchange contracts that are not designated as hedges are recorded currently in earnings. The Company recognized a loss of $ 211,000 in the first quarter of 2016 and a gain of $ 1,000 in the first quarter of 2015 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 value of the Company's derivative instruments designated and not designated as hedging instruments, the notional values of the associated derivative contracts, and the location of these instruments in the condensed consolidated balance sheet: April 2, 2016 January 2, 2016 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 $ 69 $ 1,829 $ — $ — Interest rate swap agreement Other Long-Term Assets — — 38 10,000 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (235 ) $ 3,529 $ (101 ) $ 6,525 Interest rate swap agreement Other Current Liabilities $ (25 ) $ 5,125 $ (91 ) $ 5,250 Interest rate swap agreement Other Long-Term Liabilities $ (164 ) $ 10,000 $ — $ — Derivatives Not Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contracts Other Current Assets $ 265 $ 1,549 $ 2,536 $ 15,612 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (172 ) $ 16,009 $ — $ — (a) See Note 10 for the fair value measurements relating to these financial instruments. (b) The total notional amount is indicative of the level of the Company's derivative activity during the first quarter of 2016. 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 April 2, 2016 : (In thousands) Interest Rate Swap Agreements Forward Currency- Exchange Contracts Total Unrealized loss, net of tax, at January 2, 2016 $ (162 ) $ (67 ) $ (229 ) Loss reclassified to earnings (a) 57 56 113 Loss recognized in AOCI (144 ) (95 ) (239 ) Unrealized loss, net of tax, at April 2, 2016 $ (249 ) $ (106 ) $ (355 ) (a) See Note 8 for the income statement classification. As of April 2, 2016 , $272,000 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	3 Months Ended
	Apr. 02, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value measurement is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly. • Level 3—Unobservable inputs based on the Company's own assumptions. The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: Fair Value as of April 2, 2016 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 7,063 $ — $ — $ 7,063 Forward currency-exchange contracts $ — $ 334 $ — $ 334 Banker's acceptance drafts (a) $ — $ 7,853 $ — $ 7,853 Liabilities: Forward currency-exchange contracts $ — $ 407 $ — $ 407 Interest rate swap agreements $ — $ 189 $ — $ 189 Fair Value as of January 2, 2016 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 9,767 $ — $ — $ 9,767 Forward currency-exchange contracts $ — $ 2,536 $ — $ 2,536 Interest rate swap agreement $ — $ 38 $ — $ 38 Banker's acceptance drafts (a) $ — $ 8,314 $ — $ 8,314 Liabilities: Forward currency-exchange contracts $ — $ 101 $ — $ 101 Interest rate swap agreement $ — $ 91 $ — $ 91 Contingent consideration (b) $ — $ — $ 1,091 $ 1,091 (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 three months of 2016 . The Company's financial assets and liabilities carried at fair value are comprised of 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 which are highly liquid and readily tradable. These investments are valued using inputs observable in active markets for identical securities. The carrying value of banker's acceptance drafts approximates their fair value due to the short-term nature of the negotiable instrument. The fair values of the Company's interest rate swap agreements are based on LIBOR yield curves at the reporting date. The fair values of the Company's forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date. The forward currency-exchange contracts and interest rate swap agreements are hedges of either recorded assets or liabilities or anticipated transactions. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above. The Company recorded contingent consideration as part of its acquisition of a European manufacturer on December 30, 2013. The fair value of the contingent consideration was based on the present value of the estimated future cash flows. Changes to the fair value of contingent consideration were recorded in SG&A expenses. This contingent consideration was paid during the first quarter of 2016. The following table provides a rollforward of the fair value, as determined by Level 3 inputs, of the contingent consideration: Three Months Ended (In thousands) Balance at beginning of period $ 1,091 Payment (1,091 ) Balance at end of period $ — The carrying value and fair value of the Company's long-term debt obligations are as follows: April 2, 2016 January 2, 2016 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt obligations $ 67,046 $ 67,046 $ 26,000 $ 26,000 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	3 Months Ended
	Apr. 02, 2016
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 has aggregated businesses with similar economic characteristics, products and services, production processes, customers, and methods of distribution. Three Months Ended April 2, April 4, (In thousands) 2016 2015 Revenues: Papermaking Systems $ 84,027 $ 80,655 Wood Processing Systems 8,707 7,772 Fiber-based Products 3,804 3,824 $ 96,538 $ 92,251 Income from Continuing Operations Before Provision for Income Taxes: Papermaking Systems $ 13,497 $ 12,283 Wood Processing Systems 806 2,245 Corporate and Fiber-based Products (a) (4,210 ) (4,157 ) Total operating income 10,093 10,371 Interest expense, net (214 ) (178 ) $ 9,879 $ 10,193 Capital Expenditures: Papermaking Systems $ 518 $ 952 Other 6 264 $ 524 $ 1,216 April 2, January 2, (In thousands) 2016 2016 Total Assets: Papermaking Systems $ 393,984 $ 354,417 Wood Processing Systems 48,707 53,347 Corporate and Fiber-based Products (b) 14,914 7,719 Total Assets from Continuing Operations 457,605 415,483 Total Assets from Discontinued Operation 15 15 $ 457,620 $ 415,498 (a) Corporate primarily includes general and administrative expenses. (b) Primarily includes cash and cash equivalents and property, plant, and equipment.

