Kadant (KAI) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 01, 2017	Apr. 28, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	KADANT INC
Entity Central Index Key	886,346
Current Fiscal Year End Date	--12-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 1, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		11,000,647

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 71,540	$ 71,487
Restricted cash	1,543	2,082
Accounts receivable, less allowances of $2,497 and $2,395	71,926	65,963
Inventories	59,841	54,951
Unbilled contract costs and fees	4,262	3,068
Other current assets	13,037	9,799
Total Current Assets	222,149	207,350
Property, Plant, and Equipment, at Cost	127,631	124,424
Less: accumulated depreciation and amortization	79,001	76,720
Property, Plant and Equipment, at Cost, Net	48,630	47,704
Other Assets	12,421	11,452
Intangible Assets, Net	51,816	52,730
Goodwill	153,811	151,455
Total Assets	488,827	470,691
Current Liabilities:
Current maturities of long-term obligations	655	643
Accounts payable	25,218	23,929
Customer deposits	25,337	21,168
Accrued payroll and employee benefits	17,231	20,508
Other current liabilities	22,175	22,665
Total Current Liabilities	90,616	88,913
Long-Term Deferred Income Taxes	15,526	14,631
Other Long-Term Liabilities	17,500	17,100
Long-Term Obligations	69,895	65,768
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	98,974	101,405
Retained earnings	327,691	321,050
Treasury stock at cost, 3,623,512 and 3,686,532 shares	(88,791)	(90,335)
Accumulated other comprehensive items	(44,542)	(49,637)
Total Kadant Stockholders' Equity	293,478	282,629
Noncontrolling interest	1,812	1,650
Total Stockholders' Equity	295,290	284,279
Total Liabilities and Stockholders' Equity	$ 488,827	$ 470,691

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Current Assets:
Accounts receivable, allowances	$ 2,497	$ 2,395
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)	3,623,512	3,686,532

Condensed Consolidated Statemen

Condensed Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Income Statement [Abstract]
Revenues	$ 102,857	$ 96,538
Costs and Operating Expenses:
Cost of revenues	53,865	52,562
Selling, general, and administrative expenses	34,799	32,496
Research and development expenses	2,147	1,704
Other income	0	(317)
Total Costs and Operating Expenses	90,811	86,445
Operating Income	12,046	10,093
Interest Income	104	55
Interest Expense	(348)	(269)
Income Before Provision for Income Taxes	11,802	9,879
Provision for Income Taxes	2,735	2,888
Net Income	9,067	6,991
Net Income Attributable to Noncontrolling Interest	(116)	(115)
Net Income Attributable to Kadant	$ 8,951	$ 6,876
Earnings per Share Attributable to Kadant:
Basic (in dollars per share)	$ 0.82	$ 0.64
Diluted (in dollars per share)	$ 0.80	$ 0.62
Weighted Average Shares:
Basic (in shares)	10,952	10,793
Diluted (in shares)	11,205	11,018
Cash Dividend Declared per Common Share (in dollars per share)	$ 0.21	$ 0.19

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Statement of Comprehensive Income [Abstract]
Net Income	$ 9,067	$ 6,991
Other Comprehensive Items:
Foreign currency translation adjustment	5,032	5,930
Pension and other post-retirement liability adjustments (net of tax provision of $49 in 2017 and tax benefit of $236 in 2016)	82	(418)
Deferred gain (loss) on hedging instruments (net of tax provision of $15 in 2017 and tax benefit of $72 in 2016)	27	(126)
Other Comprehensive Items	5,141	5,386
Comprehensive Income	14,208	12,377
Comprehensive Income Attributable to Noncontrolling Interest	(162)	(174)
Comprehensive Income Attributable to Kadant	$ 14,046	$ 12,203

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Other Comprehensive Items:
Pension and other post-retirement liability adjustments, tax effect	$ 49	$ (236)
Deferred gain (loss) on hedging instruments, tax effect	$ 15	$ (72)

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Operating Activities:
Net Income Attributable to Kadant	$ 8,951	$ 6,876
Net income attributable to noncontrolling interest	116	115
Net income	9,067	6,991
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,256	2,564
Stock-based compensation expense	1,295	1,323
Provision for losses on accounts receivable	129	76
Loss (gain) on the sale of property, plant, and equipment	41	(346)
Other items, net	180	781
Contributions to U.S. pension plan	(90)	(270)
Changes in current assets and liabilities, net of effects of acquisition:
Accounts receivable	(5,043)	3,259
Unbilled contract costs and fees	(1,134)	4,313
Inventories	(3,964)	(604)
Other current assets	(1,886)	(1,808)
Accounts payable	805	(1,234)
Other current liabilities	(973)	(9,527)
Net cash provided by operating activities	1,683	5,518
Investing Activities:
Purchases of property, plant, and equipment	(1,722)	(524)
Issuance of note receivable	0	(2,813)
Proceeds from sale of property, plant, and equipment	0	385
Acquisition	(165)	0
Other investing activities	(2)	0
Net cash used in investing activities	(1,889)	(2,952)
Financing Activities:
Proceeds from issuance of debt	8,000	41,046
Repayment of debt	(4,610)	(125)
Tax withholding payments related to stock-based compensation	(2,182)	(1,980)
Dividends paid	(2,078)	(1,831)
Payment of debt issuance costs	(654)	0
Payment of contingent consideration	0	(1,091)
Change in restricted cash	590	(58)
Other financing activities	(118)	0
Net cash (used in) provided by financing activities	(1,052)	35,961
Exchange Rate Effect on Cash and Cash Equivalents	1,311	460
Increase in Cash and Cash Equivalents	53	38,987
Cash and Cash Equivalents at Beginning of Period	71,487	65,530
Cash and Cash Equivalents at End of Period	$ 71,540	$ 104,517

Condensed Consolidated Stateme8

Condensed Consolidated Statement of Stockholders' Equity - 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. 02, 2016		14,624,159			3,850,779
Unrealized Gain (Loss), Net of Tax, at December 31, 2016 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
Dividend 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
Unrealized Gain (Loss), Net of Tax, at April 1, 2017 at Apr. 02, 2016	277,603	$ 146	97,897	302,071	$ (92,376)	(31,645)	1,510
Beginning balance (in shares) at Dec. 31, 2016		14,624,159			3,686,532
Unrealized Gain (Loss), Net of Tax, at December 31, 2016 at Dec. 31, 2016	284,279	$ 146	101,405	321,050	$ (90,335)	(49,637)	1,650
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	9,067			8,951			116
Dividend declared	(2,310)			(2,310)
Activity under stock plans (in shares)					(63,020)
Activity under stock plans	(887)		(2,431)		$ 1,544
Other comprehensive items	5,141					5,095	46
Ending balance (in shares) at Apr. 01, 2017		14,624,159			3,623,512
Unrealized Gain (Loss), Net of Tax, at April 1, 2017 at Apr. 01, 2017	$ 295,290	$ 146	$ 98,974	$ 327,691	$ (88,791)	$ (44,542)	$ 1,812

