Kadant (KAI) 10-Q 10 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Apr. 01, 2023	Apr. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 01, 2023
Document Transition Report	false
Entity File Number	001-11406
Entity Registrant Name	KADANT INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-1762325
Entity Address, Address Line One	One Technology Park Drive
Entity Address, City or Town	Westford
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01886
City Area Code	978
Local Phone Number	776-2000
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	KAI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,703,481
Entity Central Index Key	0000886346
Current Fiscal Year End Date	--12-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Current Assets:
Cash and cash equivalents	$ 81,183	$ 76,371
Restricted cash	4,324	3,354
Accounts receivable, net of allowances of $3,587 and $3,595	131,268	130,297
Inventories	179,199	163,672
Contract assets	12,389	14,898
Other current assets	41,743	26,818
Total Current Assets	450,106	415,410
Property, Plant, and Equipment, net of accumulated depreciation of $125,754 and $121,442	120,274	118,855
Other Assets	39,478	54,516
Intangible Assets, Net	171,396	175,645
Goodwill	387,890	385,455
Total Assets	1,169,144	1,149,881
Current Liabilities:
Short-term obligations and current maturities of long-term obligations (Note 5)	3,352	3,821
Accounts payable	57,939	58,060
Accrued payroll and employee benefits	30,336	35,672
Customer deposits	80,190	64,361
Advanced billings	10,219	7,966
Other current liabilities	43,811	43,581
Total Current Liabilities	225,847	213,461
Long-Term Obligations (Note 5)	178,555	197,340
Long-Term Deferred Income Taxes	39,672	38,745
Other Long-Term Liabilities	40,765	44,764
Commitments and Contingencies (Note 11)
Stockholders' Equity:
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued	0	0
Common stock, $.01 par value, 150,000,000 shares authorized; 14,624,159 shares issued	146	146
Capital in excess of par value	117,547	119,924
Retained earnings	685,325	660,644
Treasury stock at cost, 2,920,678 and 2,949,997 shares	(71,569)	(72,287)
Accumulated other comprehensive items (Note 7)	(49,085)	(54,578)
Total Kadant Stockholders' Equity	682,364	653,849
Noncontrolling interest	1,941	1,722
Total Stockholders' Equity	684,305	655,571
Total Liabilities and Stockholders' Equity	$ 1,169,144	$ 1,149,881

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Stockholders' Equity:
Allowance for credit losses	$ 3,587	$ 3,595
Accumulated depreciation	$ 125,754	$ 121,442
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	14,624,159	14,624,159
Treasury stock (in shares)	2,920,678	2,949,997

Condensed Consolidated Statemen

Condensed Consolidated Statement of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Income Statement [Abstract]
Revenue (Notes 1 and 10)	$ 229,758	$ 226,480
Costs and Operating Expenses:
Cost of revenue	127,712	128,269
Selling, general, and administrative expenses	58,562	59,168
Research and development expenses	3,370	3,078
Gain on sale and other costs, net (Note 2)	0	(20,008)
Total Costs and Operating Expenses	189,644	170,507
Operating Income	40,114	55,973
Interest Income	299	102
Interest Expense	(2,370)	(1,234)
Other Expense, Net	(21)	(22)
Income Before Provision for Income Taxes	38,022	54,819
Provision for Income Taxes (Note 4)	9,763	13,378
Net Income	28,259	41,441
Net Income Attributable to Noncontrolling Interest	(184)	(249)
Net Income Attributable to Kadant	$ 28,075	$ 41,192
Earnings per Share Attributable to Kadant (Note 3)
Basic (in dollars per share)	$ 2.40	$ 3.54
Diluted (in dollars per share)	$ 2.40	$ 3.53
Weighted Average Shares (Note 3)
Basic (in shares)	11,681	11,630
Diluted (in shares)	11,694	11,655

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Statement of Comprehensive Income [Abstract]
Net Income	$ 28,259	$ 41,441
Other Comprehensive Items:
Foreign currency translation adjustment	5,573	(2,284)
Post-retirement liability adjustments, net (net of tax of $(2) and $2)	(6)	9
Deferred (loss) gain on cash flow hedges (net of tax of $(14) and $68)	(39)	277
Other comprehensive items	5,528	(1,998)
Comprehensive Income	33,787	39,443
Comprehensive Income Attributable to Noncontrolling Interest	(219)	(203)
Comprehensive Income Attributable to Kadant	$ 33,568	$ 39,240

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Other Comprehensive Items:
Post-retirement liability adjustments, net, tax	$ (2)	$ 2
Deferred gain on cash flow hedges, tax	$ (14)	$ 68

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Operating Activities
Net Income Attributable to Kadant	$ 28,075	$ 41,192
Net income attributable to noncontrolling interest	184	249
Net Income	28,259	41,441
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,446	9,445
Stock-based compensation expense	2,238	2,260
Gain on the sale of assets (Note 2)	0	(20,190)
Non-cash impairment costs (Note 2)	0	182
Other items, net	842	6,325
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	517	(9,127)
Contract assets	2,637	(409)
Inventories	(13,997)	(9,359)
Other assets	1,293	1,113
Accounts payable	77	8,864
Customer deposits	11,114	3,329
Other liabilities	(4,560)	(10,106)
Net cash provided by operating activities	36,866	23,768
Investing Activities
Acquisition, net of cash acquired	0	(62)
Purchases of property, plant, and equipment	(4,469)	(2,868)
Proceeds from sale of property, plant, and equipment	32	1,595
Other investing activities	(30)	44
Net cash used in investing activities	(4,467)	(1,291)
Financing Activities
Proceeds from issuance of short- and long-term obligations	0	15,516
Repayment of short- and long-term obligations	(20,761)	(35,064)
Tax withholding payments related to stock-based compensation	(3,897)	(4,550)
Dividends paid	(3,036)	(2,905)
Other financing activities	(63)	0
Net cash used in financing activities	(27,757)	(27,003)
Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash	1,140	(664)
Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash	5,782	(5,190)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	79,725	94,161
Cash, Cash Equivalents, and Restricted Cash at End of Period	$ 85,507	$ 88,971

Condensed Consolidated Statem_5

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Items	Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock (in shares)					3,003,419
Common stock, beginning balance (in shares) at Jan. 01, 2022		14,624,159
Beginning balance at Jan. 01, 2022	$ 565,616	$ 146	$ 115,888	$ 551,848	$ (73,596)	$ (30,350)	$ 1,680
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	41,441			41,192			249
Dividend declared – Common Stock	(3,031)			(3,031)
Activity under stock plans (in shares)					(38,633)
Activity under stock plans	(2,290)		(3,237)		$ 947
Other comprehensive items	(1,998)					(1,952)	(46)
Common stock, ending balance (in shares) at Apr. 02, 2022		14,624,159
Treasury stock, ending balance (in shares) at Apr. 02, 2022					2,964,786
Ending balance at Apr. 02, 2022	$ 599,738	$ 146	112,651	590,009	$ (72,649)	(32,302)	1,883
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock (in shares)					2,964,786
Treasury stock (in shares)	2,949,997				2,949,997
Common stock, beginning balance (in shares) at Dec. 31, 2022		14,624,159
Beginning balance at Dec. 31, 2022	$ 655,571	$ 146	119,924	660,644	$ (72,287)	(54,578)	1,722
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	28,259			28,075			184
Dividend declared – Common Stock	(3,394)			(3,394)
Activity under stock plans (in shares)					(29,319)
Activity under stock plans	(1,659)		(2,377)		$ 718
Other comprehensive items	$ 5,528					5,493	35
Common stock, ending balance (in shares) at Apr. 01, 2023		14,624,159
Treasury stock, ending balance (in shares) at Apr. 01, 2023	2,920,678				2,920,678
Ending balance at Apr. 01, 2023	$ 684,305	$ 146	$ 117,547	$ 685,325	$ (71,569)	$ (49,085)	$ 1,941
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury stock (in shares)	2,920,678				2,920,678

Condensed Consolidated Statem_6

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Statement of Stockholders' Equity [Abstract]
Dividend declared – Common Stock (in dollars per share)	$ 0.29	$ 0.26

