Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Kadant Inc. | ||
Entity Central Index Key | 886,346 | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 11,121,503 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,039,763 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 45,830 | $ 75,425 |
Restricted cash | 287 | 1,421 |
Accounts receivable, less allowances of $2,897 and $2,879 | 92,624 | 89,624 |
Inventories | 86,373 | 84,933 |
Unbilled revenues | 15,741 | 2,374 |
Other current assets | 11,906 | 12,246 |
Total Current Assets | 252,761 | 266,023 |
Property, Plant, and Equipment, at Cost, Net | 80,157 | 79,723 |
Other Assets (Note 5) | 21,310 | 14,311 |
Intangible Assets, Net | 113,347 | 133,036 |
Goodwill | 258,174 | 268,001 |
Total Assets | 725,749 | 761,094 |
Current Liabilities: | ||
Current maturities of long-term obligations (Note 6) | 1,668 | 696 |
Accounts payable | 35,720 | 35,461 |
Accrued payroll and employee benefits | 30,902 | 29,616 |
Customer deposits | 26,987 | 30,103 |
Advanced billings | 5,534 | 7,316 |
Other current liabilities | 28,178 | 29,038 |
Total Current Liabilities | 128,989 | 132,230 |
Long-Term Obligations (Note 6) | 174,153 | 241,384 |
Long-Term Deferred Income Taxes (Note 5) | 22,962 | 29,085 |
Other Long-Term Liabilities (Note 3) | 25,074 | 25,891 |
Commitments and Contingencies (Note 7) | ||
Stockholders' Equity (Notes 3 and 4): | ||
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $.01 par value, 150,000,000 shares authorized; 14,624,159 shares issued | 146 | 146 |
Capital in excess of par value | 104,731 | 103,221 |
Retained earnings | 393,578 | 342,893 |
Treasury stock at cost, 3,514,163 and 3,613,838 shares | (86,111) | (88,554) |
Accumulated other comprehensive items (Note 13) | (39,376) | (26,715) |
Total Kadant Stockholders' Equity | 372,968 | 330,991 |
Noncontrolling interest | 1,603 | 1,513 |
Total Stockholders' Equity | 374,571 | 332,504 |
Total Liabilities and Stockholders' Equity | $ 725,749 | $ 761,094 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 2,897 | $ 2,879 |
Preferred stock, par value (in usd 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 usd 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) | 3,514,163 | 3,613,838 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues (Note 11) | $ 633,786 | $ 515,033 | $ 414,126 |
Costs and Operating Expenses: | |||
Cost of revenues | 355,505 | 283,886 | 225,587 |
Selling, general, and administrative expenses | 177,414 | 159,756 | 134,834 |
Research and development expenses | 10,552 | 9,563 | 7,380 |
Restructuring costs and other income (Note 8) | 1,717 | 203 | (317) |
Total Costs and Operating Expenses | 545,188 | 453,408 | 367,484 |
Operating Income | 88,598 | 61,625 | 46,642 |
Interest income | 379 | 447 | 269 |
Interest expense | (7,032) | (3,547) | (1,293) |
Other expense, net (Note 3) | (2,417) | (872) | (1,069) |
Income from Continuing Operations Before Provision for Income Taxes | 79,528 | 57,653 | 44,549 |
Provision for income taxes (Note 5) | 18,482 | 26,070 | 12,083 |
Income from Continuing Operations | 61,046 | 31,583 | 32,466 |
Income from discontinued operation (net of income tax provision of $2) | 0 | 0 | 3 |
Net Income | 61,046 | 31,583 | 32,469 |
Net Income Attributable to Noncontrolling Interest | (633) | (491) | (392) |
Net Income Attributable to Kadant | 60,413 | 31,092 | 32,077 |
Amounts Attributable to Kadant | |||
Income from Continuing Operations | 60,413 | 31,092 | 32,074 |
Income from Discontinued Operation | 0 | 0 | 3 |
Net Income Attributable to Kadant | $ 60,413 | $ 31,092 | $ 32,077 |
Earnings per Share from Continuing Operations Attributable to Kadant (Note 12) | |||
Basic (in dollars per share) | $ 5.45 | $ 2.83 | $ 2.95 |
Diluted (in dollars per share) | 5.30 | 2.75 | 2.88 |
Earnings per Share Attributable to Kadant (Note 12) | |||
Basic (in dollars per share) | 5.45 | 2.83 | 2.95 |
Diluted (in dollars per share) | $ 5.30 | $ 2.75 | $ 2.88 |
Weighted Average Shares (Note 12) | |||
Basic (in shares) | 11,086 | 10,991 | 10,869 |
Diluted (in shares) | 11,400 | 11,312 | 11,149 |
Cash Dividends Declared per Common Share (in dollars per share) | $ 0.88 | $ 0.84 | $ 0.76 |
Consolidated Statement of Inc_2
Consolidated Statement of Income (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income Statement [Abstract] | |
Income from discontinued operation, income tax provision | $ 2 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 61,046 | $ 31,583 | $ 32,469 |
Other Comprehensive Items: | |||
Foreign currency translation adjustment | (17,381) | 23,847 | (13,240) |
Pension and other post-retirement liability adjustments, net (net of tax of $412, $(150), and $125) | 1,248 | (738) | 256 |
Effect of pension and other post-retirement plan amendments (net of tax of $351) | (1,087) | 0 | 0 |
Effect of pension and other post-retirement plan curtailments (net of tax of $1,183) | 3,679 | 0 | 0 |
Pension and other post-retirement curtailment loss (net of tax of $347) | 1,078 | 0 | 0 |
Deferred (loss) gain on cash flow hedges (net of tax of $(93), $39, and $(67)) | (276) | 67 | 241 |
Other Comprehensive Items | (12,739) | 23,176 | (12,743) |
Comprehensive Income | 48,307 | 54,759 | 19,726 |
Comprehensive Income Attributable to Noncontrolling Interest | (555) | (745) | (314) |
Comprehensive Income Attributable to Kadant | $ 47,752 | $ 54,014 | $ 19,412 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Other Comprehensive Items: | |||
Pension and other post-retirement liability adjustments, net | $ 412 | $ (150) | $ 125 |
Effect of pension and other post-retirement plan amendments | (351) | 0 | 0 |
Effect of pension and other post-retirement plan curtailments | 1,183 | 0 | 0 |
Pension and other post-retirement curtailment loss | 347 | 0 | 0 |
Deferred (loss) on cash flow hedges | $ (93) | $ 39 | $ (67) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Net Income Attributable to Kadant | $ 60,413 | $ 31,092 | $ 32,077 |
Net income attributable to noncontrolling interest | 633 | 491 | 392 |
Income from discontinued operation | 0 | 0 | (3) |
Income from continuing operations | 61,046 | 31,583 | 32,466 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||
Depreciation and amortization | 23,568 | 19,375 | 14,326 |
Stock-based compensation expense | 7,027 | 5,803 | 5,069 |
Provision for losses on accounts receivable | 355 | 436 | 453 |
Loss (gain) on sale of property, plant, and equipment | 110 | 42 | (350) |
Deferred income tax (benefit) provision | (4,240) | 578 | (613) |
Other items, net | 2,735 | 1,420 | 1,362 |
Contributions to U.S. pension plan | 0 | (1,080) | (1,080) |
Changes in current assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (7,016) | (10,907) | 1,003 |
Unbilled revenues | (11,350) | 1,310 | 3,407 |
Inventories | (6,577) | 1,163 | 3,553 |
Other current assets | 3,820 | (130) | 753 |
Accounts payable | 5,419 | (522) | (5,238) |
Other current liabilities | (11,912) | 16,093 | (4,111) |
Net cash provided by continuing operations | 62,985 | 65,164 | 51,000 |
Net cash provided by discontinued operation | 0 | 0 | 3 |
Net cash provided by operating activities | 62,985 | 65,164 | 51,003 |
Investing Activities | |||
Acquisitions, net of cash acquired (Note 2) | 0 | (204,731) | (56,617) |
Purchases of property, plant, and equipment | (16,559) | (17,281) | (5,804) |
Proceeds from sale of property, plant, and equipment | 195 | 130 | 428 |
Net cash used in continuing operations for investing activities | (16,364) | (221,882) | (61,993) |
Financing Activities | |||
Proceeds from issuance of debt (Note 6) | 50,055 | 232,019 | 51,046 |
Repayment of debt | (109,642) | (67,696) | (18,429) |
Dividends paid | (9,644) | (9,011) | (8,038) |
Tax withholding payments related to stock-based compensation | (3,886) | (2,206) | (2,572) |
Payment of debt issuance costs (Note 6) | (934) | (1,257) | (27) |
Dividend paid to noncontrolling interest | (465) | (882) | 0 |
Proceeds from issuance of Company common stock | 813 | 0 | 2,350 |
Payment of contingent consideration | 0 | 0 | (1,091) |
Other financing activities | (452) | (491) | 216 |
Net cash (used in) provided by continuing operations for financing activities | (74,155) | 150,476 | 23,455 |
Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash from Continuing Operations | (3,195) | 9,519 | (5,827) |
Decrease in Cash from Discontinued Operation | 0 | 0 | (5) |
(Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash from Continuing Operations | (30,729) | 3,277 | 6,633 |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year | 76,846 | 73,569 | 66,936 |
Cash, Cash Equivalents, and Restricted Cash at End of Year | $ 46,117 | $ 76,846 | $ 73,569 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Items | Noncontrolling Interest |
Beginning balance (in shares) at Jan. 02, 2016 | 14,624,159 | 3,850,779 | |||||
Beginning balance at Jan. 02, 2016 | $ 267,945 | $ 146 | $ 100,536 | $ 297,258 | $ (94,359) | $ (36,972) | $ 1,336 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 32,469 | 32,077 | 392 | ||||
Dividends declared | (8,285) | (8,285) | |||||
Activity under stock plans (in shares) | (164,247) | ||||||
Activity under stock plans | 4,893 | 869 | $ 4,024 | ||||
Other comprehensive items | (12,743) | (12,665) | (78) | ||||
Ending balance (in shares) at Dec. 31, 2016 | 14,624,159 | 3,686,532 | |||||
Ending balance 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 | 31,583 | 31,092 | 491 | ||||
Dividends declared | (9,249) | (9,249) | |||||
Dividend paid to noncontrolling interest | (882) | (882) | |||||
Activity under stock plans (in shares) | (72,694) | ||||||
Activity under stock plans | 3,597 | 1,816 | $ 1,781 | ||||
Other comprehensive items | 23,176 | 22,922 | 254 | ||||
Ending balance (in shares) at Dec. 30, 2017 | 14,624,159 | 3,613,838 | |||||
Ending balance at Dec. 30, 2017 | 332,504 | $ 146 | 103,221 | 342,893 | $ (88,554) | (26,715) | 1,513 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of new accounting principle | Accounting Standards Update 2014-09 | 119 | 119 | |||||
Cumulative effect of new accounting principle | Accounting Standards Update 2016-16 | (75) | (75) | |||||
Net Income | 61,046 | 60,413 | 633 | ||||
Dividends declared | (9,772) | (9,772) | |||||
Dividend paid to noncontrolling interest | (465) | (465) | |||||
Activity under stock plans (in shares) | (99,675) | ||||||
Activity under stock plans | 3,953 | 1,510 | $ 2,443 | ||||
Other comprehensive items | (12,739) | (12,661) | (78) | ||||
Ending balance (in shares) at Dec. 29, 2018 | 14,624,159 | 3,514,163 | |||||
Ending balance at Dec. 29, 2018 | $ 374,571 | $ 146 | $ 104,731 | $ 393,578 | $ (86,111) | $ (39,376) | $ 1,603 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Continuing Operations Kadant Inc. was incorporated in Delaware in November 1991 and currently trades on the New York Stock Exchange under the ticker symbol "KAI." Kadant Inc. and its subsidiaries (collectively, the Company) is a leading global supplier of equipment and critical components used in process industries worldwide. In addition, the Company manufactures granules made from papermaking by-products. The Company has a diverse and large customer base, including most of the world's major paper, lumber and oriented strand board (OSB) manufacturers, and its products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries. The Company's continuing operations include two reportable operating segments, Papermaking Systems and Wood Processing Systems, and a separate product line, Fiber-based Products. See Note 11 , Business Segment and Geographical Information, for further details. Discontinued Operation In 2005, the Company's Kadant Composites LLC subsidiary sold substantially all of its assets to a third party. All activity related to this business is classified in the results of the discontinued operation in the accompanying consolidated financial statements. Noncontrolling Interest One of the Company's foreign subsidiaries that manufactures fluid-handling products is part of a joint venture agreement with an Italian company in which each holds a 50 percent ownership interest. The agreement provides the Company's subsidiary with the option to purchase the remaining 50 percent interest in the joint venture. Principles of Consolidation The accompanying consolidated financial statements of the Company include the accounts of its wholly and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. Fiscal Year The Company has adopted a fiscal year ending on the Saturday nearest to December 31. References to 2018 , 2017 , and 2016 are for the fiscal years ended December 29, 2018 , December 30, 2017 , and December 31, 2016 , respectively. Financial Statement Presentation Certain reclassifications have been made to prior periods to conform with current reporting. As a result of the adoption of the Financial Accounting Standards Board's (FASB) Accounting Standards Update (ASU) No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost , certain components of net benefit cost have been reclassified from operating income to non-operating expenses and included in other expense, net in the accompanying consolidated statement of income in the 2017 and 2016 periods. In addition, as a result of the adoption of the FASB's ASU No. 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash , the change in restricted cash has been reclassified from financing activities and exchange rate effect on cash and included in cash, cash equivalents, and restricted cash in the accompanying consolidated statement of cash flows in the 2017 and 2016 periods. Effective at the beginning of fiscal 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Topic 606), using the modified retrospective method. See Recently Adopted Accounting Pronouncements in this note for further discussion. Results for fiscal 2018 are presented under Topic 606, while prior period amounts are not adjusted and are reported under the Company's prior method of reporting revenue recognition in accordance with Accounting Standards Codification (ASC), Revenue Recognition (Topic 605) (Topic 605). The impact on any financial statement line item arising from the application of Topic 606 compared to Topic 605 on the Company's results for the 2018 period is not material. Use of Estimates and Critical Accounting Policies The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Critical accounting policies are defined as those that entail significant judgments and estimates, and could potentially result in materially different results under different assumptions and conditions. The Company believes that the most critical accounting policies upon which its financial position depends, and which involve the most complex or subjective decisions or assessments, concern revenue recognition, 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. Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its consolidated financial statements or in the application of accounting policies, if business conditions were different, or if the Company were to use different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's consolidated financial statements. Revenue Recognition Effective at the beginning of fiscal 2018, the Company adopted Topic 606, using a modified retrospective method. See Recently Adopted Accounting Pronouncements in this note for further discussion. Results for fiscal 2018 are presented under Topic 606, while prior period amounts are not adjusted and are reported in accordance with Topic 605. The impact on any financial statement line item arising from the application of Topic 606 compared to Topic 605 on the Company's results for the 2018 period is not material. In 2018, approximately 91% of the Company’s revenue was recognized at a point in time for each performance obligation under the contract when the customer obtains control of the goods or service. The majority of the Company’s parts and consumables products and capital products with minimal customization are accounted for at a point in time. The Company has made a policy election to not treat the obligation to ship as a separate performance obligation under the contract and, as a result, the associated shipping costs are accrued when revenue is recognized. The remaining 9% of the Company’s revenue in 2018 was recognized on an over time basis based on an input method that compares the costs incurred to date to the total expected costs required to satisfy the performance obligation. Contracts are accounted for on an over time basis when they include products which have no alternative use and an enforceable right to payment over time. The majority of the contracts recognized on an over time basis are for large capital projects within the Company's Stock-Preparation product line and, to a lesser extent, its Fluid-Handling and Doctoring, Cleaning, & Filtration product lines. These projects are highly customized for the customer and, as a result, would include a significant cost to rework in the event of cancellation. The following table presents revenue by revenue recognition method: (In thousands) December 29, 2018 Point in Time $ 577,506 Over Time 56,280 $ 633,786 The transaction price is typically based on the amount billed to the customer and includes estimated variable consideration where applicable. Such variable consideration relates to certain performance guarantees and rights to return the product. The Company estimates variable consideration as the most likely amount to which it expects to be entitled based on the terms of the contracts with customers and historical experience, where relevant. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation based on the relative stand-alone selling price. The Company's contracts covering the sale of its products include warranty provisions that provide assurance to its customers that the products will comply with agreed-upon specifications. The Company negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications. The Company disaggregates its revenue from contracts with customers by product line, product type and geography as this best depicts how its revenue is affected by economic factors. The following table presents the disaggregation of revenues by product type and geography: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Revenues by Product Type: Parts and Consumables $ 374,433 $ 316,506 $ 258,171 Capital 259,353 198,527 155,955 $ 633,786 $ 515,033 $ 414,126 Revenues by Geography: North America $ 305,618 $ 238,483 $ 203,063 Europe 174,681 157,994 115,233 Asia 109,688 78,443 62,703 Rest of World 43,799 40,113 33,127 $ 633,786 $ 515,033 $ 414,126 See Note 11 , Business Segment and Geographical Information, for information on how the Company disaggregates its revenue from contracts with customers by product line. The following tables presents contract balances from contracts with customers: (In thousands) December 29, 2018 December 30, 2017 Accounts receivable $ 92,624 $ 89,624 Contract assets $ 15,741 $ 2,374 Contract liabilities $ 34,774 $ 38,702 Contract assets represent unbilled revenues associated with revenue recognized on contracts accounted for on an over time basis, which will be billed in future periods based on the contract terms. Contract assets increased from $2,374,000 at December 30, 2017 to $15,741,000 at December 29, 2018 due to the timing of progress payments associated with the shipment of large capital projects in the second half of 2018. Contract liabilities consist of customer deposits and advanced billings, and deferred revenue which is included in other current liabilities in the accompanying consolidated balance sheet. Contract liabilities will be recognized as revenue in future periods once the revenue recognition criteria are met. The majority of the contract liabilities relate to advanced payments on contracts accounted for at a point in time. These advance payments will be recognized as revenue when the Company's performance obligations have been satisfied, which typically occurs when the product has been shipped and control of the asset has transferred to the customer. The Company recognized revenue of $36,556,000 in 2018 that was included in the contract liabilities balance at the beginning of fiscal 2018. Customers in China will often settle their accounts receivable with a banker's acceptance draft, in which case cash settlement will be delayed until the banker's acceptance draft matures or is settled prior to maturity. For customers outside of China, final payment for the majority of the Company's products is received in the quarter following the product shipment. Certain of the Company's contracts include a longer period before final payment is due, which is typically within one year of final shipment or transfer of control to the customer. The Company includes in revenue amounts invoiced for shipping and handling with the corresponding costs reflected in cost of revenues. Provisions for discounts, warranties, returns and other adjustments are provided for in the period in which the related sales was recorded. Sales taxes, value-added taxes and certain excise taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenue. In 2017 and 2016, the Company recognized revenue under ASC 605, "Revenue Recognition," (ASC 605) when the following criteria had been met: persuasive evidence of an arrangement existed, delivery had occurred or service had been rendered, the sales price was fixed or determinable, and collectability was reasonably assured. When the terms of the sale included customer acceptance provisions, and compliance with those provisions could not be demonstrated until customer acceptance, revenue was recognized upon such acceptance. Most of the Company's revenue in 2017 and 2016 was recognized in accordance with the accounting policies in the preceding paragraph. However, when a sale arrangement involved multiple elements, such as equipment and installation, the Company considered the guidance in ASC 605. Such transactions were evaluated to determine whether the deliverables in the arrangement represented separate units of accounting based on the following criteria: the delivered item had value to the customer on a stand-alone basis, and if the contract included a general right of return relative to the delivered item, delivery or performance of the undelivered item was considered probable and substantially under the control of the Company. Revenue was allocated to each unit of accounting or element based on relative selling prices and was recognized as each element was delivered or completed. The Company determined relative selling prices by using either vendor-specific objective evidence (VSOE) if that existed, or third-party evidence of selling price. When neither VSOE nor third-party evidence of selling price existed for a deliverable, the Company used its best estimate of the selling price for that deliverable. In cases in which elements could not be treated as separate units of accounting, the elements were combined into a single unit of accounting for revenue recognition purposes. In addition in 2017 and 2016, revenues and profits on certain long-term contracts were recognized using the percentage-of-completion method or the completed-contract method of accounting pursuant to ASC 605. Revenues recorded under the percentage-of-completion method were $27,676,000 in 2017 and $23,300,000 in 2016 . The percentage of completion was determined by comparing the actual costs incurred to date to an estimate of total costs to be incurred on each contract. If a loss was indicated on any contract in process, a provision was made currently for the entire estimated loss. The Company's contracts generally provided for billing of customers upon the attainment of certain milestones specified in each contract. Revenues earned on contracts in process in excess of billings are classified as unbilled revenues and amounts billed in excess of revenues earned are classified as advanced billings. For long-term contracts that did not meet the criteria under ASC 605 to be accounted for under the percentage-of-completion method in 2017 and 2016, the Company recognized revenue using the completed-contract method. When using the completed-contract method, the Company recognized revenue when the contract was substantially complete, the product was delivered and, if applicable, the customer acceptance criteria were met. Customer deposits included $2,945,000 at year-end 2017 of advance payments, net of accumulated costs, on long-term contracts accounted for under the completed-contract method. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company exercises judgment in determining its allowance for doubtful accounts, which is based on its historical collection experience, current trends, credit policies, specific customer collection issues, and accounts receivable aging categories. In determining this allowance, the Company looks at historical write-offs of its receivables. The Company also looks at current trends in the credit quality of its customer base as well as changes in its credit policies. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and each customer's current creditworthiness. The Company continuously monitors collections and payments from its customers. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. In some instances, the Company utilizes letters of credit to mitigate its credit exposure. The changes in the allowance for doubtful accounts are as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Balance at Beginning of Year $ 2,879 $ 2,395 $ 2,163 Provision charged to expense 355 436 453 Accounts written off (165 ) (159 ) (128 ) Currency translation (172 ) 207 (93 ) Balance at End of Year $ 2,897 $ 2,879 $ 2,395 The Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The drafts are noninterest-bearing obligations of the issuing bank and mature within six months of the origination date. The Company's subsidiaries may sell the drafts at a discount to a third-party financial institution or transfer the drafts to vendors in settlement of current accounts payable prior to the scheduled maturity date. These drafts, which totaled $7,976,000 at year-end 2018 and $15,960,000 at year-end 2017 , are included in accounts receivable in the accompanying 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 The Company provides for the estimated cost of product warranties at the time of sale based on the historical occurrence rates and repair costs, as well as knowledge of any specific warranty problems that indicate 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 these factors or actual results 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 consolidated balance sheet are as follows: (In thousands) December 29, 2018 December 30, 2017 Balance at Beginning of Year $ 5,498 $ 3,843 Provision charged to expense 3,708 2,652 Usage (3,140 ) (2,225 ) Acquisitions — 790 Currency translation (340 ) 438 Balance at End of Year $ 5,726 $ 5,498 Income Taxes In accordance with ASC 740, "Income Taxes," (ASC 740), the Company recognizes deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which these differences are expected to reverse. A tax valuation allowance is established, as needed, to reduce deferred tax assets to the amount expected to be realized. In the period in which it becomes more likely than not that some or all of the deferred tax assets will be realized, the valuation allowance will be adjusted. It is the Company's policy to provide for uncertain tax positions and the related interest and penalties based upon management's assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. At December 29, 2018 , the Company believes that it has appropriately accounted for any liability for unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established, the statute of limitations expires for a tax jurisdiction year, or the Company is required to pay amounts in excess of the liability, its effective tax rate in a given financial statement period may be affected. Earnings per Share Basic earnings per share (EPS) is computed by dividing net income attributable to Kadant by the weighted average number of shares outstanding during the year. Diluted EPS is computed using the treasury stock method assuming the effect of all potentially dilutive securities, including stock options, restricted stock units (RSUs) and employee stock purchase plan shares. Cash and Cash Equivalents At year-end 2018 and year-end 2017 , the Company's cash equivalents included investments in money market funds and other marketable securities, which had maturities of three months or less at the date of purchase. The carrying amounts of cash equivalents approximate their fair values due to the short-term nature of these instruments. Restricted Cash The Company's restricted 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 over the next twelve months. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's consolidated balance sheet that are shown in aggregate in the consolidated statement of cash flows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Cash and cash equivalents $ 45,830 $ 75,425 $ 71,487 Restricted cash 287 1,421 2,082 Total Cash, Cash Equivalents, and Restricted Cash $ 46,117 $ 76,846 $ 73,569 Supplemental Cash Flow Information (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Cash Paid for Interest $ 7,550 $ 2,624 $ 1,183 Cash Paid for Income Taxes, Net of Refunds $ 25,654 $ 20,559 $ 15,632 Non-Cash Investing Activities: Estimated post-closing adjustment (a) $ 397 $ — $ — Fair value of assets of acquired $ — $ 242,048 $ 84,969 Cash paid for acquired businesses — (206,950 ) (58,894 ) Liabilities Assumed of Acquired Businesses $ — $ 35,098 $ 26,075 Non-cash additions to property, plant, and equipment $ 917 $ 4,620 $ 379 Non-Cash Financing Activities: Issuance of Company common stock upon vesting of RSUs $ 4,231 $ 3,192 $ 3,463 Dividends declared but unpaid $ 2,444 $ 2,316 $ 2,078 (a) Represents an estimated post-closing purchase price adjustment related to the 2017 acquisition of certain assets of Unaflex, LLC, which is expected to be settled in early 2019. Inventories Inventories are stated at the lower of cost (on a first-in, first-out; or weighted average basis) or net realizable value and include materials, labor, and manufacturing overhead. The Company regularly reviews its quantities of inventories on hand and compares these amounts to the historical and forecasted usage of and demand for each particular product or product line. The Company records a charge to cost of revenues for excess and obsolete inventory to reduce the carrying value of inventories to net realizable value. The components of inventories are as follows: (In thousands) December 29, 2018 December 30, 2017 Raw Materials $ 44,522 $ 38,952 Work in Process 15,876 18,203 Finished Goods (includes $494 and $1,883 at customer locations) 25,975 27,778 $ 86,373 $ 84,933 Property, Plant, and Equipment Property, plant, and equipment are stated at cost. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. The Company provides for depreciation and amortization primarily using the straight-line method over the estimated useful lives of the property as follows: buildings, 10 to 40 years; machinery and equipment, 2 to 10 years; and leasehold improvements, the shorter of the term of the lease or the life of the asset. For construction in progress, no provision for depreciation is made until the assets are available and ready for use. Property, plant, and equipment consist of the following: (In thousands) December 29, 2018 December 30, 2017 Land $ 7,614 $ 7,894 Buildings 58,866 48,094 Machinery, Equipment, and Leasehold Improvements 100,453 94,779 Construction in Progress 3,764 14,464 170,697 165,231 Less: Accumulated Depreciation and Amortization 90,540 85,508 $ 80,157 $ 79,723 At year-end 2017, construction in progress primarily related to the construction of a manufacturing facility in the U.S. that was completed in the first half of 2018. Following completion, the assets were transferred to building and machinery, equipment and leasehold improvements and depreciated over their estimated useful lives. Property, plant, and equipment at year-end 2018 and year-end 2017 included assets under capital leases. The gross amount of property, plant, and equipment under capital leases was $5,674,000 at year-end 2018 and $6,038,000 at year-end 2017 . Accumulated amortization associated with capital leases was $764,000 at year-end 2018 and $550,000 at year-end 2017 . Depreciation and amortization expense, including amortization of assets under capital lease, was $9,386,000 in 2018 , $7,418,000 in 2017 , and $6,194,000 in 2016 . Intangible Assets, Net Acquired intangible assets by major asset class are as follows: (In thousands) Gross Currency Accumulated Net December 29, 2018 Definite-Lived Customer relationships $ 113,283 $ (4,520 ) $ (38,160 ) $ 70,603 Product technology 46,501 (1,677 ) (23,563 ) 21,261 Tradenames 5,227 (390 ) (1,980 ) 2,857 Other 13,744 (127 ) (11,476 ) 2,141 178,755 (6,714 ) (75,179 ) 96,862 Indefinite-Lived Tradenames 16,600 (115 ) — 16,485 Acquired Intangible Assets $ 195,355 $ (6,829 ) $ (75,179 ) $ 113,347 December 30, 2017 Definite-Lived Customer relationships $ 113,301 $ (621 ) $ (28,789 ) $ 83,891 Product technology 46,501 (737 ) (19,841 ) 25,923 Tradenames 5,227 (262 ) (1,504 ) 3,461 Other 13,754 (35 ) (10,863 ) 2,856 178,783 (1,655 ) (60,997 ) 116,131 Indefinite-Lived Tradenames 16,600 305 — 16,905 Acquired Intangible Assets $ 195,383 $ (1,350 ) $ (60,997 ) $ 133,036 Intangible assets are initially recorded at fair value at the date of acquisition. Definite-lived intangible assets are stated net of accumulated amortization and currency translation in the accompanying consolidated balance sheet. The Company amortizes definite-lived intangible assets over lives that have been determined based on the anticipated cash flow benefits of the intangible asset. Definite-lived intangible assets have a weighted average amortization period of 12 years . Amortization of definite-lived intangible assets was $14,182,000 in 2018 , $11,957,000 in 2017 , and $8,132,000 in 2016 . The estimated future amortization expense of definite-lived intangible assets is $12,869,000 in 2019 ; $12,299,000 in 2020 ; $11,784,000 in 2021 ; $11,011,000 in 2022 ; $9,610,000 in 2023 ; and $39,289,000 in the aggregate thereafter. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable net assets of the acquired business at the date of acquisition. The Company’s acquisitions have historically been made at prices above the fair value of the acquired net assets, resulting in goodwill, due to the expectation of synergies from combining the businesses. The changes in the carrying amount of goodwill by segment are as follows: (In thousands) Papermaking Systems Segment Wood Processing Systems Segment Total Balance as of December 31, 2016 Gross balance $ 219,699 $ 17,265 $ 236,964 Accumulated impairment losses (85,509 ) — (85,509 ) Net balance 134,190 17,265 151,455 2017 Adjustments Acquisitions (Note 2) 16,373 85,508 101,881 Currency translation 10,942 3,723 14,665 Total 2017 Adjustments 27,315 89,231 116,546 Balance at December 30, 2017 Gross balance 247,014 106,496 353,510 Accumulated impairment losses (85,509 ) — (85,509 ) Net balance 161,505 106,496 268,001 2018 Adjustments Acquisitions (Note 2) (17 ) (75 ) (92 ) Currency translation (5,085 ) (4,650 ) (9,735 ) Total 2018 Adjustments (5,102 ) (4,725 ) (9,827 ) Balance at December 29, 2018 Gross balance 241,912 101,771 343,683 Accumulated impairment losses (85,509 ) — (85,509 ) Net balance $ 156,403 $ 101,771 $ 258,174 Impairment of Long-Lived Assets The Company evaluates the recoverability of goodwill and indefinite-lived intangible assets as of the end of each fiscal year, or more frequently if events or changes in circumstances, such as a significant decline in sales, earnings, or cash flows, or material adverse changes in the business climate, indicate that the carrying value of an asset might be impaired. At year-end 2018 , the Company performed a quantitative goodwill impairment assessment (Step 1) for all of its reporting units, which indicated that the fair value of each reporting unit exceeded its carrying value, and determined that the asset was not impaired. At year-end 2017 , the Company performed a qualitative impairment analysis (Step 0) of its goodwill and determined that the asset was not impaired. The impairment analysis included an assessment of certain qualitative factors including, but not limited to, the results of prior fair value calculations, the movement of the Company's share price and market capitalization, the reporting unit and overall financial performance, and macroeconomic and industry conditions. The Company considered the qualitative factors and weighed the evidence obtained, and determined that it was not more likely than not that the fair value of any of the assets was less than its carrying amount. Although the Company believes the factors considered in the impairment analysis are reasonable, significant changes in any one of the assumptions used could have produced a different result. Goodwill by reporting unit is as follows: (In thousands) December 29, 2018 December 30, 2017 Stock-Preparation $ 58,142 $ 60,275 Fluid-Handling 64,052 65,289 Doctoring, Cleaning, & Filtration 34,209 35,941 Wood Processing Systems 101,771 106,496 $ 258,174 $ 268,001 At year-end 2018 , the Company performed a quantitative impairment analysis on its indefinite-lived intangible assets and determined that the assets were not impaired. At year-end 2017 , the Company performed a qualitative impairment analysis on its indefinite-lived intangible assets and determined that the assets were not impaired. The Company assesses its long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever facts and circumstances indicate that the carrying amounts may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining lives of such assets or asset groups. If these projected cash flows were to be less than the carrying amounts, an impairment loss would be recognized, resulting in a write-down of the assets with a corresponding charge to earnings. The impairment loss would be measured based upon the difference between the carrying amounts of the assets and their fair values calculated using projected cash flows. No indicators of impairment were identified in 2018 or 2017 . Foreign Currency Translation and Transactions All assets and liabilities of the Company's foreign subsidiaries are translated at fiscal year-end exchange rates, and revenues and expenses are translated at average exchange rates for each quarter in accordance with ASC 830, Foreign Currency Matters . Resulting translation adjustments are reflected in the "accumulated other comprehensive items" (AOCI) component of stockholders' equity (see Note 13 ). Foreign currency transaction gains and losses are included in the accompanying consolidated statement of income and are not material in the three years presented. Stock-Based Compensation The Company recognizes compensation cost for all stock-based awards granted to employees and directors based on the grant date estimate of fair value for those awards. The fair value of RSUs is based on the grant date price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period. The fair value of stock options is based on the Black-Scholes option-pricing model. For stock options and time-based RSUs, compensation expense is recognized ratably over the requisite service period for the entire award and net of actual forfeitures recorded when they occur. For performance-based RSUs, compensation expense is recognized ratably over the requisite service period for each separately-vesting portion of the award based on the grant date fair value, net of actual forfeitures and remeasured at each reporting period until the total number of RSUs to be |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The Company’s acquisitions are accounted for using the purchase method of accounting and their results are included in the accompanying financial statements from their respective dates of acquisition. Historically, the Company’s acquisitions have been made at prices above the fair value of identifiable net assets, resulting in goodwill. Acquisition transaction costs are included in selling, general, and administrative expenses (SG&A) in the accompanying consolidated statement of income as incurred. The Company recorded acquisition transaction costs of $ 1,321,000 in 2018 (see Note 15 , Subsequent Events), $ 5,375,000 in 2017 , and $1,832,000 in 2016. 2017 On August 14, 2017, the Company acquired certain assets of Unaflex, LLC (Unaflex) for $31,274,000 in cash, subject to a post-closing adjustment. The Company expects to pay additional consideration of $397,000 to the sellers in 2019. The Company funded the acquisition through borrowings under its revolving credit facility. Unaflex, located principally in South Carolina, is a leading manufacturer of expansion joints and related products for process industries. This acquisition complemented the Company’s existing Fluid-Handling product line within its Papermaking Systems segment. The Company anticipated and continues to achieve several synergies in connection with this acquisition, including the expansion of sales by Unaflex through leveraging the Company’s sales efforts, as well as sourcing and manufacturing efficiencies. Goodwill from the Unaflex acquisition was $15,640,000 , all of which is expected to be deductible for tax purposes. For 2017, the Company recorded revenues of $7,335,000 and operating income of $187,000 for Unaflex from its date of acquisition, including amortization expense of $176,000 associated with acquired profit in inventory. On July 5, 2017, the Company acquired the forest products business of NII FPG Company (NII FPG) pursuant to a Stock and Asset Purchase Agreement dated May 24, 2017, for $170,792,000 , net of cash acquired. In connection with the acquisition, the Company borrowed an aggregate $170,018,000 under its revolving credit facility, including $62,690,000 of Canadian dollar-denominated and $61,769,000 of euro-denominated borrowings. NII FPG, which has two primary manufacturing facilities located in Canada and Finland, is a global leader in the design and manufacture of equipment used by sawmills, veneer mills, and other manufacturers in the forest products industry. NII FPG also designs and manufactures logging equipment used in harvesting timber from forest plantations. This acquisition extended the Company's presence deeper into the forest products industry and complemented its existing Wood Processing Systems segment. Goodwill from the NII FPG acquisition was $85,432,000 , of which $33,993,000 is expected to be deductible for tax purposes. For 2017, the Company recorded revenues of $48,363,000 and operating income of $1,238,000 for NII FPG from its date of acquisition, including amortization expense of $6,399,000 associated with acquired profit in inventory and backlog. In addition, the Company paid $2,500,000 in cash for another acquisition within the Fluid-Handling product line in the Company's Papermaking Systems segment. The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price of the Company's 2017 acquisitions. NII FPG Unaflex Other (In thousands) July 5, 2017 August 14, 2017 October 30, 2017 Total Net Assets Acquired: Cash and Cash Equivalents $ 2,219 $ — $ — $ 2,219 Accounts Receivable 6,542 2,079 — 8,621 Inventories 25,304 2,033 — 27,337 Property, Plant, and Equipment 12,912 1,279 284 14,475 Other Assets 2,375 72 — 2,447 Definite-Lived Intangible Assets Customer relationships 44,682 8,000 1,500 54,182 Product technology 17,100 2,300 — 19,400 Other 2,530 900 — 3,430 Indefinite-Lived Intangible Assets Tradenames 8,500 — — 8,500 Goodwill 85,432 15,640 716 101,788 Total assets acquired 207,596 32,303 2,500 242,399 Accounts Payable 4,970 358 — 5,328 Customer Deposits 7,396 100 — 7,496 Long-Term Deferred Income Taxes 16,622 — — 16,622 Other Liabilities 5,597 174 — 5,771 Total liabilities assumed 34,585 632 — 35,217 Net assets acquired $ 173,011 $ 31,671 $ 2,500 $ 207,182 Purchase Price: Cash Paid $ 2,993 $ — $ — $ 2,993 Cash Paid to Seller Borrowed Under the Revolving Credit Facility 170,018 31,274 2,500 203,792 Estimated Post-closing Adjustment — — 397 — 397 Total purchase price $ 173,011 $ 31,671 $ 2,500 $ 207,182 For NII FPG, the weighted-average amortization period for definite-lived intangible assets acquired is 12 years , including weighted-average amortization periods of 15 years for product technology, 11 years for customer relationships, and 4 years for other intangible assets. For Unaflex, the weighted average amortization period for definite-lived intangible assets acquired, including customer relationships, product technology and other intangible assets, is 10 years . For the other acquisition, the amortization period for customer relationships is 11 years . Unaudited Supplemental Pro Forma Information Had the acquisitions of NII FPG and Unaflex been completed as of the beginning of 2016, the Company’s pro forma results of operations for 2017 and 2016 would have been as follows: (In thousands, except per share amounts) December 30, December 31, Revenues $ 565,710 $ 508,832 Net Income Attributable to Kadant $ 44,159 $ 30,638 Earnings per Share Attributable to Kadant Basic $ 4.02 $ 2.82 Diluted $ 3.90 $ 2.75 Pro forma results include the following non-recurring pro forma adjustments that were directly attributable to the business combinations: • Pre-tax charge to SG&A expenses of $5,360,000 in 2016 and reversal in 2017, for acquisition transaction costs. • Pre-tax charge to cost of revenues of $5,137,000 in 2016 and reversal in 2017, for the sale of inventory revalued at the date of acquisition. • Pre-tax charge to SG&A expenses of $1,669,000 in 2016 and reversal of $1,438,000 in 2017, for intangible asset amortization related to acquired backlog. • Reversal of pre-tax income of $852,000 in 2017, related to NII FPG's gain on the sale of a building. These pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that would have resulted had the acquisitions of NII FPG and Unaflex occurred as of the beginning of 2016, or that may result in the future. The Company's pro forma results above exclude its other 2017 acquisitions as those results would not have been materially different then the results presented above had they occurred at the beginning of 2016. 2016 On April 4, 2016, the Company acquired all the outstanding shares of RT Holding GmbH, the parent corporation of a group of companies known as the PAALGROUP (PAAL) for 49,713,000 euros, net of cash acquired, or $56,617,000 , pursuant to a post-closing adjustment. The Company paid additional consideration of $165,000 to the sellers in 2017. In connection with the acquisition, the Company borrowed $29,866,000 of euro-denominated borrowings under its revolving credit facility. The remainder of the purchase price was funded from the Company's internal overseas cash. PAAL, which has operations in Germany, the United Kingdom, France and Spain, manufactures balers and related equipment used in the processing of recyclable and waste materials. This acquisition, which is included in the Company's Papermaking Systems segment's Stock-Preparation product line, broadened the Company's product portfolio and extended its presence deeper into recycling and waste management. The Company anticipated and continues to achieve several synergies in connection with this acquisition, including expanding sales of the products of the acquired business by leveraging the Company's geographic presence to enter or further penetrate existing markets, as well as sourcing and manufacturing efficiencies. Goodwill from the PAAL acquisition was $ 38,552,000 , which is not deductible for tax purposes. For 2016, Company recorded revenues of $40,783,000 and operating income of $2,372,000 for PAAL from its date of acquisition, which included amortization expense of $1,926,000 associated with acquired inventory and backlog. The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price of PAAL. PAAL (In thousands) April 4, 2016 Net Assets Acquired: Cash and Cash Equivalents $ 2,277 Accounts Receivable 5,441 Inventories 3,947 Property, Plant, and Equipment 7,179 Other Assets 2,882 Definite-Lived Intangible Assets Customer relationships 15,831 Product technology 4,203 Tradenames 2,278 Other 2,379 Goodwill 38,552 Total assets acquired 84,969 Accounts Payable 5,536 Customer Deposits 2,471 Obligations Under Capital Lease 4,842 Long-Term Deferred Income Taxes 6,148 Other Liabilities 6,913 Total liabilities assumed 25,910 Net assets acquired $ 59,059 Purchase Price: Cash $ 29,193 Cash Paid to Seller Borrowed Under the Revolving Credit Facility 29,866 Total purchase price $ 59,059 For the PAAL acquisition, the weighted-average amortization period for definite-lived intangible assets acquired is 12 years , including weighted-average amortization periods of 13 years for customer relationships, 9 years for product technology, 14 years for tradenames, and 7 years for other intangible assets. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Stock-Based Compensation Plans The Company maintains stock-based compensation plans primarily for its key employees and directors, although the plans permit awards to others expected to make significant contributions to the future of the Company. The plans authorize the compensation committee of the Company's board of directors (the board committee) to award a variety of stock and stock-based incentives, such as restricted stock, RSUs, nonqualified and incentive stock options, stock bonus shares, or performance-based shares. The award recipients and the terms of awards, including price, granted under these plans are determined by the board committee. Upon a change of control, as defined in the plans, all options or other awards become fully vested and all restrictions lapse. The Company had 451,441 shares available for grant under stock-based compensation plans at year-end 2018 . The Company generally issues its common stock out of treasury stock, to the extent available, for share issuances related to its stock-based compensation plans. The Company recognizes compensation cost for all stock-based awards granted to employees 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 price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period. The fair value of stock options is based on the Black-Scholes option-pricing model. The components of pre-tax stock-based compensation expense included in SG&A expenses in the accompanying consolidated statement of income are as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 RSU Awards $ 6,838 $ 5,621 $ 4,848 Employee Stock Purchase Plan Awards 189 182 170 Stock Option Awards — — 51 Total $ 7,027 $ 5,803 $ 5,069 The Company grants RSUs to non-employee directors and certain employees. Holders of RSUs have no voting rights and are not entitled to receive cash dividends. Non-Employee Director Restricted Stock Units The Company granted RSUs of 2,700 in 2018, 3,000 in 2017 and 5,000 in 2016 to each of its non-employee directors. Each RSU represents the right to receive one share of the Company's common stock upon vesting. Of the RSUs granted in 2018, half of the RSUs vested on June 1, 2018 and the remaining RSUs vested ratably on the last day of the remaining two fiscal quarters of 2018. The 2017 and 2016 RSUs vested ratably on the last day of each fiscal quarter within the year. Performance-Based Restricted Stock Units The Company grants performance-based RSUs to certain officers of the Company. Each performance-based RSU represents the right to receive one share of the Company's common stock upon vesting. The RSUs are subject to adjustment based on the achievement of a performance measure selected for the fiscal year, which historically has been a specified target for adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) generated from continuing operations. Following the adjustment, the RSUs are subject to additional time-based vesting, and vest in three equal annual installments, provided that the officer is employed by the Company on the applicable vesting dates. The Company recognizes compensation expense associated with performance-based RSUs ratably over the requisite service period for each separately-vesting portion of the award based on the grant date fair value, and net of actual forfeitures recorded when they occur. Compensation expense recognized is remeasured each reporting period until the total number of RSUs to be issued is known. Unrecognized compensation expense related to the unvested performance-based RSUs totaled $2,164,000 at year-end 2018 , and will be recognized over a weighted average period of 1.4 years. The performance-based RSU agreements provide for forfeiture in certain events, such as voluntary or involuntary termination of employment, and for acceleration of vesting in certain events, such as death, disability or a change in control of the Company. If death, disability, or a change in control occurs prior to the end of the performance period, the officer will receive the target RSU amount; otherwise, the officer will receive the number of deliverable RSUs based on the achievement of the performance goal, as stated in the RSU agreements. Time-Based Restricted Stock Units The Company grants time-based RSUs to its officers and other employees of the Company. Each time-based RSU represents the right to receive one share of the Company's common stock upon vesting. The Company recognizes compensation expense associated with these time-based RSUs ratably over the requisite service period for the entire award based on the grant date fair value, and net of actual forfeitures recorded when they occur. The time-based RSU agreement provides for forfeiture in certain events, such as voluntary or involuntary termination of employment, and for acceleration of vesting in certain events, such as death, disability, or a change in control of the Company. Unrecognized compensation expense related to the time-based RSUs totaled $2,937,000 at year-end 2018 , and will be recognized over a weighted average period of 1.8 years. A summary of the activity of the Company's unvested RSUs in 2018 is as follows: Units Weighted Unvested RSUs at December 30, 2017 199 $ 49.32 Granted 73 $ 98.12 Vested (116 ) $ 54.11 Unvested RSUs at December 29, 2018 156 $ 68.57 The weighted-average grant date fair value of RSUs granted was $98.12 in 2018 , $59.30 in 2017 , and $40.41 in 2016 . The total fair value of shares vested was $11,932,000 in 2018 , $6,719,000 in 2017 , and $6,233,000 in 2016 . Stock Options The Company has not granted stock options since 2013. Prior to 2014, the Company granted nonqualified stock options to its executive officers that vested over three years and were not exercisable until vested. All options awarded in prior periods were granted at an exercise price equal to the fair market value of the Company's common stock on the date of grant. Stock options vested in three equal annual installments beginning on the first anniversary of the grant date, provided that the recipient remained employed by the Company on the applicable vesting dates and expire on the ten th anniversary of the grant date. All outstanding stock options are fully vested. The Company recognized compensation expense associated with these stock options ratably over the requisite service period for the entire award based on the grant date fair value, net of forfeitures. There was no unrecognized compensation expense related to these stock options at year-end 2018 . The Company used the Black-Scholes option-pricing model to determine the fair value of stock options, which was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. Option-pricing models require the input of highly subjective assumptions, including expected stock price volatility. Expected stock price volatility was calculated based on a review of the Company's actual historic stock prices commensurate with the expected life of the award. The expected option life was derived based on a review of the Company's historic option holding periods, including consideration of the holding period inherent in currently vested but unexercised options. The expected annual dividend rate was calculated by dividing the Company's annual dividend by the closing stock price on the grant date. The risk-free interest rate is based on the yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected term of the option. The compensation expense recognized for these equity-based awards was net of estimated forfeitures. Forfeitures were estimated based on an analysis of actual option forfeitures. A summary of the Company's stock option activity in 2018 is as follows: (In thousands, except per share amounts) Number Weighted Weighted Aggregate Options Outstanding at December 30, 2017 307 $ 20.72 Exercised (8 ) $ 15.51 Options Outstanding at December 29, 2018 299 $ 20.86 2.5 years $ 18,029 Vested and Exercisable at December 29, 2018 299 $ 20.86 2.5 years $ 18,029 (a) The closing price per share on the last trading day prior to year-end 2018 was $81.12 . There were no stock option exercises in 2017. A summary of the Company's stock option exercises in 2018 and 2016 are as follows: (In thousands) December 29, 2018 December 31, 2016 Total Intrinsic Value of Options Exercised $ 515 $ 1,341 Cash Received from Options Exercised $ 127 $ 1,189 Modified Awards On September 20, 2017, the Company entered into an executive transition agreement with its vice president, general counsel and secretary in connection with her retirement on July 1, 2018. This agreement included provisions for post-employment compensation and modifications to outstanding equity awards. The Company recognized $374,000 of post-employment compensation ratably through the retirement date. Pursuant to this agreement, all unvested RSUs vested at the retirement date. As of September 20, 2017, 4,254 RSUs were remeasured at a fair value of $93.82 per unit. The remaining compensation expense associated with the modified RSUs totaled $332,000 as of September 20, 2017, which was recognized ratably through the retirement date. Employee Stock Purchase Plan The Company's eligible U.S. employees may elect to participate in its employee stock purchase plan. Under the plan, shares of the Company's common stock may be purchased at a 15% discount from the fair market value at the beginning or end of the purchase period, whichever is lower. Shares purchased under the plan are subject to a one -year resale restriction and are purchased through payroll deductions of up to 10% of each participating employee's gross wages. The Company issued 10,439 shares for 2018 (issued in 2019), 13,156 shares for 2017 (issued in 2018), and 17,874 shares in 2016 of its common stock under this plan. 401(k) Savings and Other Defined Contribution Plans The Company's U.S. subsidiaries participate in the Kadant Inc. 401(k) Retirement Savings Plan sponsored by the Company. Contributions to the plan are made by both the employee and the Company and are immediately vested. Company contributions are based upon the level of employee contributions. Certain of the Company's subsidiaries offer other retirement plans, the majority of which are defined contribution plans. Company contributions to these plans are based on formulas determined by the Company. For these plans, the Company contributed and charged to expense $3,705,000 in 2018 , $3,327,000 in 2017 , and $3,005,000 in 2016 . Pension and Other Post-Retirement Benefits Plans The Company sponsors a noncontributory defined benefit pension plan, which is closed to new participants, for eligible employees at one of its U.S. divisions and its corporate office. Certain 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 (Retirement 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 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 plans in the United States and at one of its non-U.S. subsidiaries. In addition, the Company provides for a restoration plan (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. In accordance with ASC 715, Compensation-Retirement Benefits , (ASC 715), the Company recognizes the funded status of its defined benefit pension and other post-retirement benefit plans as an asset or liability and changes in the funded status through AOCI, net of tax. The amounts in AOCI are recognized as net periodic pension cost pursuant to the Company's historical accounting policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic benefit cost will be recognized as a component of AOCI, net of tax. The actuarial loss included in AOCI and expected to be recognized in net periodic benefit cost in 2019 is $65,000 . Effective at the beginning of fiscal 2018, the Company retrospectively adopted ASU No. 2017-07. See Recently Adopted Accounting Pronouncements in Note 1 for further discussion. As a result, only the service cost component of net periodic benefit cost is included in operating income. All other components are included in other expense, net in the accompanying consolidated statement of income. In 2018, the Company's board of directors and its compensation committee approved amendments to freeze and terminate the Retirement Plan and Restoration Plan as of December 29, 2018 and, as a result, incurred a curtailment loss of $ 1,425,000 which was reclassified from AOCI and included in other expense, net in the accompanying consolidated statement of income in the fourth quarter of 2018. Additionally, an effect of curtailment of $ 4,862,000 was recognized as a reclassification from AOCI and a reduction in the accrued pension liability in the accompanying consolidated balance sheet at year-end 2018. Procedures for plan settlement and distribution of the Retirement Plan assets will be initiated once the plan termination satisfies certain regulatory requirements, which is expected to occur in late 2019 or early 2020. At the settlement date, the Company will recognize a loss based on the difference between the unrecognized actuarial loss, unfunded benefit obligation, and any additional cash required to be paid. Participants in the Retirement Plan will have the option to receive either a lump sum payment or an annuity. Retirees will continue to receive payments pursuant to their current annuity elections. The Company will settle liabilities under the Restoration Plan by paying a lump sum to plan participants at least twelve and no more than twenty-four months following the termination date. The Company expects to settle the liabilities under the Restoration Plan in 2020. The Company has included the 2018 Retirement Plan liability in accrued payroll and employee benefits and the 2018 Restoration Plan liability in other long-term liabilities in the accompanying consolidated balance sheet. The following table summarizes the change in benefit obligation; the change in plan assets; the unfunded status; and the amounts recognized in the accompanying consolidated balance sheet for the Company's U.S. and non-U.S. pension benefit plans and other post-retirement benefit plans. In accordance with ASU No. 2015-04, Compensation - Retirement Benefits (Topic 715) , the Company elects to measure its plan assets and benefit obligations as of December 31. U.S. Pension Non-U.S. Pension Other Post-Retirement (In thousands) December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 34,757 $ 31,935 $ 4,270 $ 3,341 $ 4,704 $ 3,894 Acquisition — — — 241 — — Service cost 699 685 173 148 213 175 Interest cost 1,193 1,231 126 114 172 170 Actuarial (gain) loss (2,674 ) 2,626 (368 ) 270 (508 ) 635 Benefits paid (1,589 ) (1,720 ) (394 ) (265 ) (157 ) (175 ) Plan amendment 1,116 — — — 322 — Effect of curtailment (3,787 ) — — — (1,075 ) — Currency translation — — (136 ) 421 1 5 Projected benefit obligation at end of year $ 29,715 $ 34,757 $ 3,671 $ 4,270 $ 3,672 $ 4,704 Change in Plan Assets: Fair value of plan assets at beginning of year $ 31,754 $ 28,985 $ 557 $ 426 $ 35 $ 28 Actual return on plan assets (1,436 ) 3,409 38 23 2 1 Employer contributions — 1,080 528 355 164 179 Benefits paid (1,589 ) (1,720 ) (394 ) (265 ) (157 ) (175 ) Currency translation — — (3 ) 18 — 2 Fair value of plan assets at end of year $ 28,729 $ 31,754 $ 726 $ 557 $ 44 $ 35 Unfunded Status $ (986 ) $ (3,003 ) $ (2,945 ) $ (3,713 ) $ (3,628 ) $ (4,669 ) Accumulated Benefit Obligation at End of Year $ 29,715 $ 30,311 $ 2,604 $ 3,047 $ — $ — Amounts Included in the Balance Sheet: Current liability $ (986 ) $ — $ (58 ) $ (205 ) $ (144 ) $ (173 ) Non-current liability $ — $ (3,003 ) $ (2,887 ) $ (3,508 ) $ (3,484 ) $ (4,496 ) Amounts Included in Accumulated Other Comprehensive Items Before Tax: Unrecognized net actuarial loss $ (3,205 ) $ (7,485 ) $ (674 ) $ (1,085 ) $ (69 ) $ (1,424 ) Unrecognized prior service cost — — (45 ) (52 ) — (439 ) $ (3,205 ) $ (7,485 ) $ (719 ) $ (1,137 ) $ (69 ) $ (1,863 ) U.S. Pension Non-U.S. Pension Other Post-Retirement (In thousands) December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Changes in Amounts Included in Accumulated Other Comprehensive Items Before Tax: Net actuarial (loss) gain $ (48 ) $ (544 ) $ 368 $ (277 ) $ 508 $ (634 ) Amortization of net actuarial loss 541 442 63 38 136 83 Amortization of prior service cost — 53 6 6 86 88 Plan amendment (1,116 ) — — — (322 ) — Effect of curtailment 3,787 — — — 1,075 — Curtailment loss 1,116 — — — 309 — Currency translation — — (19 ) (78 ) 2 (3 ) $ 4,280 $ (49 ) $ 418 $ (311 ) $ 1,794 $ (466 ) The weighted-average assumptions used to determine the benefit obligation are as follows: U.S. Pension Non-U.S. Pension Other Post-Retirement December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Discount rate 4.10 % 3.51 % 3.56 % 3.16 % 4.32 % 3.71 % Rate of compensation increase — 3.00 % 3.24 % 3.33 % 5.57 % 3.11 % The discount rates for pension and other post-retirement plans are based on market yields on high-quality corporate bonds currently available and expected to be available during the period to maturity of the benefits. For pension and post-retirement plans that have been closed to new participants thereby shortening the duration, the discount rate is determined based on discounting the projected benefit streams against the Citigroup Pension discount curve. The projected benefit obligations and fair values of plan assets for the Company's pension plans with projected benefit obligations in excess of plan assets are as follows: U.S. Pension Non-U.S. Pension (In thousands) December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Pension Plans with Projected Benefit Obligations in Excess of Plan Assets: Projected benefit obligation $ 29,715 $ 34,757 $ 3,671 $ 4,270 Fair value of plan assets $ 28,729 $ 31,754 $ 726 $ 557 The accumulated benefit obligations and fair values of plan assets for the Company's pension plans with accumulated benefit obligations in excess of plan assets are as follows: U.S. Pension Non-U.S. Pension (In thousands) December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets: Accumulated benefit obligation $ 29,715 $ — $ 2,604 $ 3,047 Fair value of plan assets $ 28,729 $ — $ 726 $ 557 The components of net periodic benefit cost are as follows: U.S. Pension Non-U.S. Pension Other Post-Retirement (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 December 29, 2018 December 30, 2017 December 31, 2016 December 29, 2018 December 30, 2017 December 31, 2016 Service cost $ 699 $ 685 $ 723 $ 173 $ 148 $ 102 $ 213 $ 175 $ 130 Interest cost 1,193 1,231 1,273 126 114 107 172 170 156 Expected return on plan assets (1,286 ) (1,326 ) (1,288 ) (42 ) (25 ) (25 ) (3 ) (2 ) (2 ) Amortization of net actuarial loss 541 442 498 63 38 39 136 83 50 Amortization of prior service cost — 53 55 6 6 4 86 88 88 Settlement loss — — — — — — — — 114 Curtailment loss 1,116 — — — — — 309 — — Net Periodic Benefit Cost $ 2,263 $ 1,085 $ 1,261 $ 326 $ 281 $ 227 $ 913 $ 514 $ 536 The weighted-average assumptions used to determine net periodic benefit cost are as follows: U.S. Pension Non-U.S. Pension Other Post-Retirement December 29, 2018 December 30, 2017 December 31, 2016 December 29, 2018 December 30, 2017 December 31, 2016 December 29, 2018 December 30, 2017 December 31, 2016 Discount Rate 3.51 % 4.03 % 4.22 % 3.49 % 3.45 % 3.87 % 3.58 % 4.10 % 4.28 % Expected Long-Term Return on Plan Assets 4.50 % 5.00 % 5.00 % 7.43 % 7.53 % 7.72 % 7.43 % 7.53 % 7.72 % Rate of Compensation Increase 3.00 % 3.00 % 3.00 % 3.97 % 3.65 % 3.67 % 3.05 % 3.08 % 3.05 % In developing the overall expected long-term return on plan assets assumption, a building block approach was used in which rates of return in excess of inflation were considered separately for equity securities, debt securities, and other assets. The excess returns were weighted by the representative target allocation and added along with an appropriate rate of inflation to develop the overall expected long-term return on plan assets assumption. The Company believes this determination is consistent with ASC 715, Compensation – Retirement Benefits . Plan Assets The fair values of the Company's noncontributory defined benefit retirement plan assets at year-end 2018 and year-end 2017 by asset category are as follows: December 29, 2018 Fair Value Measurement (In thousands) Quoted Prices Significant Significant Total Retirement Plan Assets: Mutual funds: Money market funds $ 12,852 $ — $ — $ 12,852 Fixed income funds 11,581 — — 11,581 Investments measured at NAV 4,296 Total assets at fair value $ 28,729 Non-U.S. Pension Plan Assets: Mutual funds $ 726 $ — $ — $ 726 Total assets at fair value $ 726 December 30, 2017 Fair Value Measurement (In thousands) Quoted Prices Significant Significant Total Retirement Plan Assets: Mutual funds: Fixed income funds $ 17,560 $ — $ — $ 17,560 Equity funds 4,763 — — 4,763 Investments measured at NAV 9,431 Total assets at fair value $ 31,754 Non-U.S. Pension Plan Assets: Mutual funds $ 557 $ — $ — $ 557 Total assets at fair value $ 557 Description of Fair Value Measurements Level 1 – Quoted, active market prices for identical assets. Level 2 – Observable inputs other than Level 1 prices, based on model-derived valuations in which all significant inputs are observable in active markets. Level 3 – Unobservable inputs based on the Company's own assumptions. The following is a description of the valuation methodologies used for assets measured at fair value. There were no changes in valuation techniques during 2018 or 2017 . Mutual funds - Investments in money market, common stock index and fixed income funds. Share prices of the funds, referred to as a fund's Net Asset Value (NAV), are calculated daily based on the closing market prices and accruals of securities in the fund's total portfolio (total value of the fund) divided by the number of fund shares currently issued and outstanding. There are no redemption restrictions. Investments measured at NAV - Investments in common collective trusts that invest in a diversified blend of investment and non-investment grade fixed income securities and are valued at NAV provided by the fund administrator. The NAV is used as the practical expedient to estimate fair value. The NAVs of the funds are calculated monthly based on the closing market prices and accruals of securities in the fund's total portfolio (total value of the fund) divided by the number of fund shares currently issued and outstanding. Redemptions of the investments occur by contract at the respective fund's redemption date NAV. The Company's investment policy for its U.S. noncontributory defined benefit retirement plan is to emphasize the preservation of capital. The investment policy takes into consideration the benefit obligations, including timing of distributions. The following target asset allocation has been established for the plan: Asset Category Minimum Neutral Maximum Money market funds 0 % 45 % 100 % Debt Securities 0 % 55 % 100 % Total 100 % Debt securities are weighted to reflect a portfolio duration to that of the plan's liabilities anticipated to be paid out as annuities. The credit quality must equal or exceed high investment grade quality ("Baa" or better). Cash Flows Contributions The Company does not plan to make any material cash contributions to its pension and post-retirement benefit plans in 2019 other than to fund current benefit payments, as well as fund amounts related to the settlement of the Retirement Plan, which is expected to occur in late 2019 or early 2020. Estimated Future Benefit Payments Expected benefit payments are based on the same assumptions used to measure the Company's benefit obligation at year-end 2018 . Estimated future benefit payments during the next five years and in aggregate for the five years thereafter are as follows: Other Post-retirement (In thousands) U.S. Pension Non-U.S. Pension 2019 $ 29,715 $ 194 $ 151 2020 — 142 2,871 2021 — 211 133 2022 — 312 127 2023 — 330 114 2024-2028 — 2,117 480 The estimated future benefit payments associated with the Retirement Plan are reflected in the table above in 2019. The actual settlement of the Retirement Plan's benefit obligation is dependent on the satisfaction of certain regulatory requirements, which is expected to occur in late 2019 or early 2020. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 29, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholder's Equity | Stockholders' Equity Preferred Stock The Company's Certificate of Incorporation authorizes up to 5,000,000 shares of preferred stock, $.01 par value per share, for issuance by the Company's board of directors without further shareholder approval. Common Stock At year-end 2018 , the Company reserved 945,279 unissued shares of its common stock for possible issuance under its stock-based compensation plans. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act of 2017 (2017 Tax Act) was signed into law on December 22, 2017 and its provisions are generally effective for tax years beginning January 1, 2018. The most significant impacts of the 2017 Tax Act to the Company include a decrease in the federal corporate income tax rate from 35% to 21% , and a one-time mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) related to the income tax accounting implications of the 2017 Tax Act, which provides guidance on accounting for the 2017 Tax Act’s impact. In accordance with SAB 118, the Company recorded a provisional net income tax expense of $7,487,000 , including the impact of state taxes, in the fourth quarter of 2017, which consisted of a provisional amount for the one-time mandatory transition tax of $10,303,000 , partially offset by a provisional net tax benefit of $2,816,000 for the re-measurement of the Company's deferred income tax assets and liabilities at the 21% federal corporate income tax rate. During 2018, the Company completed its accounting for the 2017 Tax Act under the SAB 118 guidance and recorded a net reduction of $138,000 to the 2017 provisional amount related to the one-time mandatory transition tax. While the 2017 Tax Act provides for a territorial tax system, beginning in 2018, it includes two new U.S. tax base erosion provisions, Global Intangible Low-Taxed Income (GILTI) and Base Erosion Anti-Abuse Tax (BEAT). The Company has elected to account for the GILTI tax in the period in which it is incurred and, therefore, has not provided the deferred income tax impact of GILTI in its consolidated financial statements. In addition, the Company does not expect to be subject to the minimum tax pursuant to the BEAT provisions. The components of income from continuing operations before provision for income taxes are as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Domestic $ (397 ) $ 2,797 $ 6,196 Foreign 79,925 54,856 38,353 $ 79,528 $ 57,653 $ 44,549 The components of the provision for income taxes from continuing operations are as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Current Provision: Federal $ 724 $ 7,835 $ 535 Foreign 21,829 17,372 11,323 State 169 285 838 22,722 25,492 12,696 Deferred (Benefit) Provision: Federal (2,551 ) 4,682 1,738 Foreign (1,761 ) (3,563 ) (1,818 ) State 72 (541 ) (533 ) (4,240 ) 578 (613 ) $ 18,482 $ 26,070 $ 12,083 The provision for income taxes included in the accompanying consolidated statement of income is as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Continuing Operations $ 18,482 $ 26,070 $ 12,083 Discontinued Operation — — 2 $ 18,482 $ 26,070 $ 12,085 The Company receives a tax deduction upon the exercise of nonqualified stock options and the vesting of RSUs. In 2016, the Company adopted ASU No. 2016-09, Compensation – Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting . This ASU requires that excess income tax benefits and tax deficiencies related to stock-based compensation arrangements be recognized as discrete items within the provision for income taxes instead of capital in excess of par value in the reporting period in which they occur. The Company recognized an income tax benefit of $1,097,000 in 2018, $608,000 in 2017 and $ 582,000 in 2016 in the Company's accompanying consolidated statement of income. The provision for income taxes from continuing operations in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate to income from continuing operations before provision for income taxes due to the following: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Provision for Income Taxes at Statutory Rate (21% in 2018 and 35% in 2017 and 2016) $ 16,701 $ 20,179 $ 15,592 Increases (Decreases) Resulting From: State income taxes, net of federal tax 164 151 189 U.S. tax cost of foreign earnings 1,215 761 192 Foreign tax rate differential 3,158 (3,747 ) (3,921 ) (Reversal of) provision for tax benefit reserves, net (1,785 ) 1,517 (76 ) Change in valuation allowance 141 (341 ) (131 ) Nondeductible expenses 781 1,177 1,090 Research and development tax credits (445 ) (297 ) (229 ) Excess tax benefit related to stock-based compensation (967 ) (581 ) (553 ) Impact of the U.S. Tax Cuts and Jobs Act (106 ) 7,093 — Other (375 ) 158 (70 ) $ 18,482 $ 26,070 $ 12,083 Net deferred tax liability in the accompanying consolidated balance sheet consists of the following: (In thousands) December 29, 2018 December 30, 2017 Deferred Tax Asset: Foreign, state, and alternative minimum tax credit carryforwards $ 184 $ 185 Reserves and accruals 3,555 4,455 Net operating loss carryforwards 12,785 15,161 Inventory basis difference 3,692 3,265 Research and development — 88 Employee compensation 4,382 2,610 Allowance for doubtful accounts 482 505 Other 294 59 Deferred tax asset, gross 25,374 26,328 Less: valuation allowance (9,946 ) (10,835 ) Deferred tax asset, net 15,428 15,493 Deferred Tax Liability: Goodwill and intangible assets (28,060 ) (32,120 ) Fixed asset basis difference (3,565 ) (4,213 ) Provision for unremitted foreign earnings (1,124 ) (2,718 ) Research and development (54 ) — Other (619 ) (554 ) Deferred tax liability (33,422 ) (39,605 ) Net deferred tax liability $ (17,994 ) $ (24,112 ) The deferred tax assets and liabilities are presented in the accompanying consolidated balance sheet within other assets and long-term deferred income taxes on a net basis by tax jurisdiction. The Company has established valuation allowances related to certain domestic and foreign deferred tax assets on deductible temporary differences, tax losses, and tax credit carryforwards. The valuation allowance at year-end 2018 was $9,946,000 , consisting of $418,000 in the United States and $9,528,000 in foreign jurisdictions. The decrease in the valuation allowance in 2018 of $889,000 related primarily to fluctuations in foreign currency exchange rates and tax rate changes. Compliance with ASC 740 requires the Company to periodically evaluate the necessity of establishing or adjusting a valuation allowance for deferred tax assets depending on whether it is more likely than not that a related tax benefit will be realized in future periods. When assessing the need for a valuation allowance in a tax jurisdiction, the Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. As part of this evaluation, the Company considers its cumulative three-year history of earnings before income taxes, taxable income in prior carryback years, future reversals of existing taxable temporary differences, prudent and feasible tax planning strategies, and expected future results of operations. As of year-end 2018 , the Company continued to maintain a valuation allowance in the United States against a portion of its state net operating loss carryforwards due to the uncertainty of future profitability in state jurisdictions. As of year-end 2018 , the Company maintained valuation allowances in certain foreign jurisdictions because of the uncertainty of future profitability. At year-end 2018 , the Company had domestic state net operating loss carryforwards of $25,852,000 and foreign net operating loss carryforwards of $44,495,000 . The domestic state net operating loss carryforwards will expire in the years 2019 through 2037. Their utilization is limited to future taxable income from the Company's domestic subsidiaries. The foreign net operating loss carryforwards do not expire. At year-end 2018 , the Company had approximately $283,922,000 of unremitted foreign earnings. The Company intends to repatriate the distributable reserves of select foreign subsidiaries back to the United States and has recognized $830,000 of net tax expense on the estimated repatriation amount during 2018 . Except for these select foreign subsidiaries, the Company intends to indefinitely reinvest $272,846,000 of these earnings of its international subsidiaries in order to support the current and future capital needs of their operations in the foreign jurisdictions, including the repayment of the Company’s foreign debt. The related foreign withholding taxes, which would be required if the Company were to remit these foreign earnings to the United States, would be approximately $4,949,000 . The Company operates within multiple tax jurisdictions and could be subject to audit in those jurisdictions. Such audits can involve complex income tax issues, which may require an extended period of time to resolve and may cover multiple years. In management's opinion, adequate provisions for income taxes have been made for all years subject to audit. As of year-end 2018 , the Company had $12,364,000 of unrecognized tax benefits which, if recognized, would reduce the effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits at year-end 2018 and year-end 2017 is as follows: (In thousands) December 29, 2018 December 30, 2017 Unrecognized Tax Benefits, Beginning of Year $ 7,843 $ 5,467 Gross Increases—Tax Positions in Prior Periods 1,019 4 Gross Decreases—Tax Positions in Prior Periods (390 ) (22 ) Gross Increases—Current-period Tax Positions 7,344 2,229 Settlements (131 ) — Lapses of Statutes of Limitations (3,190 ) (11 ) Currency Translation (131 ) 176 Unrecognized Tax Benefits, End of Year $ 12,364 $ 7,843 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company has accrued $2,087,000 at year-end 2018 and $1,523,000 at year-end 2017 for the potential payment of interest and penalties. The interest and penalties included in the accompanying consolidated statement of income was an expense of $544,000 in 2018 and $199,000 in 2017 . The Company is currently under audit in certain tax jurisdictions. It is reasonably possible that over the next fiscal year the amount of liability for unrecognized tax benefits may be reduced by up to $841,000 primarily from the expiration of tax statutes of limitations. The Company remains subject to U.S. Federal income tax examinations for the tax years 2015 through 2018, and to non-U.S. income tax examinations for the tax years 2004 through 2018. In addition, the Company remains subject to state and local income tax examinations in the United States for the tax years 2004 through 2018. |
Long-Term Obligations
Long-Term Obligations | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | Long-Term Obligations Long-term obligations are as follows: (In thousands) December 29, 2018 December 30, 2017 Revolving Credit Facility, due 2023 $ 141,106 $ 237,011 Commercial Real Estate Loan, due 2019 to 2028 20,475 — Senior Promissory Notes, due 2023 to 2028 10,000 — Obligations Under Capital Lease, due 2019 to 2022 4,144 4,633 Other Borrowings, due 2019 to 2023 244 436 Unamortized Debt Issuance Costs (148 ) — Total 175,821 242,080 Less: Current Maturities of Long-Term Obligations (1,668 ) (696 ) Long-Term Obligations $ 174,153 $ 241,384 See Note 10 for the fair value information related to the Company's long-term obligations. Revolving Credit Facility In December 2018, the Company entered into a second amendment (Second Amendment) to its existing amended and restated five -year, unsecured multi-currency revolving credit facility (Credit Agreement), dated as of March 1, 2017. Pursuant to the Second Amendment, the Credit Agreement was amended to, among other changes, increase its borrowing capacity from $ 300,000,000 to $ 400,000,000 , increase its uncommitted unsecured incremental borrowing facility from $ 100,000,000 to $ 150,000,000 and extend its maturity date from March 1, 2022 to December 14, 2023. Interest on borrowings outstanding accrues and is payable quarterly in arrears calculated 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 2.25% . The applicable margin is determined based upon the ratio of the Company's total debt, net of unrestricted cash up to $ 30,000,000 and certain debt obligations, to earnings before interest, taxes, depreciation, and amortization (EBITDA) as defined in the Credit Agreement. The obligations of the Company under the Credit Agreement may be accelerated upon the occurrence of an event of default, which includes customary events of defaults under such financing arrangements. In addition, as amended by the Second Amendment, the Credit Agreement contains negative covenants applicable to the Company and its subsidiaries, including financial covenants requiring the Company to maintain a maximum consolidated leverage ratio of 3.75 to 1.00 , or for the quarter during which a material acquisition occurs and for the three fiscal quarters thereafter, 4.00 to 1.00 , and limitations on making certain restricted payments (including dividends and stock repurchases). Loans under the Credit Agreement are guaranteed by certain domestic subsidiaries of the Company. In addition, one of the Company’s foreign subsidiaries entered into a separate guarantee agreement limited to certain obligations of two foreign subsidiary borrowers. At year-end 2018, the outstanding balance under the Credit Agreement was $ 141,106,000 , and included $ 41,612,000 of Canadian dollar-denominated borrowings and $ 19,494,000 of euro-denominated borrowings. The Company had $ 258,864,000 of borrowing capacity available under the Credit Agreement at year-end 2018, which was calculated by translating its foreign-denominated borrowings using borrowing date foreign exchange rates. The weighted average interest rate for the outstanding balance under the Credit Agreement was 3.47% as of year-end 2018. See Note 15, Subsequent Events, for the additional borrowings under the Credit Agreement related to the Company's acquisition that occurred on January 2, 2019. During 2018, the Company incurred $ 741,000 of debt issuance costs related to the Second Amendment of the Credit Agreement. Unamortized debt issuance costs related to the Credit Agreement, included in other assets in the accompanying consolidated balance sheet, were $ 1,735,000 at year-end 2018 and $ 1,285,000 at year-end 2017 and are being amortized to interest expense using the straight-line method. Commercial Real Estate Loan In July 2018, the Company and certain domestic subsidiaries borrowed $ 21,000,000 under a promissory note (Real Estate Loan) which is repayable in quarterly principal installments of $ 262,500 over a ten -year period with the remaining principal balance of $ 10,500,000 due upon maturity. Interest accrues and is payable quarterly in arrears at a fixed rate of 4.45% per annum. The Company is not permitted to prepay any amount in the first twelve months of the term of the Real Estate Loan. Any voluntary prepayments are subject to a 2% prepayment fee if paid in the second twelve months of the term of the Real Estate Loan and are subject to a 1% prepayment fee if paid in the third twelve months of the term of the Real Estate Loan. Thereafter, no prepayment fee will be applied to voluntary prepayment by the Company. The Real Estate Loan is secured by real estate and related personal property of the Company and certain of its domestic subsidiaries, pursuant to the mortgage and security agreements dated July 6, 2018 (Mortgage and Security Agreements). The obligations of the Company under the Real Estate Loan may be accelerated upon the occurrence of an event of default under the Real Estate Loan and the Mortgage and Security Agreements, which includes customary events of default for financings of this type. In addition, a default under the Credit Agreement or any successor credit facility would be an event of default under the Real Estate Loan. The Company used the proceeds from the Real Estate Loan to repay a portion of its U.S. dollar-denominated debt under the Credit Agreement. The Company incurred $ 158,000 of debt issuance costs related to the Real Estate Loan. The effective interest rate for the Real Estate Loan, including amortization of debt issuance costs, was 4.60% as of December 29, 2018. Senior Promissory Notes In December 2018, the Company entered into an uncommitted, unsecured Multi-Currency Note Purchase and Private Shelf Agreement (Note Purchase Agreement). Simultaneous with the execution of the Note Purchase Agreement, the Company issued senior promissory notes (Initial Notes) in an aggregate principal amount of $ 10,000,000 , with a per annum interest rate of 4.90% payable semiannually, and a maturity date of December 14, 2028. The Company is required to prepay a portion of the principal of the Initial Notes beginning on December 14, 2023 and each year thereafter, and may optionally prepay the principal on the Initial Notes, together with any prepayment premium, at any time (in a minimum amount of $ 1,000,000 , or the foreign currency equivalent thereof, if applicable) in accordance with the Note Purchase Agreement. The obligations of Initial Notes may be accelerated upon an event of default as defined in the Note Purchase Agreement, which includes customary events of defaults under such financing arrangements. In accordance with the Note Purchase Agreement, the Company may also issue additional senior promissory notes (together with the Initial Notes, the Senior Promissory Notes) up to an additional $ 115,000,000 until the earlier of December 14, 2021 or the thirtieth day after written notice to terminate the issuance and sale of additional notes pursuant to the Note Purchase Agreement. The Senior Promissory Notes will be pari passu with the Company’s indebtedness under the Credit Agreement, and any other senior debt of the Company, subject to certain specified exceptions, and will participate in a sharing agreement with respect to the obligations of the Company and its subsidiaries under the Credit Agreement. The Senior Promissory Notes are guaranteed by certain of the Company’s domestic subsidiaries. The Company incurred $ 193,000 of debt issuance costs related to the Note Purchase Agreement. The following schedule presents the annual repayment requirements for the Company’s Credit Agreement, Real Estate Loan and Initial Notes as of year-end 2018. (In thousands) 2019 $ 1,050 2020 1,050 2021 1,050 2022 1,050 2023 143,823 2024 and Thereafter 23,558 $ 171,581 Debt Compliance At year-end 2018, the Company was in compliance with the covenants related to its debt obligations. Obligations Under Capital Lease The Company's obligations under capital leases include a sale-leaseback financing arrangement for a manufacturing facility in Germany. Under this arrangement, the quarterly lease payment includes principal, interest, and a payment to the landlord toward a loan receivable. The interest rate on the outstanding obligation is 1.79% . The secured loan receivable, which is included in other assets in the accompanying consolidated balance sheet, was $ 692,000 at year-end 2018 . The lease arrangement provides for a fixed price purchase option, net of the projected loan receivable, of $1,524,000 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 year-end 2018 , $4,082,000 was outstanding under this capital lease obligation and $62,000 was outstanding under other capital lease obligations. The following schedule presents future minimum lease payments under the Company's capital lease obligations and the present value of the minimum lease payments as of year-end 2018 . (In thousands) 2019 $ 571 2020 578 2021 542 2022 1,099 Total Minimum Lease Payments $ 2,790 Less: Imputed Interest (170 ) Present Value of Minimum Lease Payments $ 2,620 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company occupies office and operating facilities under various operating leases. The accompanying consolidated statement of income includes expenses from operating leases of $5,575,000 in 2018 , $4,955,000 in 2017 , and $4,298,000 in 2016 . The future minimum payments due under noncancelable operating leases at year-end 2018 are $4,507,000 in 2019 ; $3,275,000 in 2020 ; $2,230,000 in 2021 ; $1,579,000 in 2022 ; $987,000 in 2023 and $1,713,000 thereafter. Total future minimum lease payments are $14,291,000 . Letters of Credit and Bank Guarantees Outstanding letters of credit and bank guarantees issued on behalf of the Company, principally relating to performance obligations and customer deposit guarantees, totaled $18,320,000 at year-end 2018 . Certain of the Company's contracts, particularly for stock-preparation and systems orders, require the Company to provide a standby letter of credit or bank guarantee to a customer as beneficiary, limited in amount to a negotiated percentage of the total contract value, in order to guarantee warranty and performance obligations of the Company under the contract. Typically, these standby letters of credit and bank guarantees expire without being drawn by the beneficiary. Right of Recourse In the ordinary course of business, the Company's subsidiaries in China may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The drafts are noninterest-bearing obligations of the issuing bank 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. The Company had $12,406,000 at year-end 2018 and $10,035,000 at year-end 2017 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. Contingencies In the ordinary course of business, the Company is, at times, required to issue limited performance guarantees, some of which do not require the issuance of letters of credit to customers in support of these guarantees, relating to its equipment and systems. The Company generally limits its liability under these guarantees to amounts typically capped at 10% or less of the value of the contract. The Company believes that it has adequate reserves for any potential liability in connection with such guarantees. Litigation From time to time, the Company is subject to various claims and legal proceedings covering a range of matters that arise in the ordinary course of business. Such litigation may include, 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. |
Restructuring Costs and Other I