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	3 Months Ended
	Apr. 01, 2017
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, "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, recycling and waste management, 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 and balers and related equipment used in the processing of recyclable and waste materials; 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 develops, manufactures, and markets 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 sells debarking and wood chipping equipment used in the forest products and the pulp and paper industries. Through this segment, the Company also provides refurbishment and repair of pulping equipment for the pulp and paper industry. Through its Fiber-based Products business, the Company manufactures and sells granules derived from papermaking by-products 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 1, 2017 and its results of operations, comprehensive income, cash flows, and stockholders' equity for the three -month periods ended April 1, 2017 and April 2, 2016 . 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 December 31, 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 December 31, 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 December 31, 2016 , filed with the SEC. 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 December 31, 2016 . Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (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 The Company paid additional post-closing consideration of $ 165,000 in the first quarter of 2017 associated with the April 2016 acquisition of RT Holding GmbH, the parent corporation of a group of companies known as the PAALGROUP (PAAL). Three Months Ended (In thousands) April 1, April 2, Non-Cash Financing Activities: Issuance of Company common stock $ 2,640 $ 2,854 Dividends declared but unpaid $ 2,310 $ 2,063 Restricted Cash As of April 1, 2017 and December 31, 2016 , the Company had restricted cash of $1,543,000 and $2,082,000 , 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. The majority of the bank guarantees will expire by the end of 2018. Banker's Acceptance Drafts The Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The banker's acceptance drafts are non-interest bearing obligations of the issuing bank and mature within six months of the origination date. The Company can 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 $9,229,000 and $7,852,000 at April 1, 2017 and December 31, 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 current accounts payable prior to maturity, or obtains cash payment on the scheduled maturity date. Inventories The components of inventories are as follows: April 1, December 31, (In thousands) Raw Materials and Supplies $ 24,670 $ 21,086 Work in Process 13,104 12,293 Finished Goods 22,067 21,572 Total Inventories $ 59,841 $ 54,951 Intangible Assets, Net Intangible assets are as follows: April 1, December 31, (In thousands) Indefinite-Lived $ 8,100 $ 8,100 Definite-Lived, Gross $ 101,743 $ 77,052 Acquisition — 24,691 Accumulated amortization (50,759 ) (49,040 ) Currency translation (7,268 ) (8,073 ) Definite-Lived, Net $ 43,716 $ 44,630 Total Intangible Assets, Net $ 51,816 $ 52,730 Goodwill The changes in the carrying amount of goodwill by segment are as follows: (In thousands) Papermaking Systems Segment Wood Processing Systems Segment Total Balance at December 31, 2016 Gross balance $ 219,699 $ 17,265 $ 236,964 Accumulated impairment losses (85,509 ) — (85,509 ) Net balance 134,190 17,265 151,455 Currency Translation 2,092 264 2,356 Total 2017 Adjustments 2,092 264 2,356 Balance at April 1, 2017 Gross balance 221,791 17,529 239,320 Accumulated impairment losses (85,509 ) — (85,509 ) Net balance $ 136,282 $ 17,529 $ 153,811 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 1, April 2, Balance at Beginning of Year $ 3,843 $ 3,670 Provision charged to income 804 560 Usage (570 ) (526 ) Currency translation 62 81 Balance at End of Period $ 4,139 $ 3,785 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 Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. In May 2016, the FASB issued ASU No. 2016-11, which rescinds certain previously-issued guidance, including, among other items, guidance relating to accounting for shipping and handling fees and freight services effective upon adoption of ASU No. 2014-09. Also in May 2016, the FASB issued ASU No. 2016-12, which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition. In December 2016, the FASB issued ASU No. 2016-20, which clarifies narrow aspects of Topic 606 and corrects unintended application of the guidance. These new ASUs are effective for the Company beginning in fiscal 2018. Early adoption is permitted in fiscal 2017. The Company is continuing to assess the potential effects of these ASUs on its condensed consolidated financial statements, business processes, systems and controls. While the assessment process is ongoing, the Company currently anticipates adopting these ASUs using the modified retrospective transition approach. Under this approach, this guidance would apply to all new contracts initiated in fiscal 2018. For existing contracts that have remaining obligations as of the beginning of fiscal 2018, any difference between the recognition criteria in these ASUs and the Company’s current revenue recognition practices would be recognized using a cumulative effect adjustment to the opening balance of retained earnings. The Company is also in the process of developing and implementing appropriate changes to its business processes, systems and controls to support the recognition criteria and disclosure requirements of these ASUs. 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. The Company adopted this ASU at the beginning of fiscal 2017. Adoption of this ASU did not have a material effect 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. As part of the implementation of this new standard, the Company is in the process of reviewing current accounting policies and assessing the practical expedients allowed under this new guidance. The Company expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption, which is required using the modified retrospective transition method. The Company is currently evaluating the other effects that the adoption of this ASU will have on its condensed consolidated financial statements. Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU No. 2016-13, which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining lives. This new guidance is effective for the Company in fiscal 2020. Early adoption is permitted beginning in fiscal 2019. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements. Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued ASU No. 2016-15, which simplifies the diversity in practice related to the presentation and classification of certain cash receipts and cash payments in the statement of cash flows under Topic 230. This ASU addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This new guidance is effective for the Company in fiscal 2018. Early adoption is permitted. The Company does not believe that adoption of this ASU will have a material impact on its condensed consolidated financial statements. Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory. In October 2016, the FASB issued ASU No. 2016-16, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This new guidance is effective for the Company in fiscal 2018 with adoption required on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. The Company is currently evaluating the effect that the adoption of this ASU will have on its condensed consolidated financial statements. Statement of Cash Flows (Topic 230), Restricted Cash. In November 2016, the FASB issued ASU No. 2016-18, which requires inclusion of restricted cash and restricted cash equivalents within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This new guidance is effective for the Company in fiscal 2018. Early adoption is permitted. As this ASU is presentation-related only, adoption of this ASU will not have a material impact on the Company's condensed consolidated financial statements. Business Combinations (Topic 805), Clarifying the Definition of a Business. In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The revised definition of a business under this ASU will reduce the number of transactions that are accounted for as business combinations. This new guidance is effective on a prospective basis for the Company in fiscal 2018. Early adoption is allowed for certain transactions. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements. Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued ASU No. 2017-04, which eliminates Step 2 in goodwill impairment testing, which requires that goodwill impairment losses be measured as the difference between the implied value of a reporting unit’s goodwill and its carrying amount. This ASU will reduce the cost and complexity of impairment testing by requiring goodwill impairment losses to be measured as the excess of the reporting unit’s carrying amount, including goodwill and related goodwill tax effects, over its fair value. This new guidance is effective on a prospective basis for the Company in fiscal 2020. Early adoption is permitted. The Company does not believe that adoption of this ASU will have a material effect on its condensed consolidated financial statements. Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. In March 2017, the FASB issued ASU No. 2017-07, which requires employers to include only the service cost component of net periodic pension cost and net periodic post-retirement benefit cost in operating expenses in the same income statement line item as the related employees' compensation costs. The other components of net benefit cost, including interest costs, amortization of prior service costs and settlement and curtailment effects, are to be included in non-operating expenses. The ASU also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This new guidance is effective on a retrospective basis for the Company in fiscal 2018. Early adoption is permitted. The Company is currently evaluating the effects that adoption of this ASU will have on its condensed consolidated financial statements.

Other Income

Other Income	3 Months Ended
	Apr. 01, 2017
Other Income and Expenses [Abstract]
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 .

Earnings per Share

Earnings per Share	3 Months Ended
	Apr. 01, 2017
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic and diluted earnings per share (EPS) are calculated as follows: Three Months Ended April 1, April 2, (In thousands, except per share amounts) Amounts Attributable to Kadant: Net Income $ 8,951 $ 6,876 Basic Weighted Average Shares 10,952 10,793 Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares 253 225 Diluted Weighted Average Shares 11,205 11,018 Basic Earnings per Share $ 0.82 $ 0.64 Diluted Earnings per Share $ 0.80 $ 0.62 Restricted stock units (RSUs) totaling 39,000 and 147,000 shares of common stock were not included in the computation of diluted EPS in the first quarters of 2017 and 2016 , respectively, as the effect would have been antidilutive or, for unvested performance-based RSUs, the performance conditions had not been met as of the end of the reporting periods.

Provision for Income Taxes

Provision for Income Taxes	3 Months Ended
	Apr. 01, 2017
Income Tax Disclosure [Abstract]
Provision for Income Taxes	Provision for Income Taxes The provision for income taxes was $2,735,000 and $2,888,000 in the first quarters of 2017 and 2016 , respectively, and represented 23% and 29% of pre-tax income. The effective tax rate of 23% in the first quarter of 2017 was lower than the Company's statutory tax rate primarily due to the distribution of the Company's worldwide earnings and the net excess income tax benefits from stock-based compensation arrangements, offset in part by an increase in tax related to non-deductible expenses. 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 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.