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Kadant Inc. was incorporated in Delaware in November 1991 and trades on the New York Stock Exchange under the ticker symbol "KAI." Kadant Inc. (together with its subsidiaries, the Company) is a global supplier of technologies and engineered systems that drive Sustainable Industrial Processing. Its products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries while helping customers advance their sustainability initiatives with products that reduce waste or generate more yield with fewer inputs, particularly fiber, energy, and water. Producing more while consuming less is a core aspect of Sustainable Industrial Processing and a major element of the strategic focus of the Company's three reportable operating segments: Flow Control, Industrial Processing, and Material Handling. Interim Financial Statements The interim condensed consolidated financial statements and related notes presented have been prepared by the Company, are unaudited, and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair statement of the Company's financial position at April 1, 2023, its results of operations, comprehensive income, cash flows and stockholders' equity for the three-month periods ended April 1, 2023 and April 2, 2022. Interim results are not necessarily indicative of results for a full year or for any other interim period. The condensed consolidated balance sheet presented as of December 31, 2022 has been derived from the consolidated financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the Annual Report). The condensed consolidated financial statements and related notes are presented as permitted by the rules and regulations of the Securities and Exchange Commission (SEC) for Form 10-Q and do not contain certain information included in the annual consolidated financial statements and related notes of the Company. The condensed consolidated financial statements and notes included herein should be read in conjunction with the consolidated financial statements and related notes included in the Annual Report. 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 revenue and expenses during the reporting period. Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its condensed consolidated financial statements or in the application of accounting policies, if business conditions were different, or if the Company were to use different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's condensed consolidated financial statements. Note 1 to the consolidated financial statements in the Annual Report describes the significant accounting estimates and policies used in preparation of the consolidated financial statements. There have been no material changes in the Company’s significant accounting policies during the three months ended April 1, 2023. Supplemental Cash Flow Information Three Months Ended (In thousands) April 1, April 2, Cash Paid for Interest $ 2,161 $ 1,017 Cash Paid for Income Taxes, Net of Refunds $ 9,558 $ 8,013 Non-Cash Investing Activities: Reduction in fair value of assets acquired $ — $ (983) Cash paid for acquired businesses — (62) Reduction in liabilities assumed $ — $ (1,045) Purchases of property, plant, and equipment in accounts payable $ 299 $ 264 Three Months Ended (In thousands) April 1, April 2, Non-Cash Financing Activities: Issuance of Company common stock upon vesting of restricted stock units $ 4,246 $ 4,578 Dividends declared but unpaid $ 3,394 $ 3,031 Restricted Cash The Company's restricted cash generally serves as collateral for bank guarantees associated with providing assurance to customers that the Company will fulfill certain customer obligations entered into in the normal course of business and for certain banker's acceptance drafts issued to vendors. 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 condensed consolidated balance sheet that are shown in aggregate in the accompanying condensed consolidated statement of cash flows: (In thousands) April 1, April 2, December 31, January 1, Cash and cash equivalents $ 81,183 $ 86,192 $ 76,371 $ 91,186 Restricted cash 4,324 2,779 3,354 2,975 Total Cash, Cash Equivalents, and Restricted Cash $ 85,507 $ 88,971 $ 79,725 $ 94,161 Inventories The components of inventories are as follows: April 1, December 31, (In thousands) Raw Materials $ 74,726 $ 71,040 Work in Process 49,868 38,612 Finished Goods 54,605 54,020 $ 179,199 $ 163,672 Intangible Assets, Net Gross intangible assets were $342,732,000 at April 1, 2023 and $343,130,000 at December 31, 2022. Intangible assets are recorded at fair value at the date of acquisition. Subsequent impairment charges are reflected as a reduction in the gross balance, as applicable. Definite-lived intangible assets are stated net of accumulated amortization and currency translation in the accompanying condensed 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. Accumulated amortization was $160,694,000 at April 1, 2023 and $155,834,000 at December 31, 2022. Goodwill The changes in the carrying amount of goodwill by segment are as follows: (In thousands) Flow Control Industrial Processing Material Handling Total Balance at December 31, 2022 Gross balance $ 118,309 $ 209,919 $ 142,765 $ 470,993 Accumulated impairment losses — (85,538) — (85,538) Net balance 118,309 124,381 142,765 385,455 2023 Activity Acquisition adjustments — — (13) (13) Currency translation 1,181 581 686 2,448 Total 2023 activity 1,181 581 673 2,435 Balance at April 1, 2023 Gross balance 119,490 210,500 143,438 473,428 Accumulated impairment losses — (85,538) — (85,538) Net balance $ 119,490 $ 124,962 $ 143,438 $ 387,890 Warranty Obligations 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 during a defined period of time. The Company provides for the estimated cost of product warranties at the time of sale based on 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 negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications. The Company's liability for warranties is included in other current liabilities in the accompanying condensed consolidated balance sheet. The changes in the carrying amount of product warranty obligations are as follows: Three Months Ended (In thousands) April 1, April 2, Balance at Beginning of Year $ 7,283 $ 7,298 Provision charged to expense 1,425 1,462 Usage (1,068) (1,538) Currency translation 87 (74) Balance at End of Period $ 7,727 $ 7,148 Revenue Recognition Most of the Company’s revenue relates to products and services that require minimal customization and is recognized at a point in time for each performance obligation under the contract when the customer obtains control of the goods or service. The remaining portion of the Company’s revenue is recognized over time 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. Most of the contracts recognized on an over time basis are for large capital projects. 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: Three Months Ended April 1, April 2, (In thousands) 2023 2022 Point in Time $ 204,239 $ 203,311 Over Time 25,519 23,169 $ 229,758 $ 226,480 The Company disaggregates its revenue from contracts with customers by reportable operating segment, product type and geography as this best depicts how its revenue is affected by economic factors. The following table presents the disaggregation of revenue by product type and geography: Three Months Ended April 1, April 2, (In thousands) 2023 2022 Revenue by Product Type: Parts and consumables $ 151,563 $ 146,244 Capital 78,195 80,236 $ 229,758 $ 226,480 Revenue by Geography (based on customer location): North America 132,453 124,336 Europe 54,157 58,366 Asia 27,770 31,987 Rest of world 15,378 11,791 $ 229,758 $ 226,480 See Note 10 , Business Segment Information, for information on the disaggregation of revenue by reportable operating segment. The following table presents contract balances from contracts with customers: April 1, December 31, (In thousands) Contract Assets $ 12,389 $ 14,898 Contract Liabilities $ 96,348 $ 82,413 Contract assets represent unbilled revenue 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 liabilities consist of short- and long-term customer deposits, advanced billings, and deferred revenue. Deferred revenue is included in other current liabilities and long-term customer deposits are included in other long-term liabilities in the accompanying condensed 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 advance 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 shipped and control of the asset has transferred to the customer. The Company recognized revenue of $27,016,000 in the first quarter of 2023 and $34,477,000 in the first quarter of 2022 that was included in the contract liabilities balance at the beginning of 2023 and 2022, respectively. The majority of the Company's contracts for capital equipment have an original expected duration of one year or less. Certain capital contracts require long lead times and could take up to 24 months to complete. For contracts with an original expected duration of over one year, the aggregate amount of the transaction price allocated to the remaining unsatisfied or partially unsatisfied performance obligations as of April 1, 2023 was $51,838,000. The Company will recognize revenue for these performance obligations as they are satisfied, approximately 74% of which is expected to occur within the next twelve months and the remaining 26% after the first quarter of 2024.