Restructuring Costs and Other Income | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs and Other Income | Restructuring Costs and Other Income Restructuring Costs In 2017, the Company constructed a 160,000 square foot manufacturing facility in the United States that integrated its U.S. and Swedish papermaking stock-preparation product lines into a single manufacturing facility to achieve economies of scale and greater efficiencies. As a result of the consolidation and integration of these facilities, the Company developed a restructuring plan totaling $ 1,920,000 , primarily related to costs for the relocation of machinery and equipment and administrative offices, severance, and abandonment of leased facilities in the Papermaking Systems segment. As a result of this plan, the Company recorded restructuring charges of $203,000 in 2017 associated with severance costs for the reduction of four employees in the United States and six employees in Sweden. In 2018, the Company recorded additional restructuring costs of $ 1,717,000 related to this plan, including $ 1,318,000 primarily for the relocation of machinery and equipment and administrative offices, $ 454,000 associated with employee retention costs and abandonment of excess facility and other closure costs, and a reversal of $55,000 of severance costs no longer required. The Company does not expect to incur additional charges related to this restructuring plan. A summary of the changes in accrued restructuring costs included in other accrued expenses in the accompanying consolidated balance sheet are as follows: (In thousands) Severance Relocation Other (a) Total 2017 Restructuring Plan Provision $ 203 $ — $ — $ 203 Balance at December 30, 2017 203 — — 203 (Reversal) Provision (55 ) 1,318 454 1,717 Usage (77 ) (1,315 ) (448 ) (1,840 ) Currency translation (8 ) (3 ) (6 ) (17 ) Balance at December 29, 2018 $ 63 $ — $ — $ 63 (a) Includes employee retention costs that are accrued ratably over the period through which employees must work to qualify for a payment and facility closure and clean-up costs. Other Income In 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 . |
Derivatives
Derivatives | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives Interest Rate Swap Agreements In May 2018, the Company entered into an interest rate swap agreement (2018 Swap Agreement) which has a $ 15,000,000 notional value and expires on June 30, 2023. In 2015, the Company also entered into an interest rate swap agreement (2015 Swap Agreement) which has a $10,000,000 notional value and expires on March 27, 2020. The swap agreements hedge the Company’s exposure to movements in the three-month LIBOR rate on U.S. dollar-denominated debt. On a quarterly basis, the Company receives a three-month LIBOR rate and pays a fixed rate of interest of 3.15% plus an applicable margin as defined in the Credit Agreement on the 2018 Swap Agreement and 1.50% plus an applicable margin as defined in the Credit Agreement on the 2015 Swap Agreement. The 2018 Swap Agreement is subject to a zero percent floor on the three-month LIBOR rate. The interest rate swap agreements are designated as cash flow hedges and, accordingly, unrecognized gains and losses are recorded to AOCI, net of tax. The Company has structured the interest rate swap agreements to be 100% effective and, as a result, there is no current impact to earnings resulting from hedge ineffectiveness. Management believes that any credit risk associated with the interest rate swap agreements is remote based on the Company's financial position and the creditworthiness of the financial institution that issued those agreements. The counterparty to the interest rate swap agreements could demand an early termination of those agreements if the Company were to be in default under the Credit Agreement, or any agreement that amends or replaces the Credit Agreement in which the counterparty is a member, and if the Company were to be unable to cure the default (see Note 6 ). The fair values of the interest rate swap agreements represent the estimated amounts that the Company would receive from or pay to the counterparty in the event of an early termination. Forward Currency-Exchange Contracts The Company uses forward currency-exchange contracts primarily to hedge exposures resulting from fluctuations in currency exchange rates. Such exposures result primarily from portions of the Company's operations and assets and liabilities that are denominated in currencies other than the functional currencies of the businesses conducting the operations or holding the assets and liabilities. The Company typically manages its level of exposure to the risk of currency-exchange fluctuations by hedging a portion of its anticipated currency exposures over the ensuing 12-month period, using forward currency-exchange contracts that have maturities of twelve months or less. Forward currency-exchange contracts that hedge forecasted accounts receivable or accounts payable are designated as cash flow hedges and unrecognized gains and losses are recorded to 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 values of forward currency-exchange contracts that are not designated as hedges are recorded currently in earnings. The Company recognized within SG&A expenses in the accompanying consolidated statement of income losses of $27,000 in 2018 , $1,367,000 in 2017 and $797,000 in 2016 , 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 in the accompanying consolidated balance sheet: December 29, 2018 December 30, 2017 (In thousands) Balance Sheet Asset Notional Asset Notional Derivatives Designated as Hedging Instruments: Derivatives in an Asset Position: 2015 Swap Agreement Other Long-Term $ 148 $ 10,000 $ 126 $ 10,000 Forward currency-exchange contract Other Long Term $ 11 $ 842 $ — $ — Derivatives in a Liability Position: Forward currency-exchange contract Other Current $ (50 ) $ 2,946 $ — $ — 2018 Swap Agreement Other Long-Term $ (352 ) $ 15,000 $ — $ — Derivatives Not Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contracts Other Current $ 9 $ 1,192 $ 17 $ 1,244 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current $ (31 ) $ 1,384 $ (16 ) $ 2,049 (a) See Note 10 for the fair value measurements relating to these financial instruments. (b) The total 2018 notional amounts are indicative of the level of the Company's recurring derivative activity. 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 year ended December 29, 2018 : (In thousands) Interest Rate Swap Forward Currency- Total Unrealized Gain, Net of Tax, at December 30, 2017 $ 79 $ — $ 79 Loss (gain) reclassified to earnings (a) 8 (16 ) (8 ) Loss recognized in AOCI (257 ) (11 ) (268 ) Unrealized Loss, Net of Tax, at December 29, 2018 $ (170 ) $ (27 ) $ (197 ) (a) See Note 13 for the income statement classification. At year-end 2018 , the Company expects to reclassify $8,000 from AOCI to earnings over the next twelve months based on the estimated cash flows of the interest rate swap agreements and the maturity dates of the forward currency- exchange contracts. |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 29, 2018 | |
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 December 29, 2018 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 6,902 $ — $ — $ 6,902 Banker's acceptance drafts (a) $ — $ 7,976 $ — $ 7,976 2015 Swap Agreement $ — $ 148 $ — $ 148 Forward currency-exchange contracts $ — $ 20 $ — $ 20 Liabilities: 2018 Swap Agreement $ — $ 352 $ — $ 352 Forward currency-exchange contracts $ — $ 81 $ — $ 81 Fair Value as of December 30, 2017 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 17,728 $ — $ — $ 17,728 Banker's acceptance drafts (a) $ — $ 15,960 $ — $ 15,960 2015 Swap Agreement $ — $ 126 $ — $ 126 Forward currency-exchange contracts $ — $ 17 $ — $ 17 Liabilities: Forward currency-exchange contracts $ — $ 16 $ — $ 16 (a) Included in accounts receivable in the accompanying consolidated balance sheet. The Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during 2018 . The Company's financial assets and liabilities carried at fair value are cash equivalents, banker's acceptance drafts, derivative instruments used to hedge the Company's foreign currency and interest rate risks, variable rate debt, and capital lease obligations. The Company's cash equivalents are comprised of money market funds and bank deposits which are highly liquid and readily tradable. These cash equivalents are valued using inputs observable in active markets for identical securities. The carrying value of banker's acceptance drafts approximates their fair value due to the short-term nature of the negotiable instrument. The fair values of the Company's forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date. The fair values of the Company's interest rate swap agreements is based on LIBOR yield curves at the reporting date. The forward currency-exchange contracts and interest rate swap agreements are hedges of either recorded assets or liabilities or anticipated transactions. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above. The carrying value and fair value of the Company's debt obligations are as follows: December 29, 2018 December 30, 2017 (In thousands) Carrying Fair Carrying Fair Debt Obligations: Revolving credit facility $ 141,106 $ 141,106 $ 237,011 $ 237,011 Commercial real estate loan 20,475 20,575 — — Senior promissory notes 10,000 10,120 — — Capital lease obligations 4,144 4,144 4,633 4,633 Other borrowings 244 244 436 436 $ 175,969 $ 176,189 $ 242,080 $ 242,080 The carrying value of the Company's revolving credit facility approximates the fair value as the obligation bears variable rates of interest, which adjust quarterly based on prevailing market rates. The fair values of the commercial real estate loan and senior promissory notes were calculated based on quoted market rates, plus an applicable margin available to the Company at the end of the quarter, which represents a Level 2 measurement. The carrying values of the Company's capital lease obligations and other borrowings approximate fair value as the stipulated interest rates are comparable to prevailing market rates for those obligations. |
Business Segment and Geographic
Business Segment and Geographical Information | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Business Segment and Geographical Information | Business Segment and Geographical Information The Company has combined its operating entities into two reportable operating segments, Papermaking Systems and Wood Processing Systems, and a separate product line, Fiber-based Products. In classifying operational entities into a particular segment, the Company has aggregated businesses with similar economic characteristics, products and services, production processes, customers, and methods of distribution. The Papermaking Systems segment develops, manufactures, and markets a range of equipment and products for the global papermaking, paper recycling, recycling and waste management, and other process industries. The Company's principal products 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 and equipment used in industrial piping systems to compensate for movement and to efficiently transfer fluid, power, and data; doctoring systems and equipment and related consumables important to the efficient operation of paper machines and other industrial processes; and filtration and cleaning systems essential for draining, purifying, and recycling process water and cleaning fabrics, belts, and rolls in various process industries. The Wood Processing Systems segment develops, manufactures, and markets stranders, debarkers, chippers, and logging machinery used in the harvesting and production of lumber and OSB. Through this segment, the Company also provides refurbishment and repair of pulping equipment for the pulp and paper industry. The Fiber-based Products business manufactures and sells biodegradable, absorbent granules derived from papermaking by-products for use primarily as carriers for agricultural, home lawn and garden, and professional lawn, turf and ornamental applications, as well as for oil and grease absorption. (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Business Segment Information Revenues by Product Line: Papermaking Systems: Stock-Preparation $ 221,933 $ 193,838 $ 171,378 Fluid-Handling 131,830 104,136 89,145 Doctoring, Cleaning, & Filtration 116,136 109,631 105,938 Papermaking Systems $ 469,899 $ 407,605 $ 366,461 Wood Processing Systems 151,366 95,053 36,850 Fiber-based Products 12,521 12,375 10,815 $ 633,786 $ 515,033 $ 414,126 Income from Continuing Operations Before Provision for Income Taxes: Papermaking Systems (a) $ 83,454 $ 73,069 $ 58,025 Wood Processing Systems (b) 31,237 10,005 8,327 Corporate and Fiber-based Products (c) (26,093 ) (21,449 ) (19,710 ) Total operating income 88,598 61,625 46,642 Interest expense, net (d) (6,653 ) (3,100 ) (1,024 ) Other expense, net (d, e) (2,417 ) (872 ) (1,069 ) $ 79,528 $ 57,653 $ 44,549 Total Assets: Papermaking Systems $ 462,297 $ 494,919 $ 407,538 Wood Processing Systems 247,553 257,467 52,407 Other (f) 15,899 8,708 10,746 $ 725,749 $ 761,094 $ 470,691 Depreciation and Amortization: Papermaking Systems $ 12,561 $ 11,239 $ 11,513 Wood Processing Systems 10,317 7,515 2,188 Other 690 621 625 $ 23,568 $ 19,375 $ 14,326 Capital Expenditures: Papermaking Systems $ 12,717 $ 14,359 $ 5,504 Wood Processing Systems 3,272 2,333 29 Other 570 589 271 $ 16,559 $ 17,281 $ 5,804 Geographical Information Revenues (g): United States $ 234,487 $ 182,788 $ 165,335 China 89,645 63,910 43,299 Canada 61,096 47,611 28,888 Germany 26,577 32,026 18,095 Finland 10,934 8,607 3,885 Other 211,047 180,091 154,624 $ 633,786 $ 515,033 $ 414,126 Long-lived Assets (h): United States $ 35,446 $ 32,852 $ 18,482 China 11,069 11,685 10,714 Canada 8,193 9,449 1,125 Finland 6,998 5,841 — Germany 6,223 6,452 5,792 Other 12,228 13,444 11,591 $ 80,157 $ 79,723 $ 47,704 (a) Includes $ 787,000 in 2017 and $ 3,491,000 in 2016 of acquisition-related expenses. Acquisition-related expenses include acquisition transaction costs and amortization of acquired profit in inventory and backlog. Includes restructuring costs of $ 1,717,000 in 2018 and $203,000 in 2017, and other income of $317,000 in 2016 (see Note 8 ). (b) Includes $ 252,000 in 2018 and $ 11,163,000 in 2017 of acquisition-related expenses. (c) Corporate primarily includes general and administrative expenses, including $ 1,321,000 in 2018 of acquisition-related expenses. (d) The Company does not allocate interest and other expense, net to its segments. (e) Includes a curtailment loss of $ 1,425,000 in 2018 (see Note 3 , Employee Benefit Plans, under Pension and Other Post-Retirement Benefits Plans). (f) Primarily includes Corporate and Fiber-based Products' cash and cash equivalents, tax assets, and property, plant, and equipment. (g) Revenues are attributed to countries based on customer location. (h) Represents property, plant, and equipment, net. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Basic and diluted EPS were calculated as follows: (In thousands, except per share amounts) December 29, 2018 December 30, 2017 December 31, 2016 Amounts Attributable to Kadant Income from Continuing Operations $ 60,413 $ 31,092 $ 32,074 Income from Discontinued Operation — — 3 Net Income Attributable to Kadant $ 60,413 $ 31,092 $ 32,077 Basic Weighted Average Shares 11,086 10,991 10,869 Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares 314 321 280 Diluted Weighted Average Shares 11,400 11,312 11,149 Basic EPS Continuing Operations $ 5.45 $ 2.83 $ 2.95 Discontinued Operation $ — $ — $ — Earnings per Basic Share $ 5.45 $ 2.83 $ 2.95 Diluted EPS Continuing Operations $ 5.30 $ 2.75 $ 2.88 Discontinued Operation $ — $ — $ — Earnings per Diluted Share $ 5.30 $ 2.75 $ 2.88 The dilutive effect of the outstanding and unvested RSUs totaling 18,700 shares in 2018 , 15,600 shares in 2017 , and 36,700 shares in 2016 of the Company's common stock was not included in the computation of diluted EPS, 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 during the year. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Items | 12 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [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 consolidated balance sheet. Changes in each component of AOCI, net of tax, are as follows: (In thousands) Foreign Currency Translation Adjustment Unrecognized Prior Service (Cost) Income on Retirement Benefit Plans Net Actuarial Loss on Retirement Benefit Plans Deferred Gain (Loss) on Cash Flow Hedges Total Balance at December 30, 2017 $ (17,501 ) $ (319 ) $ (8,974 ) $ 79 $ (26,715 ) Other comprehensive (loss) income before reclassifications (17,303 ) (810 ) 4,020 (268 ) (14,361 ) Reclassifications from AOCI — 1,149 559 (8 ) 1,700 Net current period other comprehensive (loss) income (17,303 ) 339 4,579 (276 ) (12,661 ) Balance at December 29, 2018 $ (34,804 ) $ 20 $ (4,395 ) $ (197 ) $ (39,376 ) Amounts reclassified out of AOCI are as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Statement of Income Line Item Retirement Benefit Plans (a) Recognized net actuarial loss $ (740 ) $ (563 ) $ (701 ) Other expense, net Amortization of prior service cost (92 ) (147 ) (147 ) Other expense, net Curtailment loss (1,425 ) — — Other expense, net Total expense before income taxes (2,257 ) (710 ) (848 ) Income tax benefit 549 246 295 Provision for income taxes (1,708 ) (464 ) (553 ) Cash Flow Hedges (b) Interest rate swap agreements (11 ) (30 ) (174 ) Interest expense Forward currency-exchange contracts — — (14 ) Revenues Forward currency-exchange contracts 22 (97 ) (186 ) Cost of revenues Total income (expense) before income taxes 11 (127 ) (374 ) Income tax (provision) benefit (3 ) 43 (37 ) Provision for income taxes 8 (84 ) (411 ) Total Reclassifications $ (1,700 ) $ (548 ) $ (964 ) (a) Included in the computation of net periodic benefit cost. See Note 3 for additional information. (b) See Note 9 for additional information. |
Unaudited Quarterly Information
Unaudited Quarterly Information | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Information | Unaudited Quarterly Information 2018 (In thousands, except per share amounts) First Second Third Fourth Revenues $ 149,193 $ 154,913 $ 165,745 $ 163,935 Gross Profit $ 66,079 $ 68,164 $ 73,093 $ 70,945 Net Income Attributable to Kadant $ 10,858 $ 12,349 $ 18,784 $ 18,422 Basic Earnings per Share: Net Income Attributable to Kadant $ 0.98 $ 1.11 $ 1.69 $ 1.66 Diluted Earnings per Share: Net Income Attributable to Kadant $ 0.96 $ 1.08 $ 1.64 $ 1.61 Cash Dividends Declared per Common Share $ 0.22 $ 0.22 $ 0.22 $ 0.22 2017 (In thousands, except per share amounts) First Second Third Fourth Revenues $ 102,857 $ 110,242 $ 152,794 $ 149,140 Gross Profit 49,017 52,852 64,655 64,623 Net Income Attributable to Kadant $ 8,951 $ 8,096 $ 13,285 $ 760 Basic Earnings per Share: Net Income Attributable to Kadant $ 0.82 $ 0.74 $ 1.21 $ 0.07 Diluted Earnings per Share: Net Income Attributable to Kadant $ 0.80 $ 0.72 $ 1.17 $ 0.07 Cash Dividends Declared per Common Share $ 0.21 $ 0.21 $ 0.21 $ 0.21 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 29, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisition On January 2, 2019, the Company acquired Syntron Material Handling Group, LLC and certain of its affiliates (SMH) pursuant to an equity purchase agreement, dated December 9, 2018, for approximately $ 179,000,000 , subject to certain customary adjustments. The Company funded the acquisition through borrowings under its Credit Agreement and recognized acquisition costs of $1,321,000 within SG&A expenses in the accompanying consolidated statement of income in 2018. SMH is a leading provider of material handling equipment and systems to various process industries, including mining, aggregates, food processing, packaging, and pulp and paper and manufactures conveying equipment, with revenue of $89,365,000 for the twelve months ended October 31, 2018 and approximately 250 employees worldwide. This acquisition extends the Company's breadth of premier offerings to process industries, and also gives the Company access to new industries that offer potential avenues for growth. The Company expects several synergies in connection with this acquisition, including expansion of product sales into new markets by leveraging SMH's existing presence, strengthening of SMH's relationships in the pulp and paper industry, and sourcing efficiencies. The excess of the purchase price for the acquisition of SMH over the net assets acquired will be recorded as goodwill. The Company is currently evaluating its segment classification of the SMH business. The Company has not yet completed its preliminary assessment of the fair value of the assets acquired and liabilities assumed in the SMH acquisition, including the valuation of intangible assets and goodwill, due to the proximity of the acquisition to the issuance of these consolidated financial statements. Accordingly and as permitted by ASC 805, Business Combinations , we are unable to provide further disclosures, including the allocation of the purchase price and pro forma financial information, for this acquisition at this time. In connection with the acquisition of SMH, the Company assumed multiple leased properties and is currently evaluating the effect these leases will have on its consolidated financial statements upon the adoption of ASU No. 2016-02, Leases (Topic 842) as described in Note 1, under Recent Accounting Pronouncements Not Yet Adopted. Borrowings Under the Credit Agreement On December 31, 2018, the Company borrowed an aggregate amount of $180,000,000 , primarily used to finance the acquisition of SMH, under its existing revolving credit facility pursuant to the terms of the Credit Agreement. See Note 6 , Long-Term Obligations, for further details. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements of the Company include the accounts of its wholly and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. |
Fiscal Year | Fiscal Year The Company has adopted a fiscal year ending on the Saturday nearest to December 31. References to 2018 , 2017 , and 2016 are for the fiscal years ended December 29, 2018 , December 30, 2017 , and December 31, 2016 , respectively. |
Use of Estimates and Critical Accounting Policies | Use of Estimates and Critical Accounting Policies The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Critical accounting policies are defined as those that entail significant judgments and estimates, and could potentially result in materially different results under different assumptions and conditions. The Company believes that the most critical accounting policies upon which its financial position depends, and which involve the most complex or subjective decisions or assessments, concern revenue recognition, 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. Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its consolidated financial statements or in the application of accounting policies, if business conditions were different, or if the Company were to use different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's consolidated financial statements. |
Revenue Recognition | Revenue Recognition Effective at the beginning of fiscal 2018, the Company adopted Topic 606, using a modified retrospective method. See Recently Adopted Accounting Pronouncements in this note for further discussion. Results for fiscal 2018 are presented under Topic 606, while prior period amounts are not adjusted and are reported in accordance with Topic 605. The impact on any financial statement line item arising from the application of Topic 606 compared to Topic 605 on the Company's results for the 2018 period is not material. In 2018, approximately 91% of the Company’s revenue was recognized at a point in time for each performance obligation under the contract when the customer obtains control of the goods or service. The majority of the Company’s parts and consumables products and capital products with minimal customization are accounted for at a point in time. The Company has made a policy election to not treat the obligation to ship as a separate performance obligation under the contract and, as a result, the associated shipping costs are accrued when revenue is recognized. The remaining 9% of the Company’s revenue in 2018 was recognized on an over time basis based on an input method that compares the costs incurred to date to the total expected costs required to satisfy the performance obligation. Contracts are accounted for on an over time basis when they include products which have no alternative use and an enforceable right to payment over time. The majority of the contracts recognized on an over time basis are for large capital projects within the Company's Stock-Preparation product line and, to a lesser extent, its Fluid-Handling and Doctoring, Cleaning, & Filtration product lines. These projects are highly customized for the customer and, as a result, would include a significant cost to rework in the event of cancellation. The following table presents revenue by revenue recognition method: (In thousands) December 29, 2018 Point in Time $ 577,506 Over Time 56,280 $ 633,786 The transaction price is typically based on the amount billed to the customer and includes estimated variable consideration where applicable. Such variable consideration relates to certain performance guarantees and rights to return the product. The Company estimates variable consideration as the most likely amount to which it expects to be entitled based on the terms of the contracts with customers and historical experience, where relevant. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation based on the relative stand-alone selling price. The Company's contracts covering the sale of its products include warranty provisions that provide assurance to its customers that the products will comply with agreed-upon specifications. The Company negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications. The Company disaggregates its revenue from contracts with customers by product line, product type and geography as this best depicts how its revenue is affected by economic factors. The following table presents the disaggregation of revenues by product type and geography: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Revenues by Product Type: Parts and Consumables $ 374,433 $ 316,506 $ 258,171 Capital 259,353 198,527 155,955 $ 633,786 $ 515,033 $ 414,126 Revenues by Geography: North America $ 305,618 $ 238,483 $ 203,063 Europe 174,681 157,994 115,233 Asia 109,688 78,443 62,703 Rest of World 43,799 40,113 33,127 $ 633,786 $ 515,033 $ 414,126 See Note 11 , Business Segment and Geographical Information, for information on how the Company disaggregates its revenue from contracts with customers by product line. The following tables presents contract balances from contracts with customers: (In thousands) December 29, 2018 December 30, 2017 Accounts receivable $ 92,624 $ 89,624 Contract assets $ 15,741 $ 2,374 Contract liabilities $ 34,774 $ 38,702 Contract assets represent unbilled revenues associated with revenue recognized on contracts accounted for on an over time basis, which will be billed in future periods based on the contract terms. Contract assets increased from $2,374,000 at December 30, 2017 to $15,741,000 at December 29, 2018 due to the timing of progress payments associated with the shipment of large capital projects in the second half of 2018. Contract liabilities consist of customer deposits and advanced billings, and deferred revenue which is included in other current liabilities in the accompanying consolidated balance sheet. Contract liabilities will be recognized as revenue in future periods once the revenue recognition criteria are met. The majority of the contract liabilities relate to advanced payments on contracts accounted for at a point in time. These advance payments will be recognized as revenue when the Company's performance obligations have been satisfied, which typically occurs when the product has been shipped and control of the asset has transferred to the customer. The Company recognized revenue of $36,556,000 in 2018 that was included in the contract liabilities balance at the beginning of fiscal 2018. Customers in China will often settle their accounts receivable with a banker's acceptance draft, in which case cash settlement will be delayed until the banker's acceptance draft matures or is settled prior to maturity. For customers outside of China, final payment for the majority of the Company's products is received in the quarter following the product shipment. Certain of the Company's contracts include a longer period before final payment is due, which is typically within one year of final shipment or transfer of control to the customer. The Company includes in revenue amounts invoiced for shipping and handling with the corresponding costs reflected in cost of revenues. Provisions for discounts, warranties, returns and other adjustments are provided for in the period in which the related sales was recorded. Sales taxes, value-added taxes and certain excise taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenue. In 2017 and 2016, the Company recognized revenue under ASC 605, "Revenue Recognition," (ASC 605) when the following criteria had been met: persuasive evidence of an arrangement existed, delivery had occurred or service had been rendered, the sales price was fixed or determinable, and collectability was reasonably assured. When the terms of the sale included customer acceptance provisions, and compliance with those provisions could not be demonstrated until customer acceptance, revenue was recognized upon such acceptance. Most of the Company's revenue in 2017 and 2016 was recognized in accordance with the accounting policies in the preceding paragraph. However, when a sale arrangement involved multiple elements, such as equipment and installation, the Company considered the guidance in ASC 605. Such transactions were evaluated to determine whether the deliverables in the arrangement represented separate units of accounting based on the following criteria: the delivered item had value to the customer on a stand-alone basis, and if the contract included a general right of return relative to the delivered item, delivery or performance of the undelivered item was considered probable and substantially under the control of the Company. Revenue was allocated to each unit of accounting or element based on relative selling prices and was recognized as each element was delivered or completed. The Company determined relative selling prices by using either vendor-specific objective evidence (VSOE) if that existed, or third-party evidence of selling price. When neither VSOE nor third-party evidence of selling price existed for a deliverable, the Company used its best estimate of the selling price for that deliverable. In cases in which elements could not be treated as separate units of accounting, the elements were combined into a single unit of accounting for revenue recognition purposes. In addition in 2017 and 2016, revenues and profits on certain long-term contracts were recognized using the percentage-of-completion method or the completed-contract method of accounting pursuant to ASC 605. Revenues recorded under the percentage-of-completion method were $27,676,000 in 2017 and $23,300,000 in 2016 . The percentage of completion was determined by comparing the actual costs incurred to date to an estimate of total costs to be incurred on each contract. If a loss was indicated on any contract in process, a provision was made currently for the entire estimated loss. The Company's contracts generally provided for billing of customers upon the attainment of certain milestones specified in each contract. Revenues earned on contracts in process in excess of billings are classified as unbilled revenues and amounts billed in excess of revenues earned are classified as advanced billings. For long-term contracts that did not meet the criteria under ASC 605 to be accounted for under the percentage-of-completion method in 2017 and 2016, the Company recognized revenue using the completed-contract method. When using the completed-contract method, the Company recognized revenue when the contract was substantially complete, the product was delivered and, if applicable, the customer acceptance criteria were met. Customer deposits included $2,945,000 at year-end 2017 of advance payments, net of accumulated costs, on long-term contracts accounted for under the completed-contract method. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company exercises judgment in determining its allowance for doubtful accounts, which is based on its historical collection experience, current trends, credit policies, specific customer collection issues, and accounts receivable aging categories. In determining this allowance, the Company looks at historical write-offs of its receivables. The Company also looks at current trends in the credit quality of its customer base as well as changes in its credit policies. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and each customer's current creditworthiness. The Company continuously monitors collections and payments from its customers. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. In some instances, the Company utilizes letters of credit to mitigate its credit exposure. The changes in the allowance for doubtful accounts are as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Balance at Beginning of Year $ 2,879 $ 2,395 $ 2,163 Provision charged to expense 355 436 453 Accounts written off (165 ) (159 ) (128 ) Currency translation (172 ) 207 (93 ) Balance at End of Year $ 2,897 $ 2,879 $ 2,395 The Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The drafts are noninterest-bearing obligations of the issuing bank and mature within six months of the origination date. The Company's subsidiaries may sell the drafts at a discount to a third-party financial institution or transfer the drafts to vendors in settlement of current accounts payable prior to the scheduled maturity date. These drafts, which totaled $7,976,000 at year-end 2018 and $15,960,000 at year-end 2017 , are included in accounts receivable in the accompanying 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 historical occurrence rates and repair costs, as well as knowledge of any specific warranty problems that indicate 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 these factors or actual results differ from the Company's estimates, revisions to the estimated warranty liability would be required. |