Long-Term Obligations

Long-Term Obligations	3 Months Ended
	Apr. 01, 2017
Debt Disclosure [Abstract]
Long-Term Obligations	Long-Term Obligations Long-term obligations are as follows: April 1, December 31, (In thousands) Revolving Credit Facility, due 2022 $ 65,625 $ 61,494 Obligations Under Capital Lease, due 2017 to 2022 4,359 4,309 Other Borrowings, due 2017 to 2023 566 608 Total 70,550 66,411 Less: Current Maturities of Long-Term Obligations (655 ) (643 ) Long-Term Obligations $ 69,895 $ 65,768 Revolving Credit Facility On March 1, 2017, the Company entered into an Amended and Restated Credit Agreement (2017 Credit Agreement) which became effective on March 2, 2017. The 2017 Credit Agreement is a five -year unsecured revolving credit facility in the aggregate principal amount of up to $200,000,000 . The 2017 Credit Agreement also includes an uncommitted unsecured incremental borrowing facility of up to an additional $100,000,000 . The principal on any borrowings made under the 2017 Credit Agreement is due on March 1, 2022. Interest on any loans outstanding under the 2017 Credit Agreement accrues and generally is payable quarterly in arrears at one of the following rates selected by the Company: (i) the Base Rate, calculated as the highest of (a) the federal funds rate plus 0.50% , (b) the prime rate as published by Citizens Bank, and (c) the thirty-day London Inter-Bank Offered Rate (LIBOR) rate, as defined, plus 0.50% ; or (ii) the LIBOR rate (with a zero percent floor), 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, net of certain cash, as defined, to earnings before interest, taxes, depreciation, and amortization (EBITDA), as defined in the 2017 Credit Agreement. For this purpose, total debt net of certain cash is defined as total debt less the sum of (i) unrestricted U.S. cash, and (ii) 65% of unrestricted cash outside of the United States, but no more than an aggregate amount of $30,000,000 . Contemporaneously with the execution of the 2017 Credit Agreement, we borrowed $ 42,000,000 and 26,300,000 euros under the 2017 Credit Agreement and applied the proceeds to pay off the previous credit facility. The obligations of the Company under the 2017 Credit Agreement may be accelerated upon the occurrence of an event of default under the 2017 Credit Agreement, which includes customary events of default including, without limitation, payment defaults, defaults in the performance of affirmative and negative covenants, the inaccuracy of representations or warranties, bankruptcy- and insolvency-related defaults, defaults relating to such matters as the Employment Retirement Income Security Act (ERISA), unsatisfied judgments, the failure to pay certain indebtedness, and a change of control default. In addition, the 2017 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 1, 2017, the Company was in compliance with these covenants. Loans under the 2017 Credit Agreement are guaranteed by certain domestic subsidiaries of the Company pursuant to an Amended and Restated Guarantee Agreement, dated as of March 1, 2017. In addition, one of the Company's foreign subsidiaries entered into a Guarantee Agreement limited to certain obligations of two foreign subsidiary borrowers pursuant to a Guarantee Agreement dated as of March 1, 2017. As of April 1, 2017 , the outstanding balance under the 2017 Credit Agreement was $65,625,000 , of which $26,625,000 was a euro-denominated borrowing used to fund the PAAL acquisition. As of April 1, 2017 , the Company had $134,960,000 of borrowing capacity available under the committed portion of its 2017 Credit Agreement. The weighted average interest rate for the Revolving Credit Facility was 1.68% as of April 1, 2017 . Obligations Under Capital Lease In connection with the acquisition of PAAL, the Company assumed a sale-leaseback financing arrangement for PAAL's facility in Germany. Under this arrangement, the quarterly lease payment includes principal and interest based on an interest rate which is reset, from time to time, to prevailing short-term borrowing rates in Germany. The interest rate at April 1, 2017 was 1.70 %. The quarterly lease payment also includes a payment toward a corresponding loan receivable from the landlord. The loan receivable, which is included in other assets in the accompanying condensed consolidated balance sheet, was $288,000 at April 1, 2017 . The lease arrangement provides for a fixed price purchase option, net of the loan receivable, of $1,428,000 at the end of the lease term in 2022 . If the Company does not exercise the purchase option for the facility, the Company will receive cash from the landlord to settle the loan receivable. As of April 1, 2017 , $4,243,000 was outstanding under this capital lease obligation. The Company also assumed capital lease obligations for certain equipment as part of the PAAL acquisition. These capital lease obligations bear a weighted average interest rate of 3.44 % and have an average remaining term of 2.9 years. As of April 1, 2017 , $116,000 was outstanding under these capital lease obligations. Other Borrowings The Company's PAAL subsidiary sells certain equipment to an intermediary who leases the equipment to a third party. The revenue from the equipment sale is deferred due to risk of default and repurchase obligation provisions. Revenue is recognized and the borrowing reduced over the corresponding lease term with the remaining residual value of the equipment recognized when the default provisions lapse.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Apr. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company recognized stock-based compensation expense of $1,295,000 and $1,323,000 in the first quarters of 2017 and 2016 , respectively, within selling, general, and administrative (SG&A) expenses in the accompanying condensed consolidated statement of income. The Company recognizes compensation expense 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 $7,823,000 at April 1, 2017 , and will be recognized over a weighted average period of 2.0 years. On March 8, 2017, the Company granted to its executive officers performance-based RSUs, which represented, in aggregate, the right to receive 39,229 shares (the target RSU amount), subject to adjustment, with an aggregate grant date fair value of $2,234,000 . The RSUs are subject to adjustment based on the achievement of the performance measure selected for the 2017 fiscal year, which is a specified target for adjusted EBITDA generated from continuing operations for the 2017 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 2017 fiscal year, these performance-based RSUs will be forfeited. In the first quarter of 2017 , 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 2018, 2019, and 2020, provided that the executive officer is employed by the Company on the applicable vesting dates. On March 8, 2017 , the Company also granted time-based RSUs representing 38,331 shares to its executive officers and employees with an aggregate grant date fair value of $2,183,000 . These time-based RSUs generally vest in three equal annual installments on March 10 of 2018, 2019, and 2020, provided the employee remains employed by the Company on the applicable vesting dates. On March 8, 2017, the Company granted 12,000 RSUs in the aggregate to its non-employee directors with a grant date fair value of $696,000 . The RSUs will vest ratably on the last day of each fiscal quarter of 2017 .

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Apr. 01, 2017
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Employee Benefit Plans The Company sponsors a noncontributory defined benefit pension plan for eligible employees at one of its U.S. divisions and its corporate office. Three of the Company’s non-U.S. subsidiaries also sponsor defined benefit pension plans covering certain employees at those subsidiaries. Funds for the U.S. pension plan and one of the non-U.S. pension plans are contributed to a trustee as necessary to provide for current service and for any unfunded projected benefit obligation over a reasonable period. The remaining two non-U.S. pension plans are unfunded as permitted under their plans and applicable laws. Benefits under the Company’s pension plans are based on years of service and employee compensation. The Company also provides other post-retirement benefits under two plans in the United States and at one of its non-U.S. subsidiaries. In addition, the Company provides a restoration plan for certain executive officers which fully supplements benefits lost under the noncontributory defined benefit retirement plan as a consequence of applicable Internal Revenue Service limits and restores benefits for the limitation of years of service under the retirement plan. The components of net periodic benefit cost for the Company's U.S. and non-U.S. pension plans and other post-retirement benefit plans are as follows: Three Months Ended Three Months Ended (In thousands, except percentages) U.S. Pension Non-U.S. Pension Other Post-Retirement U.S. Pension Non-U.S. Pension Other Post-Retirement Components of Net Periodic Benefit Cost: Service cost $ 196 32 $ 35 $ 181 25 $ 33 Interest cost 314 24 39 318 26 38 Expected return on plan assets (335 ) (8 ) — (322 ) (7 ) — Recognized net actuarial loss 113 9 13 124 10 12 Amortization of prior service cost 13 1 21 14 1 23 Settlement loss — — — — — 114 Net Periodic Benefit Cost $ 301 $ 58 $ 108 $ 315 $ 55 $ 220 The weighted average assumptions used to determine net periodic benefit cost are as follows: Discount Rate 4.03 % 3.39 % 4.13 % 4.22 % 3.91 % 4.26 % Expected Long-Term Return on Plan Assets 5.00 % 7.72 % 7.72 % 5.00 % 6.90 % 6.90 % Rate of Compensation Increase 3.00 % 3.40 % 3.08 % 3.00 % 2.99 % 3.01 % The Company made cash contributions of $90,000 to its U.S. noncontributory defined benefit pension plan in the first quarter of 2017 and expects to make cash contributions of $990,000 over the remainder of 2017 . For the remaining pension and post-retirement benefit plans, no cash contributions other than to fund current benefit payments are expected in 2017 .