Contingencies and Litigation

Contingencies and Litigation	3 Months Ended
	Apr. 02, 2016
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 as payment for 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 dates. As of April 2, 2016 and January 2, 2016 , the Company had $4,656,000 and $6,897,000 , 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. Litigation From time to time, the Company is subject to various claims and legal proceedings covering a range of matters that arise in the ordinary course of business. Such litigation may include claims and counterclaims by and against the Company for breach of contract or warranty, canceled contracts, product liability, or bankruptcy-related claims. For legal proceedings in which a loss is probable and estimable, the Company accrues a loss based on the low end of the range of estimated loss when there is no better estimate within the range. If the Company were found to be liable for any of the claims or counterclaims against it, the Company would incur a charge against earnings for amounts in excess of legal accruals.

Subsequent Events

Subsequent Events	3 Months Ended
	Apr. 02, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Acquisition On April 4, 2016, the Company acquired all of the outstanding shares of RT Holding GmbH, the parent corporation of a group of companies known as the PAALGROUP (PAAL) for approximately 49,700,000 euros, net of cash acquired, or approximately $56,600,000 . The Company entered into a $29,866,000 euro-denominated borrowing under its 2012 Credit Agreement in the first quarter of 2016 to fund the acquisition. PAAL manufactures channel balers and related equipment used in the processing of recyclable and waste materials. This acquisition broadens the Company's product portfolio and extends its presence deeper into recycling and waste management. PAAL, headquartered in Germany, has operations in Germany, the United Kingdom, France, and Spain. The purchase price allocation for the acquisition is not yet available. Debt Repayment In May 2016, the remaining principal balance of $5,125,000 on the commercial real estate loan was repaid and the 2006 Swap Agreement expired.

Nature of Operations and Summ23

Nature of Operations and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 02, 2016
Accounting Policies [Abstract]
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 2, 2016 .
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 or 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 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. In March 2016, the FASB issued ASU No. 2016-08, which further clarifies the guidance on the principal versus agent considerations within ASU No. 2014-09. In April 2016, the FASB issued ASU No. 2016-10 to expand the guidance on identifying performance obligations and licensing within ASU 2014-09. These new ASUs are effective for the Company beginning in fiscal 2018. Early adoption is permitted in fiscal 2017. The guidance permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the effect that these ASUs 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 Company adopted this guidance at the beginning of fiscal 2016. The adoption of this ASU did not have an impact on the Company’s condensed consolidated financial statements. 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. In addition, in June 2015, the FASB issued ASU No. 2015-15, which allows an entity to defer the requirements of ASU No. 2015-03 on deferred issuance costs related to line-of-credit arrangements. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in these ASUs. These new disclosure items are effective for the Company beginning in fiscal 2016. The Company adopted these ASUs at the beginning of fiscal 2016. Adoption of these ASUs did not have an impact on the Company’s condensed consolidated financial statements. Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) . In May 2015, the FASB issued ASU No. 2015-07, which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. This ASU also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The Company adopted the disclosure requirements in this guidance at the beginning of fiscal 2016. As this ASU is disclosure-related only, its adoption did not have an effect on the Company’s condensed consolidated financial statements. 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. Early adoption is permitted. The Company is currently evaluating the effect that this ASU will have on its condensed consolidated financial statements. 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 disclosure 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. The Company adopted this guidance at the beginning of fiscal 2016. Adoption of this ASU did not have an impact on the Company’s condensed consolidated financial statements. Leases (Topic 842) . In February 2016, the FASB issued ASU No. 2016-02, which requires a lessee to recognize a right-of-use asset and a lease liability for operating leases, initially measured at the present value of the future lease payments, in its balance sheet. This ASU also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. This new guidance is effective for the Company in fiscal 2019. Early adoption is permitted. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements. Compensation -Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In March 2016, the FASB issued ASU No. 2016-09, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The Company early adopted this ASU at the beginning of fiscal 2016. This ASU requires that excess income tax benefits and tax deficiencies related to stock-based compensation arrangements be recognized as discrete items within the provision for income taxes instead of additional paid in capital in the reporting period in which they occur. As a result of the adoption of this ASU, the Company recognized an income tax benefit of $205,000 , or $0.02 per diluted share, in the Company’s condensed consolidated statement of income in the first quarter of 2016. The Company prospectively adopted the requirement to classify the excess tax benefits from stock-compensation awards within operating activities in the condensed consolidated statement of cash flows in the first quarter of 2016. Prior period amounts were not restated. The Company also adopted the guidance in this ASU that requires that taxes paid related to the withholding of common stock upon the vesting of employee stock awards be presented separately within financing activities in the condensed consolidated statement of cash flows. The Company has retrospectively restated the 2015 period to reclassify the comparative amount, which was previously presented in other current liabilities within operating activities. There were no other material effects from adoption of this ASU on the Company’s condensed consolidated financial statements.
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 three months of 2016 . The Company's financial assets and liabilities carried at fair value are comprised of 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 which are highly liquid and readily tradable. These investments are valued using inputs observable in active markets for identical securities. The carrying value of banker's acceptance drafts approximates their fair value due to the short-term nature of the negotiable instrument. The fair values of the Company's interest rate swap agreements are based on LIBOR yield curves at the reporting date. The fair values of the Company's forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date. The forward currency-exchange contracts and interest rate swap agreements are hedges of either recorded assets or liabilities or anticipated transactions. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above. The Company recorded contingent consideration as part of its acquisition of a European manufacturer on December 30, 2013. The fair value of the contingent consideration was based on the present value of the estimated future cash flows. Changes to the fair value of contingent consideration were recorded in SG&A expenses. This contingent consideration was paid during the first quarter of 2016.