Gain on Sale and Other Costs, N

Gain on Sale and Other Costs, Net	3 Months Ended
	Apr. 01, 2023
Restructuring and Related Activities [Abstract]
Gain on Sale and Other Costs, Net	Gain on Sale and Other Costs, Net Gain on sale and other costs, net recognized during the first quarter of 2022 was $20,008,000, and was comprised of a gain on the sale of a building of $20,190,000, net of an impairment charge of $182,000. Gain on Sale of Assets The Company entered into several agreements with the local government in China to sell the existing manufacturing building and land use rights of one of its subsidiaries in China for $25,159,000 and relocate to a new facility (China Transaction). The agreements became effective in the first quarter of 2022 after a 31% down payment was received, including 25% in 2021 and 6% in the first quarter of 2022, and a land use right in a new location was secured. As a result, the Company recognized a gain on the China Transaction of $20,190,000, or $15,143,000, net of deferred taxes of $5,047,000, in the first quarter of 2022. A receivable of $16,082,000 was recognized for the present value of the remaining amount of the sale proceeds, which is due the earlier of when the government sells the property or within two years from the effective date of the agreements. The subsidiary, which is part of the Industrial Processing segment, will continue to occupy its current facility until construction of its new facility is complete, which is expected during the second half of 2023. A summary of the change in the outstanding receivable on the China Transaction is as follows: (In thousands) April 1, 2023 Balance at Inception $ 17,294 Present value discount (1,212) Receivable recorded, net 16,082 Accretion of interest income 422 Currency translation (1,323) Balance at December 31, 2022 (included in other assets) 15,181 Accretion of interest income 141 Currency translation 125 Balance at April 1, 2023 (included in other current assets) $ 15,447 Impairment Costs During the first quarter of 2022, the Company recognized an impairment charge of $182,000 within its Industrial Processing segment associated with the write-down of certain fixed assets that will not be moved to the new manufacturing facility in China in connection with the China Transaction.

Earnings per Share

Earnings per Share	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
Earnings per Share	Earnings per Share Basic and diluted earnings per share (EPS) were calculated as follows: Three Months Ended April 1, April 2, (In thousands, except per share amounts) Net Income Attributable to Kadant $ 28,075 $ 41,192 Basic Weighted Average Shares 11,681 11,630 Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares 13 25 Diluted Weighted Average Shares 11,694 11,655 Basic Earnings per Share $ 2.40 $ 3.54 Diluted Earnings per Share $ 2.40 $ 3.53 The effect of outstanding and unvested restricted stock units (RSUs) of the Company's common stock totaling 38,000 shares in the first quarter of 2023 and 17,000 shares in the first quarter of 2022 were not included in the computation of diluted EPS for the respective periods as the effect would have been antidilutive or, for unvested performance-based RSUs, the performance conditions had not been met as of the end of the reporting periods.

Provision for Income Taxes

Provision for Income Taxes	3 Months Ended
	Apr. 01, 2023
Income Tax Disclosure [Abstract]
Provision for Income Taxes	Provision for Income Taxes The provision for income taxes was $9,763,000 in the first quarter of 2023 and $13,378,000 in the first quarter of 2022. The effective tax rate of 26% in the first quarter of 2023 was higher than the Company's statutory rate of 21% primarily due to the distribution of the Company's worldwide earnings, nondeductible expenses, and state taxes. These increases in tax expense in the first quarter of 2023 were offset in part by a decrease in tax expense related to the net excess income tax benefits from stock-based compensation arrangements. The effective tax rate of 24% in the first quarter of 2022 was higher than the Company's statutory rate of 21% primarily due to the distribution of the Company's worldwide earnings, nondeductible expenses, state taxes, and tax expense associated with the Global Intangible Low-Taxed Income provisions. These increases in tax expense in the first quarter of 2022 were offset in part by a decrease in tax expense related to the net excess income tax benefits from stock-based compensation arrangements and the reversal of tax reserves associated with uncertain tax positions.

Short- and Long-Term Obligation

Short- and Long-Term Obligations	3 Months Ended
	Apr. 01, 2023
Debt Disclosure [Abstract]
Short- and Long-Term Obligations	Short- and Long-Term Obligations Short- and long-term obligations are as follows: April 1, December 31, (In thousands) Revolving Credit Facility, due 2027 $ 167,514 $ 186,131 Senior Promissory Notes, due 2023 to 2028 10,000 10,000 Finance Leases, due 2023 to 2026 1,759 1,940 Other Borrowings, due 2023 to 2028 2,634 3,090 Total 181,907 201,161 Less: Short-term Obligations and Current Maturities of Long-Term Obligations (3,352) (3,821) Long-Term Obligations $ 178,555 $ 197,340 See Note 9 , Fair Value Measurements and Fair Value of Financial Instruments, for the fair value information related to the Company's long-term obligations. Revolving Credit Facility On November 30, 2022, the Company entered into a sixth amendment to its unsecured multi-currency revolving credit facility, originally entered into on March 1, 2017 (as amended and restated to date, the Credit Agreement). Among other things, this amendment extended the maturity date to November 30, 2027, and increased the uncommitted, unsecured incremental borrowing facility from $150,000,000 to $200,000,000. Pursuant to the Credit Agreement, the Company has a borrowing capacity of $400,000,000 and interest on borrowings outstanding accrues and is payable in arrears calculated at one of the following rates selected by the Company: (i) the Base Rate, as defined, plus an applicable margin of 0% to 1.25%, or (ii) Eurocurrency Rate, Term SOFR (plus a 10 basis point credit spread adjustment), CDOR Rate, and RFR, as applicable and defined, plus an applicable margin of 1.0% to 2.25%. The margin is determined based upon the ratio of the Company's total debt, net of unrestricted cash up to $50,000,000, to earnings before interest, taxes, depreciation, and amortization as defined in the Credit Agreement. Additionally, the Credit Agreement requires the payment of a commitment fee payable in arrears on the available borrowing capacity under the Credit Agreement, which ranges from 0.125% to 0.350%. Obligations under the Credit Agreement may be accelerated upon the occurrence of an event of default, which includes customary events of default under such financing arrangements. In addition, 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, if the Company elects, for the quarter during which a material acquisition occurs and for the three fiscal quarters thereafter, 4.25 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. As of April 1, 2023, the outstanding balance under the Credit Agreement was $167,514,000, which included $74,514,000 of euro-denominated borrowings. The Company had $232,760,000 of borrowing capacity available as of April 1, 2023, which was calculated by translating its foreign-denominated borrowings using the administrative agent's borrowing date foreign exchange rates, in addition to the $200,000,000 uncommitted, unsecured incremental borrowing facility. The weighted average interest rate for the outstanding balance under the Credit Agreement was 4.81% as of April 1, 2023 and 4.33% as of year-end 2022. See Note 8 , Derivatives, under the heading Interest Rate Swap Agreement, for information relating to the swap agreement. Senior Promissory Notes In 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 accordance with the Note Purchase Agreement. The obligations of the Initial Notes may be accelerated upon an event of default as defined in the Note Purchase Agreement, which includes customary events of default under such financing arrangements. The Initial Notes are 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 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. Debt Compliance As of April 1, 2023, the Company was in compliance with the covenants related to its debt obligations.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based CompensationThe Company recognized stock-based compensation expense of $2,238,000 in the first quarter of 2023 and $2,260,000 in the first quarter of 2022 within selling, general, and administrative (SG&A) expenses in the accompanying condensed consolidated statement of income. The Company recognizes compensation expense for all stock-based awards granted to employees and directors based on the grant date estimate of fair value for those awards. The fair value of RSUs is based on the grant date price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period. For time-based RSUs, compensation expense is recognized ratably over the requisite service period for the entire award based on the grant date fair value, 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 recorded when they occur, and remeasured each reporting period until the total number of RSUs to be issued is known. Unrecognized compensation expense related to stock-based compensation totaled approximately 12,796,000 at April 1, 2023, which will be recognized over a weighted average period of 2.0 years. Performance-based RSUs On March 7, 2023, the Company granted performance-based RSUs to certain of its officers, which represented, in aggregate, the right to receive 21,009 shares (target RSU amount), with an aggregate grant date fair value of $4,528,000. The RSUs are subject to adjustment based on the achievement of the performance measure selected for the fiscal year, which is a specified target for adjusted earnings before interest, taxes, depreciation, and amortization (target adjusted EBITDA) generated from operations for the fiscal year. The RSUs are adjusted by comparing the actual adjusted EBITDA for the performance period to the target adjusted EBITDA. Actual adjusted EBITDA between 50% and 100% of the target adjusted EBITDA results in an adjustment of 50% to 100% of the target RSU amount. Actual adjusted EBITDA between 100% and 115% of the target adjusted EBITDA results in an adjustment using a straight-line linear scale between 100% and 150% of the target RSU amount. Actual adjusted EBITDA in excess of 115% results in an adjustment capped at 150% of the target RSU amount. If actual adjusted EBITDA is below 50% of the target adjusted EBITDA for the 2023 fiscal year, these performance-based RSUs will be forfeited. The Company recognizes compensation expense based on the probable number of performance-based RSUs expected to vest. Following the adjustment, the performance-based RSUs will be subject to additional time-based vesting, and will vest in three Time-based RSUs On March 7, 2023, the Company granted time-based RSUs representing 16,528 shares to certain of its officers and employees with an aggregate grant date fair value of $3,562,000. These time-based RSUs vest in three