Accumulated Other Comprehensive

Accumulated Other Comprehensive Items	3 Months Ended
	Apr. 01, 2017
Equity [Abstract]
Accumulated Other Comprehensive Items	Accumulated Other Comprehensive Items Comprehensive income combines net income and other comprehensive items, which represent certain amounts that are reported as components of stockholders' equity in the accompanying condensed consolidated balance sheet, including foreign currency translation adjustments, unrecognized prior service cost and deferred losses associated with pension and other post-retirement benefit plans, and deferred gains (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 on Pension and Other Post- Retirement Benefit Plans Deferred Loss on Pension and Other Post- Retirement Benefit Plans Deferred Gain (Loss) on Hedging Instruments Accumulated Other Comprehensive Items Balance at December 31, 2016 $ (41,094 ) $ (397 ) $ (8,158 ) $ 12 $ (49,637 ) Other comprehensive income (loss) before reclassifications 4,986 (1 ) (28 ) 12 4,969 Reclassifications from AOCI — 23 88 15 126 Net current period other comprehensive income 4,986 22 60 27 5,095 Balance at April 1, 2017 $ (36,108 ) $ (375 ) $ (8,098 ) $ 39 $ (44,542 ) 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 ) Amounts reclassified from AOCI are as follows: Three Months Ended (In thousands) April 1, April 2, Statement of Income Line Item Pension and Other Post-Retirement Plans: (a) Amortization of prior service costs $ (35 ) $ (38 ) SG&A expenses Amortization of actuarial losses (135 ) (260 ) SG&A expenses Total expense before income taxes (170 ) (298 ) Income tax benefit 59 104 Provision for income taxes (111 ) (194 ) Cash Flow Hedges: (b) Interest rate swap agreements (12 ) (89 ) Interest expense Forward currency-exchange contracts — (61 ) Revenues Forward currency-exchange contracts (11 ) (23 ) Cost of revenues Total expense before income taxes (23 ) (173 ) Income tax benefit 8 60 Provision for income taxes (15 ) (113 ) Total Reclassifications $ (126 ) $ (307 ) (a) Included in the computation of net periodic benefit cost. See Note 7 for additional information. (b) See Note 9 for additional information.

Derivatives

Derivatives	3 Months Ended
	Apr. 01, 2017
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. Accounting Standards Codification (ASC) 815, Derivatives and Hedging , requires that all derivatives be recognized in the accompanying condensed consolidated 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 AOCI. These deferred gains and losses are recognized in the accompanying condensed consolidated statement of income 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 accompanying condensed consolidated statement of income. Interest Rate Swap Agreement On January 16, 2015 , the Company entered into a swap agreement (2015 Swap Agreement) to hedge its exposure to movements in the three-month LIBOR rate on future outstanding debt and has designated the 2015 Swap Agreement as a cash flow hedge. 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 is included in other long-term assets, with an offset to AOCI, net of tax, in the accompanying condensed consolidated balance sheet. The Company has structured the 2015 Swap Agreement 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 2015 Swap Agreement is remote based on the Company's financial position and the creditworthiness of the financial institution that issued the 2015 Swap Agreement. The counterparty to the 2015 Swap Agreement could demand an early termination of the 2015 Swap Agreement if the Company is in default under the 2017 Credit Agreement, or any agreement that amends or replaces the 2017 Credit Agreement in which the counterparty is a member, and the Company is unable to cure the default. An event of default under the 2017 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, 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 1, 2017 , the Company was in compliance with these covenants. The unrealized gain associated with the 2015 Swap Agreement was $82,000 as of April 1, 2017 , which represents the estimated amount that the Company would receive from 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 value for these instruments is included in other current assets for unrecognized gains and in other current liabilities for unrecognized losses, with an offset in AOCI, 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 value of forward currency-exchange contracts that are not designated as hedges is recorded currently in earnings. The Company recognized within SG&A expenses in the accompanying condensed consolidated statement of income a gain of $ 471,000 and a loss of $ 211,000 in the first quarters of 2017 and 2016 , respectively, 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 value of the associated derivative contracts, and the location of these instruments in the accompanying condensed consolidated balance sheet: April 1, 2017 December 31, 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 $ 3 $ 950 $ — $ — Interest rate swap agreement Other Long-Term Assets $ 82 $ 10,000 $ 62 $ 10,000 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (21 ) $ 946 $ (41 ) $ 2,380 Derivatives Not Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contracts Other Current Assets $ — $ — $ 2 $ 227 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (38 ) $ 16,592 $ (237 ) $ 17,185 (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 2017 . 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 three months ended April 1, 2017 : (In thousands) Interest Rate Swap Agreement Forward Currency- Exchange Contracts Total Unrealized Gain (Loss), Net of Tax, at December 31, 2016 $ 40 $ (28 ) $ 12 Loss reclassified to earnings (a) 8 7 15 Gain recognized in AOCI 4 8 12 Unrealized Gain (Loss), Net of Tax, at April 1, 2017 $ 52 $ (13 ) $ 39 (a) See Note 8 for the income statement classification. As of April 1, 2017 , the Company expects to reclassify $21,000 of the net unrealized loss included in AOCI to earnings over the next twelve months.

Fair Value Measurements and Fai

Fair Value Measurements and Fair Value of Financial Instruments	3 Months Ended
	Apr. 01, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements and Fair Value of Financial Instruments	Fair Value Measurements and Fair Value of Financial Instruments Fair value measurement is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly. • Level 3—Unobservable inputs based on the Company's own assumptions. The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: Fair Value as of April 1, 2017 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 10,418 $ — $ — $ 10,418 Forward currency-exchange contracts $ — $ 3 $ — $ 3 Interest rate swap agreement $ — $ 82 $ — $ 82 Banker's acceptance drafts (a) $ — $ 9,229 $ — $ 9,229 Liabilities: Forward currency-exchange contracts $ — $ 59 $ — $ 59 Fair Value as of December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 10,855 $ — $ — $ 10,855 Forward currency-exchange contracts $ — $ 2 $ — $ 2 Interest rate swap agreement $ — $ 62 $ — $ 62 Banker's acceptance drafts (a) $ — $ 7,852 $ — $ 7,852 Liabilities: Forward currency-exchange contracts $ — $ 278 $ — $ 278 (a) Included in accounts receivable 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 quarter of 2017 . 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 value of the Company's interest rate swap agreement is 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 agreement are hedges of either recorded assets or liabilities or anticipated transactions. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above. The carrying value and fair value of the Company's long-term debt obligations are as follows: April 1, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term Debt Obligations: Revolving credit facility $ 65,625 $ 65,625 $ 61,494 $ 61,494 Capital lease obligations 3,893 3,893 3,857 3,857 Other borrowings 377 377 417 417 $ 69,895 $ 69,895 $ 65,768 $ 65,768 The carrying values of the Company's revolving credit facility and capital lease obligations approximate 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. 01, 2017
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 1, April 2, (In thousands) 2017 2016 Revenues: Papermaking Systems $ 88,550 $ 84,027 Wood Processing Systems 9,943 8,707 Fiber-based Products 4,364 3,804 $ 102,857 $ 96,538 Three Months Ended April 1, April 2, (In thousands) 2017 2016 Income Before Provision for Income Taxes: Papermaking Systems $ 14,258 $ 13,497 Wood Processing Systems 2,504 806 Corporate and Fiber-based Products (a) (4,716 ) (4,210 ) Total operating income 12,046 10,093 Interest expense, net (244 ) (214 ) $ 11,802 $ 9,879 Capital Expenditures: Papermaking Systems $ 1,484 $ 518 Other 238 6 $ 1,722 $ 524 (a) Corporate primarily includes general and administrative expenses.

Contingencies and Litigation

Contingencies and Litigation	3 Months Ended
	Apr. 01, 2017
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 1, 2017 and December 31, 2016 , the Company had $6,500,000 and $4,824,000 , 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, but is not limited to, claims and counterclaims by and against the Company for breach of contract or warranty, canceled contracts, product liability, or bankruptcy-related claims. For legal proceedings in which a loss is probable and estimable, the Company accrues a loss based on the low end of the range of estimated loss when there is no better estimate within the range. If the Company were found to be liable for any of the claims or counterclaims against it, the Company would incur a charge against earnings for amounts in excess of legal accruals.