Income Taxes | Income Taxes In accordance with ASC 740, "Income Taxes," (ASC 740), the Company recognizes deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which these differences are expected to reverse. A tax valuation allowance is established, as needed, to reduce deferred tax assets to the amount expected to be realized. In the period in which it becomes more likely than not that some or all of the deferred tax assets will be realized, the valuation allowance will be adjusted. It is the Company's policy to provide for uncertain tax positions and the related interest and penalties based upon management's assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. At December 29, 2018 , the Company believes that it has appropriately accounted for any liability for unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established, the statute of limitations expires for a tax jurisdiction year, or the Company is required to pay amounts in excess of the liability, its effective tax rate in a given financial statement period may be affected. |
Earnings per Share | Earnings per Share Basic earnings per share (EPS) is computed by dividing net income attributable to Kadant by the weighted average number of shares outstanding during the year. Diluted EPS is computed using the treasury stock method assuming the effect of all potentially dilutive securities, including stock options, restricted stock units (RSUs) and employee stock purchase plan shares. |
Cash and Cash Equivalents | Cash and Cash Equivalents At year-end 2018 and year-end 2017 , the Company's cash equivalents included investments in money market funds and other marketable securities, which had maturities of three months or less at the date of purchase. The carrying amounts of cash equivalents approximate their fair values due to the short-term nature of these instruments. |
Restricted Cash | Restricted Cash The Company's restricted 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 over the next twelve months. |
Inventories | Inventories Inventories are stated at the lower of cost (on a first-in, first-out; or weighted average basis) or net realizable value and include materials, labor, and manufacturing overhead. The Company regularly reviews its quantities of inventories on hand and compares these amounts to the historical and forecasted usage of and demand for each particular product or product line. The Company records a charge to cost of revenues for excess and obsolete inventory to reduce the carrying value of inventories to net realizable value. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. The Company provides for depreciation and amortization primarily using the straight-line method over the estimated useful lives of the property as follows: buildings, 10 to 40 years; machinery and equipment, 2 to 10 years; and leasehold improvements, the shorter of the term of the lease or the life of the asset. For construction in progress, no provision for depreciation is made until the assets are available and ready for use. |
Intangible Assets | ntangible assets are initially recorded at fair value at the date of acquisition. Definite-lived intangible assets are stated net of accumulated amortization and currency translation in the accompanying consolidated balance sheet. The Company amortizes definite-lived intangible assets over lives that have been determined based on the anticipated cash flow benefits of the intangible asset. Definite-lived intangible assets have a weighted average amortization period of 12 years . |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable net assets of the acquired business at the date of acquisition. The Company’s acquisitions have historically been made at prices above the fair value of the acquired net assets, resulting in goodwill, due to the expectation of synergies from combining the businesses. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates the recoverability of goodwill and indefinite-lived intangible assets as of the end of each fiscal year, or more frequently if events or changes in circumstances, such as a significant decline in sales, earnings, or cash flows, or material adverse changes in the business climate, indicate that the carrying value of an asset might be impaired. At year-end 2018 , the Company performed a quantitative goodwill impairment assessment (Step 1) for all of its reporting units, which indicated that the fair value of each reporting unit exceeded its carrying value, and determined that the asset was not impaired. At year-end 2017 , the Company performed a qualitative impairment analysis (Step 0) of its goodwill and determined that the asset was not impaired. The impairment analysis included an assessment of certain qualitative factors including, but not limited to, the results of prior fair value calculations, the movement of the Company's share price and market capitalization, the reporting unit and overall financial performance, and macroeconomic and industry conditions. The Company considered the qualitative factors and weighed the evidence obtained, and determined that it was not more likely than not that the fair value of any of the assets was less than its carrying amount. Although the Company believes the factors considered in the impairment analysis are reasonable, significant changes in any one of the assumptions used could have produced a different result. The Company assesses its long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever facts and circumstances indicate that the carrying amounts may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining lives of such assets or asset groups. If these projected cash flows were to be less than the carrying amounts, an impairment loss would be recognized, resulting in a write-down of the assets with a corresponding charge to earnings. The impairment loss would be measured based upon the difference between the carrying amounts of the assets and their fair values calculated using projected cash flows. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions All assets and liabilities of the Company's foreign subsidiaries are translated at fiscal year-end exchange rates, and revenues and expenses are translated at average exchange rates for each quarter in accordance with ASC 830, Foreign Currency Matters . Resulting translation adjustments are reflected in the "accumulated other comprehensive items" (AOCI) component of stockholders' equity (see Note 13 ). Foreign currency transaction gains and losses are included in the accompanying consolidated statement of income and are not material in the three years presented. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation cost for all stock-based awards granted to employees and directors based on the grant date estimate of fair value for those awards. The fair value of RSUs is based on the grant date price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period. The fair value of stock options is based on the Black-Scholes option-pricing model. For stock options and time-based RSUs, compensation expense is recognized ratably over the requisite service period for the entire award and net of actual forfeitures recorded when they occur. For performance-based RSUs, compensation expense is recognized ratably over the requisite service period for each separately-vesting portion of the award based on the grant date fair value, net of actual forfeitures and remeasured at each reporting period until the total number of RSUs to be issued is known. Compensation expense related to any modified stock-based awards is based on the fair value for those awards as of the modification date with any remaining incremental compensation expense recognized ratably over the remaining requisite service period. |
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. If a contract is deemed 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 change in the fair value of a derivative not deemed to be a hedge is recorded currently in earnings. The Company does not hold or engage in transactions involving derivative instruments for purposes other than risk management. ASC 815, Derivatives and Hedging , requires that all derivatives be recognized on the balance sheet at fair value. For derivatives designated as cash flow hedges, the related gains or losses on these contracts are deferred as a component of AOCI. These deferred gains and losses are recognized in the 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 consolidated statement of income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue from Contracts with Customers (Topic 606), Section A-Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). In May 2014, the FASB issued ASU No. 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted this ASU (as modified by subsequently issued clarifying guidance) using the modified retrospective transition approach effective at the beginning of fiscal 2018. The guidance applies to all new contracts initiated in fiscal 2018. For existing contracts that had remaining obligations as of the beginning of fiscal 2018, any difference between the recognition criteria in this ASU and the Company's previous revenue recognition practices under Topic 605 was recognized using a cumulative-effect adjustment that increased retained earnings by $119,000 . The increase in retained earnings primarily related to contracts which met the over time criteria under the new revenue standard and, as a result, the portion of the contract completed as of the beginning of fiscal 2018 was recognized immediately in retained earnings. Partially offsetting this increase was a reduction of retained earnings associated with certain contracts which were previously accounted for under the percentage-of-completion method of accounting, but did not meet the requirements for over time recognition under Topic 606. Amounts previously recognized in fiscal 2017 based on the percentage-of-completion method of accounting were deferred at the beginning of fiscal 2018 and were recognized along with the remaining revenue and costs in fiscal 2018 when control of the asset was transferred to the customer. The Company implemented certain modifications to its existing internal controls to support the recognition criteria and disclosure requirements of this ASU. See Revenue Recognition in this note for further disclosures required by this ASU. 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. The Company adopted this ASU at the beginning of fiscal 2018 with no impact on the Company's consolidated statement of cash flows. 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. The Company adopted this ASU at the beginning of fiscal 2018 on a modified retrospective basis, which resulted in an immaterial adjustment to retained earnings. The impact of the adoption of this standard on future periods will be dependent on future asset transfers, which generally occur in connection with acquisitions and other business structuring activities. 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. The Company adopted this ASU at the beginning of fiscal 2018. Prior period amounts related to the Company's "cash flows from financing activities," "exchange rate effect on cash," and "cash, cash equivalents, and restricted cash" were restated as required by this ASU, which did not have a material effect on the Company's consolidated statement of cash flows. See Restricted Cash in this note for further disclosures required by this ASU. 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 Company adopted this ASU on a prospective basis at the beginning of fiscal 2018. The adoption of this ASU will impact how the Company assesses acquisitions and disposals of businesses in the future. 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 within costs and operating expenses in the same income statement line item as the related employees' compensation costs. The other components of net benefit cost are required to be included within non-operating expenses. The Company adopted this ASU at the beginning of fiscal 2018 and prior period amounts were reclassified with no impact on the Company’s consolidated net income. As a result of the adoption, the Company reclassified $872,000 in 2017 and $1,069,000 in 2016 from operating income to other expense, net in the accompanying consolidated statement of income. Compensation - Stock Compensation (Topic 718), Scope of Modification Accounting. In May 2017, the FASB issued ASU No. 2017-09, which provides clarity on which changes to the terms or conditions of share-based payment awards require entities to apply the modification accounting provisions required in Topic 718. The Company adopted this ASU on a prospective basis at the beginning of fiscal 2018. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. In March 2018, the FASB issued ASU No. 2018-05, an amendment to the December 2017 SEC Staff Accounting Bulletin No. 118 (SAB 118), which allowed SEC registrants to record provisional amounts in earnings due to the complexities involved in accounting for the December 22, 2017 enactment of The Tax Cuts and Jobs Act of 2017 (2017 Tax Act). Those provisional amounts would be subject to adjustment during the measurement period, which is limited to no more than one year beyond the enactment of the 2017 Tax Act. The Company recorded provisional amounts based on reasonable estimates in its 2017 consolidated financial statements and has made adjustments to those provisional amounts in its 2018 consolidated financial statements. Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. In August 2018, the FASB issued ASU No. 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company elected to early adopt this ASU on a prospective basis in the third quarter of 2018. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted 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. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), Targeted Improvements, which provides an additional transition method that allows entities to recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company elected this new transition method upon adoption of this ASU at the beginning of the first quarter of fiscal 2019. Consequently, financial information will not be updated, and disclosures required under the new standard will not be provided for dates and periods before the beginning of fiscal 2019. The Company has completed the evaluation of its lease population and has implemented a third-party software solution to assist with the accounting under the new standard. The new standard provides for a number of optional practical expedients in transition. The Company elected the "package of practical expedients" upon adoption, which permits the Company to not reassess its prior conclusions about lease identification, lease classification and initial direct costs under the new standard. The Company did not elect the "use-of hindsight" practical expedient to determine the lease term or in assessing the likelihood that a lease purchase option will be exercised. The new standard also provides practical expedients for an entity's ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify that allows it not to recognize right-of-use assets or lease liabilities for short-term leases, including not recognizing right-of-use assets or lease liabilities for existing short-term leases in transition. The Company also elected the practical expedient, as a policy election, to not separate lease and non-lease components for all leases except vehicle leases. Based on its lease portfolio at year-end 2018, the Company anticipates recognizing a lease liability of approximately $15,500,000 to $17,500,000 and a related right-of-use asset of approximately $18,500,000 to $20,500,000 on its consolidated balance sheet upon adoption. When determinable, the Company will utilize the rate implicit in the lease as the discount rate to determine the lease liability. However, if this rate is not determinable, the Company will use its incremental borrowing rate as the discount rate, which is the rate the Company would incur to borrow over a similar term the funds needed to purchase the leased asset. The Company does not expect that the adoption of this standard will have a material impact on its results of operations or cash flows. 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 with early adoption permitted beginning in fiscal 2019. The Company is currently evaluating the effects that the adoption of this ASU will have on its consolidated financial statements. Derivatives and Hedging (Topic 815), Targeted Improvements in Accounting for Hedging Activity. In August 2017, the FASB issued ASU No. 2017-12, which provides improvements to current hedge accounting to better portray the economic results of an entity’s risk management activities and to simplify the application of current hedge accounting guidance. The Company will adopt this new guidance on a prospective basis at the beginning of the first quarter of fiscal 2019. The Company does not believe that adoption of this ASU will have a material effect on its consolidated financial statements. Income Statement - Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . In February 2018, the FASB issued ASU No. 2018-02, which allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the 2017 Tax Act. The reclassification is elective and would allow the income tax effects on items that were originally recorded in AOCI to be reclassified from AOCI to retained earnings. This ASU is effective for the Company in fiscal year 2019 and interim periods therein and should be applied either at the beginning of the period of adoption or retrospectively to each period in which the income tax effects of the 2017 Tax Act are recognized. The Company does not believe that adoption of this ASU will have a material effect on its consolidated financial statements. Compensation-Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. In August 2018, the FASB issued ASU 2018-14, which removes, adds and clarifies several disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This new guidance is effective on a retrospective basis for the Company beginning in fiscal 2021. Early adoption is permitted. The Company does not believe that the adoption of this ASU will have a material effect on its consolidated financial statements. |
Acquisitions | Acquisitions The Company’s acquisitions are accounted for using the purchase method of accounting and their results are included in the accompanying financial statements from their respective dates of acquisition. Historically, the Company’s acquisitions have been made at prices above the fair value of identifiable net assets, resulting in goodwill. Acquisition transaction costs are included in selling, general, and administrative expenses (SG&A) in the accompanying consolidated statement of income as incurred. |
Pension and Other Post-Retirement Benefits Plans | The discount rates for pension and other post-retirement plans are based on market yields on high-quality corporate bonds currently available and expected to be available during the period to maturity of the benefits. For pension and post-retirement plans that have been closed to new participants thereby shortening the duration, the discount rate is determined based on discounting the projected benefit streams against the Citigroup Pension discount curve. Pension and Other Post-Retirement Benefits Plans The Company sponsors a noncontributory defined benefit pension plan, which is closed to new participants, for eligible employees at one of its U.S. divisions and its corporate office. Certain 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 (Retirement 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 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 plans in the United States and at one of its non-U.S. subsidiaries. In addition, the Company provides for a restoration plan (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. In accordance with ASC 715, Compensation-Retirement Benefits , (ASC 715), the Company recognizes the funded status of its defined benefit pension and other post-retirement benefit plans as an asset or liability and changes in the funded status through AOCI, net of tax. The amounts in AOCI are recognized as net periodic pension cost pursuant to the Company's historical accounting policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic benefit cost will be recognized as a component of AOCI, net of tax. The Company's investment policy for its U.S. noncontributory defined benefit retirement plan is to emphasize the preservation of capital. The investment policy takes into consideration the benefit obligations, including timing of distributions. In developing the overall expected long-term return on plan assets assumption, a building block approach was used in which rates of return in excess of inflation were considered separately for equity securities, debt securities, and other assets. The excess returns were weighted by the representative target allocation and added along with an appropriate rate of inflation to develop the overall expected long-term return on plan assets assumption. The Company believes this determination is consistent with ASC 715, Compensation – Retirement Benefits . |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition by Product Line, Product Type, Geography and Revenue Recognition Method | The Company disaggregates its revenue from contracts with customers by product line, product type and geography as this best depicts how its revenue is affected by economic factors. The following table presents the disaggregation of revenues by product type and geography: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Revenues by Product Type: Parts and Consumables $ 374,433 $ 316,506 $ 258,171 Capital 259,353 198,527 155,955 $ 633,786 $ 515,033 $ 414,126 Revenues by Geography: North America $ 305,618 $ 238,483 $ 203,063 Europe 174,681 157,994 115,233 Asia 109,688 78,443 62,703 Rest of World 43,799 40,113 33,127 $ 633,786 $ 515,033 $ 414,126 See Note 11 , Business Segment and Geographical Information, for information on how the Company disaggregates its revenue from contracts with customers by product line. The following table presents revenue by revenue recognition method: (In thousands) December 29, 2018 Point in Time $ 577,506 Over Time 56,280 $ 633,786 |
Revenue from Contract with Customers | The following tables presents contract balances from contracts with customers: (In thousands) December 29, 2018 December 30, 2017 Accounts receivable $ 92,624 $ 89,624 Contract assets $ 15,741 $ 2,374 Contract liabilities $ 34,774 $ 38,702 |
Changes in Allowance for Doubtful Accounts | The changes in the allowance for doubtful accounts are as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Balance at Beginning of Year $ 2,879 $ 2,395 $ 2,163 Provision charged to expense 355 436 453 Accounts written off (165 ) (159 ) (128 ) Currency translation (172 ) 207 (93 ) Balance at End of Year $ 2,897 $ 2,879 $ 2,395 |
Changes in Estimated Product Warranty Liability | The changes in the carrying amount of accrued warranty costs included in other current liabilities in the accompanying consolidated balance sheet are as follows: (In thousands) December 29, 2018 December 30, 2017 Balance at Beginning of Year $ 5,498 $ 3,843 Provision charged to expense 3,708 2,652 Usage (3,140 ) (2,225 ) Acquisitions — 790 Currency translation (340 ) 438 Balance at End of Year $ 5,726 $ 5,498 |
Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's consolidated balance sheet that are shown in aggregate in the consolidated statement of cash flows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Cash and cash equivalents $ 45,830 $ 75,425 $ 71,487 Restricted cash 287 1,421 2,082 Total Cash, Cash Equivalents, and Restricted Cash $ 46,117 $ 76,846 $ 73,569 |
Supplemental Cash Flow Information | Supplemental Cash Flow Information (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Cash Paid for Interest $ 7,550 $ 2,624 $ 1,183 Cash Paid for Income Taxes, Net of Refunds $ 25,654 $ 20,559 $ 15,632 Non-Cash Investing Activities: Estimated post-closing adjustment (a) $ 397 $ — $ — Fair value of assets of acquired $ — $ 242,048 $ 84,969 Cash paid for acquired businesses — (206,950 ) (58,894 ) Liabilities Assumed of Acquired Businesses $ — $ 35,098 $ 26,075 Non-cash additions to property, plant, and equipment $ 917 $ 4,620 $ 379 Non-Cash Financing Activities: Issuance of Company common stock upon vesting of RSUs $ 4,231 $ 3,192 $ 3,463 Dividends declared but unpaid $ 2,444 $ 2,316 $ 2,078 (a) Represents an estimated post-closing purchase price adjustment related to the 2017 acquisition of certain assets of Unaflex, LLC, which is expected to be settled in early 2019. |
Components of Inventory | The components of inventories are as follows: (In thousands) December 29, 2018 December 30, 2017 Raw Materials $ 44,522 $ 38,952 Work in Process 15,876 18,203 Finished Goods (includes $494 and $1,883 at customer locations) 25,975 27,778 $ 86,373 $ 84,933 |
Property, Plant and Equipment | Property, plant, and equipment consist of the following: (In thousands) December 29, 2018 December 30, 2017 Land $ 7,614 $ 7,894 Buildings 58,866 48,094 Machinery, Equipment, and Leasehold Improvements 100,453 94,779 Construction in Progress 3,764 14,464 170,697 165,231 Less: Accumulated Depreciation and Amortization 90,540 85,508 $ 80,157 $ 79,723 |
Acquired Intangible Assets | Acquired intangible assets by major asset class are as follows: (In thousands) Gross Currency Accumulated Net December 29, 2018 Definite-Lived Customer relationships $ 113,283 $ (4,520 ) $ (38,160 ) $ 70,603 Product technology 46,501 (1,677 ) (23,563 ) 21,261 Tradenames 5,227 (390 ) (1,980 ) 2,857 Other 13,744 (127 ) (11,476 ) 2,141 178,755 (6,714 ) (75,179 ) 96,862 Indefinite-Lived Tradenames 16,600 (115 ) — 16,485 Acquired Intangible Assets $ 195,355 $ (6,829 ) $ (75,179 ) $ 113,347 December 30, 2017 Definite-Lived Customer relationships $ 113,301 $ (621 ) $ (28,789 ) $ 83,891 Product technology 46,501 (737 ) (19,841 ) 25,923 Tradenames 5,227 (262 ) (1,504 ) 3,461 Other 13,754 (35 ) (10,863 ) 2,856 178,783 (1,655 ) (60,997 ) 116,131 Indefinite-Lived Tradenames 16,600 305 — 16,905 Acquired Intangible Assets $ 195,383 $ (1,350 ) $ (60,997 ) $ 133,036 |
Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill by segment are as follows: (In thousands) Papermaking Systems Segment Wood Processing Systems Segment Total Balance as of December 31, 2016 Gross balance $ 219,699 $ 17,265 $ 236,964 Accumulated impairment losses (85,509 ) — (85,509 ) Net balance 134,190 17,265 151,455 2017 Adjustments Acquisitions (Note 2) 16,373 85,508 101,881 Currency translation 10,942 3,723 14,665 Total 2017 Adjustments 27,315 89,231 116,546 Balance at December 30, 2017 Gross balance 247,014 106,496 353,510 Accumulated impairment losses (85,509 ) — (85,509 ) Net balance 161,505 106,496 268,001 2018 Adjustments Acquisitions (Note 2) (17 ) (75 ) (92 ) Currency translation (5,085 ) (4,650 ) (9,735 ) Total 2018 Adjustments (5,102 ) (4,725 ) (9,827 ) Balance at December 29, 2018 Gross balance 241,912 101,771 343,683 Accumulated impairment losses (85,509 ) — (85,509 ) Net balance $ 156,403 $ 101,771 $ 258,174 |
Goodwill by Reporting Unit | Goodwill by reporting unit is as follows: (In thousands) December 29, 2018 December 30, 2017 Stock-Preparation $ 58,142 $ 60,275 Fluid-Handling 64,052 65,289 Doctoring, Cleaning, & Filtration 34,209 35,941 Wood Processing Systems 101,771 106,496 $ 258,174 $ 268,001 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Purchase Price Allocation | The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price of the Company's 2017 acquisitions. NII FPG Unaflex Other (In thousands) July 5, 2017 August 14, 2017 October 30, 2017 Total Net Assets Acquired: Cash and Cash Equivalents $ 2,219 $ — $ — $ 2,219 Accounts Receivable 6,542 2,079 — 8,621 Inventories 25,304 2,033 — 27,337 Property, Plant, and Equipment 12,912 1,279 284 14,475 Other Assets 2,375 72 — 2,447 Definite-Lived Intangible Assets Customer relationships 44,682 8,000 1,500 54,182 Product technology 17,100 2,300 — 19,400 Other 2,530 900 — 3,430 Indefinite-Lived Intangible Assets Tradenames 8,500 — — 8,500 Goodwill 85,432 15,640 716 101,788 Total assets acquired 207,596 32,303 2,500 242,399 Accounts Payable 4,970 358 — 5,328 Customer Deposits 7,396 100 — 7,496 Long-Term Deferred Income Taxes 16,622 — — 16,622 Other Liabilities 5,597 174 — 5,771 Total liabilities assumed 34,585 632 — 35,217 Net assets acquired $ 173,011 $ 31,671 $ 2,500 $ 207,182 Purchase Price: Cash Paid $ 2,993 $ — $ — $ 2,993 Cash Paid to Seller Borrowed Under the Revolving Credit Facility 170,018 31,274 2,500 203,792 Estimated Post-closing Adjustment — — 397 — 397 Total purchase price $ 173,011 $ 31,671 $ 2,500 $ 207,182 The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price of PAAL. PAAL (In thousands) April 4, 2016 Net Assets Acquired: Cash and Cash Equivalents $ 2,277 Accounts Receivable 5,441 Inventories 3,947 Property, Plant, and Equipment 7,179 Other Assets 2,882 Definite-Lived Intangible Assets Customer relationships 15,831 Product technology 4,203 Tradenames 2,278 Other 2,379 Goodwill 38,552 Total assets acquired 84,969 Accounts Payable 5,536 Customer Deposits 2,471 Obligations Under Capital Lease 4,842 Long-Term Deferred Income Taxes 6,148 Other Liabilities 6,913 Total liabilities assumed 25,910 Net assets acquired $ 59,059 Purchase Price: Cash $ 29,193 Cash Paid to Seller Borrowed Under the Revolving Credit Facility 29,866 Total purchase price $ 59,059 |
Unaudited Supplemental Pro Forma Information | Had the acquisitions of NII FPG and Unaflex been completed as of the beginning of 2016, the Company’s pro forma results of operations for 2017 and 2016 would have been as follows: (In thousands, except per share amounts) December 30, December 31, Revenues $ 565,710 $ 508,832 Net Income Attributable to Kadant $ 44,159 $ 30,638 Earnings per Share Attributable to Kadant Basic $ 4.02 $ 2.82 Diluted $ 3.90 $ 2.75 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Components of Pre-Tax Stock-Based Compensation Expense | The components of pre-tax stock-based compensation expense included in SG&A expenses in the accompanying consolidated statement of income are as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 RSU Awards $ 6,838 $ 5,621 $ 4,848 Employee Stock Purchase Plan Awards 189 182 170 Stock Option Awards — — 51 Total $ 7,027 $ 5,803 $ 5,069 |