Nature of Operations and Summ24

Nature of Operations and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Apr. 02, 2016
Accounting Policies [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Three Months Ended (In thousands) April 2, April 4, Non-Cash Financing Activities: Issuance of Company Common Stock $ 2,854 $ 2,633 Dividends Declared but Unpaid $ 2,063 $ 1,864
Inventories	The components of inventories are as follows: April 2, January 2, (In thousands) Raw Materials and Supplies $ 22,415 $ 22,324 Work in Process 11,769 13,819 Finished Goods 24,497 20,615 $ 58,681 $ 56,758
Intangible Assets, Net	Acquired intangible assets are as follows: April 2, January 2, (In thousands) Indefinite-Lived Intangible Asset $ 8,100 $ 8,100 Definite-Lived Intangible Assets, Gross $ 77,052 $ 77,052 Accumulated Amortization (42,030 ) (40,908 ) Currency Translation (4,975 ) (6,212 ) Definite-Lived Intangible Assets, Net $ 30,047 $ 29,932 Total Intangible Assets, Net $ 38,147 $ 38,032
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: Three Months Ended (In thousands) April 2, April 4, Balance at beginning of period $ 3,670 $ 3,875 Provision charged to income 560 408 Usage (526 ) (543 ) Currency translation 81 (192 ) Balance at end of period $ 3,785 $ 3,548

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Apr. 02, 2016
Earnings Per Share [Abstract]
Basic and Diluted Earnings Per Share	Basic and diluted earnings per share (EPS) were calculated as follows: Three Months Ended April 2, April 4, (In thousands, except per share amounts) Amounts Attributable to Kadant: Income from Continuing Operations $ 6,876 $ 6,832 Income from Discontinued Operation — 65 Net Income $ 6,876 $ 6,897 Basic Weighted Average Shares 10,793 10,892 Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan 225 194 Diluted Weighted Average Shares 11,018 11,086 Basic Earnings per Share: Continuing Operations $ 0.64 $ 0.63 Discontinued Operation $ — $ 0.01 Net Income per Basic Share $ 0.64 $ 0.63 Diluted Earnings per Share: Continuing Operations $ 0.62 $ 0.62 Discontinued Operation $ — $ 0.01 Net Income per Diluted Share $ 0.62 $ 0.62

Short- and Long-Term Obligati26

Short- and Long-Term Obligations (Tables)	3 Months Ended
	Apr. 02, 2016
Debt Disclosure [Abstract]
Schedule of Short and Long-Term Obligations	Short- and long-term obligations are as follows: April 2, January 2, (In thousands) Revolving Credit Facility, due 2018 $ 67,046 $ 26,000 Commercial Real Estate Loan, due 2016 5,125 5,250 Total Short- and Long-Term Obligations 72,171 31,250 Less: Short-Term Obligations (5,125 ) (5,250 ) Long-Term Obligations $ 67,046 $ 26,000

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Apr. 02, 2016
Compensation and Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost and Assumptions Used	The components of 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 $ 181 $ 58 $ 211 $ 57 Interest cost 318 64 307 65 Expected return on plan assets (322 ) (7 ) (356 ) (11 ) Recognized net actuarial loss 124 22 127 17 Amortization of prior service cost 14 24 14 22 Settlement loss — 114 — — Net periodic benefit cost $ 315 $ 275 $ 303 $ 150 The weighted average assumptions used to determine net periodic benefit cost are as follows: Discount rate 4.22 % 4.07 % 3.87 % 3.76 % Expected long-term return on plan assets 5.00 % — 5.25 % — Rate of compensation increase 3.00 % 3.01 % 3.00 % 2.99 %