Nature of Operations and Summ21

Nature of Operations and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 01, 2017
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 December 31, 2016 .
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (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.
Restricted Cash	Restricted Cash As of April 1, 2017 and December 31, 2016 , the Company had restricted cash of $1,543,000 and $2,082,000 , 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. The majority of the bank guarantees will expire by the end of 2018.
Banker's Acceptance Drafts	Banker's Acceptance Drafts The Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The banker's acceptance drafts are non-interest bearing obligations of the issuing bank and mature within six months of the origination date. The Company can 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 $9,229,000 and $7,852,000 at April 1, 2017 and December 31, 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 current accounts payable prior to maturity, or obtains cash payment on the scheduled maturity date.
Warranty Obligations	Warranty Obligations The Company provides for the estimated cost of product warranties at the time of sale based on the actual historical occurrence rates and repair costs, 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 Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. In May 2016, the FASB issued ASU No. 2016-11, which rescinds certain previously-issued guidance, including, among other items, guidance relating to accounting for shipping and handling fees and freight services effective upon adoption of ASU No. 2014-09. Also in May 2016, the FASB issued ASU No. 2016-12, which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition. In December 2016, the FASB issued ASU No. 2016-20, which clarifies narrow aspects of Topic 606 and corrects unintended application of the guidance. These new ASUs are effective for the Company beginning in fiscal 2018. Early adoption is permitted in fiscal 2017. The Company is continuing to assess the potential effects of these ASUs on its condensed consolidated financial statements, business processes, systems and controls. While the assessment process is ongoing, the Company currently anticipates adopting these ASUs using the modified retrospective transition approach. Under this approach, this guidance would apply to all new contracts initiated in fiscal 2018. For existing contracts that have remaining obligations as of the beginning of fiscal 2018, any difference between the recognition criteria in these ASUs and the Company’s current revenue recognition practices would be recognized using a cumulative effect adjustment to the opening balance of retained earnings. The Company is also in the process of developing and implementing appropriate changes to its business processes, systems and controls to support the recognition criteria and disclosure requirements of these ASUs. 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. The Company adopted this ASU at the beginning of fiscal 2017. Adoption of this ASU did not have a material effect 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. As part of the implementation of this new standard, the Company is in the process of reviewing current accounting policies and assessing the practical expedients allowed under this new guidance. The Company expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption, which is required using the modified retrospective transition method. The Company is currently evaluating the other effects that the adoption of this ASU will have on its condensed consolidated financial statements. Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU No. 2016-13, which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining lives. This new guidance is effective for the Company in fiscal 2020. Early adoption is permitted beginning in fiscal 2019. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements. Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued ASU No. 2016-15, which simplifies the diversity in practice related to the presentation and classification of certain cash receipts and cash payments in the statement of cash flows under Topic 230. This ASU addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This new guidance is effective for the Company in fiscal 2018. Early adoption is permitted. The Company does not believe that adoption of this ASU will have a material impact on its condensed consolidated financial statements. Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory. In October 2016, the FASB issued ASU No. 2016-16, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This new guidance is effective for the Company in fiscal 2018 with adoption required on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. The Company is currently evaluating the effect that the adoption of this ASU will have on its condensed consolidated financial statements. Statement of Cash Flows (Topic 230), Restricted Cash. In November 2016, the FASB issued ASU No. 2016-18, which requires inclusion of restricted cash and restricted cash equivalents within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This new guidance is effective for the Company in fiscal 2018. Early adoption is permitted. As this ASU is presentation-related only, adoption of this ASU will not have a material impact on the Company's condensed consolidated financial statements. Business Combinations (Topic 805), Clarifying the Definition of a Business. In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The revised definition of a business under this ASU will reduce the number of transactions that are accounted for as business combinations. This new guidance is effective on a prospective basis for the Company in fiscal 2018. Early adoption is allowed for certain transactions. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements. Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued ASU No. 2017-04, which eliminates Step 2 in goodwill impairment testing, which requires that goodwill impairment losses be measured as the difference between the implied value of a reporting unit’s goodwill and its carrying amount. This ASU will reduce the cost and complexity of impairment testing by requiring goodwill impairment losses to be measured as the excess of the reporting unit’s carrying amount, including goodwill and related goodwill tax effects, over its fair value. This new guidance is effective on a prospective basis for the Company in fiscal 2020. Early adoption is permitted. The Company does not believe that adoption of this ASU will have a material effect on its condensed consolidated financial statements. Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. In March 2017, the FASB issued ASU No. 2017-07, which requires employers to include only the service cost component of net periodic pension cost and net periodic post-retirement benefit cost in operating expenses in the same income statement line item as the related employees' compensation costs. The other components of net benefit cost, including interest costs, amortization of prior service costs and settlement and curtailment effects, are to be included in non-operating expenses. The ASU also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This new guidance is effective on a retrospective basis for the Company in fiscal 2018. Early adoption is permitted. The Company is currently evaluating the effects that adoption of this ASU will have on its 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. Accounting Standards Codification (ASC) 815, Derivatives and Hedging , requires that all derivatives be recognized in the accompanying condensed consolidated 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 AOCI. These deferred gains and losses are recognized in the accompanying condensed consolidated statement of income 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 accompanying condensed consolidated statement of income.
Fair Value Measurement	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 quarter of 2017 . 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 value of the Company's interest rate swap agreement is 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 agreement are hedges of either recorded assets or liabilities or anticipated transactions. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above. The carrying values of the Company's revolving credit facility and capital lease obligations approximate fair value as the obligations bear variable rates of interest, which adjust quarterly, based on prevailing market rates.

Nature of Operations and Summ22

Nature of Operations and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Apr. 01, 2017
Accounting Policies [Abstract]
Supplemental Cash Flow Information	The Company paid additional post-closing consideration of $ 165,000 in the first quarter of 2017 associated with the April 2016 acquisition of RT Holding GmbH, the parent corporation of a group of companies known as the PAALGROUP (PAAL). Three Months Ended (In thousands) April 1, April 2, Non-Cash Financing Activities: Issuance of Company common stock $ 2,640 $ 2,854 Dividends declared but unpaid $ 2,310 $ 2,063
Inventories	The components of inventories are as follows: April 1, December 31, (In thousands) Raw Materials and Supplies $ 24,670 $ 21,086 Work in Process 13,104 12,293 Finished Goods 22,067 21,572 Total Inventories $ 59,841 $ 54,951
Intangible Assets, Net	Intangible assets are as follows: April 1, December 31, (In thousands) Indefinite-Lived $ 8,100 $ 8,100 Definite-Lived, Gross $ 101,743 $ 77,052 Acquisition — 24,691 Accumulated amortization (50,759 ) (49,040 ) Currency translation (7,268 ) (8,073 ) Definite-Lived, Net $ 43,716 $ 44,630 Total Intangible Assets, Net $ 51,816 $ 52,730
Changes in the Carrying Amount of Goodwill	The changes in the carrying amount of goodwill by segment are as follows: (In thousands) Papermaking Systems Segment Wood Processing Systems Segment Total Balance at December 31, 2016 Gross balance $ 219,699 $ 17,265 $ 236,964 Accumulated impairment losses (85,509 ) — (85,509 ) Net balance 134,190 17,265 151,455 Currency Translation 2,092 264 2,356 Total 2017 Adjustments 2,092 264 2,356 Balance at April 1, 2017 Gross balance 221,791 17,529 239,320 Accumulated impairment losses (85,509 ) — (85,509 ) Net balance $ 136,282 $ 17,529 $ 153,811
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 1, April 2, Balance at Beginning of Year $ 3,843 $ 3,670 Provision charged to income 804 560 Usage (570 ) (526 ) Currency translation 62 81 Balance at End of Period $ 4,139 $ 3,785

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Apr. 01, 2017
Earnings Per Share [Abstract]
Basic and Diluted Earnings Per Share	Basic and diluted earnings per share (EPS) are calculated as follows: Three Months Ended April 1, April 2, (In thousands, except per share amounts) Amounts Attributable to Kadant: Net Income $ 8,951 $ 6,876 Basic Weighted Average Shares 10,952 10,793 Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares 253 225 Diluted Weighted Average Shares 11,205 11,018 Basic Earnings per Share $ 0.82 $ 0.64 Diluted Earnings per Share $ 0.80 $ 0.62

Long-Term Obligations (Tables)

Long-Term Obligations (Tables)	3 Months Ended
	Apr. 01, 2017
Debt Disclosure [Abstract]
Schedule of Long-Term Obligations	Long-term obligations are as follows: April 1, December 31, (In thousands) Revolving Credit Facility, due 2022 $ 65,625 $ 61,494 Obligations Under Capital Lease, due 2017 to 2022 4,359 4,309 Other Borrowings, due 2017 to 2023 566 608 Total 70,550 66,411 Less: Current Maturities of Long-Term Obligations (655 ) (643 ) Long-Term Obligations $ 69,895 $ 65,768