Summary of Activity of the Unvested Restricted Stock Units | A summary of the activity of the Company's unvested RSUs in 2018 is as follows: Units Weighted Unvested RSUs at December 30, 2017 199 $ 49.32 Granted 73 $ 98.12 Vested (116 ) $ 54.11 Unvested RSUs at December 29, 2018 156 $ 68.57 |
Stock Option Activity | A summary of the Company's stock option activity in 2018 is as follows: (In thousands, except per share amounts) Number Weighted Weighted Aggregate Options Outstanding at December 30, 2017 307 $ 20.72 Exercised (8 ) $ 15.51 Options Outstanding at December 29, 2018 299 $ 20.86 2.5 years $ 18,029 Vested and Exercisable at December 29, 2018 299 $ 20.86 2.5 years $ 18,029 (a) The closing price per share on the last trading day prior to year-end 2018 was $81.12 . |
Summary of Stock Option Exercises | A summary of the Company's stock option exercises in 2018 and 2016 are as follows: (In thousands) December 29, 2018 December 31, 2016 Total Intrinsic Value of Options Exercised $ 515 $ 1,341 Cash Received from Options Exercised $ 127 $ 1,189 |
Changes In Projected Benefit Obligations, Plan Assets, Unfunded Status, and Accumulated Other Comprehensive Items | The following table summarizes the change in benefit obligation; the change in plan assets; the unfunded status; and the amounts recognized in the accompanying consolidated balance sheet for the Company's U.S. and non-U.S. pension benefit plans and other post-retirement benefit plans. In accordance with ASU No. 2015-04, Compensation - Retirement Benefits (Topic 715) , the Company elects to measure its plan assets and benefit obligations as of December 31. U.S. Pension Non-U.S. Pension Other Post-Retirement (In thousands) December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Change in Projected Benefit Obligation: Projected benefit obligation at beginning of year $ 34,757 $ 31,935 $ 4,270 $ 3,341 $ 4,704 $ 3,894 Acquisition — — — 241 — — Service cost 699 685 173 148 213 175 Interest cost 1,193 1,231 126 114 172 170 Actuarial (gain) loss (2,674 ) 2,626 (368 ) 270 (508 ) 635 Benefits paid (1,589 ) (1,720 ) (394 ) (265 ) (157 ) (175 ) Plan amendment 1,116 — — — 322 — Effect of curtailment (3,787 ) — — — (1,075 ) — Currency translation — — (136 ) 421 1 5 Projected benefit obligation at end of year $ 29,715 $ 34,757 $ 3,671 $ 4,270 $ 3,672 $ 4,704 Change in Plan Assets: Fair value of plan assets at beginning of year $ 31,754 $ 28,985 $ 557 $ 426 $ 35 $ 28 Actual return on plan assets (1,436 ) 3,409 38 23 2 1 Employer contributions — 1,080 528 355 164 179 Benefits paid (1,589 ) (1,720 ) (394 ) (265 ) (157 ) (175 ) Currency translation — — (3 ) 18 — 2 Fair value of plan assets at end of year $ 28,729 $ 31,754 $ 726 $ 557 $ 44 $ 35 Unfunded Status $ (986 ) $ (3,003 ) $ (2,945 ) $ (3,713 ) $ (3,628 ) $ (4,669 ) Accumulated Benefit Obligation at End of Year $ 29,715 $ 30,311 $ 2,604 $ 3,047 $ — $ — Amounts Included in the Balance Sheet: Current liability $ (986 ) $ — $ (58 ) $ (205 ) $ (144 ) $ (173 ) Non-current liability $ — $ (3,003 ) $ (2,887 ) $ (3,508 ) $ (3,484 ) $ (4,496 ) Amounts Included in Accumulated Other Comprehensive Items Before Tax: Unrecognized net actuarial loss $ (3,205 ) $ (7,485 ) $ (674 ) $ (1,085 ) $ (69 ) $ (1,424 ) Unrecognized prior service cost — — (45 ) (52 ) — (439 ) $ (3,205 ) $ (7,485 ) $ (719 ) $ (1,137 ) $ (69 ) $ (1,863 ) U.S. Pension Non-U.S. Pension Other Post-Retirement (In thousands) December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Changes in Amounts Included in Accumulated Other Comprehensive Items Before Tax: Net actuarial (loss) gain $ (48 ) $ (544 ) $ 368 $ (277 ) $ 508 $ (634 ) Amortization of net actuarial loss 541 442 63 38 136 83 Amortization of prior service cost — 53 6 6 86 88 Plan amendment (1,116 ) — — — (322 ) — Effect of curtailment 3,787 — — — 1,075 — Curtailment loss 1,116 — — — 309 — Currency translation — — (19 ) (78 ) 2 (3 ) $ 4,280 $ (49 ) $ 418 $ (311 ) $ 1,794 $ (466 ) |
Weighted-Average Assumptions Used to Determine the Benefit Obligation and Net Periodic Benefit Cost | The weighted-average assumptions used to determine the benefit obligation are as follows: U.S. Pension Non-U.S. Pension Other Post-Retirement December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Discount rate 4.10 % 3.51 % 3.56 % 3.16 % 4.32 % 3.71 % Rate of compensation increase — 3.00 % 3.24 % 3.33 % 5.57 % 3.11 % The weighted-average assumptions used to determine net periodic benefit cost are as follows: U.S. Pension Non-U.S. Pension Other Post-Retirement December 29, 2018 December 30, 2017 December 31, 2016 December 29, 2018 December 30, 2017 December 31, 2016 December 29, 2018 December 30, 2017 December 31, 2016 Discount Rate 3.51 % 4.03 % 4.22 % 3.49 % 3.45 % 3.87 % 3.58 % 4.10 % 4.28 % Expected Long-Term Return on Plan Assets 4.50 % 5.00 % 5.00 % 7.43 % 7.53 % 7.72 % 7.43 % 7.53 % 7.72 % Rate of Compensation Increase 3.00 % 3.00 % 3.00 % 3.97 % 3.65 % 3.67 % 3.05 % 3.08 % 3.05 % |
Benefit Obligations in Excess of Fair Value of Plan Assets | The projected benefit obligations and fair values of plan assets for the Company's pension plans with projected benefit obligations in excess of plan assets are as follows: U.S. Pension Non-U.S. Pension (In thousands) December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Pension Plans with Projected Benefit Obligations in Excess of Plan Assets: Projected benefit obligation $ 29,715 $ 34,757 $ 3,671 $ 4,270 Fair value of plan assets $ 28,729 $ 31,754 $ 726 $ 557 |
Accumulated Benefit Obligations in Excess of Plan Assets | The accumulated benefit obligations and fair values of plan assets for the Company's pension plans with accumulated benefit obligations in excess of plan assets are as follows: U.S. Pension Non-U.S. Pension (In thousands) December 29, 2018 December 30, 2017 December 29, 2018 December 30, 2017 Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets: Accumulated benefit obligation $ 29,715 $ — $ 2,604 $ 3,047 Fair value of plan assets $ 28,729 $ — $ 726 $ 557 |
Components of Net Periodic Benefit Cost (Income) | The components of net periodic benefit cost are as follows: U.S. Pension Non-U.S. Pension Other Post-Retirement (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 December 29, 2018 December 30, 2017 December 31, 2016 December 29, 2018 December 30, 2017 December 31, 2016 Service cost $ 699 $ 685 $ 723 $ 173 $ 148 $ 102 $ 213 $ 175 $ 130 Interest cost 1,193 1,231 1,273 126 114 107 172 170 156 Expected return on plan assets (1,286 ) (1,326 ) (1,288 ) (42 ) (25 ) (25 ) (3 ) (2 ) (2 ) Amortization of net actuarial loss 541 442 498 63 38 39 136 83 50 Amortization of prior service cost — 53 55 6 6 4 86 88 88 Settlement loss — — — — — — — — 114 Curtailment loss 1,116 — — — — — 309 — — Net Periodic Benefit Cost $ 2,263 $ 1,085 $ 1,261 $ 326 $ 281 $ 227 $ 913 $ 514 $ 536 |
Fair Values of Plan Assets | The fair values of the Company's noncontributory defined benefit retirement plan assets at year-end 2018 and year-end 2017 by asset category are as follows: December 29, 2018 Fair Value Measurement (In thousands) Quoted Prices Significant Significant Total Retirement Plan Assets: Mutual funds: Money market funds $ 12,852 $ — $ — $ 12,852 Fixed income funds 11,581 — — 11,581 Investments measured at NAV 4,296 Total assets at fair value $ 28,729 Non-U.S. Pension Plan Assets: Mutual funds $ 726 $ — $ — $ 726 Total assets at fair value $ 726 December 30, 2017 Fair Value Measurement (In thousands) Quoted Prices Significant Significant Total Retirement Plan Assets: Mutual funds: Fixed income funds $ 17,560 $ — $ — $ 17,560 Equity funds 4,763 — — 4,763 Investments measured at NAV 9,431 Total assets at fair value $ 31,754 Non-U.S. Pension Plan Assets: Mutual funds $ 557 $ — $ — $ 557 Total assets at fair value $ 557 |
Target Asset Allocation of Plan Assets | The following target asset allocation has been established for the plan: Asset Category Minimum Neutral Maximum Money market funds 0 % 45 % 100 % Debt Securities 0 % 55 % 100 % Total 100 % |
Estimated Future Benefit Payments | Estimated future benefit payments during the next five years and in aggregate for the five years thereafter are as follows: Other Post-retirement (In thousands) U.S. Pension Non-U.S. Pension 2019 $ 29,715 $ 194 $ 151 2020 — 142 2,871 2021 — 211 133 2022 — 312 127 2023 — 330 114 2024-2028 — 2,117 480 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income from Continuing Operations Before Income Taxes | The components of income from continuing operations before provision for income taxes are as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Domestic $ (397 ) $ 2,797 $ 6,196 Foreign 79,925 54,856 38,353 $ 79,528 $ 57,653 $ 44,549 |
Components of the Provision for Income Taxes from Continuing Operations | The components of the provision for income taxes from continuing operations are as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Current Provision: Federal $ 724 $ 7,835 $ 535 Foreign 21,829 17,372 11,323 State 169 285 838 22,722 25,492 12,696 Deferred (Benefit) Provision: Federal (2,551 ) 4,682 1,738 Foreign (1,761 ) (3,563 ) (1,818 ) State 72 (541 ) (533 ) (4,240 ) 578 (613 ) $ 18,482 $ 26,070 $ 12,083 |
Provision for Income Taxes by Continuing and Discontinued Operation | The provision for income taxes included in the accompanying consolidated statement of income is as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Continuing Operations $ 18,482 $ 26,070 $ 12,083 Discontinued Operation — — 2 $ 18,482 $ 26,070 $ 12,085 |
Income Tax Reconciliation | The provision for income taxes from continuing operations in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate to income from continuing operations before provision for income taxes due to the following: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Provision for Income Taxes at Statutory Rate (21% in 2018 and 35% in 2017 and 2016) $ 16,701 $ 20,179 $ 15,592 Increases (Decreases) Resulting From: State income taxes, net of federal tax 164 151 189 U.S. tax cost of foreign earnings 1,215 761 192 Foreign tax rate differential 3,158 (3,747 ) (3,921 ) (Reversal of) provision for tax benefit reserves, net (1,785 ) 1,517 (76 ) Change in valuation allowance 141 (341 ) (131 ) Nondeductible expenses 781 1,177 1,090 Research and development tax credits (445 ) (297 ) (229 ) Excess tax benefit related to stock-based compensation (967 ) (581 ) (553 ) Impact of the U.S. Tax Cuts and Jobs Act (106 ) 7,093 — Other (375 ) 158 (70 ) $ 18,482 $ 26,070 $ 12,083 |
Net Deferred Tax (Liability) Asset | Net deferred tax liability in the accompanying consolidated balance sheet consists of the following: (In thousands) December 29, 2018 December 30, 2017 Deferred Tax Asset: Foreign, state, and alternative minimum tax credit carryforwards $ 184 $ 185 Reserves and accruals 3,555 4,455 Net operating loss carryforwards 12,785 15,161 Inventory basis difference 3,692 3,265 Research and development — 88 Employee compensation 4,382 2,610 Allowance for doubtful accounts 482 505 Other 294 59 Deferred tax asset, gross 25,374 26,328 Less: valuation allowance (9,946 ) (10,835 ) Deferred tax asset, net 15,428 15,493 Deferred Tax Liability: Goodwill and intangible assets (28,060 ) (32,120 ) Fixed asset basis difference (3,565 ) (4,213 ) Provision for unremitted foreign earnings (1,124 ) (2,718 ) Research and development (54 ) — Other (619 ) (554 ) Deferred tax liability (33,422 ) (39,605 ) Net deferred tax liability $ (17,994 ) $ (24,112 ) |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits at year-end 2018 and year-end 2017 is as follows: (In thousands) December 29, 2018 December 30, 2017 Unrecognized Tax Benefits, Beginning of Year $ 7,843 $ 5,467 Gross Increases—Tax Positions in Prior Periods 1,019 4 Gross Decreases—Tax Positions in Prior Periods (390 ) (22 ) Gross Increases—Current-period Tax Positions 7,344 2,229 Settlements (131 ) — Lapses of Statutes of Limitations (3,190 ) (11 ) Currency Translation (131 ) 176 Unrecognized Tax Benefits, End of Year $ 12,364 $ 7,843 |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | Long-term obligations are as follows: (In thousands) December 29, 2018 December 30, 2017 Revolving Credit Facility, due 2023 $ 141,106 $ 237,011 Commercial Real Estate Loan, due 2019 to 2028 20,475 — Senior Promissory Notes, due 2023 to 2028 10,000 — Obligations Under Capital Lease, due 2019 to 2022 4,144 4,633 Other Borrowings, due 2019 to 2023 244 436 Unamortized Debt Issuance Costs (148 ) — Total 175,821 242,080 Less: Current Maturities of Long-Term Obligations (1,668 ) (696 ) Long-Term Obligations $ 174,153 $ 241,384 |
Schedule of repayments of long-term debt | The following schedule presents the annual repayment requirements for the Company’s Credit Agreement, Real Estate Loan and Initial Notes as of year-end 2018. (In thousands) 2019 $ 1,050 2020 1,050 2021 1,050 2022 1,050 2023 143,823 2024 and Thereafter 23,558 $ 171,581 |
Future minimum lease payments under capital lease obligations | The following schedule presents future minimum lease payments under the Company's capital lease obligations and the present value of the minimum lease payments as of year-end 2018 . (In thousands) 2019 $ 571 2020 578 2021 542 2022 1,099 Total Minimum Lease Payments $ 2,790 Less: Imputed Interest (170 ) Present Value of Minimum Lease Payments $ 2,620 |
Restructuring Costs and Other_2
Restructuring Costs and Other Income (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Summary of Changes in Accrued Restructuring Costs | A summary of the changes in accrued restructuring costs included in other accrued expenses in the accompanying consolidated balance sheet are as follows: (In thousands) Severance Relocation Other (a) Total 2017 Restructuring Plan Provision $ 203 $ — $ — $ 203 Balance at December 30, 2017 203 — — 203 (Reversal) Provision (55 ) 1,318 454 1,717 Usage (77 ) (1,315 ) (448 ) (1,840 ) Currency translation (8 ) (3 ) (6 ) (17 ) Balance at December 29, 2018 $ 63 $ — $ — $ 63 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 in the accompanying consolidated balance sheet: December 29, 2018 December 30, 2017 (In thousands) Balance Sheet Asset Notional Asset Notional Derivatives Designated as Hedging Instruments: Derivatives in an Asset Position: 2015 Swap Agreement Other Long-Term $ 148 $ 10,000 $ 126 $ 10,000 Forward currency-exchange contract Other Long Term $ 11 $ 842 $ — $ — Derivatives in a Liability Position: Forward currency-exchange contract Other Current $ (50 ) $ 2,946 $ — $ — 2018 Swap Agreement Other Long-Term $ (352 ) $ 15,000 $ — $ — Derivatives Not Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contracts Other Current $ 9 $ 1,192 $ 17 $ 1,244 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current $ (31 ) $ 1,384 $ (16 ) $ 2,049 (a) See Note 10 for the fair value measurements relating to these financial instruments. (b) The total 2018 notional amounts are indicative of the level of the Company's recurring derivative activity. |
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 year ended December 29, 2018 : (In thousands) Interest Rate Swap Forward Currency- Total Unrealized Gain, Net of Tax, at December 30, 2017 $ 79 $ — $ 79 Loss (gain) reclassified to earnings (a) 8 (16 ) (8 ) Loss recognized in AOCI (257 ) (11 ) (268 ) Unrealized Loss, Net of Tax, at December 29, 2018 $ (170 ) $ (27 ) $ (197 ) (a) See Note 13 for the income statement classification. |
Fair Value Measurements and F_2
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
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 December 29, 2018 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 6,902 $ — $ — $ 6,902 Banker's acceptance drafts (a) $ — $ 7,976 $ — $ 7,976 2015 Swap Agreement $ — $ 148 $ — $ 148 Forward currency-exchange contracts $ — $ 20 $ — $ 20 Liabilities: 2018 Swap Agreement $ — $ 352 $ — $ 352 Forward currency-exchange contracts $ — $ 81 $ — $ 81 Fair Value as of December 30, 2017 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 17,728 $ — $ — $ 17,728 Banker's acceptance drafts (a) $ — $ 15,960 $ — $ 15,960 2015 Swap Agreement $ — $ 126 $ — $ 126 Forward currency-exchange contracts $ — $ 17 $ — $ 17 Liabilities: Forward currency-exchange contracts $ — $ 16 $ — $ 16 (a) Included in accounts receivable in the accompanying consolidated balance sheet. |
Carrying Value and Fair Value of Debt Obligations | The carrying value and fair value of the Company's debt obligations are as follows: December 29, 2018 December 30, 2017 (In thousands) Carrying Fair Carrying Fair Debt Obligations: Revolving credit facility $ 141,106 $ 141,106 $ 237,011 $ 237,011 Commercial real estate loan 20,475 20,575 — — Senior promissory notes 10,000 10,120 — — Capital lease obligations 4,144 4,144 4,633 4,633 Other borrowings 244 244 436 436 $ 175,969 $ 176,189 $ 242,080 $ 242,080 |
Business Segment and Geograph_2
Business Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Business Segment Information Revenues by Product Line: Papermaking Systems: Stock-Preparation $ 221,933 $ 193,838 $ 171,378 Fluid-Handling 131,830 104,136 89,145 Doctoring, Cleaning, & Filtration 116,136 109,631 105,938 Papermaking Systems $ 469,899 $ 407,605 $ 366,461 Wood Processing Systems 151,366 95,053 36,850 Fiber-based Products 12,521 12,375 10,815 $ 633,786 $ 515,033 $ 414,126 Income from Continuing Operations Before Provision for Income Taxes: Papermaking Systems (a) $ 83,454 $ 73,069 $ 58,025 Wood Processing Systems (b) 31,237 10,005 8,327 Corporate and Fiber-based Products (c) (26,093 ) (21,449 ) (19,710 ) Total operating income 88,598 61,625 46,642 Interest expense, net (d) (6,653 ) (3,100 ) (1,024 ) Other expense, net (d, e) (2,417 ) (872 ) (1,069 ) $ 79,528 $ 57,653 $ 44,549 Total Assets: Papermaking Systems $ 462,297 $ 494,919 $ 407,538 Wood Processing Systems 247,553 257,467 52,407 Other (f) 15,899 8,708 10,746 $ 725,749 $ 761,094 $ 470,691 Depreciation and Amortization: Papermaking Systems $ 12,561 $ 11,239 $ 11,513 Wood Processing Systems 10,317 7,515 2,188 Other 690 621 625 $ 23,568 $ 19,375 $ 14,326 Capital Expenditures: Papermaking Systems $ 12,717 $ 14,359 $ 5,504 Wood Processing Systems 3,272 2,333 29 Other 570 589 271 $ 16,559 $ 17,281 $ 5,804 Geographical Information Revenues (g): United States $ 234,487 $ 182,788 $ 165,335 China 89,645 63,910 43,299 Canada 61,096 47,611 28,888 Germany 26,577 32,026 18,095 Finland 10,934 8,607 3,885 Other 211,047 180,091 154,624 $ 633,786 $ 515,033 $ 414,126 Long-lived Assets (h): United States $ 35,446 $ 32,852 $ 18,482 China 11,069 11,685 10,714 Canada 8,193 9,449 1,125 Finland 6,998 5,841 — Germany 6,223 6,452 5,792 Other 12,228 13,444 11,591 $ 80,157 $ 79,723 $ 47,704 (a) Includes $ 787,000 in 2017 and $ 3,491,000 in 2016 of acquisition-related expenses. Acquisition-related expenses include acquisition transaction costs and amortization of acquired profit in inventory and backlog. Includes restructuring costs of $ 1,717,000 in 2018 and $203,000 in 2017, and other income of $317,000 in 2016 (see Note 8 ). (b) Includes $ 252,000 in 2018 and $ 11,163,000 in 2017 of acquisition-related expenses. (c) Corporate primarily includes general and administrative expenses, including $ 1,321,000 in 2018 of acquisition-related expenses. (d) The Company does not allocate interest and other expense, net to its segments. (e) Includes a curtailment loss of $ 1,425,000 in 2018 (see Note 3 , Employee Benefit Plans, under Pension and Other Post-Retirement Benefits Plans). (f) Primarily includes Corporate and Fiber-based Products' cash and cash equivalents, tax assets, and property, plant, and equipment. (g) Revenues are attributed to countries based on customer location. (h) Represents property, plant, and equipment, net. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted EPS were calculated as follows: (In thousands, except per share amounts) December 29, 2018 December 30, 2017 December 31, 2016 Amounts Attributable to Kadant Income from Continuing Operations $ 60,413 $ 31,092 $ 32,074 Income from Discontinued Operation — — 3 Net Income Attributable to Kadant $ 60,413 $ 31,092 $ 32,077 Basic Weighted Average Shares 11,086 10,991 10,869 Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares 314 321 280 Diluted Weighted Average Shares 11,400 11,312 11,149 Basic EPS Continuing Operations $ 5.45 $ 2.83 $ 2.95 Discontinued Operation $ — $ — $ — Earnings per Basic Share $ 5.45 $ 2.83 $ 2.95 Diluted EPS Continuing Operations $ 5.30 $ 2.75 $ 2.88 Discontinued Operation $ — $ — $ — Earnings per Diluted Share $ 5.30 $ 2.75 $ 2.88 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Items (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Items in the Balance Sheet | Changes in each component of AOCI, net of tax, are as follows: (In thousands) Foreign Currency Translation Adjustment Unrecognized Prior Service (Cost) Income on Retirement Benefit Plans Net Actuarial Loss on Retirement Benefit Plans Deferred Gain (Loss) on Cash Flow Hedges Total Balance at December 30, 2017 $ (17,501 ) $ (319 ) $ (8,974 ) $ 79 $ (26,715 ) Other comprehensive (loss) income before reclassifications (17,303 ) (810 ) 4,020 (268 ) (14,361 ) Reclassifications from AOCI — 1,149 559 (8 ) 1,700 Net current period other comprehensive (loss) income (17,303 ) 339 4,579 (276 ) (12,661 ) Balance at December 29, 2018 $ (34,804 ) $ 20 $ (4,395 ) $ (197 ) $ (39,376 ) |
Reclassification Out of Accumulated Other Comprehensive Items | Amounts reclassified out of AOCI are as follows: (In thousands) December 29, 2018 December 30, 2017 December 31, 2016 Statement of Income Line Item Retirement Benefit Plans (a) Recognized net actuarial loss $ (740 ) $ (563 ) $ (701 ) Other expense, net Amortization of prior service cost (92 ) (147 ) (147 ) Other expense, net Curtailment loss (1,425 ) — — Other expense, net Total expense before income taxes (2,257 ) (710 ) (848 ) Income tax benefit 549 246 295 Provision for income taxes (1,708 ) (464 ) (553 ) Cash Flow Hedges (b) Interest rate swap agreements (11 ) (30 ) (174 ) Interest expense Forward currency-exchange contracts — — (14 ) Revenues Forward currency-exchange contracts 22 (97 ) (186 ) Cost of revenues Total income (expense) before income taxes 11 (127 ) (374 ) Income tax (provision) benefit (3 ) 43 (37 ) Provision for income taxes 8 (84 ) (411 ) Total Reclassifications $ (1,700 ) $ (548 ) $ (964 ) (a) Included in the computation of net periodic benefit cost. See Note 3 for additional information. (b) See Note 9 for additional information. |
Unaudited Quarterly Informati_2
Unaudited Quarterly Information (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Information | 2018 (In thousands, except per share amounts) First Second Third Fourth Revenues $ 149,193 $ 154,913 $ 165,745 $ 163,935 Gross Profit $ 66,079 $ 68,164 $ 73,093 $ 70,945 Net Income Attributable to Kadant $ 10,858 $ 12,349 $ 18,784 $ 18,422 Basic Earnings per Share: Net Income Attributable to Kadant $ 0.98 $ 1.11 $ 1.69 $ 1.66 Diluted Earnings per Share: Net Income Attributable to Kadant $ 0.96 $ 1.08 $ 1.64 $ 1.61 Cash Dividends Declared per Common Share $ 0.22 $ 0.22 $ 0.22 $ 0.22 2017 (In thousands, except per share amounts) First Second Third Fourth Revenues $ 102,857 $ 110,242 $ 152,794 $ 149,140 Gross Profit 49,017 52,852 64,655 64,623 Net Income Attributable to Kadant $ 8,951 $ 8,096 $ 13,285 $ 760 Basic Earnings per Share: Net Income Attributable to Kadant $ 0.82 $ 0.74 $ 1.21 $ 0.07 Diluted Earnings per Share: Net Income Attributable to Kadant $ 0.80 $ 0.72 $ 1.17 $ 0.07 Cash Dividends Declared per Common Share $ 0.21 $ 0.21 $ 0.21 $ 0.21 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||||
Dec. 29, 2018USD ($)Segment | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Contract assets | $ 15,741,000 | $ 2,374,000 | |||
Revenue recognized | 36,556,000 | ||||
Percentage of completion revenue | 27,676,000 | $ 23,300,000 | |||
Advance payments on long-term contracts | 2,945,000 | ||||
Due from bankers acceptances drafts | 7,976,000 | 15,960,000 | |||
Restricted cash | $ 287,000 | 1,421,000 | 2,082,000 | ||
Weighted average useful life of acquired intangible assets | 12 years | ||||
Amortization expense of acquired intangible assets | $ 14,182,000 | 11,957,000 | 8,132,000 | ||
Estimated Future Amortization Expense [Abstract] | |||||
2,019 | 12,869,000 | ||||
2,020 | 12,299,000 | ||||
2,021 | 11,784,000 | ||||
2,022 | 11,011,000 | ||||
2,023 | 9,610,000 | ||||
Thereafter | 39,289,000 | ||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||
Goodwill impairment | 0 | 0 | |||
Impairment of intangible assets | 0 | 0 | |||
Recent Accounting Pronouncements [Abstract] | |||||
Retained earnings | 393,578,000 | 342,893,000 | |||
Operating income reclassed to other expense | $ 88,598,000 | 61,625,000 | 46,642,000 | ||
Accounting Standards Update 2017-07 | |||||
Recent Accounting Pronouncements [Abstract] | |||||
Operating income reclassed to other expense | $ (872,000) | $ (1,069,000) | |||
Accounting Standards Update 2016-02 | Minimum | Subsequent event | |||||
Recent Accounting Pronouncements [Abstract] | |||||
Operating lease, liability | $ 15,500,000 | ||||
Operating lease, right-of-use asset | 18,500,000 | ||||
Accounting Standards Update 2016-02 | Maximum | Subsequent event | |||||
Recent Accounting Pronouncements [Abstract] | |||||
Operating lease, liability | 17,500,000 | ||||
Operating lease, right-of-use asset | $ 20,500,000 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
Recent Accounting Pronouncements [Abstract] | |||||
Retained earnings | $ 119,000 | ||||
Joint Venture with an Italian Company | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Remaining ownership interest with an option to purchase | 50.00% | ||||
Italian Company | Joint Venture with an Italian Company | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Ownership interest | 50.00% | ||||
Point in Time | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue, performance obligation, percentage recognized | 91.00% | ||||
Over Time | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue, performance obligation, percentage recognized | 9.00% |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Revenue Recognition by Product Type, Geography and Revenue Recognition Method (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 163,935 | $ 165,745 | $ 154,913 | $ 149,193 | $ 149,140 | $ 152,794 | $ 110,242 | $ 102,857 | $ 633,786 | $ 515,033 | $ 414,126 |
Parts and Consumables | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 374,433 | 316,506 | 258,171 | ||||||||
Capital | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 259,353 | 198,527 | 155,955 | ||||||||
Papermaking Systems | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 469,899 | 407,605 | 366,461 | ||||||||
Wood Processing Systems | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 151,366 | 95,053 | 36,850 | ||||||||
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 305,618 | 238,483 | 203,063 | ||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 174,681 | 157,994 | 115,233 | ||||||||
Asia | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 109,688 | 78,443 | 62,703 | ||||||||
Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 43,799 | $ 40,113 | $ 33,127 | ||||||||
Point in Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 577,506 | ||||||||||
Over Time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 56,280 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies - Revenue from Contract with Customers (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable | $ 92,624 | $ 89,624 |
Contract assets | 15,741 | 2,374 |
Contract liabilities | $ 34,774 | $ 38,702 |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies - Changes in the Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at Beginning of Year | $ 2,879 | $ 2,395 | $ 2,163 |
Provision charged to expense | 355 | 436 | 453 |
Accounts written off | (165) | (159) | (128) |
Currency translation | (172) | 207 | (93) |
Balance at End of Year | $ 2,897 | $ 2,879 | $ 2,395 |
Nature of Operations and Summ_8
Nature of Operations and Summary of Significant Accounting Policies - Product Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Changes in the carrying amount of accrued warranty costs [Roll Forward] | ||
Balance at Beginning of Year | $ 5,498 | $ 3,843 |
Provision charged to expense | 3,708 | 2,652 |
Usage | (3,140) | (2,225) |
Acquisitions | 0 | 790 |
Currency translation | (340) | 438 |
Balance at End of Year | $ 5,726 | $ 5,498 |
Nature of Operations and Summ_9
Nature of Operations and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 45,830 | $ 75,425 | $ 71,487 | |
Restricted cash | 287 | 1,421 | 2,082 | |
Total Cash, Cash Equivalents, and Restricted Cash | $ 46,117 | $ 76,846 | $ 73,569 | $ 66,936 |
Nature of Operations and Sum_10
Nature of Operations and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Cash Paid for Interest | $ 7,550 | $ 2,624 | $ 1,183 |
Cash Paid for Income Taxes, Net of Refunds | 25,654 | 20,559 | 15,632 |
Non-Cash Investing Activities: | |||
Estimated post-closing adjustment | 397 | 0 | 0 |
Fair value of assets of acquired | 0 | 242,048 | 84,969 |
Cash paid for acquired businesses | 0 | (206,950) | (58,894) |
Liabilities Assumed of Acquired Businesses | 0 | 35,098 | 26,075 |
Non-cash additions to property, plant, and equipment | 917 | 4,620 | 379 |
Non-Cash Financing Activities: | |||
Issuance of Company common stock upon vesting of RSUs | 4,231 | 3,192 | 3,463 |
Dividends declared but unpaid | $ 2,444 | $ 2,316 | $ 2,078 |
Nature of Operations and Sum_11
Nature of Operations and Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Accounting Policies [Abstract] | ||
Raw Materials | $ 44,522 | $ 38,952 |
Work in Process | 15,876 | 18,203 |
Finished Goods (includes $494 and $1,883 at customer locations) | 25,975 | 27,778 |
Inventories | 86,373 | 84,933 |
Finished goods, at customer locations | $ 494 | $ 1,883 |
Nature of Operations and Sum_12
Nature of Operations and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 170,697 | $ 165,231 | |
Less: Accumulated Depreciation and Amortization | 90,540 | 85,508 | |
Property, Plant and Equipment, at Cost, Net | 80,157 | 79,723 | |
Amortization of assets under capital leases | 9,386 | 7,418 | $ 6,194 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 7,614 | 7,894 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 58,866 | 48,094 | |
Machinery, Equipment, and Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 100,453 | 94,779 | |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 3,764 | 14,464 | |
Assets Held under Capital Leases | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 5,674 | 6,038 | |
Less: Accumulated Depreciation and Amortization | $ 764 | $ 550 | |
Minimum | Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Minimum | Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Maximum | Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Maximum | Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
Nature of Operations and Sum_13
Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 178,755 | $ 178,783 |
Currency Translation | (6,714) | (1,655) |
Accumulated Amortization | (75,179) | (60,997) |
Net | 96,862 | 116,131 |
Acquired Intangible Assets | ||
Gross | 195,355 | 195,383 |
Currency Translation | (6,829) | (1,350) |
Net | 113,347 | 133,036 |
Tradenames | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Gross | 16,600 | 16,600 |
Currency Translation | (115) | 305 |
Net | 16,485 | 16,905 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 113,283 | 113,301 |
Currency Translation | (4,520) | (621) |
Accumulated Amortization | (38,160) | (28,789) |
Net | 70,603 | 83,891 |
Product technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 46,501 | 46,501 |
Currency Translation | (1,677) | (737) |
Accumulated Amortization | (23,563) | (19,841) |
Net | 21,261 | 25,923 |
Tradenames | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 5,227 | 5,227 |
Currency Translation | (390) | (262) |