Accumulated Other Comprehensive

Accumulated Other Comprehensive Items	3 Months Ended
	Apr. 01, 2023
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 condensed consolidated balance sheet. Changes in each component of accumulated other comprehensive items (AOCI), net of tax, are as follows: (In thousands) Foreign Pension and Other Post-Retirement Benefit Liability Adjustments Deferred Gain on Cash Flow Hedges Total Balance at December 31, 2022 $ (54,488) $ (148) $ 58 $ (54,578) Other comprehensive items before reclassifications 5,538 (8) 7 5,537 Reclassifications from AOCI — 2 (46) (44) Net current period other comprehensive items 5,538 (6) (39) 5,493 Balance at April 1, 2023 $ (48,950) $ (154) $ 19 $ (49,085) Amounts reclassified from AOCI are as follows: Three Months Ended (In thousands) April 1, April 2, Statement of Income Line Item Retirement Benefit Plans Recognized net actuarial loss $ (1) $ (7) Other expense, net Amortization of prior service cost (2) (3) Other expense, net Total expense before income taxes (3) (10) Income tax benefit 1 3 Provision for income taxes (2) (7) Cash Flow Hedges (a) Interest rate swap agreements 60 (111) Interest expense Income tax (provision) benefit (14) 27 Provision for income taxes 46 (84) Total Reclassifications $ 44 $ (91) (a) See Note 8 , Derivatives, for additional information.

Derivatives

Derivatives	3 Months Ended
	Apr. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	Derivatives Interest Rate Swap Agreement In 2018, the Company entered into an interest rate swap agreement (2018 Swap Agreement) with Citizens Bank to hedge its exposure to movements in USD LIBOR on its U.S. dollar-denominated debt. The 2018 Swap Agreement has a $15,000,000 notional value and expires on June 30, 2023. On a quarterly basis, the Company receives three-month USD LIBOR, which is subject to a zero percent floor, and pays a fixed rate of interest of 3.15% plus an applicable margin as defined in the Credit Agreement. The Company designated its 2018 Swap Agreement as a cash flow hedge and structured it to be 100% effective. Unrealized gains and losses related to the fair value of the 2018 Swap Agreement are recorded to AOCI, net of tax. In the event of early termination, the Company will receive from or pay to the counterparty the fair value of the 2018 Swap Agreement, and the unrealized gain or loss outstanding will be recognized in earnings. The counterparty to the 2018 Swap Agreement could demand an early termination of that agreement 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 it were to be unable to cure the default. See Note 5 , Short- and Long-Term Obligations, for further details. Forward Currency-Exchange Contracts The Company uses forward currency-exchange contracts that generally have maturities of twelve months or less to hedge exposures resulting from fluctuations in currency exchange rates. Such exposures result from assets and liabilities that are denominated in currencies other than the functional currencies of the Company's subsidiaries. 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. Deferred gains and losses are recognized in the statement of income in the period in which the underlying transaction occurs. The fair values of forward currency-exchange contracts that are designated as fair value hedges and forward currency-exchange contracts that are not designated as hedges are recognized currently in earnings. Gains and losses reported within SG&A expenses in the accompanying condensed consolidated statement of income associated with the Company's forward currency-exchange contracts that were not designated as hedges were not material for the three-month periods ended April 1, 2023 and April 2, 2022. The following table summarizes the fair value of derivative instruments in the accompanying condensed consolidated balance sheet: April 1, 2023 December 31, 2022 Balance Sheet Location Asset (Liability) (a) Notional Amount (b) Asset (Liability) (a) Notional Amount (In thousands) Derivatives Designated as Hedging Instruments: Derivative in an Asset Position: 2018 Swap Agreement Other Current Assets $ 75 $ 15,000 $ 131 $ 15,000 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (51) $ 430 $ (54) $ 430 Derivatives Not Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contracts Other Current Assets $ 2 $ 189 $ 15 $ 647 (a) See Note 9 , Fair Value Measurements and Fair Value of Financial Instruments, for the fair value measurements relating to these financial instruments. (b) The 2023 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 three months ended April 1, 2023: (In thousands) Interest Rate Swap Forward Currency- Total Unrealized Gain (Loss), Net of Tax, at December 31, 2022 $ 99 $ (41) $ 58 Gain reclassified to earnings (a) (46) — (46) Gain recognized in AOCI 4 3 7 Unrealized Gain (Loss), Net of Tax, at April 1, 2023 $ 57 $ (38) $ 19 (a) See Note 7 , Accumulated Other Comprehensive Items, for the income statement classification. As of April 1, 2023, the Company expects to reclassify gains of $19,000 from AOCI to earnings over the next twelve months based on the estimated cash flows of the 2018 Swap Agreement and the maturity date of the forward currency-exchange contract.

Fair Value Measurements and Fai

Fair Value Measurements and Fair Value of Financial Instruments	3 Months Ended
	Apr. 01, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements and Fair Value of Financial Instruments	Fair Value Measurements and Fair Value of Financial Instruments Fair value measurement is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly. • Level 3—Unobservable inputs based on the Company's own assumptions. The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: Fair Value as of April 1, 2023 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 5,162 $ — $ — $ 5,162 Banker's acceptance drafts (a) $ — $ 5,325 $ — $ 5,325 2018 Swap Agreement $ — $ 75 $ — $ 75 Forward currency-exchange contracts $ — $ 2 $ — $ 2 Liabilities: Forward currency-exchange contracts $ — $ 51 $ — $ 51 Fair Value as of December 31, 2022 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 8,351 $ — $ — $ 8,351 Banker's acceptance drafts (a) $ — $ 5,729 $ — $ 5,729 2018 Swap Agreement $ — $ 131 $ — $ 131 Forward currency-exchange contracts $ — $ 15 $ — $ 15 Liabilities: Forward currency-exchange contract $ — $ 54 $ — $ 54 (a) Included in accounts receivable in the accompanying condensed consolidated balance sheet. The Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during the first three months of 2023. Banker's acceptance drafts are carried at face value, which approximates their fair value due to the short-term nature of the negotiable instrument. The fair values of the forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date. The fair value of the 2018 Swap Agreement is based on USD LIBOR yield curves at the reporting date. The forward currency-exchange contracts and the 2018 Swap Agreement are hedges of either recorded assets or liabilities or anticipated transactions and represent the estimated amount the Company would receive or pay upon liquidation of the contracts. 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 debt obligations, excluding lease obligations, are as follows: April 1, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Debt Obligations: Revolving credit facility $ 167,514 $ 167,514 $ 186,131 $ 186,131 Senior promissory notes 10,000 10,019 10,000 9,773 Other 2,634 2,634 3,090 3,090 $ 180,148 $ 180,167 $ 199,221 $ 198,994 The carrying value of the Company's revolving credit facility approximates the fair value as the obligation bears variable rates of interest, which adjust frequently, based on prevailing market rates. The fair value of the senior promissory notes is primarily calculated based on quoted market rates plus an applicable margin available to the Company at the respective period end, which represent Level 2 measurements.