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Apr. 01, 2017
Compensation and Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost and Assumptions Used	The components of net periodic benefit cost for the Company's U.S. and non-U.S. pension plans and other post-retirement benefit plans are as follows: Three Months Ended Three Months Ended (In thousands, except percentages) U.S. Pension Non-U.S. Pension Other Post-Retirement U.S. Pension Non-U.S. Pension Other Post-Retirement Components of Net Periodic Benefit Cost: Service cost $ 196 32 $ 35 $ 181 25 $ 33 Interest cost 314 24 39 318 26 38 Expected return on plan assets (335 ) (8 ) — (322 ) (7 ) — Recognized net actuarial loss 113 9 13 124 10 12 Amortization of prior service cost 13 1 21 14 1 23 Settlement loss — — — — — 114 Net Periodic Benefit Cost $ 301 $ 58 $ 108 $ 315 $ 55 $ 220 The weighted average assumptions used to determine net periodic benefit cost are as follows: Discount Rate 4.03 % 3.39 % 4.13 % 4.22 % 3.91 % 4.26 % Expected Long-Term Return on Plan Assets 5.00 % 7.72 % 7.72 % 5.00 % 6.90 % 6.90 % Rate of Compensation Increase 3.00 % 3.40 % 3.08 % 3.00 % 2.99 % 3.01 %

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Items (Tables)	3 Months Ended
	Apr. 01, 2017
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 on Pension and Other Post- Retirement Benefit Plans Deferred Loss on Pension and Other Post- Retirement Benefit Plans Deferred Gain (Loss) on Hedging Instruments Accumulated Other Comprehensive Items Balance at December 31, 2016 $ (41,094 ) $ (397 ) $ (8,158 ) $ 12 $ (49,637 ) Other comprehensive income (loss) before reclassifications 4,986 (1 ) (28 ) 12 4,969 Reclassifications from AOCI — 23 88 15 126 Net current period other comprehensive income 4,986 22 60 27 5,095 Balance at April 1, 2017 $ (36,108 ) $ (375 ) $ (8,098 ) $ 39 $ (44,542 ) 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 )
Reclassification Out of Accumulated Other Comprehensive Items	Amounts reclassified from AOCI are as follows: Three Months Ended (In thousands) April 1, April 2, Statement of Income Line Item Pension and Other Post-Retirement Plans: (a) Amortization of prior service costs $ (35 ) $ (38 ) SG&A expenses Amortization of actuarial losses (135 ) (260 ) SG&A expenses Total expense before income taxes (170 ) (298 ) Income tax benefit 59 104 Provision for income taxes (111 ) (194 ) Cash Flow Hedges: (b) Interest rate swap agreements (12 ) (89 ) Interest expense Forward currency-exchange contracts — (61 ) Revenues Forward currency-exchange contracts (11 ) (23 ) Cost of revenues Total expense before income taxes (23 ) (173 ) Income tax benefit 8 60 Provision for income taxes (15 ) (113 ) Total Reclassifications $ (126 ) $ (307 ) (a) Included in the computation of net periodic benefit cost. See Note 7 for additional information. (b) See Note 9 for additional information.

Derivatives (Tables)

Derivatives (Tables)	3 Months Ended
	Apr. 01, 2017
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 value of the associated derivative contracts, and the location of these instruments in the accompanying condensed consolidated balance sheet: April 1, 2017 December 31, 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 $ 3 $ 950 $ — $ — Interest rate swap agreement Other Long-Term Assets $ 82 $ 10,000 $ 62 $ 10,000 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (21 ) $ 946 $ (41 ) $ 2,380 Derivatives Not Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contracts Other Current Assets $ — $ — $ 2 $ 227 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (38 ) $ 16,592 $ (237 ) $ 17,185 (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 2017 .
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 three months ended April 1, 2017 : (In thousands) Interest Rate Swap Agreement Forward Currency- Exchange Contracts Total Unrealized Gain (Loss), Net of Tax, at December 31, 2016 $ 40 $ (28 ) $ 12 Loss reclassified to earnings (a) 8 7 15 Gain recognized in AOCI 4 8 12 Unrealized Gain (Loss), Net of Tax, at April 1, 2017 $ 52 $ (13 ) $ 39 (a) See Note 8 for the income statement classification.

Fair Value Measurements and F28

Fair Value Measurements and Fair Value of Financial Instruments (Tables)	3 Months Ended
	Apr. 01, 2017
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 1, 2017 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 10,418 $ — $ — $ 10,418 Forward currency-exchange contracts $ — $ 3 $ — $ 3 Interest rate swap agreement $ — $ 82 $ — $ 82 Banker's acceptance drafts (a) $ — $ 9,229 $ — $ 9,229 Liabilities: Forward currency-exchange contracts $ — $ 59 $ — $ 59 Fair Value as of December 31, 2016 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 10,855 $ — $ — $ 10,855 Forward currency-exchange contracts $ — $ 2 $ — $ 2 Interest rate swap agreement $ — $ 62 $ — $ 62 Banker's acceptance drafts (a) $ — $ 7,852 $ — $ 7,852 Liabilities: Forward currency-exchange contracts $ — $ 278 $ — $ 278 (a) Included in accounts receivable in the accompanying condensed consolidated balance sheet.
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 1, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Long-term Debt Obligations: Revolving credit facility $ 65,625 $ 65,625 $ 61,494 $ 61,494 Capital lease obligations 3,893 3,893 3,857 3,857 Other borrowings 377 377 417 417 $ 69,895 $ 69,895 $ 65,768 $ 65,768

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Apr. 01, 2017
Segment Reporting [Abstract]
Business Segment Reporting Information	Three Months Ended April 1, April 2, (In thousands) 2017 2016 Revenues: Papermaking Systems $ 88,550 $ 84,027 Wood Processing Systems 9,943 8,707 Fiber-based Products 4,364 3,804 $ 102,857 $ 96,538 Three Months Ended April 1, April 2, (In thousands) 2017 2016 Income Before Provision for Income Taxes: Papermaking Systems $ 14,258 $ 13,497 Wood Processing Systems 2,504 806 Corporate and Fiber-based Products (a) (4,716 ) (4,210 ) Total operating income 12,046 10,093 Interest expense, net (244 ) (214 ) $ 11,802 $ 9,879 Capital Expenditures: Papermaking Systems $ 1,484 $ 518 Other 238 6 $ 1,722 $ 524 (a) Corporate primarily includes general and administrative expenses.

Nature of Operations and Summ30

Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2017USD ($)Segment	Apr. 02, 2016USD ($)	Dec. 31, 2016USD ($)
Accounting Policies [Abstract]
Number of reportable segments | Segment	2
Business Acquisition [Line Items]
Additional post-closing consideration	$ 165	$ 0
Restricted Cash	$ 1,543		$ 2,082
Banker's acceptance drafts, maturity period	6 months
Banker's acceptance drafts	$ 9,229		$ 7,852
PAAL [Member]
Business Acquisition [Line Items]
Additional post-closing consideration	$ 165

Nature of Operations and Summ31

Nature of Operations and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Non-Cash Financing Activities:
Issuance of Company common stock	$ 2,640	$ 2,854
Dividends declared but unpaid	$ 2,310	$ 2,063

Nature of Operations and Summ32

Nature of Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Raw Materials and Supplies	$ 24,670	$ 21,086
Work in Process	13,104	12,293
Finished Goods	22,067	21,572
Total Inventories	$ 59,841	$ 54,951

Nature of Operations and Summ33

Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Indefinite-Lived	$ 8,100	$ 8,100
Definite-Lived, Gross	101,743	77,052
Acquisition	0	24,691
Accumulated amortization	(50,759)	(49,040)
Currency translation	(7,268)	(8,073)
Definite-Lived, Net	43,716	44,630
Total Intangible Assets, Net	$ 51,816	$ 52,730