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Items (Tables)	3 Months Ended
	Apr. 02, 2016
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 2, 2016 $ (27,932 ) $ (489 ) $ (8,322 ) $ (229 ) $ (36,972 ) Other comprehensive income (loss) before reclassifications 5,871 (2 ) (610 ) (239 ) 5,020 Reclassifications from AOCI — 24 170 113 307 Net current period other comprehensive income (loss) 5,871 22 (440 ) (126 ) 5,327 Balance at April 2, 2016 $ (22,061 ) $ (467 ) $ (8,762 ) $ (355 ) $ (31,645 ) Balance at January 3, 2015 $ (7,371 ) $ (589 ) $ (8,394 ) $ (792 ) $ (17,146 ) Other comprehensive (loss) income before reclassifications (11,970 ) 4 52 568 (11,346 ) Reclassifications from AOCI — 23 94 (1,076 ) (959 ) Net current period other comprehensive (loss) income (11,970 ) 27 146 (508 ) (12,305 ) Balance at April 4, 2015 $ (19,341 ) $ (562 ) $ (8,248 ) $ (1,300 ) $ (29,451 )
Reclassification Out of Accumulated Other Comprehensive Items	Amounts reclassified out of AOCI are as follows: Three Months Ended Statement of Income (In thousands) April 2, April 4, Line Item Pension and Other Post-Retirement Plans: (1) Amortization of prior service costs $ (38 ) $ (36 ) SG&A expenses Amortization of actuarial losses (260 ) (144 ) SG&A expenses Total expense before income taxes (298 ) (180 ) Income tax benefit 104 63 Provision for income taxes (194 ) (117 ) Cash Flow Hedges: (2) Interest rate swap agreements (89 ) (104 ) Interest expense Forward currency-exchange contracts (61 ) — Revenues Forward currency-exchange contracts (23 ) — Cost of Revenues Forward currency-exchange contracts — 1,318 SG&A expenses Total (expense) income before income taxes (173 ) 1,214 Income tax benefit (provision) 60 (138 ) Provision for income taxes (113 ) 1,076 Total Reclassifications $ (307 ) $ 959 (1) Included in the computation of net periodic pension costs. See Note 7 for additional information. (2) See Note 9 for additional information.

Derivatives (Tables)

Derivatives (Tables)	3 Months Ended
	Apr. 02, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value of Derivative Instruments	The following table summarizes the fair value of the Company's derivative instruments designated and not designated as hedging instruments, the notional values of the associated derivative contracts, and the location of these instruments in the condensed consolidated balance sheet: April 2, 2016 January 2, 2016 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 $ 69 $ 1,829 $ — $ — Interest rate swap agreement Other Long-Term Assets — — 38 10,000 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (235 ) $ 3,529 $ (101 ) $ 6,525 Interest rate swap agreement Other Current Liabilities $ (25 ) $ 5,125 $ (91 ) $ 5,250 Interest rate swap agreement Other Long-Term Liabilities $ (164 ) $ 10,000 $ — $ — Derivatives Not Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contracts Other Current Assets $ 265 $ 1,549 $ 2,536 $ 15,612 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (172 ) $ 16,009 $ — $ — (a) See Note 10 for the fair value measurements relating to these financial instruments. (b) The total notional amount is indicative of the level of the Company's derivative activity during the first quarter of 2016.
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 April 2, 2016 : (In thousands) Interest Rate Swap Agreements Forward Currency- Exchange Contracts Total Unrealized loss, net of tax, at January 2, 2016 $ (162 ) $ (67 ) $ (229 ) Loss reclassified to earnings (a) 57 56 113 Loss recognized in AOCI (144 ) (95 ) (239 ) Unrealized loss, net of tax, at April 2, 2016 $ (249 ) $ (106 ) $ (355 ) (a) See Note 8 for the income statement classification.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Apr. 02, 2016
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 April 2, 2016 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 7,063 $ — $ — $ 7,063 Forward currency-exchange contracts $ — $ 334 $ — $ 334 Banker's acceptance drafts (a) $ — $ 7,853 $ — $ 7,853 Liabilities: Forward currency-exchange contracts $ — $ 407 $ — $ 407 Interest rate swap agreements $ — $ 189 $ — $ 189 Fair Value as of January 2, 2016 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 9,767 $ — $ — $ 9,767 Forward currency-exchange contracts $ — $ 2,536 $ — $ 2,536 Interest rate swap agreement $ — $ 38 $ — $ 38 Banker's acceptance drafts (a) $ — $ 8,314 $ — $ 8,314 Liabilities: Forward currency-exchange contracts $ — $ 101 $ — $ 101 Interest rate swap agreement $ — $ 91 $ — $ 91 Contingent consideration (b) $ — $ — $ 1,091 $ 1,091 (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: Three Months Ended (In thousands) Balance at beginning of period $ 1,091 Payment (1,091 ) Balance at end of period $ —
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: April 2, 2016 January 2, 2016 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term debt obligations $ 67,046 $ 67,046 $ 26,000 $ 26,000