Business Segment Information

Business Segment Information	3 Months Ended
	Apr. 01, 2023
Segment Reporting [Abstract]
Business Segment Information	Business Segment InformationThe Company has three reportable operating segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment consists of the fluid-handling and doctoring, cleaning, & filtration product lines; the Industrial Processing segment consists of the wood processing and stock-preparation product lines; and the Material Handling segment consists of the conveying and vibratory, baling, and fiber-based product lines. A description of each segment follows: • Flow Control – Custom-engineered products, systems, and technologies that control the flow of fluids used in industrial and commercial applications to keep critical processes running efficiently in the packaging, tissue, food, metals, and other industrial sectors. The Company's primary products include rotary sealing devices, steam systems, expansion joints, doctor systems, roll and fabric cleaning devices, and filtration and fiber recovery systems. • Industrial Processing – Equipment, machinery, and technologies used to recycle paper and paperboard and process timber for use in the packaging, tissue, wood products and alternative fuel industries, among others. The Company's primary products include stock-preparation systems and recycling equipment, chemical pulping equipment, debarkers, stranders, chippers, and logging machinery. In addition, the Company provides industrial automation and digitization solutions to process industries. • Material Handling – Products and engineered systems used to handle bulk and discrete materials for secondary processing or transport in the aggregates, mining, food, and waste management industries, among others. The Company's primary products include conveying and vibratory equipment and balers. In addition, the Company manufactures and sells biodegradable, absorbent granules used as carriers in agricultural applications and for oil and grease absorption. The following table presents financial information for the Company's reportable operating segments: Three Months Ended April 1, April 2, (In thousands) 2023 2022 Revenue Flow Control $ 89,521 $ 85,826 Industrial Processing 83,542 93,085 Material Handling 56,695 47,569 $ 229,758 $ 226,480 Income Before Provision for Income Taxes Flow Control $ 24,189 $ 21,725 Industrial Processing (a) 15,967 38,159 Material Handling (b) 9,287 5,844 Corporate (c) (9,329) (9,755) Total operating income 40,114 55,973 Interest expense, net (d) (2,071) (1,132) Other expense, net (d) (21) (22) $ 38,022 $ 54,819 Capital Expenditures Flow Control $ 1,404 $ 525 Industrial Processing 2,579 1,952 Material Handling 462 384 Corporate 24 7 $ 4,469 $ 2,868 (a) Includes a gain on the sale of a facility of $20,190,000 (see Note 2 , Gain on Sale and Other Costs, Net) and non-cash charges for the write-off of an indemnification asset of $575,000 and the write-down of machinery and equipment of $182,000 in the three months ended April 2, 2022. (b) Includes acquisition-related expenses of $717,000 in the three months ended April 2, 2022. (c) Represents general and administrative expenses. (d) The Company does not allocate interest and other expense, net to its segments.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 01, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Right of Recourse In the ordinary course of business, the Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The drafts are non-interest bearing obligations of the issuing bank and generally mature within six months of the origination date. The Company's Chinese subsidiaries 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 $5,981,000 at April 1, 2023 and $11,238,000 at December 31, 2022 of banker's acceptance drafts subject to recourse, which were transferred to vendors and had not reached their scheduled maturity dates. Historically, the banker's acceptance drafts have settled upon maturity without any claim of recourse against the Company. Litigation From time to time, the Company is subject to various claims and legal proceedings covering a range of matters that arise in the ordinary course of business. Such litigation may include, but is not limited to, claims and counterclaims by and against the Company for breach of contract or warranty, canceled contracts, product liability, or bankruptcy-related claims. For legal proceedings in which a loss is probable and estimable, the Company accrues a loss based on the low end of the range of estimated loss when there is no better estimate within the range. If the Company were found to be liable for any of the claims or counterclaims against it, the Company would incur a charge against earnings for amounts in excess of legal accruals.

Nature of Operations and Summ_2

Nature of Operations and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
Use of Estimates and Critical Accounting Policies	Use of Estimates and Critical Accounting PoliciesThe 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 revenue and expenses during the reporting period. Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its condensed consolidated financial statements or in the application of accounting policies, if business conditions were different, or if the Company were to use different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's condensed consolidated financial statements.
Restricted Cash	Restricted Cash The Company's restricted cash generally serves as collateral for bank guarantees associated with providing assurance to customers that the Company will fulfill certain customer obligations entered into in the normal course of business and for certain banker's acceptance drafts issued to vendors. The majority of the bank guarantees will expire over the next twelve months.
Intangible Assets, Net	Intangible assets are recorded at fair value at the date of acquisition. Subsequent impairment charges are reflected as a reduction in the gross balance, as applicable. Definite-lived intangible assets are stated net of accumulated amortization and currency translation in the accompanying condensed 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.
Warranty Obligations	Warranty Obligations 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 during a defined period of time. The Company provides for the estimated cost of product warranties at the time of sale based on 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 negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications.
Revenue Recognition	Revenue Recognition Most of the Company’s revenue relates to products and services that require minimal customization and is recognized at a point in time for each performance obligation under the contract when the customer obtains control of the goods or service. The remaining portion of the Company’s revenue is recognized over time 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. Most of the contracts recognized on an over time basis are for large capital projects. These projects are highly customized for the customer and, as a result, would include a significant cost to rework in the event of cancellation.
Banker's Acceptance Drafts Included in Accounts Receivable	Banker's Acceptance Drafts Included in Accounts ReceivableThe Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The drafts are non-interest bearing obligations of the issuing bank and generally mature within six months of the origination date. The Company's Chinese 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.
Stock-Based Compensation	The Company recognizes compensation expense for all stock-based awards granted to employees and directors based on the grant date estimate of fair value for those awards. The fair value of RSUs is based on the grant date price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period. For time-based RSUs, compensation expense is recognized ratably over the requisite service period for the entire award based on the grant date fair value, 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 recorded when they occur, and remeasured each reporting period until the total number of RSUs to be issued is known.The RSUs are subject to adjustment based on the achievement of the performance measure selected for the fiscal year, which is a specified target for adjusted earnings before interest, taxes, depreciation, and amortization (target adjusted EBITDA) generated from operations for the fiscal year. The RSUs are adjusted by comparing the actual adjusted EBITDA for the performance period to the target adjusted EBITDA. Actual adjusted EBITDA between 50% and 100% of the target adjusted EBITDA results in an adjustment of 50% to 100% of the target RSU amount. Actual adjusted EBITDA between 100% and 115% of the target adjusted EBITDA results in an adjustment using a straight-line linear scale between 100% and 150% of the target RSU amount. Actual adjusted EBITDA in excess of 115% results in an adjustment capped at 150% of the target RSU amount. If actual adjusted EBITDA is below 50% of the target adjusted EBITDA for the 2023 fiscal year, these performance-based RSUs will be forfeited. The Company recognizes compensation expense based on the probable number of performance-based RSUs expected to vest. Following the adjustment, the performance-based RSUs will be subject to additional time-based vesting, and will vest in three three
Forward Currency-Exchange Contracts	Forward Currency-Exchange Contracts The Company uses forward currency-exchange contracts that generally have maturities of twelve months or less to hedge exposures resulting from fluctuations in currency exchange rates. Such exposures result from assets and liabilities that are denominated in currencies other than the functional currencies of the Company's subsidiaries.
Fair Value Measurement	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.
Litigation	Litigation From time to time, the Company is subject to various claims and legal proceedings covering a range of matters that arise in the ordinary course of business. Such litigation may include, but is not limited to, claims and counterclaims by and against the Company for breach of contract or warranty, canceled contracts, product liability, or bankruptcy-related claims. For legal proceedings in which a loss is probable and estimable, the Company accrues a loss based on the low end of the range of estimated loss when there is no better estimate within the range. If the Company were found to be liable for any of the claims or counterclaims against it, the Company would incur a charge against earnings for amounts in excess of legal accruals.