Nature of Operations and Summ34

Nature of Operations and Summary of Significant Accounting Policies - Goodwill (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2017USD ($)
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	$ 236,964
Accumulated impairment losses	(85,509)
Net Balance, Beginning Balance	151,455
Currency Translation	2,356
Total 2017 Adjustments	2,356
Gross Balance, Ending Balance	239,320
Accumulated impairment losses	(85,509)
Net Balance, Ending Balance	153,811
Operating Segment [Member] | Papermaking Systems [Member]
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	219,699
Accumulated impairment losses	(85,509)
Net Balance, Beginning Balance	134,190
Currency Translation	2,092
Total 2017 Adjustments	2,092
Gross Balance, Ending Balance	221,791
Accumulated impairment losses	(85,509)
Net Balance, Ending Balance	136,282
Operating Segment [Member] | Wood Processing Systems [Member]
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	17,265
Accumulated impairment losses	0
Net Balance, Beginning Balance	17,265
Currency Translation	264
Total 2017 Adjustments	264
Gross Balance, Ending Balance	17,529
Accumulated impairment losses	0
Net Balance, Ending Balance	$ 17,529

Nature of Operations and Summ35

Nature of Operations and Summary of Significant Accounting Policies - Warranty Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Changes in the carrying amount of accrued warranty costs [Roll Forward]
Balance at Beginning of Year	$ 3,843	$ 3,670
Provision charged to income	804	560
Usage	(570)	(526)
Currency translation	62	81
Balance at End of Period	$ 4,139	$ 3,785

Other Income - Narrative (Detai

Other Income - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Restructuring Cost and Reserve [Line Items]
Gain on the sale of real estate	$ (41)	$ 346
Proceeds from sale of real estate	$ 0	385
Sweden [Member]
Restructuring Cost and Reserve [Line Items]
Gain on the sale of real estate		317
Proceeds from sale of real estate		$ 368

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. 01, 2017	Apr. 02, 2016
Amounts Attributable to Kadant:
Net Income	$ 8,951	$ 6,876
Basic Weighted Average Shares (in shares)	10,952	10,793
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares (in shares)	253	225
Diluted Weighted Average Shares (in shares)	11,205	11,018
Basic Earnings per Share (in dollars per share)	$ 0.82	$ 0.64
Diluted Earnings per Share (in dollars per share)	$ 0.80	$ 0.62

Earnings per Share - Narrative

Earnings per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
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	39	147

Provision for Income Taxes - Na

Provision for Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 2,735	$ 2,888
Effective income tax rate (as a percentage)	23.00%	29.00%

Long-Term Obligations - Schedul

Long-Term Obligations - Schedule of Long-Term Obligations (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Obligations Under Capital Lease, due 2017 to 2022	$ 4,359	$ 4,309
Total	70,550	66,411
Less: Current Maturities of Long-Term Obligations	(655)	(643)
Long-Term Obligations	69,895	65,768
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving Credit Facility, due 2022	65,625	61,494
Other Borrowings [Member]
Debt Instrument [Line Items]
Other Borrowings, due 2017 to 2023	$ 566	$ 608

Long-Term Obligations - Narrati

Long-Term Obligations - Narrative (Details) € in Millions	Mar. 02, 2017USD ($)	Mar. 02, 2017EUR (€)	Apr. 01, 2017USD ($)	Apr. 02, 2016USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of debt			$ 8,000,000	$ 41,046,000
Weighted average interest rate for revolving credit facility (in hundredths)			1.68%
Loan receivable			$ 288,000
Capital lease obligations			4,359,000		$ 4,309,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving Credit Facility, due 2022			65,625,000		$ 61,494,000
Remaining borrowing capacity			134,960,000
Revolving Credit Facility [Member] | Euro-Denominated Borrowing [Member]
Debt Instrument [Line Items]
Revolving Credit Facility, due 2022			$ 26,625,000
Capital Lease Obligations [Member] | Sale Leaseback Arrangement [Member]
Debt Instrument [Line Items]
Effective interest rate			1.70%
Net purchase option			$ 1,428,000
Capital lease obligations			4,243,000
Capital Lease Obligations [Member] | PAAL Equipment Capital Lease [Member]
Debt Instrument [Line Items]
Capital lease obligations			$ 116,000
Weighted average interest rate			3.44%
Remaining term			2 years 10 months 24 days
Revolving Credit Facility [Member] | 2017 Credit Agreement [Member]
Debt Instrument [Line Items]
Term of unsecured revolving credit facility	5 years	5 years
Borrowing capacity available under committed portion	$ 200,000,000
Additional borrowing capacity	$ 100,000,000
Basis spread on variable rate floor (as a percentage)	0.00%	0.00%
Percentage of foreign unrestricted cash	65.00%
Maximum unrestricted cash	$ 30,000,000
Proceeds from issuance of debt	$ 42,000,000	€ 26.3
Maximum consolidated leverage ratio	3.5	3.5
Minimum consolidated interest coverage ratio	3	3
Revolving Credit Facility [Member] | 2017 Credit Agreement [Member] | Federal Funds Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)	0.50%	0.50%
Revolving Credit Facility [Member] | 2017 Credit Agreement [Member] | Thirty-day LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)	0.50%	0.50%
Revolving Credit Facility [Member] | 2017 Credit Agreement [Member] | LIBOR [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)	1.00%	1.00%
Revolving Credit Facility [Member] | 2017 Credit Agreement [Member] | LIBOR [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)	2.00%	2.00%

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	Mar. 08, 2017	Apr. 01, 2017	Apr. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense		$ 1,295	$ 1,323
Unrecognized compensation expense related to stock awards		$ 7,823
Recognition period		2 years
Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	39,229
Aggregate fair value of units granted	$ 2,234
Actual adjusted EBITDA minimum threshold	50.00%
Percentage of target RSU amount expected to vest		100.00%
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	38,331
Aggregate fair value of units granted	$ 2,183
Non-Employee Directors [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	12,000
Aggregate fair value of units granted	$ 696
Vesting on March 10, 2018 [Member] | Time Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Vesting on March 10, 2018 [Member] | Performance Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Vesting on March 10, 2019 [Member] | Time Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Vesting on March 10, 2019 [Member] | Performance Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Vesting on March 10, 2020 [Member] | Time Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Vesting on March 10, 2020 [Member] | Performance Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Minimum [Member] | Adjusted EBITDA between 50 And 100 Percent [Member] | Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Adjusted EBITDA, adjustment to awards	50.00%
Minimum [Member] | Adjusted EBITDA between 100 And 115 Percent [Member] | Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Adjusted EBITDA, adjustment to awards	100.00%
Maximum [Member] | Adjusted EBITDA between 50 And 100 Percent [Member] | Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Adjusted EBITDA, adjustment to awards	100.00%
Maximum [Member] | Adjusted EBITDA between 100 And 115 Percent [Member] | Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Target Adjusted EBITDA, adjustment to awards	150.00%

Employee Benefit Plans - Compon

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2017USD ($)defined_benefit_plan	Apr. 02, 2016USD ($)
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Contributions to noncontributory defined benefit plan	$ 90
Expected contributions to noncontributory defined benefit plan for the remainder of the year	990
Other Benefits [Member]
Components of Net Periodic Benefit Cost:
Service cost	35	$ 33
Interest cost	39	38
Expected return on plan assets	0	0
Recognized net actuarial loss	13	12
Amortization of prior service cost	21	23
Settlement loss	0	114
Net Periodic Benefit Cost	$ 108	$ 220
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount Rate (as a percentage)	4.13%	4.26%
Expected Long-Term Return on Plan Assets (as a percentage)	7.72%	6.90%
Rate of Compensation Increase (as a percentage)	3.08%	3.01%
U.S. [Member] | Pension Benefits [Member]
Components of Net Periodic Benefit Cost:
Service cost	$ 196	$ 181
Interest cost	314	318
Expected return on plan assets	(335)	(322)
Recognized net actuarial loss	113	124
Amortization of prior service cost	13	14
Settlement loss	0	0
Net Periodic Benefit Cost	$ 301	$ 315
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount Rate (as a percentage)	4.03%	4.22%
Expected Long-Term Return on Plan Assets (as a percentage)	5.00%	5.00%
Rate of Compensation Increase (as a percentage)	3.00%	3.00%
U.S. [Member] | Other Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of other post-retirement benefit plans | defined_benefit_plan	2
Non-U.S. [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of subsidiary sponsored defined benefit plans | defined_benefit_plan	3
Number of unfunded defined benefit plans | defined_benefit_plan	2
Non-U.S. [Member] | Pension Benefits [Member]
Components of Net Periodic Benefit Cost:
Service cost	$ 32	$ 25
Interest cost	24	26
Expected return on plan assets	(8)	(7)
Recognized net actuarial loss	9	10
Amortization of prior service cost	1	1
Settlement loss	0	0
Net Periodic Benefit Cost	$ 58	$ 55
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount Rate (as a percentage)	3.39%	3.91%
Expected Long-Term Return on Plan Assets (as a percentage)	7.72%	6.90%
Rate of Compensation Increase (as a percentage)	3.40%	2.99%
Non-U.S. [Member] | Other Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of other post-retirement benefit plans | defined_benefit_plan	1