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Apr. 02, 2016
Segment Reporting [Abstract]
Business Segment Reporting Information	Three Months Ended April 2, April 4, (In thousands) 2016 2015 Revenues: Papermaking Systems $ 84,027 $ 80,655 Wood Processing Systems 8,707 7,772 Fiber-based Products 3,804 3,824 $ 96,538 $ 92,251 Income from Continuing Operations Before Provision for Income Taxes: Papermaking Systems $ 13,497 $ 12,283 Wood Processing Systems 806 2,245 Corporate and Fiber-based Products (a) (4,210 ) (4,157 ) Total operating income 10,093 10,371 Interest expense, net (214 ) (178 ) $ 9,879 $ 10,193 Capital Expenditures: Papermaking Systems $ 518 $ 952 Other 6 264 $ 524 $ 1,216 April 2, January 2, (In thousands) 2016 2016 Total Assets: Papermaking Systems $ 393,984 $ 354,417 Wood Processing Systems 48,707 53,347 Corporate and Fiber-based Products (b) 14,914 7,719 Total Assets from Continuing Operations 457,605 415,483 Total Assets from Discontinued Operation 15 15 $ 457,620 $ 415,498 (a) Corporate primarily includes general and administrative expenses. (b) Primarily includes cash and cash equivalents and property, plant, and equipment.

Nature of Operations and Summ32

Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2016USD ($)Segment	Jan. 02, 2016USD ($)
Accounting Policies [Abstract]
Number of reportable segments | Segment	2
Restricted Cash	$ 1,522	$ 1,406
Banker's acceptance drafts, maturity period	6 months
Banker's acceptance drafts	$ 7,853	$ 8,314

Nature of Operations and Summ33

Nature of Operations and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Non-Cash Financing Activities:
Issuance of Company Common Stock	$ 2,854	$ 2,633
Dividends Declared but Unpaid	$ 2,063	$ 1,864

Nature of Operations and Summ34

Nature of Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Accounting Policies [Abstract]
Raw Materials and Supplies	$ 22,415	$ 22,324
Work in Process	11,769	13,819
Finished Goods	24,497	20,615
Inventories	$ 58,681	$ 56,758

Nature of Operations and Summ35

Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 02, 2016	Jan. 02, 2016
Accounting Policies [Abstract]
Indefinite-Lived Intangible Asset	$ 8,100	$ 8,100
Definite-Lived Intangible Assets, Gross	77,052	77,052
Accumulated Amortization	(42,030)	(40,908)
Currency Translation	(4,975)	(6,212)
Definite-Lived Intangible Assets, Net	30,047	29,932
Total Intangible Assets, Net	$ 38,147	$ 38,032

Nature of Operations and Summ36

Nature of Operations and Summary of Significant Accounting Policies - Warranty Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Changes in the carrying amount of accrued warranty costs [Roll Forward]
Balance at beginning of period	$ 3,670	$ 3,875
Provision charged to income	560	408
Usage	(526)	(543)
Currency translation	81	(192)
Balance at end of period	$ 3,785	$ 3,548

Nature of Operations and Summ37

Nature of Operations and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - Adjustments for New Accounting Principle, Early Adoption [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 02, 2016USD ($)$ / shares
New Accounting Pronouncement, Early Adoption [Line Items]
Income tax benefit | $	$ 205
Income tax benefit per diluted share (in dollars per share) | $ / shares	$ 0.02

Restructuring Costs and Other38

Restructuring Costs and Other Income - Narrative (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2016USD ($)	Apr. 04, 2015USD ($)Employee
Restructuring Cost and Reserve [Line Items]
Gain on the sale of real estate	$ 346	$ 0
Proceeds from sale of real estate	385	5
Sweden [Member]
Restructuring Cost and Reserve [Line Items]
Gain on the sale of real estate	317
Proceeds from sale of real estate	$ 368
Papermaking Systems [Member] | Severance Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 84
Papermaking Systems [Member] | Severance Costs [Member] | Canada and Sweden [Member]
Restructuring Cost and Reserve [Line Items]
Number of employees reduced due to restructuring | Employee		5

Earnings per Share - Narrative

Earnings per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
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	147	46