Nature of Operations and Summ_3

Nature of Operations and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Apr. 01, 2023
Accounting Policies [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information Three Months Ended (In thousands) April 1, April 2, Cash Paid for Interest $ 2,161 $ 1,017 Cash Paid for Income Taxes, Net of Refunds $ 9,558 $ 8,013 Non-Cash Investing Activities: Reduction in fair value of assets acquired $ — $ (983) Cash paid for acquired businesses — (62) Reduction in liabilities assumed $ — $ (1,045) Purchases of property, plant, and equipment in accounts payable $ 299 $ 264 Three Months Ended (In thousands) April 1, April 2, Non-Cash Financing Activities: Issuance of Company common stock upon vesting of restricted stock units $ 4,246 $ 4,578 Dividends declared but unpaid $ 3,394 $ 3,031
Cash and Cash Equivalents	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's condensed consolidated balance sheet that are shown in aggregate in the accompanying condensed consolidated statement of cash flows: (In thousands) April 1, April 2, December 31, January 1, Cash and cash equivalents $ 81,183 $ 86,192 $ 76,371 $ 91,186 Restricted cash 4,324 2,779 3,354 2,975 Total Cash, Cash Equivalents, and Restricted Cash $ 85,507 $ 88,971 $ 79,725 $ 94,161
Restricted Cash	The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's condensed consolidated balance sheet that are shown in aggregate in the accompanying condensed consolidated statement of cash flows: (In thousands) April 1, April 2, December 31, January 1, Cash and cash equivalents $ 81,183 $ 86,192 $ 76,371 $ 91,186 Restricted cash 4,324 2,779 3,354 2,975 Total Cash, Cash Equivalents, and Restricted Cash $ 85,507 $ 88,971 $ 79,725 $ 94,161
Inventories	The components of inventories are as follows: April 1, December 31, (In thousands) Raw Materials $ 74,726 $ 71,040 Work in Process 49,868 38,612 Finished Goods 54,605 54,020 $ 179,199 $ 163,672
Changes in the Carrying Amount of Goodwill	The changes in the carrying amount of goodwill by segment are as follows: (In thousands) Flow Control Industrial Processing Material Handling Total Balance at December 31, 2022 Gross balance $ 118,309 $ 209,919 $ 142,765 $ 470,993 Accumulated impairment losses — (85,538) — (85,538) Net balance 118,309 124,381 142,765 385,455 2023 Activity Acquisition adjustments — — (13) (13) Currency translation 1,181 581 686 2,448 Total 2023 activity 1,181 581 673 2,435 Balance at April 1, 2023 Gross balance 119,490 210,500 143,438 473,428 Accumulated impairment losses — (85,538) — (85,538) Net balance $ 119,490 $ 124,962 $ 143,438 $ 387,890
Changes in the Carrying Amount of Product Warranty Obligations	The changes in the carrying amount of product warranty obligations are as follows: Three Months Ended (In thousands) April 1, April 2, Balance at Beginning of Year $ 7,283 $ 7,298 Provision charged to expense 1,425 1,462 Usage (1,068) (1,538) Currency translation 87 (74) Balance at End of Period $ 7,727 $ 7,148
Revenue Recognition Method and Disaggregation of Revenue by Product Type and Geography	The following table presents revenue by revenue recognition method: Three Months Ended April 1, April 2, (In thousands) 2023 2022 Point in Time $ 204,239 $ 203,311 Over Time 25,519 23,169 $ 229,758 $ 226,480 The following table presents the disaggregation of revenue by product type and geography: Three Months Ended April 1, April 2, (In thousands) 2023 2022 Revenue by Product Type: Parts and consumables $ 151,563 $ 146,244 Capital 78,195 80,236 $ 229,758 $ 226,480 Revenue by Geography (based on customer location): North America 132,453 124,336 Europe 54,157 58,366 Asia 27,770 31,987 Rest of world 15,378 11,791 $ 229,758 $ 226,480
Contract Balances From Contracts With Customers	The following table presents contract balances from contracts with customers: April 1, December 31, (In thousands) Contract Assets $ 12,389 $ 14,898 Contract Liabilities $ 96,348 $ 82,413

Gain on Sale and Other Costs,_2

Gain on Sale and Other Costs, Net (Tables)	3 Months Ended
	Apr. 01, 2023
Restructuring and Related Activities [Abstract]
Summary of Changes in Nontrade Receivables	A summary of the change in the outstanding receivable on the China Transaction is as follows: (In thousands) April 1, 2023 Balance at Inception $ 17,294 Present value discount (1,212) Receivable recorded, net 16,082 Accretion of interest income 422 Currency translation (1,323) Balance at December 31, 2022 (included in other assets) 15,181 Accretion of interest income 141 Currency translation 125 Balance at April 1, 2023 (included in other current assets) $ 15,447

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
Basic and Diluted Earnings Per Share	Basic and diluted earnings per share (EPS) were calculated as follows: Three Months Ended April 1, April 2, (In thousands, except per share amounts) Net Income Attributable to Kadant $ 28,075 $ 41,192 Basic Weighted Average Shares 11,681 11,630 Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares 13 25 Diluted Weighted Average Shares 11,694 11,655 Basic Earnings per Share $ 2.40 $ 3.54 Diluted Earnings per Share $ 2.40 $ 3.53

Short- and Long-Term Obligati_2

Short- and Long-Term Obligations (Tables)	3 Months Ended
	Apr. 01, 2023
Debt Disclosure [Abstract]
Schedule of Short- and Long-Term Obligations	Short- and long-term obligations are as follows: April 1, December 31, (In thousands) Revolving Credit Facility, due 2027 $ 167,514 $ 186,131 Senior Promissory Notes, due 2023 to 2028 10,000 10,000 Finance Leases, due 2023 to 2026 1,759 1,940 Other Borrowings, due 2023 to 2028 2,634 3,090 Total 181,907 201,161 Less: Short-term Obligations and Current Maturities of Long-Term Obligations (3,352) (3,821) Long-Term Obligations $ 178,555 $ 197,340

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Items (Tables)	3 Months Ended
	Apr. 01, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Components of Accumulated Other Comprehensive Items	Changes in each component of accumulated other comprehensive items (AOCI), net of tax, are as follows: (In thousands) Foreign Pension and Other Post-Retirement Benefit Liability Adjustments Deferred Gain on Cash Flow Hedges Total Balance at December 31, 2022 $ (54,488) $ (148) $ 58 $ (54,578) Other comprehensive items before reclassifications 5,538 (8) 7 5,537 Reclassifications from AOCI — 2 (46) (44) Net current period other comprehensive items 5,538 (6) (39) 5,493 Balance at April 1, 2023 $ (48,950) $ (154) $ 19 $ (49,085)
Reclassification Out of Accumulated Other Comprehensive Items	Amounts reclassified from AOCI are as follows: Three Months Ended (In thousands) April 1, April 2, Statement of Income Line Item Retirement Benefit Plans Recognized net actuarial loss $ (1) $ (7) Other expense, net Amortization of prior service cost (2) (3) Other expense, net Total expense before income taxes (3) (10) Income tax benefit 1 3 Provision for income taxes (2) (7) Cash Flow Hedges (a) Interest rate swap agreements 60 (111) Interest expense Income tax (provision) benefit (14) 27 Provision for income taxes 46 (84) Total Reclassifications $ 44 $ (91) (a) See Note 8 , Derivatives, for additional information.

Derivatives (Tables)

Derivatives (Tables)	3 Months Ended
	Apr. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Value of Derivative Instruments	The following table summarizes the fair value of derivative instruments in the accompanying condensed consolidated balance sheet: April 1, 2023 December 31, 2022 Balance Sheet Location Asset (Liability) (a) Notional Amount (b) Asset (Liability) (a) Notional Amount (In thousands) Derivatives Designated as Hedging Instruments: Derivative in an Asset Position: 2018 Swap Agreement Other Current Assets $ 75 $ 15,000 $ 131 $ 15,000 Derivatives in a Liability Position: Forward currency-exchange contracts Other Current Liabilities $ (51) $ 430 $ (54) $ 430 Derivatives Not Designated as Hedging Instruments: Derivatives in an Asset Position: Forward currency-exchange contracts Other Current Assets $ 2 $ 189 $ 15 $ 647 (a) See Note 9 , Fair Value Measurements and Fair Value of Financial Instruments, for the fair value measurements relating to these financial instruments. (b) The 2023 notional amounts are indicative of the level of the Company's recurring derivative activity.
Activity in Accumulated Other Comprehensive Items (AOCI)	The following table summarizes the activity in AOCI associated with the Company's derivative instruments designated as cash flow hedges as of and for the three months ended April 1, 2023: (In thousands) Interest Rate Swap Forward Currency- Total Unrealized Gain (Loss), Net of Tax, at December 31, 2022 $ 99 $ (41) $ 58 Gain reclassified to earnings (a) (46) — (46) Gain recognized in AOCI 4 3 7 Unrealized Gain (Loss), Net of Tax, at April 1, 2023 $ 57 $ (38) $ 19 (a) See Note 7 , Accumulated Other Comprehensive Items, for the income statement classification.