Accumulated Other Comprehensi44

Accumulated Other Comprehensive Items - Components of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	$ 284,279	$ 267,945
Unrealized Gain (Loss), Net of Tax, at April 1, 2017	295,290	277,603
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	(41,094)	(27,932)
Other comprehensive income (loss) before reclassifications	4,986	5,871
Reclassifications from AOCI	0	0
Net current period other comprehensive income	4,986	5,871
Unrealized Gain (Loss), Net of Tax, at April 1, 2017	(36,108)	(22,061)
Unrecognized Prior Service Cost on Pension and Other Post- Retirement Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	(397)	(489)
Other comprehensive income (loss) before reclassifications	(1)	(2)
Reclassifications from AOCI	23	24
Net current period other comprehensive income	22	22
Unrealized Gain (Loss), Net of Tax, at April 1, 2017	(375)	(467)
Deferred Loss on Pension and Other Post- Retirement Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	(8,158)	(8,322)
Other comprehensive income (loss) before reclassifications	(28)	(610)
Reclassifications from AOCI	88	170
Net current period other comprehensive income	60	(440)
Unrealized Gain (Loss), Net of Tax, at April 1, 2017	(8,098)	(8,762)
Deferred Gain (Loss) on Hedging Instruments [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	12	(229)
Other comprehensive income (loss) before reclassifications	12	(239)
Reclassifications from AOCI	15	113
Net current period other comprehensive income	27	(126)
Unrealized Gain (Loss), Net of Tax, at April 1, 2017	39	(355)
Accumulated Other Comprehensive Items [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	(49,637)	(36,972)
Other comprehensive income (loss) before reclassifications	4,969	5,020
Reclassifications from AOCI	126	307
Net current period other comprehensive income	5,095	5,327
Unrealized Gain (Loss), Net of Tax, at April 1, 2017	$ (44,542)	$ (31,645)

Accumulated Other Comprehensi45

Accumulated Other Comprehensive Items - Reclassification Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Selling, general, and administrative expenses	$ (34,799)	$ (32,496)
Interest expense	(348)	(269)
Cost of revenues	(53,865)	(52,562)
Amortization of Prior Service Cost [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Income from Continuing Operations	(23)	(24)
Amortization of Actuarial Losses [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Income from Continuing Operations	(88)	(170)
Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Income from Continuing Operations	(15)	(113)
Reclassification out of Accumulated Other Comprehensive Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Income from Continuing Operations	(126)	(307)
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	(35)	(38)
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	(135)	(260)
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 before income taxes	(170)	(298)
Income tax benefit	59	104
Income from Continuing Operations	(111)	(194)
Reclassification out of Accumulated Other Comprehensive Items [Member] | Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total expense before income taxes	(23)	(173)
Income tax benefit	8	60
Income from Continuing Operations	(15)	(113)
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	(12)	(89)
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]
Revenue	0	(61)
Cost of revenues	$ (11)	$ (23)

Derivatives - Narrative (Detail

Derivatives - Narrative (Details)	3 Months Ended
	Apr. 01, 2017USD ($)	Apr. 02, 2016USD ($)	Jan. 16, 2015USD ($)
Forward Currency-Exchange Contracts [Abstract]
Recognized gains (losses)	$ 471,000	$ (211,000)
Interest Rate Swap Agreement [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 gain on derivatives	$ 82,000
Foreign Exchange Forward [Member]
Forward Currency-Exchange Contracts [Abstract]
Maximum period over which entity manages its level of exposure of risk	12 months
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. 01, 2017	Dec. 31, 2016
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	$ 3	$ 0
Notional amount, Derivative asset	950	0
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(21)	(41)
Notional amount, Derivative liability	946	2,380
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	82	62
Notional amount, Derivative asset	10,000	10,000
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	0	2
Notional amount, Derivative asset	0	227
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Other Current Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(38)	(237)
Notional amount, Derivative liability	$ 16,592	$ 17,185

Derivatives - Activity in Accum

Derivatives - Activity in Accumulated Other Comprehensive Items (OCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	$ 284,279	$ 267,945
Unrealized Gain (Loss), Net of Tax, at April 1, 2017	295,290	$ 277,603
Net unrealized loss included in OCI expected to be reclassified to earnings over the next 12 months	21
Cash Flow Hedging [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	12
Loss reclassified to earnings	15
Gain recognized in AOCI	12
Unrealized Gain (Loss), Net of Tax, at April 1, 2017	39
Cash Flow Hedging [Member] | Interest Rate Swap Agreement [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	40
Loss reclassified to earnings	8
Gain recognized in AOCI	4
Unrealized Gain (Loss), Net of Tax, at April 1, 2017	52
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	(28)
Loss reclassified to earnings	7
Gain recognized in AOCI	8
Unrealized Gain (Loss), Net of Tax, at April 1, 2017	$ (13)

Fair Value Measurements and F49

Fair Value Measurements and Fair Value of Financial Instruments - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Assets:
Money market funds and time deposits	$ 10,418	$ 10,855
Forward currency-exchange contracts	3	2
Interest rate swap agreement	82	62
Banker's acceptance drafts	9,229	7,852
Liabilities:
Forward currency-exchange contracts	59	278
Level 1 [Member]
Assets:
Money market funds and time deposits	10,418	10,855
Forward currency-exchange contracts	0	0
Interest rate swap agreement	0	0
Banker's acceptance drafts	0	0
Liabilities:
Forward currency-exchange contracts	0	0
Level 2 [Member]
Assets:
Money market funds and time deposits	0	0
Forward currency-exchange contracts	3	2
Interest rate swap agreement	82	62
Banker's acceptance drafts	9,229	7,852
Liabilities:
Forward currency-exchange contracts	59	278
Level 3 [Member]
Assets:
Money market funds and time deposits	0	0
Forward currency-exchange contracts	0	0
Interest rate swap agreement	0	0
Banker's acceptance drafts	0	0
Liabilities:
Forward currency-exchange contracts	$ 0	$ 0

Fair Value Measurements and F50

Fair Value Measurements and Fair Value of Financial Instruments - Carrying Value and Fair Value of Debt Obligations (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Revolving credit facility	$ 65,625	$ 61,494
Capital lease obligations	3,893	3,857
Other borrowings	377	417
Debt obligations	69,895	65,768
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Revolving credit facility	65,625	61,494
Capital lease obligations	3,893	3,857
Other borrowings	377	417
Debt obligations	$ 69,895	$ 65,768

Business Segment Information -

Business Segment Information - Summary of Segment Information (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2017USD ($)Segment	Apr. 02, 2016USD ($)
Segment Reporting [Abstract]
Number of reportable segments | Segment	2
Revenues:
Revenues	$ 102,857	$ 96,538
Income Before Provision for Income Taxes:
Total operating income	12,046	10,093
Interest expense, net	(244)	(214)
Income Before Provision for Income Taxes	11,802	9,879
Capital Expenditures:
Capital expenditures	1,722	524
Operating Segment [Member] | Papermaking Systems [Member]
Revenues:
Revenues	88,550	84,027
Income Before Provision for Income Taxes:
Total operating income	14,258	13,497
Capital Expenditures:
Capital expenditures	1,484	518
Operating Segment [Member] | Wood Processing Systems [Member]
Revenues:
Revenues	9,943	8,707
Income Before Provision for Income Taxes:
Total operating income	2,504	806
Corporate and Fiber-based Products [Member]
Income Before Provision for Income Taxes:
Total operating income	(4,716)	(4,210)
Capital Expenditures:
Capital expenditures	238	6
Corporate and Fiber-based Products [Member] | Fiber-Based Products [Member]
Revenues:
Revenues	$ 4,364	$ 3,804

Contingencies and Litigation -

Contingencies and Litigation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Banker's acceptance drafts, maturity period	6 months
Banker's acceptance drafts with recourse	$ 6,500	$ 4,824