Accumulated Amortization | (1,980) | (1,504) |
Net | 2,857 | 3,461 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 13,744 | 13,754 |
Currency Translation | (127) | (35) |
Accumulated Amortization | (11,476) | (10,863) |
Net | $ 2,141 | $ 2,856 |
Nature of Operations and Sum_14
Nature of Operations and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill [Roll Forward] | ||
Gross Balance, Beginning Balance | $ 353,510 | $ 236,964 |
Accumulated impairment losses | (85,509) | (85,509) |
Net Balance, Beginning Balance | 268,001 | 151,455 |
Increase Due to Acquisition | (92) | 101,881 |
Currency translation | (9,735) | 14,665 |
Goodwill period adjustments | (9,827) | 116,546 |
Gross Balance, Ending Balance | 343,683 | 353,510 |
Accumulated impairment losses | (85,509) | (85,509) |
Net Balance, Ending Balance | 258,174 | 268,001 |
Stock-Preparation | ||
Goodwill [Roll Forward] | ||
Net Balance, Beginning Balance | 60,275 | |
Net Balance, Ending Balance | 58,142 | 60,275 |
Doctoring, Cleaning, & Filtration | ||
Goodwill [Roll Forward] | ||
Net Balance, Beginning Balance | 35,941 | |
Net Balance, Ending Balance | 34,209 | 35,941 |
Fluid-Handling | ||
Goodwill [Roll Forward] | ||
Net Balance, Beginning Balance | 65,289 | |
Net Balance, Ending Balance | 64,052 | 65,289 |
Operating Segments | Papermaking Systems | ||
Goodwill [Roll Forward] | ||
Gross Balance, Beginning Balance | 247,014 | 219,699 |
Accumulated impairment losses | (85,509) | (85,509) |
Net Balance, Beginning Balance | 161,505 | 134,190 |
Increase Due to Acquisition | (17) | 16,373 |
Currency translation | (5,085) | 10,942 |
Goodwill period adjustments | (5,102) | 27,315 |
Gross Balance, Ending Balance | 241,912 | 247,014 |
Accumulated impairment losses | (85,509) | (85,509) |
Net Balance, Ending Balance | 156,403 | 161,505 |
Operating Segments | Wood Processing Systems | ||
Goodwill [Roll Forward] | ||
Gross Balance, Beginning Balance | 106,496 | 17,265 |
Accumulated impairment losses | 0 | 0 |
Net Balance, Beginning Balance | 106,496 | 17,265 |
Increase Due to Acquisition | (75) | 85,508 |
Currency translation | (4,650) | 3,723 |
Goodwill period adjustments | (4,725) | 89,231 |
Gross Balance, Ending Balance | 101,771 | 106,496 |
Accumulated impairment losses | 0 | 0 |
Net Balance, Ending Balance | $ 101,771 | $ 106,496 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) € in Thousands | Oct. 30, 2017USD ($) | Aug. 14, 2017USD ($) | Jul. 05, 2017USD ($)facility | Apr. 04, 2016USD ($) | Apr. 04, 2016EUR (€) | Dec. 30, 2017USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||||||||
Acquisition transaction costs | $ 1,321,000 | $ 5,375,000 | $ 1,832,000 | ||||||||
Goodwill | $ 268,001,000 | $ 268,001,000 | $ 151,455,000 | 258,174,000 | 268,001,000 | 151,455,000 | |||||
Payments to acquire businesses, net | $ 0 | 204,731,000 | 56,617,000 | ||||||||
Weighted average useful life of acquired intangible assets | 12 years | ||||||||||
Cash payments in acquisition | $ 0 | 206,950,000 | $ 58,894,000 | ||||||||
Revolving credit facility | Euro-Denominated Borrowing | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Proceeds from revolving credit facility | $ 29,866,000 | ||||||||||
Unaflex | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash Paid to Seller Borrowed Under the Revolving Credit Facility | $ 31,274,000 | ||||||||||
Business combination, additional consideration to be transferred | $ 397,000 | ||||||||||
Goodwill | $ 15,640,000 | ||||||||||
Revenue from the date of acquisition | 7,335,000 | ||||||||||
Operating income from date of acquisition | 187,000 | ||||||||||
Amortization expense | $ 176,000 | ||||||||||
Weighted average useful life of acquired intangible assets | 10 years | ||||||||||
Cash payments in acquisition | $ 0 | ||||||||||
NII FPG | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash Paid to Seller Borrowed Under the Revolving Credit Facility | $ 170,018,000 | ||||||||||
Goodwill | 85,432,000 | ||||||||||
Revenue from the date of acquisition | 48,363,000 | ||||||||||
Operating income from date of acquisition | 1,238,000 | ||||||||||
Amortization expense | $ 6,399,000 | ||||||||||
Payments to acquire businesses, net | $ 170,792,000 | ||||||||||
Number of primary manufacturing facilities | facility | 2 | ||||||||||
Goodwill, expected tax deductible amount | $ 33,993,000 | ||||||||||
Weighted average useful life of acquired intangible assets | 12 years | ||||||||||
Cash payments in acquisition | $ 2,993,000 | ||||||||||
NII FPG | Product technology | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Weighted average useful life of acquired intangible assets | 15 years | ||||||||||
NII FPG | Customer relationships | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Weighted average useful life of acquired intangible assets | 11 years | ||||||||||
NII FPG | Other intangibles | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Weighted average useful life of acquired intangible assets | 4 years | ||||||||||
NII FPG | Revolving credit facility | Canadian Denominated Borrowing | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash Paid to Seller Borrowed Under the Revolving Credit Facility | $ 62,690,000 | ||||||||||
NII FPG | Revolving credit facility | Euro-Denominated Borrowing | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash Paid to Seller Borrowed Under the Revolving Credit Facility | $ 61,769,000 | ||||||||||
Other | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash Paid to Seller Borrowed Under the Revolving Credit Facility | $ 2,500,000 | 2,500,000 | |||||||||
Goodwill | 716,000 | ||||||||||
Cash payments in acquisition | $ 0 | ||||||||||
Other | Customer relationships | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Weighted average useful life of acquired intangible assets | 11 years | ||||||||||
PAAL | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash Paid to Seller Borrowed Under the Revolving Credit Facility | 29,866,000 | ||||||||||
Goodwill | 38,552,000 | ||||||||||
Revenue from the date of acquisition | 40,783,000 | ||||||||||
Operating income from date of acquisition | 2,372,000 | ||||||||||
Amortization expense | $ 1,926,000 | ||||||||||
Payments to acquire businesses, net | 56,617,000 | € 49,713 | |||||||||
Weighted average useful life of acquired intangible assets | 12 years | ||||||||||
Cash payments in acquisition | $ 29,193,000 | $ 165,000 | |||||||||
PAAL | Product technology | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Weighted average useful life of acquired intangible assets | 9 years | ||||||||||
PAAL | Customer relationships | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Weighted average useful life of acquired intangible assets | 13 years | ||||||||||
PAAL | Tradenames | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Weighted average useful life of acquired intangible assets | 14 years | ||||||||||
PAAL | Other intangibles | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Weighted average useful life of acquired intangible assets | 7 years |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Oct. 30, 2017 | Aug. 14, 2017 | Jul. 05, 2017 | Apr. 04, 2016 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Net Assets Acquired: | |||||||
Goodwill | $ 258,174 | $ 268,001 | $ 151,455 | ||||
Purchase Price: | |||||||
Cash | $ 0 | 206,950 | $ 58,894 | ||||
2017 Acquisitions | |||||||
Net Assets Acquired: | |||||||
Cash and Cash Equivalents | 2,219 | ||||||
Accounts Receivable | 8,621 | ||||||
Inventories | 27,337 | ||||||
Property, Plant & Equipment | 14,475 | ||||||
Other Assets | 2,447 | ||||||
Goodwill | 101,788 | ||||||
Total assets acquired | 242,399 | ||||||
Accounts Payable | 5,328 | ||||||
Customer Deposits | 7,496 | ||||||
Long-Term Deferred Income Taxes | 16,622 | ||||||
Other Liabilities | 5,771 | ||||||
Total Liabilities Assumed | 35,217 | ||||||
Net assets acquired | 207,182 | ||||||
Purchase Price: | |||||||
Cash | 2,993 | ||||||
Cash Paid to Seller Borrowed Under the Revolving Credit Facility | 203,792 | ||||||
Estimated Post-closing Adjustment | 397 | ||||||
Total purchase price | 207,182 | ||||||
2017 Acquisitions | Tradenames | |||||||
Net Assets Acquired: | |||||||
Indefinite-Lived Intangible Assets | 8,500 | ||||||
2017 Acquisitions | Customer relationships | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 54,182 | ||||||
2017 Acquisitions | Product technology | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 19,400 | ||||||
2017 Acquisitions | Other | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 3,430 | ||||||
NII FPG | |||||||
Net Assets Acquired: | |||||||
Cash and Cash Equivalents | $ 2,219 | ||||||
Accounts Receivable | 6,542 | ||||||
Inventories | 25,304 | ||||||
Property, Plant & Equipment | 12,912 | ||||||
Other Assets | 2,375 | ||||||
Goodwill | 85,432 | ||||||
Total assets acquired | 207,596 | ||||||
Accounts Payable | 4,970 | ||||||
Customer Deposits | 7,396 | ||||||
Long-Term Deferred Income Taxes | 16,622 | ||||||
Other Liabilities | 5,597 | ||||||
Total Liabilities Assumed | 34,585 | ||||||
Net assets acquired | 173,011 | ||||||
Purchase Price: | |||||||
Cash | 2,993 | ||||||
Cash Paid to Seller Borrowed Under the Revolving Credit Facility | 170,018 | ||||||
Estimated Post-closing Adjustment | 0 | ||||||
Total purchase price | 173,011 | ||||||
NII FPG | Tradenames | |||||||
Net Assets Acquired: | |||||||
Indefinite-Lived Intangible Assets | 8,500 | ||||||
NII FPG | Customer relationships | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 44,682 | ||||||
NII FPG | Product technology | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 17,100 | ||||||
NII FPG | Other | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | $ 2,530 | ||||||
Unaflex | |||||||
Net Assets Acquired: | |||||||
Cash and Cash Equivalents | $ 0 | ||||||
Accounts Receivable | 2,079 | ||||||
Inventories | 2,033 | ||||||
Property, Plant & Equipment | 1,279 | ||||||
Other Assets | 72 | ||||||
Goodwill | 15,640 | ||||||
Total assets acquired | 32,303 | ||||||
Accounts Payable | 358 | ||||||
Customer Deposits | 100 | ||||||
Long-Term Deferred Income Taxes | 0 | ||||||
Other Liabilities | 174 | ||||||
Total Liabilities Assumed | 632 | ||||||
Net assets acquired | 31,671 | ||||||
Purchase Price: | |||||||
Cash | 0 | ||||||
Cash Paid to Seller Borrowed Under the Revolving Credit Facility | 31,274 | ||||||
Estimated Post-closing Adjustment | 397 | ||||||
Total purchase price | 31,671 | ||||||
Unaflex | Tradenames | |||||||
Net Assets Acquired: | |||||||
Indefinite-Lived Intangible Assets | 0 | ||||||
Unaflex | Customer relationships | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 8,000 | ||||||
Unaflex | Product technology | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 2,300 | ||||||
Unaflex | Other | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | $ 900 | ||||||
Other | |||||||
Net Assets Acquired: | |||||||
Cash and Cash Equivalents | $ 0 | ||||||
Accounts Receivable | 0 | ||||||
Inventories | 0 | ||||||
Property, Plant & Equipment | 284 | ||||||
Other Assets | 0 | ||||||
Goodwill | 716 | ||||||
Total assets acquired | 2,500 | ||||||
Accounts Payable | 0 | ||||||
Customer Deposits | 0 | ||||||
Long-Term Deferred Income Taxes | 0 | ||||||
Other Liabilities | 0 | ||||||
Total Liabilities Assumed | 0 | ||||||
Net assets acquired | 2,500 | ||||||
Purchase Price: | |||||||
Cash | 0 | ||||||
Cash Paid to Seller Borrowed Under the Revolving Credit Facility | 2,500 | 2,500 | |||||
Estimated Post-closing Adjustment | 0 | ||||||
Total purchase price | 2,500 | ||||||
Other | Tradenames | |||||||
Net Assets Acquired: | |||||||
Indefinite-Lived Intangible Assets | 0 | ||||||
Other | Customer relationships | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 1,500 | ||||||
Other | Product technology | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 0 | ||||||
Other | Other | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | $ 0 | ||||||
PAAL | |||||||
Net Assets Acquired: | |||||||
Cash and Cash Equivalents | $ 2,277 | ||||||
Accounts Receivable | 5,441 | ||||||
Inventories | 3,947 | ||||||
Property, Plant & Equipment | 7,179 | ||||||
Other Assets | 2,882 | ||||||
Goodwill | 38,552 | ||||||
Total assets acquired | 84,969 | ||||||
Accounts Payable | 5,536 | ||||||
Customer Deposits | 2,471 | ||||||
Obligations Under Capital Lease | 4,842 | ||||||
Long-Term Deferred Income Taxes | 6,148 | ||||||
Other Liabilities | 6,913 | ||||||
Total Liabilities Assumed | 25,910 | ||||||
Net assets acquired | 59,059 | ||||||
Purchase Price: | |||||||
Cash | 29,193 | $ 165 | |||||
Cash Paid to Seller Borrowed Under the Revolving Credit Facility | 29,866 | ||||||
Total purchase price | 59,059 | ||||||
PAAL | Customer relationships | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 15,831 | ||||||
PAAL | Product technology | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 4,203 | ||||||
PAAL | Tradenames | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | 2,278 | ||||||
PAAL | Other | |||||||
Net Assets Acquired: | |||||||
Definite-Lived Intangible Assets | $ 2,379 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings per Share Attributable to Kadant: | |||||||||||
Net Income Attributable to Kadant | $ 18,422 | $ 18,784 | $ 12,349 | $ 10,858 | $ 760 | $ 13,285 | $ 8,096 | $ 8,951 | $ 60,413 | $ 31,092 | $ 32,077 |
NII FPG and Unaflex, LLC | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Revenues | 565,710 | 508,832 | |||||||||
Net Income Attributable to Kadant | $ 44,159 | $ 30,638 | |||||||||
Earnings per Share Attributable to Kadant: | |||||||||||
Basic (in dollars per share) | $ 4.02 | $ 2.82 | |||||||||
Diluted (in dollars per share) | $ 3.90 | $ 2.75 | |||||||||
NII FPG and Unaflex, LLC | Acquisition-related transaction costs | |||||||||||
Earnings per Share Attributable to Kadant: | |||||||||||
Net Income Attributable to Kadant | $ 5,360 | $ (5,360) | |||||||||
NII FPG and Unaflex, LLC | Inventory revalued | |||||||||||
Earnings per Share Attributable to Kadant: | |||||||||||
Net Income Attributable to Kadant | 5,137 | (5,137) | |||||||||
NII FPG and Unaflex, LLC | Intangible amortization related to acquired backlog | |||||||||||
Earnings per Share Attributable to Kadant: | |||||||||||
Net Income Attributable to Kadant | 1,438 | $ (1,669) | |||||||||
NII FPG and Unaflex, LLC | Income related to gain on sale of building | |||||||||||
Earnings per Share Attributable to Kadant: | |||||||||||
Net Income Attributable to Kadant | $ (852) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 20, 2017 | Dec. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of shares available for grant | 451,441 | 451,441 | |||
Share price (in dollars per share) | $ 81.12 | $ 81.12 | |||
Cost recognized, defined contribution plan | $ 3,705 | $ 3,327 | $ 3,005 | ||
Curtailment gain (loss) | 1,078 | $ 0 | $ 0 | ||
Pension benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Future net periodic benefit cost | $ 65 | 65 | |||
Pension benefits | U.S. Pension | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Estimated future employer contribution, next year | 0 | 0 | |||
Former vice president, general counsel and secretary | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Compensation expense for arrangement with former vice president, general counsel and secretary | $ 374 | ||||
Restricted stock units for non employee directors (RSUs) | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Grants in period | 2,700 | 3,000 | 5,000 | ||
Performance-based restricted stock units | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Shares received upon vesting (in shares) | 1 | ||||
Award vesting period | 3 years | ||||
Compensation cost not yet recognized | 2,164 | $ 2,164 | |||
Compensation cost not yet recognized, recognition period | 1 year 4 months 24 days | ||||
Time-based restricted stock units | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Shares received upon vesting (in shares) | 1 | ||||
Compensation cost not yet recognized | $ 2,937 | $ 2,937 | |||
Compensation cost not yet recognized, recognition period | 1 year 9 months 18 days | ||||
Restricted stock unit awards | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Grants in period | 73,000 | ||||
Unvested RSU's at end of year (in shares) | 156,000 | 156,000 | 199,000 | ||
Weighted average grant date fair value, granted (in dollars per share) | $ 98.12 | $ 59.30 | $ 40.41 | ||
Fair value of awards vested in period | $ 11,932 | $ 6,719 | $ 6,233 | ||
Weighted-average grant date fair value (in dollars per share) | $ 68.57 | $ 68.57 | $ 49.32 | ||
Restricted stock unit awards | Former vice president, general counsel and secretary | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Grants in period | 4,254 | ||||
Weighted-average grant date fair value (in dollars per share) | $ 93.82 | ||||
Compensation and options expense for arrangement with former vice president, general counsel and secretary | $ 332 | ||||
Stock option awards | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Award vesting period | 3 years | ||||
Award expiration period | 10 years | ||||
Options exercised during the period (in shares) | 8,000 | 0 | |||
Employee Stock Purchase Plan Awards | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Discount to market under the ESOP | 15.00% | ||||
Maximum period of restriction on resale under ESOP | 1 year | ||||
Maximum participation based on compensation percentage under ESOP | 10.00% | 10.00% | |||
Stock issued during period under ESOP | 10,439 | 13,156 | 17,874 | ||
Other long-term liabiltiies | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Curtailment gain (loss) | $ 4,862 | ||||
Other expense, net | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Curtailment gain (loss) | $ (1,425) |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components Stock-Based Compensation Expense (Details) - Selling, general and administrative expenses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 7,027 | $ 5,803 | $ 5,069 |
RSU Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 6,838 | 5,621 | 4,848 |
Employee Stock Purchase Plan Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 189 | 182 | 170 |
Stock Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 0 | $ 0 | $ 51 |
Employee Benefit Plans - Activi
Employee Benefit Plans - Activity of the Unvested RSUs (Details) - RSU Awards - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Units | |||
Unvested RSUs at beginning of year (in shares) | 199 | ||
Granted (in shares) | 73 | ||
Vested (in shares) | (116) | ||
Unvested RSU's at end of year (in shares) | 156 | 199 | |
Weighted Average Grant- Date Fair Value | |||
Weighted average grant date fair value, balance at beginning of year (in dollars per share) | $ 49.32 | ||
Weighted average grant date fair value, granted (in dollars per share) | 98.12 | $ 59.30 | $ 40.41 |
Weighted average grant date fair value, vested (in dollars per share) | 54.11 | ||
Weighted average grant date fair value, balance at end of year (in dollars per share) | $ 68.57 | $ 49.32 |
Employee Benefit Plans - Stock
Employee Benefit Plans - Stock Option Activity (Details) - Stock Option Awards - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Number of Shares | ||
Options Outstanding, Beginning Balance (in shares) | 307,000 | |
Exercised (in shares) | (8,000) | 0 |
Options Outstanding, Ending Balance (in shares) | 299,000 | 307,000 |
Vested and Exercisable at end of year (in shares) | 299,000 | |
Weighted Average Exercise Price | ||
Options Outstanding, Beginning Balance (in dollars per share) | $ 20.72 | |
Exercised (in dollars per share) | 15.51 | |
Options Outstanding, Ending Balance (in dollars per share) | 20.86 | $ 20.72 |
Vested and Exercisable at end of year (in dollars per share) | $ 20.86 | |
Additional Information: | ||
Weighted average remaining contractual life, options outstanding at end of year | 2 years 6 months | |
Weighted average remaining contractual life, vested and exercisable at end of year | 2 years 6 months | |
Aggregate intrinsic value, options outstanding at end of year | $ 18,029 | |
Aggregate intrinsic value, vested and exercisable at end of year | $ 18,029 |
Employee Benefit Plans - Stoc_2
Employee Benefit Plans - Stock Option Exercises (Details) - Stock Option Awards - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Intrinsic Value of Options Exercised | $ 515 | $ 1,341 |
Cash Received from Options Exercised | $ 127 | $ 1,189 |
Employee Benefit Plans - Change
Employee Benefit Plans - Changes in Plans and AOCI Impacts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Pension benefits | U.S. Pension | |||
Change in Projected Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 34,757 | $ 31,935 | |
Acquisition | 0 | 0 | |
Service cost | 699 | 685 | $ 723 |
Interest cost | 1,193 | 1,231 | 1,273 |
Actuarial (gain) loss | (2,674) | 2,626 | |
Benefits paid | (1,589) | (1,720) | |
Plan amendment | 1,116 | 0 | |
Effect of curtailment | (3,787) | 0 | |
Currency translation | 0 | 0 | |
Projected benefit obligation at end of year | 29,715 | 34,757 | 31,935 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 31,754 | 28,985 | |
Actual return on plan assets | (1,436) | 3,409 | |
Employer contributions | 0 | 1,080 | |
Benefits paid | (1,589) | (1,720) | |
Currency translation | 0 | 0 | |
Fair value of plan assets at end of year | 28,729 | 31,754 | 28,985 |
Unfunded Status | (986) | (3,003) | |
Accumulated Benefit Obligation at End of Year | 29,715 | 30,311 | |
Current liability | (986) | 0 | |
Non-current liability | 0 | (3,003) | |
Unrecognized net actuarial loss | (3,205) | (7,485) | |
Unrecognized prior service cost | 0 | 0 | |
Total | (3,205) | (7,485) | |
Net actuarial (loss) gain | (48) | (544) | |
Amortization of net actuarial loss | 541 | 442 | |
Amortization of prior service cost | 0 | 53 | |
Plan amendment | (1,116) | 0 | |
Effect of curtailment | 3,787 | 0 | |
Curtailment loss | 1,116 | 0 | |
Currency translation | 0 | 0 | |
Total | 4,280 | (49) | |
Pension benefits | Non-U.S. Pension | |||
Change in Projected Benefit Obligation: | |||
Projected benefit obligation at beginning of year | 4,270 | 3,341 | |
Acquisition | 0 | 241 | |
Service cost | 173 | 148 | 102 |
Interest cost | 126 | 114 | 107 |
Actuarial (gain) loss | (368) | 270 | |
Benefits paid | (394) | (265) | |
Plan amendment | 0 | 0 | |
Effect of curtailment | 0 | 0 | |
Currency translation | (136) | 421 | |
Projected benefit obligation at end of year | 3,671 | 4,270 | 3,341 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 557 | 426 | |
Actual return on plan assets | 38 | 23 | |
Employer contributions | 528 | 355 | |
Benefits paid | (394) | (265) | |
Currency translation | (3) | 18 | |
Fair value of plan assets at end of year | 726 | 557 | 426 |
Unfunded Status | (2,945) | (3,713) | |
Accumulated Benefit Obligation at End of Year | 2,604 | 3,047 | |
Current liability | (58) | (205) | |
Non-current liability | (2,887) | (3,508) | |
Unrecognized net actuarial loss | (674) | (1,085) | |
Unrecognized prior service cost | (45) | (52) | |
Total | (719) | (1,137) | |
Net actuarial (loss) gain | 368 | (277) | |
Amortization of net actuarial loss | 63 | 38 | |
Amortization of prior service cost | 6 | 6 | |
Plan amendment | 0 | 0 | |
Effect of curtailment | 0 | 0 | |
Curtailment loss | 0 | 0 | |
Currency translation | (19) | (78) | |
Total | 418 | (311) | |
Other Post-Retirement | |||
Change in Projected Benefit Obligation: | |||
Projected benefit obligation at beginning of year | 4,704 | 3,894 | |
Acquisition | 0 | 0 | |
Service cost | 213 | 175 | 130 |
Interest cost | 172 | 170 | 156 |
Actuarial (gain) loss | (508) | 635 | |
Benefits paid | (157) | (175) | |
Plan amendment | 322 | 0 | |
Effect of curtailment | (1,075) | 0 | |
Currency translation | 1 | 5 | |
Projected benefit obligation at end of year | 3,672 | 4,704 | 3,894 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 35 | 28 | |
Actual return on plan assets | 2 | 1 | |
Employer contributions | 164 | 179 | |
Benefits paid | (157) | (175) | |
Currency translation | 0 | 2 | |
Fair value of plan assets at end of year | 44 | 35 | $ 28 |
Unfunded Status | (3,628) | (4,669) | |
Accumulated Benefit Obligation at End of Year | 0 | 0 | |
Current liability | (144) | (173) | |
Non-current liability | (3,484) | (4,496) | |
Unrecognized net actuarial loss | (69) | (1,424) | |
Unrecognized prior service cost | 0 | (439) | |
Total | (69) | (1,863) | |
Net actuarial (loss) gain | 508 | (634) | |
Amortization of net actuarial loss | 136 | 83 | |
Amortization of prior service cost | 86 | 88 | |
Plan amendment | (322) | 0 | |
Effect of curtailment | 1,075 | 0 | |
Curtailment loss | 309 | 0 | |
Currency translation | 2 | (3) | |
Total | $ 1,794 | $ (466) |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted-Average Assumptions Used (Details) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Pension benefits | U.S. Pension | |||
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate | 4.10% | 3.51% | |
Rate of compensation increase | 0.00% | 3.00% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount Rate | 3.51% | 4.03% | 4.22% |
Expected Long-Term Return on Plan Assets | 4.50% | 5.00% | 5.00% |
Rate of Compensation Increase | 3.00% | 3.00% | 3.00% |
Pension benefits | Non-U.S. Pension | |||
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate | 3.56% | 3.16% | |
Rate of compensation increase | 3.24% | 3.33% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount Rate | 3.49% | 3.45% | 3.87% |
Expected Long-Term Return on Plan Assets | 7.43% | 7.53% | 7.72% |
Rate of Compensation Increase | 3.97% | 3.65% | 3.67% |
Other Post-Retirement | |||
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate | 4.32% | 3.71% | |
Rate of compensation increase | 5.57% | 3.11% | |
Weighted-average assumptions used to determine net periodic benefit cost | |||
Discount Rate | 3.58% | 4.10% | 4.28% |
Expected Long-Term Return on Plan Assets | 7.43% | 7.53% | 7.72% |
Rate of Compensation Increase | 3.05% | 3.08% | 3.05% |
Employee Benefit Plans - Plans
Employee Benefit Plans - Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - Pension benefits - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
U.S. Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 29,715 | $ 34,757 |
Fair value of plan assets | 28,729 | 31,754 |
Non-U.S. Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | 3,671 | 4,270 |
Fair value of plan assets | $ 726 | $ 557 |
Employee Benefit Plans - Plan_2
Employee Benefit Plans - Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Details) - Pension benefits - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
U.S. Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | $ 29,715 | $ 0 |
Fair value of plan assets | 28,729 | 0 |
Non-U.S. Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated benefit obligation | 2,604 | 3,047 |
Fair value of plan assets | $ 726 | $ 557 |
Employee Benefit Plans - Comp_2
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Other Post-Retirement | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 213 | $ 175 | $ 130 |
Interest cost | 172 | 170 | 156 |
Expected return on plan assets | (3) | (2) | (2) |
Amortization of net actuarial loss | 136 | 83 | 50 |
Amortization of prior service cost | 86 | 88 | 88 |
Settlement loss | 0 | 0 | 114 |
Curtailment loss | 309 | 0 | 0 |
Net Periodic Benefit Cost | 913 | 514 | 536 |
U.S. Pension | Pension benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 699 | 685 | 723 |
Interest cost | 1,193 | 1,231 | 1,273 |
Expected return on plan assets | (1,286) | (1,326) | (1,288) |
Amortization of net actuarial loss | 541 | 442 | 498 |
Amortization of prior service cost | 0 | 53 | 55 |
Settlement loss | 0 | 0 | 0 |
Curtailment loss | 1,116 | 0 | 0 |
Net Periodic Benefit Cost | 2,263 | 1,085 | 1,261 |
Non-U.S. Pension | Pension benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 173 | 148 | 102 |
Interest cost | 126 | 114 | 107 |
Expected return on plan assets | (42) | (25) | (25) |
Amortization of net actuarial loss | 63 | 38 | 39 |
Amortization of prior service cost | 6 | 6 | 4 |
Settlement loss | 0 | 0 | 0 |
Curtailment loss | 0 | 0 | 0 |
Net Periodic Benefit Cost | $ 326 | $ 281 | $ 227 |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Plan Assets (Details) - Pension benefits - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
U.S. Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at NAV | $ 4,296 | $ 9,431 | |
Total assets at fair value | 28,729 | 31,754 | |
U.S. Pension | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 12,852 | 17,560 | |
U.S. Pension | Money market funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 12,852 | 17,560 | |
U.S. Pension | Money market funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
U.S. Pension | Money market funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
U.S. Pension | Equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 4,763 | ||
U.S. Pension | Equity funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 4,763 | ||
U.S. Pension | Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 11,581 | ||
U.S. Pension | Fixed income funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 11,581 | ||
U.S. Pension | Fixed income funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | ||
U.S. Pension | Fixed income funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | ||
Non-U.S. Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 726 | 557 | $ 426 |
Non-U.S. Pension | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 726 | 557 | |
Non-U.S. Pension | Mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 726 | 557 | |
Non-U.S. Pension | Mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | 0 | 0 | |
Non-U.S. Pension | Mutual funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total assets at fair value | $ 0 | $ 0 |
Employee Benefit Plans - Target
Employee Benefit Plans - Target Asset Allocation of Plan Assets (Details) - Pension benefits | Dec. 29, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 100.00% |
Money market funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 45.00% |
Money market funds | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 0.00% |
Money market funds | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 100.00% |
Debt Securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 55.00% |
Debt Securities | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 0.00% |
Debt Securities | Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 100.00% |
Employee Benefit Plans - Estima
Employee Benefit Plans - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Other Post-Retirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,019 | $ 151 |
2,020 | 2,871 |
2,021 | 133 |
2,022 | 127 |
2,023 | 114 |
2024-2028 | 480 |
U.S. Pension | Pension benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,019 | 29,715 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
2,023 | 0 |
2024-2028 | 0 |
Non-U.S. Pension | Pension benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,019 | 194 |
2,020 | 142 |
2,021 | 211 |
2,022 | 312 |
2,023 | 330 |
2024-2028 | $ 2,117 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares | Dec. 29, 2018 | Dec. 30, 2017 |
Preferred Stock [Abstract] | ||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common Stock [Abstract] | ||
Common stock reserved and unissued (in shares) | 945,279 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax Cuts and Jobs Act of 2017 - provisional net income tax expense | $ 7,487,000 | ||
Tax Cuts and Jobs Act of 2017 - one-time transition tax | 10,303,000 | ||
Tax Cuts and Jobs Act of 2017 - tax benefit from remeasurement of deferred tax liabilities | 2,816,000 | ||
Tax Cuts and Jobs Act of 2017 - decrease in one-time transition tax | $ (138,000) | ||
Excess tax benefit related to share-based compensation | 1,097,000 | 608,000 | $ 582,000 |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, Valuation allowance | 9,946,000 | 10,835,000 | |
Increase (decrease) of deferred tax asset valuation allowance | (889,000) | ||
Undistributed earnings of foreign subsidiaries | 283,922,000 | ||
Provision for unremitted foreign earnings | 830,000 | ||