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
	Apr. 02, 2016	Apr. 04, 2015
Amounts Attributable to Kadant:
Income from Continuing Operations	$ 6,876	$ 6,832
Income from Discontinued Operation	0	65
Net Income Attributable to Kadant	$ 6,876	$ 6,897
Basic Weighted Average Shares (in shares)	10,793	10,892
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan (in shares)	225	194
Diluted Weighted Average Shares (in shares)	11,018	11,086
Basic Earnings per Share:
Continuing operations (in dollars per share)	$ 0.64	$ 0.63
Discontinued operation (in dollars per share)	0	0.01
Net Income per Basic Share (in dollars per share)	0.64	0.63
Diluted Earnings per Share:
Continuing operations (in dollars per share)	0.62	0.62
Discontinued operation (in dollars per share)	0	0.01
Net Income per Diluted Share (in dollars per share)	$ 0.62	$ 0.62

Provision for Income Taxes - Na

Provision for Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 2,888	$ 3,268
Effective income tax rate (as a percentage)	29.00%	32.00%

Short- and Long-Term Obligati42

Short- and Long-Term Obligations - Narrative (Details)	Mar. 29, 2016USD ($)	Apr. 02, 2016USD ($)	Jan. 02, 2016USD ($)
Debt Instrument [Line Items]
Weighted average interest rate for long-term obligations (in hundredths)		1.72%
Maximum unrestricted domestic cash		$ 25,000,000
Total short- and long-term debt		72,171,000	$ 31,250,000
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	$ 100,000,000
Additional borrowing capacity	$ 50,000,000
Maturity date	Nov. 1, 2018
Maximum consolidated leverage ratio		3.5
Minimum consolidated interest coverage ratio		3
Proceeds from borrowings		$ 41,046,000
Total short- and long-term debt		67,046,000	$ 26,000,000
Remaining Borrowing Capacity		$ 32,151,000
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%
Euro-Denominated Borrowing [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Proceeds from borrowings		$ 29,866,000

Short- and Long-Term Obligati43

Short- and Long-Term Obligations - Schedule of Long-Term Obligations (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Debt Instrument [Line Items]
Total short- and long-term debt	$ 72,171	$ 31,250
Less: Short-Term Obligations	(5,125)	(5,250)
Long-Term Obligations	67,046	26,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Total short- and long-term debt	67,046	26,000
Commercial Real Estate Loan [Member]
Debt Instrument [Line Items]
Total short- and long-term debt	$ 5,125	$ 5,250

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense	$ 1,323	$ 1,588
Unrecognized compensation expense related to stock awards	$ 7,830
Recognition period	2 years

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units Narrative (Details) - USD ($) $ in Thousands	Mar. 09, 2016	Mar. 08, 2016
Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted		53,811
Aggregate fair value of units granted		$ 2,173
Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | Adjusted EBITDA between 50 And 100 Percent [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Adjusted EBITDA, adjustment to awards		50.00%
Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | Adjusted EBITDA between 50 And 100 Percent [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Adjusted EBITDA, adjustment to awards		100.00%
Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | Adjusted EBITDA between 100 And 115 Percent [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Adjusted EBITDA, adjustment to awards		100.00%
Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | Adjusted EBITDA between 100 And 115 Percent [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Adjusted EBITDA, adjustment to awards		150.00%
Executive Officers And Employees [Member] | Time Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted		58,438
Aggregate fair value of units granted		$ 2,359
Non-Employee Directors [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	20,000
Aggregate fair value of units granted	$ 812

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Contributions to noncontributory defined benefit plan	$ 270
Expected contributions to noncontributory defined benefit plan for the remainder of the year	810
Pension Benefits [Member]
Components of Net Periodic Benefit Cost:
Service cost	181	$ 211
Interest cost	318	307
Expected return on plan assets	(322)	(356)
Recognized net actuarial loss	124	127
Amortization of prior service cost	14	14
Settlement loss	0	0
Net periodic benefit cost	$ 315	$ 303
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount rate (as a percentage)	4.22%	3.87%
Expected long-term return on plan assets (as a percentage)	5.00%	5.25%
Rate of compensation increase (as a percentage)	3.00%	3.00%
Other Benefits [Member]
Components of Net Periodic Benefit Cost:
Service cost	$ 58	$ 57
Interest cost	64	65
Expected return on plan assets	(7)	(11)
Recognized net actuarial loss	22	17
Amortization of prior service cost	24	22
Settlement loss	114	0
Net periodic benefit cost	$ 275	$ 150
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount rate (as a percentage)	4.07%	3.76%
Expected long-term return on plan assets (as a percentage)	0.00%	0.00%
Rate of compensation increase (as a percentage)	3.01%	2.99%