Fair Value Measurements and F_2

Fair Value Measurements and Fair Value of Financial Instruments (Tables)	3 Months Ended
	Apr. 01, 2023
Fair Value Disclosures [Abstract]
Fair Value of Assets and Liabilities Measured on a Recurring Basis	The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis: Fair Value as of April 1, 2023 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 5,162 $ — $ — $ 5,162 Banker's acceptance drafts (a) $ — $ 5,325 $ — $ 5,325 2018 Swap Agreement $ — $ 75 $ — $ 75 Forward currency-exchange contracts $ — $ 2 $ — $ 2 Liabilities: Forward currency-exchange contracts $ — $ 51 $ — $ 51 Fair Value as of December 31, 2022 (In thousands) Level 1 Level 2 Level 3 Total Assets: Money market funds and time deposits $ 8,351 $ — $ — $ 8,351 Banker's acceptance drafts (a) $ — $ 5,729 $ — $ 5,729 2018 Swap Agreement $ — $ 131 $ — $ 131 Forward currency-exchange contracts $ — $ 15 $ — $ 15 Liabilities: Forward currency-exchange contract $ — $ 54 $ — $ 54 (a) Included in accounts receivable in the accompanying condensed consolidated balance sheet.
Carrying Value and Fair Value of Debt Obligations	The carrying value and fair value of debt obligations, excluding lease obligations, are as follows: April 1, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Debt Obligations: Revolving credit facility $ 167,514 $ 167,514 $ 186,131 $ 186,131 Senior promissory notes 10,000 10,019 10,000 9,773 Other 2,634 2,634 3,090 3,090 $ 180,148 $ 180,167 $ 199,221 $ 198,994

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Apr. 01, 2023
Segment Reporting [Abstract]
Business Segment Reporting Information	The following table presents financial information for the Company's reportable operating segments: Three Months Ended April 1, April 2, (In thousands) 2023 2022 Revenue Flow Control $ 89,521 $ 85,826 Industrial Processing 83,542 93,085 Material Handling 56,695 47,569 $ 229,758 $ 226,480 Income Before Provision for Income Taxes Flow Control $ 24,189 $ 21,725 Industrial Processing (a) 15,967 38,159 Material Handling (b) 9,287 5,844 Corporate (c) (9,329) (9,755) Total operating income 40,114 55,973 Interest expense, net (d) (2,071) (1,132) Other expense, net (d) (21) (22) $ 38,022 $ 54,819 Capital Expenditures Flow Control $ 1,404 $ 525 Industrial Processing 2,579 1,952 Material Handling 462 384 Corporate 24 7 $ 4,469 $ 2,868 (a) Includes a gain on the sale of a facility of $20,190,000 (see Note 2 , Gain on Sale and Other Costs, Net) and non-cash charges for the write-off of an indemnification asset of $575,000 and the write-down of machinery and equipment of $182,000 in the three months ended April 2, 2022. (b) Includes acquisition-related expenses of $717,000 in the three months ended April 2, 2022. (c) Represents general and administrative expenses. (d) The Company does not allocate interest and other expense, net to its segments.

Nature of Operations and Summ_4

Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($) segment	Apr. 02, 2022 USD ($)	Dec. 31, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Number of reportable operating segments | segment	3
Bank guarantees, expiration period (in months)	12 months
Gross intangible assets	$ 342,732		$ 343,130
Accumulated amortization	160,694		155,834
Revenue recognized	27,016	$ 34,477
Revenue, remaining performance obligation, amount	$ 51,838
Banker's acceptance drafts, maturity period (in months)	6 months
Banker's acceptance drafts	$ 5,325		$ 5,729
Certain Capital Contracts
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Lead time for for certain capital contracts (up to) (in months)	24 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percent	74%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percent	26%
Revenue, remaining performance obligation, expected timing of satisfaction, period

Nature of Operations and Summ_5

Nature of Operations and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Accounting Policies [Abstract]
Cash Paid for Interest	$ 2,161	$ 1,017
Cash Paid for Income Taxes, Net of Refunds	9,558	8,013
Non-Cash Investing Activities:
Reduction in fair value of assets acquired	0	(983)
Cash paid for acquired businesses	0	(62)
Reduction in liabilities assumed	0	(1,045)
Purchases of property, plant, and equipment in accounts payable	299	264
Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of restricted stock units	4,246	4,578
Dividends declared but unpaid	$ 3,394	$ 3,031

Nature of Operations and Summ_6

Nature of Operations and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022	Jan. 01, 2022
Accounting Policies [Abstract]
Cash and cash equivalents	$ 81,183	$ 76,371	$ 86,192	$ 91,186
Restricted cash	4,324	3,354	2,779	2,975
Total Cash, Cash Equivalents, and Restricted Cash	$ 85,507	$ 79,725	$ 88,971	$ 94,161

Nature of Operations and Summ_7

Nature of Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Raw Materials	$ 74,726	$ 71,040
Work in Process	49,868	38,612
Finished Goods	54,605	54,020
Total Inventories	$ 179,199	$ 163,672

Nature of Operations and Summ_8

Nature of Operations and Summary of Significant Accounting Policies - Goodwill (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($)
Goodwill [Roll Forward]
Gross balance, beginning balance	$ 470,993
Accumulated impairment losses	(85,538)
Net balance, beginning balance	385,455
Acquisition adjustments	(13)
Currency translation	2,448
Total 2023 activity	2,435
Gross balance, ending balance	473,428
Accumulated impairment losses	(85,538)
Net balance, ending balance	387,890
Operating Segment | Flow Control
Goodwill [Roll Forward]
Gross balance, beginning balance	118,309
Accumulated impairment losses	0
Net balance, beginning balance	118,309
Acquisition adjustments	0
Currency translation	1,181
Total 2023 activity	1,181
Gross balance, ending balance	119,490
Accumulated impairment losses	0
Net balance, ending balance	119,490
Operating Segment | Industrial Processing
Goodwill [Roll Forward]
Gross balance, beginning balance	209,919
Accumulated impairment losses	(85,538)
Net balance, beginning balance	124,381
Acquisition adjustments	0
Currency translation	581
Total 2023 activity	581
Gross balance, ending balance	210,500
Accumulated impairment losses	(85,538)
Net balance, ending balance	124,962
Operating Segment | Material Handling
Goodwill [Roll Forward]
Gross balance, beginning balance	142,765
Accumulated impairment losses	0
Net balance, beginning balance	142,765
Acquisition adjustments	(13)
Currency translation	686
Total 2023 activity	673
Gross balance, ending balance	143,438
Accumulated impairment losses	0
Net balance, ending balance	$ 143,438

Nature of Operations and Summ_9

Nature of Operations and Summary of Significant Accounting Policies - Warranty Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Changes in the carrying amount of accrued warranty costs [Roll Forward]
Balance at Beginning of Year	$ 7,283	$ 7,298
Provision charged to expense	1,425	1,462
Usage	(1,068)	(1,538)
Currency translation	87	(74)
Balance at End of Period	$ 7,727	$ 7,148

Nature of Operations and Sum_10

Nature of Operations and Summary of Significant Accounting Policies - Revenue Recognition Method and Disaggregation of Revenue by Product Type and Geography (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Disaggregation of Revenue [Line Items]
Revenue	$ 229,758	$ 226,480
North America
Disaggregation of Revenue [Line Items]
Revenue	132,453	124,336
Europe
Disaggregation of Revenue [Line Items]
Revenue	54,157	58,366
Asia
Disaggregation of Revenue [Line Items]
Revenue	27,770	31,987
Rest of world
Disaggregation of Revenue [Line Items]
Revenue	15,378	11,791
Parts and consumables
Disaggregation of Revenue [Line Items]
Revenue	151,563	146,244
Capital
Disaggregation of Revenue [Line Items]
Revenue	78,195	80,236
Point in Time
Disaggregation of Revenue [Line Items]
Revenue	204,239	203,311
Over Time
Disaggregation of Revenue [Line Items]
Revenue	$ 25,519	$ 23,169