Undistributed earnings of foreign subsidiaries excluding those repatriated back domestically | 272,846,000 | ||
Estimated withholding liability related to undistributed earnings of foreign subsidiaries | 4,949,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 12,364,000 | ||
Income tax penalties and accrued interest from unrecognized tax benefits | 2,087,000 | 1,523,000 | |
Income tax penalties and interest expense from unrecognized tax benefits | 544,000 | $ 199,000 | |
Upper bound estimated range of change of significant decrease in unrecognized tax benefits | $ 841,000 | ||
Estimated time frame for significant change in unrecognized tax benefits | 12 months | ||
Internal revenue service (IRS) | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, Valuation allowance | $ 418,000 | ||
Foreign tax authority | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets, Valuation allowance | 9,528,000 | ||
Operating loss carryforwards | 44,495,000 | ||
State and local jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 25,852,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (397) | $ 2,797 | $ 6,196 |
Foreign | 79,925 | 54,856 | 38,353 |
Total income from continuing operations before provision for income taxes | $ 79,528 | $ 57,653 | $ 44,549 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Current Provision: | |||
Federal | $ 724 | $ 7,835 | $ 535 |
Foreign | 21,829 | 17,372 | 11,323 |
State | 169 | 285 | 838 |
Current provision | 22,722 | 25,492 | 12,696 |
Deferred (Benefit) Provision: | |||
Federal | (2,551) | 4,682 | 1,738 |
Foreign | (1,761) | (3,563) | (1,818) |
State | 72 | (541) | (533) |
Deferred (benefit) provision | (4,240) | 578 | (613) |
Continuing Operations | $ 18,482 | $ 26,070 | $ 12,083 |
Income Taxes - Continuing and D
Income Taxes - Continuing and Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Continuing Operations | $ 18,482 | $ 26,070 | $ 12,083 |
Discontinued Operation | 0 | 0 | 2 |
Provision for Income Taxes Including Discontinued Operation | $ 18,482 | $ 26,070 | $ 12,085 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Provision for Income Taxes at Statutory Rate (21% in 2018 and 35% in 2017 and 2016) | $ 16,701 | $ 20,179 | $ 15,592 |
Increases (Decreases) Resulting From: | |||
State income taxes, net of federal tax | 164 | 151 | 189 |
U.S. tax cost of foreign earnings | 1,215 | 761 | 192 |
Foreign tax rate differential | 3,158 | (3,747) | (3,921) |
(Reversal of) provision for tax benefit reserves, net | (1,785) | 1,517 | (76) |
Change in valuation allowance | 141 | (341) | (131) |
Nondeductible expenses | 781 | 1,177 | 1,090 |
Research and development tax credits | (445) | (297) | (229) |
Excess tax benefit related to stock-based compensation | (967) | (581) | (553) |
Impact of the U.S. Tax Cuts and Jobs Act | (106) | 7,093 | 0 |
Other | (375) | 158 | (70) |
Continuing Operations | $ 18,482 | $ 26,070 | $ 12,083 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Liability (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred Tax Asset: | ||
Foreign, state, and alternative minimum tax credit carryforwards | $ 184 | $ 185 |
Reserves and accruals | 3,555 | 4,455 |
Net operating loss carryforwards | 12,785 | 15,161 |
Inventory basis difference | 3,692 | 3,265 |
Research and development | 0 | 88 |
Employee compensation | 4,382 | 2,610 |
Allowance for doubtful accounts | 482 | 505 |
Other | 294 | 59 |
Deferred tax asset, gross | 25,374 | 26,328 |
Less: valuation allowance | (9,946) | (10,835) |
Deferred tax asset, net | 15,428 | 15,493 |
Deferred Tax Liability: | ||
Goodwill and intangible assets | (28,060) | (32,120) |
Fixed asset basis difference | (3,565) | (4,213) |
Provision for unremitted foreign earnings | (1,124) | (2,718) |
Research and development | (54) | 0 |
Other | (619) | (554) |
Deferred tax liability | (33,422) | (39,605) |
Net deferred tax liability | $ (17,994) | $ (24,112) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Unrecognized Tax Benefits, Beginning of Year | $ 7,843 | $ 5,467 |
Gross Increases—Tax Positions in Prior Periods | 1,019 | 4 |
Gross Decreases—Tax Positions in Prior Periods | (390) | (22) |
Gross Increases—Current-period Tax Positions | 7,344 | 2,229 |
Settlements | (131) | 0 |
Lapses of Statutes of Limitations | (3,190) | (11) |
Decrease from Currency Translation | (131) | |
Increase from Currency Translation | 176 | |
Unrecognized Tax Benefits, End of Year | $ 12,364 | $ 7,843 |
Long-Term Obligations - Long-te
Long-Term Obligations - Long-term Obligations (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Obligations Under Capital Lease, due 2019 to 2022 | $ 4,144 | $ 4,633 |
Unamortized Debt Issuance Expense | (148) | 0 |
Total | 175,821 | 242,080 |
Less: Current Maturities of Long-Term Obligations | (1,668) | (696) |
Long-Term Obligations | 174,153 | 241,384 |
Revolving credit facility, due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 141,106 | 237,011 |
Commercial Real Estate Loan, due 2019 to 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 20,475 | 0 |
Senior Promissory Notes, due 2023 to 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 10,000 | |
Other Borrowings, due 2019 to 2023 | ||
Debt Instrument [Line Items] | ||
Other borrowings | $ 244 | $ 436 |
Long-Term Obligations - Additio
Long-Term Obligations - Additional Information (Details) | Jul. 06, 2018USD ($) | Dec. 29, 2018USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 01, 2018USD ($) | Nov. 30, 2018USD ($) | Apr. 04, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||
Payment of debt issuance costs | $ 934,000 | $ 1,257,000 | $ 27,000 | |||||
Unamortized debt issuance costs | $ 148,000 | 148,000 | 0 | |||||
Loans receivable | 692,000 | 692,000 | ||||||
Outstanding capital lease obligations | $ 4,144,000 | 4,144,000 | 4,633,000 | |||||
Commercial Real Estate Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Payment of debt issuance costs | $ 158,000 | |||||||
Effective interest rate | 4.60% | 4.60% | ||||||
Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 141,106,000 | $ 141,106,000 | $ 237,011,000 | |||||
Remaining borrowing capacity | $ 258,864,000 | $ 258,864,000 | ||||||
Weighted average interest rate for long-term obligations | 3.47% | 3.47% | ||||||
Revolving credit facility | 2017 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Term of debt agreement | 5 years | |||||||
Borrowing capacity available under committed portion | $ 400,000,000 | $ 300,000,000 | ||||||
Additional borrowing capacity | $ 150,000,000 | $ 100,000,000 | ||||||
Basis spread on variable rate floor (as a percentage) | 0.00% | |||||||
Maximum amount of unrestricted U.S. cash | $ 30,000,000 | $ 30,000,000 | ||||||
Maximum consolidated leverage ratio | 3.75 | |||||||
Minimum consolidated interest coverage ratio | 4 | |||||||
Long-term debt | $ 141,106,000 | 141,106,000 | ||||||
Payment of debt issuance costs | 741,000 | |||||||
Unamortized debt issuance costs | 1,735,000 | 1,735,000 | $ 1,285,000 | |||||
Revolving credit facility | Canadian Denominated Borrowing | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 41,612,000 | 41,612,000 | ||||||
Revolving credit facility | Euro-Denominated Borrowing | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 19,494,000 | 19,494,000 | ||||||
Revolving credit facility | Federal funds rate | 2017 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percentage) | 0.50% | |||||||
Revolving credit facility | LIBOR | 2017 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percentage) | 0.50% | |||||||
Revolving credit facility | LIBOR | Minimum | 2017 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percentage) | 1.00% | |||||||
Revolving credit facility | LIBOR | Maximum | 2017 Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percentage) | 2.25% | |||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 10,000,000 | 10,000,000 | ||||||
Senior Notes | Note Purchase Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Additional borrowing capacity | 115,000,000 | 115,000,000 | ||||||
Payment of debt issuance costs | 193,000 | |||||||
Principal amount | $ 10,000,000 | $ 10,000,000 | ||||||
Fixed interest rate | 4.90% | 4.90% | ||||||
Senior Notes | Minimum | Note Purchase Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt prepayment cost | $ 1,000,000 | |||||||
Secured Debt | Commercial Real Estate Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 10,500,000 | |||||||
Principal amount | 21,000,000 | |||||||
Quarterly installment amount | $ 262,500 | |||||||
Fixed interest rate | 4.45% | |||||||
Capital Lease Obligations | Sale Leaseback Arrangement | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective interest rate | 1.79% | 1.79% | ||||||
Net purchase option | $ 1,524,000 | |||||||
Outstanding capital lease obligations | $ 4,082,000 | $ 4,082,000 | ||||||
Capital Lease Obligations | Other Capital Lease Obligations | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding capital lease obligations | $ 62,000 | $ 62,000 | ||||||
Debt Covenant Period One | Secured Debt | Commercial Real Estate Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Prepayment fee | 2.00% | |||||||
Debt Covenant Period Two | Secured Debt | Commercial Real Estate Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Prepayment fee | 1.00% |
Long-Term Obligations - Future
Long-Term Obligations - Future Repayments of Debt (Details) - Credit Facility, Real Estate Loan and Note Purchase Agreement $ in Thousands | Dec. 29, 2018USD ($) |
Debt Instrument [Line Items] | |
2,019 | $ 1,050 |
2,020 | 1,050 |
2,021 | 1,050 |
2,022 | 1,050 |
2,023 | 143,823 |
2024 and Thereafter | 23,558 |
Long-term debt | $ 171,581 |
Long-Term Obligations - Futur_2
Long-Term Obligations - Future Minimum Capital Lease Payments (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 571 |
2,020 | 578 |
2,021 | 542 |
2,022 | 1,099 |
Total minimum lease payments | 2,790 |
Less: Imputed Interest | (170) |
Present Value of Minimum Lease Payments | $ 2,620 |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Expenses from operating leases | $ 5,575 | $ 4,955 | $ 4,298 |
2,019 | 4,507 | ||
2,020 | 3,275 | ||
2,021 | 2,230 | ||
2,022 | 1,579 | ||
2,023 | 987 | ||
Due Thereafter | 1,713 | ||
Future Minimum Payments Due | $ 14,291 |
Commitments and Contingencies_2
Commitments and Contingencies - Letters of Credit and Bank Guarantees (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Performance Obligations and Customer Deposit Guarantees | |
Line of Credit Facility [Line Items] | |
Outstanding letters of credit and bank guarantees | $ 18,320 |
Commitments and Contingencies_3
Commitments and Contingencies - Right of Recourse (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Banker's Acceptances Executed | $ 12,406 | $ 10,035 |
Restructuring Costs and Other_3
Restructuring Costs and Other Income - Additional Information (Details) ft² in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018USD ($)Employee | Dec. 30, 2017USD ($)ft² | Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Manufacturing facility square footage (in sqft) | ft² | 160 | ||
Restructuring provision (reversal) | $ 1,717 | $ 203 | |
Loss (gain) on sale of property, plant, and equipment | (110) | (42) | $ 350 |
Proceeds from sale of property, plant, and equipment | $ 195 | 130 | $ 428 |
United States | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated related to restructuring | Employee | 4 | ||
Sweden | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated related to restructuring | Employee | 6 | ||
Loss (gain) on sale of property, plant, and equipment | 317 | ||
Proceeds from sale of property, plant, and equipment | 368 | ||
Employee severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring provision (reversal) | $ (55) | 203 | |
Restructuring Plan 2017 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring provision (reversal) | 1,717 | ||
Restructuring Plan 2017 | Employee severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring provision (reversal) | (55) | 203 | |
Restructuring Plan 2017 | Facility-related closing costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected total costs | $ 1,920 | ||
Restructuring Plan 2017 | Relocation Of Machinery And Equipment And Administrative Offices | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring provision (reversal) | 1,318 | ||
Restructuring Plan 2017 | Employee Retention, Facility Closing, And Other Closure Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring provision (reversal) | $ 454 |
Restructuring Costs and Other_4
Restructuring Costs and Other Income - Changes in Accrued Restructuring (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 203 | |
(Reversal) Provision | 1,717 | $ 203 |
Usage | (1,840) | |
Currency translation | (17) | |
Balance at end of period | 63 | 203 |
Restructuring Plan 2017 | ||
Restructuring Reserve [Roll Forward] | ||
(Reversal) Provision | 1,717 | |
Severance Costs | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 203 | |
(Reversal) Provision | (55) | 203 |
Usage | (77) | |
Currency translation | (8) | |
Balance at end of period | 63 | 203 |
Severance Costs | Restructuring Plan 2017 | ||
Restructuring Reserve [Roll Forward] | ||
(Reversal) Provision | (55) | 203 |
Relocation | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 0 | |
(Reversal) Provision | 1,318 | |
Usage | (1,315) | |
Currency translation | (3) | |
Balance at end of period | 0 | 0 |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 0 | |
(Reversal) Provision | 454 | |
Usage | (448) | |
Currency translation | (6) | |
Balance at end of period | $ 0 | $ 0 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | May 31, 2018 | Jan. 16, 2015 | |
Derivatives, Fair Value [Line Items] | |||||
Amounts to be reclassified into earnings | $ 8,000 | ||||
Swap Agreement 2018 | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, floor interest rate | 0.00% | ||||
Forward Currency-Exchange Contracts | Derivatives Not Designated as Hedging Instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Loss on foreign currency derivative instruments, not designated as hedging | $ 27,000 | $ 1,367,000 | $ 797,000 | ||
Cash Flow Hedging | Derivatives Designated as Hedging Instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Rate of effectiveness of derivative agreement | 100.00% | ||||
Cash Flow Hedging | Swap Agreement 2018 | Derivatives Designated as Hedging Instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | $ 15,000,000 | ||||
Derivative, fixed interest rate | 3.15% | ||||
Cash Flow Hedging | Swap Agreement 2015 | Derivatives Designated as Hedging Instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount | $ 10,000,000 | ||||
Cash Flow Hedging | Swap Agreement 2015 | Derivatives Designated as Hedging Instruments | LIBOR | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, fixed interest rate | 1.50% | ||||
Cash Flow Hedging | Forward Currency-Exchange Contracts | Derivatives Designated as Hedging Instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Period over which entity manages its level of exposure of risk | 12 months |
Derivatives - Fair Value (Detai
Derivatives - Fair Value (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Derivatives Designated as Hedging Instruments | Swap Agreement 2015 | Other Long-Term Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 148 | $ 126 |
Derivative Asset, Notional Amount | 10,000 | 10,000 |
Derivatives Designated as Hedging Instruments | Forward Currency-Exchange Contracts | Other Long-Term Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 11 | 0 |
Derivative Asset, Notional Amount | 842 | 0 |
Derivatives Designated as Hedging Instruments | Forward Currency-Exchange Contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (50) | 0 |
Derivative Liability, Notional Amount | 2,946 | 0 |
Derivatives Designated as Hedging Instruments | Swap Agreement 2018 | Other long-term liabiltiies | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (352) | 0 |
Derivative Liability, Notional Amount | 15,000 | 0 |
Derivatives Not Designated as Hedging Instruments | Forward Currency-Exchange Contracts | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | (31) | (16) |
Derivative Liability, Notional Amount | 1,384 | 2,049 |
Derivatives Not Designated as Hedging Instruments | Forward Currency-Exchange Contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 9 | 17 |
Derivative Asset, Notional Amount | $ 1,192 | $ 1,244 |
Derivatives - AOCI Activity (De
Derivatives - AOCI Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 332,504 | $ 284,279 | $ 267,945 |
Loss recognized in AOCI | (276) | 67 | 241 |
Ending balance | 374,571 | 332,504 | $ 284,279 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedging | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 79 | ||
Loss (gain) reclassified to earnings | (8) | ||
Loss recognized in AOCI | (268) | ||
Ending balance | (197) | 79 | |
Derivatives Designated as Hedging Instruments | Cash Flow Hedging | Interest rate swap agreements | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 79 | ||
Loss (gain) reclassified to earnings | 8 | ||
Loss recognized in AOCI | (257) | ||
Ending balance | (170) | 79 | |
Derivatives Designated as Hedging Instruments | Cash Flow Hedging | Forward Currency-Exchange Contracts | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 0 | ||
Loss (gain) reclassified to earnings | (16) | ||
Loss recognized in AOCI | (11) | ||
Ending balance | $ (27) | $ 0 |
Fair Value Measurements and F_3
Fair Value Measurements and Fair Value of Financial Instruments - Assets and Liabilities, Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Assets: | ||
Money market funds and time deposits | $ 6,902 | $ 17,728 |
Banker's acceptance drafts | 7,976 | 15,960 |
2015 Swap Agreement | 148 | 126 |
Forward currency-exchange contracts | 20 | 17 |
Liabilities: | ||
2018 Swap Agreement | 352 | |
Forward currency-exchange contracts | 81 | 16 |
Level 1 | ||
Assets: | ||
Money market funds and time deposits | 6,902 | 17,728 |
Banker's acceptance drafts | 0 | 0 |
2015 Swap Agreement | 0 | 0 |
Forward currency-exchange contracts | 0 | 0 |
Liabilities: | ||
2018 Swap Agreement | 0 | |
Forward currency-exchange contracts | 0 | 0 |
Level 2 | ||
Assets: | ||
Money market funds and time deposits | 0 | 0 |
Banker's acceptance drafts | 7,976 | 15,960 |
2015 Swap Agreement | 148 | 126 |
Forward currency-exchange contracts | 20 | 17 |
Liabilities: | ||
2018 Swap Agreement | 352 | |
Forward currency-exchange contracts | 81 | 16 |
Level 3 | ||
Assets: | ||
Money market funds and time deposits | 0 | 0 |
Banker's acceptance drafts | 0 | 0 |
2015 Swap Agreement | 0 | 0 |
Forward currency-exchange contracts | 0 | 0 |
Liabilities: | ||
2018 Swap Agreement | 0 | |
Forward currency-exchange contracts | $ 0 | $ 0 |
Fair Value Measurements and F_4
Fair Value Measurements and Fair Value of Financial Instruments - Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Revolving credit facility | $ 141,106 | $ 237,011 |
Commercial real estate loan | 20,475 | 0 |
Senior promissory notes | 10,000 | 0 |
Capital lease obligations | 4,144 | 4,633 |
Other borrowings | 244 | 436 |
Debt obligations | 175,969 | 242,080 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Revolving credit facility | 141,106 | 237,011 |
Commercial real estate loan | 20,575 | 0 |
Senior promissory notes | 10,120 | 0 |
Capital lease obligations | 4,144 | 4,633 |
Other borrowings | 244 | 436 |
Debt obligations | $ 176,189 | $ 242,080 |
Business Segment and Geograph_3
Business Segment and Geographical Information - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018USD ($)Segment | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | Segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Acquisition transaction costs | $ 1,321 | $ 5,375 | $ 1,832 |
Restructuring and other expense (income) | 1,717 | 203 | (317) |
Curtailment gain (loss) | 1,078 | 0 | 0 |
Operating Segments | Papermaking Systems | |||
Segment Reporting Information [Line Items] | |||
Acquisition transaction costs | 787 | 3,491 | |
Restructuring and other expense (income) | 1,717 | 203 | $ (317) |
Operating Segments | Wood Processing Systems | |||
Segment Reporting Information [Line Items] | |||
Acquisition transaction costs | 252 | $ 11,163 | |
General and Administrative Expense | |||
Segment Reporting Information [Line Items] | |||
Acquisition transaction costs | $ 1,321 |
Business Segment and Geograph_4
Business Segment and Geographical Information - Revenues and Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenues by Product Line: | |||||||||||
Revenues | $ 163,935 | $ 165,745 | $ 154,913 | $ 149,193 | $ 149,140 | $ 152,794 | $ 110,242 | $ 102,857 | $ 633,786 | $ 515,033 | $ 414,126 |
Income from Continuing Operations Before Provision for Income Taxes: | |||||||||||
Total operating income | 88,598 | 61,625 | 46,642 | ||||||||
Interest expense, net | (6,653) | (3,100) | (1,024) | ||||||||
Other expense, net | (2,417) | (872) | (1,069) | ||||||||
Income from Continuing Operations Before Provision for Income Taxes | 79,528 | 57,653 | 44,549 | ||||||||
Total Assets: | |||||||||||
Total Assets | 725,749 | 761,094 | 725,749 | 761,094 | 470,691 | ||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 23,568 | 19,375 | 14,326 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 16,559 | 17,281 | 5,804 | ||||||||
Long-lived assets | 80,157 | 79,723 | 80,157 | 79,723 | 47,704 | ||||||
United States | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | 234,487 | 182,788 | 165,335 | ||||||||
Capital Expenditures: | |||||||||||
Long-lived assets | 35,446 | 32,852 | 35,446 | 32,852 | 18,482 | ||||||
China | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | 89,645 | 63,910 | 43,299 | ||||||||
Capital Expenditures: | |||||||||||
Long-lived assets | 11,069 | 11,685 | 11,069 | 11,685 | 10,714 | ||||||
Canada | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | 61,096 | 47,611 | 28,888 | ||||||||
Capital Expenditures: | |||||||||||
Long-lived assets | 8,193 | 9,449 | 8,193 | 9,449 | 1,125 | ||||||
Finland | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | 10,934 | 8,607 | 3,885 | ||||||||
Capital Expenditures: | |||||||||||
Long-lived assets | 6,998 | 5,841 | 6,998 | 5,841 | 0 | ||||||
Germany | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | 26,577 | 32,026 | 18,095 | ||||||||
Capital Expenditures: | |||||||||||
Long-lived assets | 6,223 | 6,452 | 6,223 | 6,452 | 5,792 | ||||||
Other | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | 211,047 | 180,091 | 154,624 | ||||||||
Capital Expenditures: | |||||||||||
Long-lived assets | 12,228 | 13,444 | 12,228 | 13,444 | 11,591 | ||||||
Operating Segments | Papermaking Systems Segment | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | 469,899 | 407,605 | 366,461 | ||||||||
Income from Continuing Operations Before Provision for Income Taxes: | |||||||||||
Total operating income | 83,454 | 73,069 | 58,025 | ||||||||
Total Assets: | |||||||||||
Total Assets | 462,297 | 494,919 | 462,297 | 494,919 | 407,538 | ||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 12,561 | 11,239 | 11,513 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 12,717 | 14,359 | 5,504 | ||||||||
Operating Segments | Papermaking Systems Segment | Stock-Preparation | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | 221,933 | 193,838 | 171,378 | ||||||||
Operating Segments | Papermaking Systems Segment | Fluid-Handling | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | 131,830 | 104,136 | 89,145 | ||||||||
Operating Segments | Papermaking Systems Segment | Doctoring, Cleaning, & Filtration | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | 116,136 | 109,631 | 105,938 | ||||||||
Operating Segments | Wood Processing Systems | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | 151,366 | 95,053 | 36,850 | ||||||||
Income from Continuing Operations Before Provision for Income Taxes: | |||||||||||
Total operating income | 31,237 | 10,005 | 8,327 | ||||||||
Total Assets: | |||||||||||
Total Assets | 247,553 | 257,467 | 247,553 | 257,467 | 52,407 | ||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 10,317 | 7,515 | 2,188 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 3,272 | 2,333 | 29 | ||||||||
Corporate and Fiber-based Products | |||||||||||
Income from Continuing Operations Before Provision for Income Taxes: | |||||||||||
Total operating income | (26,093) | (21,449) | (19,710) | ||||||||
Total Assets: | |||||||||||
Total Assets | $ 15,899 | $ 8,708 | 15,899 | 8,708 | 10,746 | ||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 690 | 621 | 625 | ||||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 570 | 589 | 271 | ||||||||
Corporate and Fiber-based Products | Fiber-based Products | |||||||||||
Revenues by Product Line: | |||||||||||
Revenues | $ 12,521 | $ 12,375 | $ 10,815 |
Earnings per Share - Computatio
Earnings per Share - Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Income from Continuing Operations | $ 60,413 | $ 31,092 | $ 32,074 | ||||||||
Income from Discontinued Operation | 0 | 0 | 3 | ||||||||
Net Income Attributable to Kadant | $ 18,422 | $ 18,784 | $ 12,349 | $ 10,858 | $ 760 | $ 13,285 | $ 8,096 | $ 8,951 | $ 60,413 | $ 31,092 | $ 32,077 |
Basic Weighted Average Shares | 11,086 | 10,991 | 10,869 | ||||||||
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares | 314 | 321 | 280 | ||||||||
Diluted Weighted Average Shares | 11,400 | 11,312 | 11,149 | ||||||||
Basic EPS | |||||||||||
Continuing Operations (in dollars per share) | $ 5.45 | $ 2.83 | $ 2.95 | ||||||||
Discontinued Operation (in dollars per share) | 0 | 0 | 0 | ||||||||
Net Income per Basic Share (in dollars per share) | $ 1.66 | $ 1.69 | $ 1.11 | $ 0.98 | $ 0.07 | $ 1.21 | $ 0.74 | $ 0.82 | 5.45 | 2.83 | 2.95 |
Diluted EPS | |||||||||||
Continuing Operations (in dollars per share) | 5.30 | 2.75 | 2.88 | ||||||||
Discontinued Operation (in dollars per share) | 0 | 0 | 0 | ||||||||
Net Income per Diluted Share (in dollars per share) | $ 1.61 | $ 1.64 | $ 1.08 | $ 0.96 | $ 0.07 | $ 1.17 | $ 0.72 | $ 0.80 | $ 5.30 | $ 2.75 | $ 2.88 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Restricted stock unit awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Amount of antidilutive securities excluded from computation of EPS | 18,700 | 15,600 | 36,700 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Items - Components of AOCI on the Balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 332,504 | $ 284,279 | $ 267,945 |
Ending balance | 374,571 | 332,504 | 284,279 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (17,501) | ||
Other comprehensive (loss) income before reclassifications | (17,303) | ||
Reclassifications from AOCI | 0 | ||
Net current period other comprehensive (loss) income | (17,303) | ||
Ending balance | (34,804) | (17,501) | |
Unrecognized Prior Service (Cost) Income on Retirement Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (319) | ||
Other comprehensive (loss) income before reclassifications | (810) | ||
Reclassifications from AOCI | 1,149 | ||
Net current period other comprehensive (loss) income | 339 | ||
Ending balance | 20 | (319) | |
Net Actuarial Loss on Retirement Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (8,974) | ||
Other comprehensive (loss) income before reclassifications | 4,020 | ||
Reclassifications from AOCI | 559 | ||
Net current period other comprehensive (loss) income | 4,579 | ||
Ending balance | (4,395) | (8,974) | |
Deferred Gain (Loss) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 79 | ||
Other comprehensive (loss) income before reclassifications | (268) | ||
Reclassifications from AOCI | (8) | ||
Net current period other comprehensive (loss) income | (276) | ||
Ending balance | (197) | 79 | |
Total | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (26,715) | (49,637) | (36,972) |
Other comprehensive (loss) income before reclassifications | (14,361) | ||
Reclassifications from AOCI | 1,700 | ||
Net current period other comprehensive (loss) income | (12,661) | ||
Ending balance | $ (39,376) | $ (26,715) | $ (49,637) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Items - Reclassification Out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Other expense, net | $ (2,417) | $ (872) | $ (1,069) |
Interest expense | (7,032) | (3,547) | (1,293) |
Cost of revenues | (355,505) | (283,886) | (225,587) |
Amortization of actuarial losses | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Total Reclassifications | (559) | ||
Amortization of prior service costs | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Total Reclassifications | (1,149) | ||
Cash Flow Hedges | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Total Reclassifications | 8 | ||
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Total Reclassifications | (1,700) | (548) | (964) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of actuarial losses | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Other expense, net | (740) | (563) | (701) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service costs | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Other expense, net | (92) | (147) | (147) |
Reclassification out of Accumulated Other Comprehensive Income | Curtailment loss | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Other expense, net | (1,425) | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Other Post-retirement Plans | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Total income (expense) before income taxes | (2,257) | (710) | (848) |
Income tax (provision) benefit | 549 | 246 | 295 |
Total Reclassifications | (1,708) | (464) | (553) |
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Total income (expense) before income taxes | 11 | (127) | (374) |
Income tax (provision) benefit | (3) | 43 | (37) |
Total Reclassifications | 8 | (84) | (411) |
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | Interest Rate Swap | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Interest expense | (11) | (30) | (174) |
Reclassification out of Accumulated Other Comprehensive Income | Cash Flow Hedges | Forward Currency-Exchange Contracts | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items] | |||
Revenues | 0 | 0 | (14) |
Cost of revenues | $ 22 | $ (97) | $ (186) |
Unaudited Quarterly Informati_3
Unaudited Quarterly Information - Summary of Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 163,935 | $ 165,745 | $ 154,913 | $ 149,193 | $ 149,140 | $ 152,794 | $ 110,242 | $ 102,857 | $ 633,786 | $ 515,033 | $ 414,126 |
Gross Profit | 70,945 | 73,093 | 68,164 | 66,079 | 64,623 | 64,655 | 52,852 | 49,017 | |||
Amounts Attributable to Kadant: | |||||||||||
Net Income Attributable to Kadant | $ 18,422 | $ 18,784 | $ 12,349 | $ 10,858 | $ 760 | $ 13,285 | $ 8,096 | $ 8,951 | $ 60,413 | $ 31,092 | $ 32,077 |
Basic Earnings per Share: | |||||||||||
Net Income Attributable to Kadant (in dollars per share) | $ 1.66 | $ 1.69 | $ 1.11 | $ 0.98 | $ 0.07 | $ 1.21 | $ 0.74 | $ 0.82 | $ 5.45 | $ 2.83 | $ 2.95 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net Income Attributable to Kadant (in dollars per share) | 1.61 | 1.64 | 1.08 | 0.96 | 0.07 | 1.17 | 0.72 | 0.80 | 5.30 | 2.75 | 2.88 |
Cash Dividends Declared per Common Share (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.88 | $ 0.84 | $ 0.76 |
Subsequent Events - (Details)
Subsequent Events - (Details) | Jan. 02, 2019USD ($) | Dec. 31, 2018USD ($)Employee | Dec. 29, 2018USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Subsequent Event [Line Items] | ||||||
Acquisition transaction costs | $ 1,321,000 | $ 5,375,000 | $ 1,832,000 | |||
Syntron Material Handling Group, LLC | Subsequent event | ||||||
Subsequent Event [Line Items] | ||||||
Purchase price | $ 179,000,000 | |||||
Revenues | $ 89,365,000 | |||||
Number of employees | Employee | 250 | |||||
Selling, general and administrative expenses | Syntron Material Handling Group, LLC | ||||||
Subsequent Event [Line Items] | ||||||
Acquisition transaction costs | $ 1,321,000 | |||||
Revolving credit facility | 2018 Credit Agreement | Subsequent event | ||||||
Subsequent Event [Line Items] | ||||||
Principal amount | $ 180,000,000 |