Accumulated Other Comprehensi47

Accumulated Other Comprehensive Items - Components of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ (36,972)	$ (17,146)
Other comprehensive income (loss) before reclassifications	5,020	(11,346)
Reclassifications from AOCI	307	(959)
Net current period other comprehensive income (loss)	5,327	(12,305)
Ending Balance	(31,645)	(29,451)
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(27,932)	(7,371)
Other comprehensive income (loss) before reclassifications	5,871	(11,970)
Reclassifications from AOCI	0	0
Net current period other comprehensive income (loss)	5,871	(11,970)
Ending Balance	(22,061)	(19,341)
Unrecognized Prior Service Cost [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(489)	(589)
Other comprehensive income (loss) before reclassifications	(2)	4
Reclassifications from AOCI	24	23
Net current period other comprehensive income (loss)	22	27
Ending Balance	(467)	(562)
Deferred Loss on Pension and Other Post Retirement Plans [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(8,322)	(8,394)
Other comprehensive income (loss) before reclassifications	(610)	52
Reclassifications from AOCI	170	94
Net current period other comprehensive income (loss)	(440)	146
Ending Balance	(8,762)	(8,248)
Deferred Loss on Hedging Instruments [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(229)	(792)
Other comprehensive income (loss) before reclassifications	(239)	568
Reclassifications from AOCI	113	(1,076)
Net current period other comprehensive income (loss)	(126)	(508)
Ending Balance	$ (355)	$ (1,300)

Accumulated Other Comprehensi48

Accumulated Other Comprehensive Items - Reclassification Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Interest expense	$ (269)	$ (231)
Cost of Revenues	(52,562)	(47,914)
Selling, general, and administrative expenses	(32,496)	(32,222)
Total (expense) income before income taxes	9,879	10,193
Income tax benefit (provision)	(2,888)	(3,268)
Income from Continuing Operations	6,991	6,925
Reclassification out of Accumulated Other Comprehensive Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Income from Continuing Operations	(307)	959
Reclassification out of Accumulated Other Comprehensive Items [Member] | Amortization of Prior Service Cost [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Selling, general, and administrative expenses	(38)	(36)
Reclassification out of Accumulated Other Comprehensive Items [Member] | Amortization of Actuarial Losses [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Selling, general, and administrative expenses	(260)	(144)
Reclassification out of Accumulated Other Comprehensive Items [Member] | Pension and Other Post-retirement Plans [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total (expense) income before income taxes	(298)	(180)
Income tax benefit (provision)	104	63
Income from Continuing Operations	(194)	(117)
Reclassification out of Accumulated Other Comprehensive Items [Member] | Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total (expense) income before income taxes	(173)	1,214
Income tax benefit (provision)	60	(138)
Income from Continuing Operations	(113)	1,076
Reclassification out of Accumulated Other Comprehensive Items [Member] | Cash Flow Hedges [Member] | Interest Rate Swap [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Interest expense	(89)	(104)
Reclassification out of Accumulated Other Comprehensive Items [Member] | Cash Flow Hedges [Member] | Forward Currency-Exchange Contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Revenues	(61)	0
Cost of Revenues	(23)	0
Selling, general, and administrative expenses	$ 0	$ 1,318

Derivatives - Narrative (Detail

Derivatives - Narrative (Details)	3 Months Ended
	Apr. 02, 2016USD ($)	Apr. 04, 2015USD ($)	Jan. 16, 2015USD ($)
Forward Currency-Exchange Contracts [Abstract]
Recognized gains (losses)	$ (211,000)	$ 1,000
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	$ 189,000
Foreign Exchange Forward [Member]
Forward Currency-Exchange Contracts [Abstract]
Maximum period over which entity manages its level of exposure of risk	12 months
Three Month LIBOR [Member] | 2006 Swap [Member]
Interest Rate Swaps [Abstract]
Derivative, basis spread on variable rate	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	Apr. 02, 2016	Jan. 02, 2016
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	$ 69	$ 0
Notional amount, Derivative asset	1,829	0
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(235)	(101)
Notional amount, Derivative liability	3,529	6,525
Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Other Long-Term Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	0	38
Notional amount, Derivative asset	0	10,000
Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Other Current Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(25)	(91)
Notional amount, Derivative liability	5,125	5,250
Designated as Hedging Instrument [Member] | Interest Rate Swap Agreement [Member] | Other Noncurrent Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(164)	0
Notional amount, Derivative liability	10,000	0
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	265	2,536
Notional amount, Derivative asset	1,549	15,612
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(172)	0
Notional amount, Derivative liability	$ 16,009	$ 0

Derivatives - Activity in Accum

Derivatives - Activity in Accumulated Other Comprehensive Items (OCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Loss recognized in AOCI	$ (126)	$ (508)
Net unrealized loss included in OCI expected to be reclassified to earnings over the next 12 months	272
Cash Flow Hedging [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized loss, net of tax, at January 2, 2016	(229)
Loss reclassified to earnings	113
Loss recognized in AOCI	(239)
Unrealized loss, net of tax, at April 2, 2016	(355)
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 2, 2016	(162)
Loss reclassified to earnings	57
Loss recognized in AOCI	(144)
Unrealized loss, net of tax, at April 2, 2016	(249)
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 2, 2016	(67)
Loss reclassified to earnings	56
Loss recognized in AOCI	(95)
Unrealized loss, net of tax, at April 2, 2016	$ (106)

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Assets:
Money market funds and time deposits	$ 7,063	$ 9,767
Forward currency-exchange contracts	334	2,536
Interest rate swap agreement		38
Banker's acceptance drafts	7,853	8,314
Liabilities:
Forward currency-exchange contracts	407	101
Interest rate swap agreements	189	91
Contingent consideration		1,091
Level 1 [Member]
Assets:
Money market funds and time deposits	7,063	9,767
Forward currency-exchange contracts	0	0
Interest rate swap agreement		0
Banker's acceptance drafts	0	0
Liabilities:
Forward currency-exchange contracts	0	0
Interest rate swap agreements	0	0
Contingent consideration		0
Level 2 [Member]
Assets:
Money market funds and time deposits	0	0
Forward currency-exchange contracts	334	2,536
Interest rate swap agreement		38
Banker's acceptance drafts	7,853	8,314
Liabilities:
Forward currency-exchange contracts	407	101
Interest rate swap agreements	189	91
Contingent consideration		0
Level 3 [Member]
Assets:
Money market funds and time deposits	0	0
Forward currency-exchange contracts	0	0
Interest rate swap agreement		0
Banker's acceptance drafts	0	0
Liabilities:
Forward currency-exchange contracts	0	0
Interest rate swap agreements	$ 0	0
Contingent consideration		$ 1,091

Fair Value Measurements - Fai53

Fair Value Measurements - Fair Value of Liabilities Measured on a Recurring Basis, Unobservable Input Reconciliation (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2016USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 1,091
Payment	(1,091)
Balance at end of period	$ 0

Fair Value Measurements - Carry

Fair Value Measurements - Carrying Value and Fair Value of Debt Obligations (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt obligations	$ 67,046	$ 26,000
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt obligations	$ 67,046	$ 26,000

Business Segment Information (D

Business Segment Information (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2016USD ($)Segment	Apr. 04, 2015USD ($)	Jan. 02, 2016USD ($)
Segment Reporting [Abstract]
Number of reportable segments | Segment	2
Revenues:
Revenues	$ 96,538	$ 92,251
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income	10,093	10,371
Interest expense, net	(214)	(178)
Income from Continuing Operations Before Provision for Income Taxes	9,879	10,193
Capital Expenditures:
Capital expenditures	524	1,216
Total Assets:
Total Assets	457,620		$ 415,498
Continuing Operations [Member]
Total Assets:
Total Assets	457,605		415,483
Discontinued Operations [Member]
Total Assets:
Total Assets	15		15
Fiber-Based Products [Member]
Revenues:
Revenues	3,804	3,824
Operating Segment [Member] | Papermaking Systems [Member]
Revenues:
Revenues	84,027	80,655
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income	13,497	12,283
Capital Expenditures:
Capital expenditures	518	952
Operating Segment [Member] | Papermaking Systems [Member] | Continuing Operations [Member]
Total Assets:
Total Assets	393,984		354,417
Operating Segment [Member] | Wood Processing Systems [Member]
Revenues:
Revenues	8,707	7,772
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income	806	2,245
Operating Segment [Member] | Wood Processing Systems [Member] | Continuing Operations [Member]
Total Assets:
Total Assets	48,707		53,347
Corporate and Fiber-Based Products [Member]
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income	(4,210)	(4,157)
Corporate and Fiber-Based Products [Member] | Continuing Operations [Member]
Total Assets:
Total Assets	14,914		$ 7,719
Other [Member]
Capital Expenditures:
Capital expenditures	$ 6	$ 264

Contingencies and Litigation (D

Contingencies and Litigation (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Jan. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
Banker's acceptance drafts, maturity period	6 months
Banker's acceptance drafts with recourse	$ 4,656	$ 6,897

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details) $ in Thousands, € in Millions	Apr. 04, 2016USD ($)	Apr. 04, 2016EUR (€)	May. 11, 2016USD ($)	Apr. 02, 2016USD ($)	Apr. 04, 2015USD ($)
Subsequent Event [Line Items]
Repayments of debt				$ 125	$ 5,111
Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Proceeds from borrowings				41,046
Subsequent Event [Member] | Commercial Real Estate Loan [Member]
Subsequent Event [Line Items]
Repayments of debt			$ 5,125
Subsequent Event [Member] | RT Holding GmbH [Member]
Subsequent Event [Line Items]
Payments to acquire businesses	$ 56,600	€ 49.7
Euro-Denominated Borrowing [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Proceeds from borrowings				$ 29,866