Nature of Operations and Sum_11

Nature of Operations and Summary of Significant Accounting Policies - Revenue from Contract with Customers (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Contract Assets	$ 12,389	$ 14,898
Contract Liabilities	$ 96,348	$ 82,413

Gain on Sale and Other Costs,_3

Gain on Sale and Other Costs, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended	15 Months Ended
	Apr. 01, 2023	Apr. 02, 2022	Jan. 01, 2022	Apr. 02, 2022
Property, Plant and Equipment [Line Items]
Gain on sale and other costs, net	$ 0	$ 20,008
Gross gain on sale of assets	0	20,190
Proceeds from sale of property, plant, and equipment	$ 32	1,595
Industrial Processing
Property, Plant and Equipment [Line Items]
Gross gain on sale of assets		20,190
Impairment charge		182
Building
Property, Plant and Equipment [Line Items]
Gross gain on sale of assets		20,190
Impairment charge		182
CHINA | Land and Building
Property, Plant and Equipment [Line Items]
Gross gain on sale of assets		20,190
Proceeds from sale of property, plant, and equipment		$ 25,159
Down payment percentage		6%	25%	31%
Net gain on sale of assets		$ 15,143
Deferred taxes		5,047
Receivable recognized		$ 16,082		$ 16,082
Period of recognition of gain on sale and a receivable for remaining amount of sales proceeds (in years)		2 years

Gain on Sale and Other Costs,_4

Gain on Sale and Other Costs, Net - Summary of Changes in Nontrade Receivables (Details) - CHINA - Land and Building - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Apr. 01, 2023	Dec. 31, 2022	Apr. 02, 2022
Restructuring Cost and Reserve [Line Items]
Balance at Inception			$ 17,294
Present value discount			(1,212)
Receivable recorded, net			$ 16,082
Beginning balance	$ 15,181
Accretion of interest income	141	$ 422
Currency translation	125	(1,323)
Ending balance	$ 15,447	$ 15,181

Earnings per Share - Basic and

Earnings per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Income Amounts Attributable to Parent, Disclosures [Abstract]
Net Income Attributable to Kadant	$ 28,075	$ 41,192
Basic Weighted Average Shares	11,681	11,630
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	13	25
Diluted Weighted Average Shares	11,694	11,655
Basic Earnings per Share (in dollars per share)	$ 2.40	$ 3.54
Diluted Earnings per Share (in dollars per share)	$ 2.40	$ 3.53

Earnings per Share - Narrative

Earnings per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Amount of antidilutive securities excluded from computation of EPS (in shares)	38	17

Provision for Income Taxes (Det

Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 9,763	$ 13,378
Effective tax rate	26%	24%

Short- and Long-Term Obligati_3

Short- and Long-Term Obligations - Schedule of Short- and Long-Term Obligations (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Finance Leases, due 2023 to 2026	$ 1,759	$ 1,940
Total	181,907	201,161
Less: Short-term Obligations and Current Maturities of Long-Term Obligations	(3,352)	(3,821)
Long-Term Obligations	178,555	197,340
Revolving Credit Facility, due 2027
Debt Instrument [Line Items]
Long-term debt	167,514	186,131
Senior Promissory Notes, due 2023 to 2028
Debt Instrument [Line Items]
Long-term debt	10,000	10,000
Other Borrowings, due 2023 to 2028
Debt Instrument [Line Items]
Other Borrowings, due 2023 to 2028	$ 2,634	$ 3,090

Short- and Long-Term Obligati_4

Short- and Long-Term Obligations - Narrative (Details) - USD ($)	Nov. 30, 2022	Apr. 01, 2023	Dec. 31, 2022	Mar. 01, 2017
Revolving Credit Facility, due 2027
Debt Instrument [Line Items]
Long-term debt		$ 167,514,000	$ 186,131,000
Weighted average interest rate for revolving credit facility (as a percentage)		4.81%	4.33%
Revolving Credit Facility, due 2027 | 2017 Credit Agreement
Debt Instrument [Line Items]
Additional borrowing capacity under uncommitted portion				$ 150,000,000
Revolving Credit Facility, due 2027 | Credit Agreement
Debt Instrument [Line Items]
Additional borrowing capacity under uncommitted portion	$ 200,000,000	$ 200,000,000
Borrowing capacity available under committed portion	400,000,000
Maximum amount of unrestricted U.S. cash	$ 50,000,000
Maximum consolidated leverage ratio	3.75
Maximum consolidated leverage ratio upon material acquisition	4.25
Long-term debt		167,514,000
Remaining borrowing capacity		232,760,000
Revolving Credit Facility, due 2027 | Euro-Denominated Borrowing
Debt Instrument [Line Items]
Long-term debt		74,514,000
Revolving Credit Facility, due 2027 | Minimum | Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee percentage	0.125%
Revolving Credit Facility, due 2027 | Maximum | Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee percentage	0.35%
Revolving Credit Facility, due 2027 | Base Rate | Minimum | Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	0%
Revolving Credit Facility, due 2027 | Base Rate | Maximum | Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	1.25%
Revolving Credit Facility, due 2027 | Eurocurrency Rate, Term SOFR, CDOR Rate, And RFR | Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	0.10%
Revolving Credit Facility, due 2027 | Eurocurrency Rate, Term SOFR, CDOR Rate, And RFR | Minimum | Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	1%
Revolving Credit Facility, due 2027 | Eurocurrency Rate, Term SOFR, CDOR Rate, And RFR | Maximum | Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	2.25%
Senior Promissory Notes, due 2023 to 2028
Debt Instrument [Line Items]
Long-term debt		10,000,000	$ 10,000,000
Senior Promissory Notes, due 2023 to 2028 | Note Purchase Agreement
Debt Instrument [Line Items]
Principal amount		$ 10,000,000
Fixed interest rate		4.90%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands		3 Months Ended
	Mar. 07, 2023	Apr. 01, 2023	Apr. 02, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 2,238	$ 2,260
Unrecognized compensation expense related to stock awards		$ 12,796
Weighted average period (in years)		2 years
Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	21,009
Grant date fair value of shares granted	$ 4,528
Vesting period (in years)	3 years
Performance Based Restricted Stock Units | Minimum | Share-Based Compensation Arrangement By Share-Based Payment Award Component One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of actual adjusted EBITDA	50%
Adjustment to RSU	50%
Performance Based Restricted Stock Units | Minimum | Share-Based Compensation Arrangement By Share-Based Payment Award, Component Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of actual adjusted EBITDA	100%
Adjustment to RSU	100%
Performance Based Restricted Stock Units | Minimum | Share-Based Compensation Arrangement By Share-Based Payment Award, Component Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of actual adjusted EBITDA	50%
Performance Based Restricted Stock Units | Maximum | Share-Based Compensation Arrangement By Share-Based Payment Award Component One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of actual adjusted EBITDA	100%
Adjustment to RSU	100%
Performance Based Restricted Stock Units | Maximum | Share-Based Compensation Arrangement By Share-Based Payment Award, Component Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of actual adjusted EBITDA	115%
Adjustment to RSU	150%
Performance Based Restricted Stock Units | Maximum | Share-Based Compensation Arrangement By Share-Based Payment Award, Component Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of actual adjusted EBITDA	115%
Adjustment to RSU	150%
Time Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares)	16,528
Grant date fair value of shares granted	$ 3,562
Vesting period (in years)	3 years

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Items - Components of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 655,571	$ 565,616
Other comprehensive items	5,528	(1,998)
Ending balance	684,305	599,738
Total
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(54,578)	(30,350)
Other comprehensive items before reclassifications	5,537
Reclassifications from AOCI	(44)
Other comprehensive items	5,493	(1,952)
Ending balance	(49,085)	$ (32,302)
Foreign Currency Translation Adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(54,488)
Other comprehensive items before reclassifications	5,538
Reclassifications from AOCI	0
Other comprehensive items	5,538
Ending balance	(48,950)
Pension and Other Post-Retirement Benefit Liability Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(148)
Other comprehensive items before reclassifications	(8)
Reclassifications from AOCI	2
Other comprehensive items	(6)
Ending balance	(154)
Deferred Gain on Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	58
Other comprehensive items before reclassifications	7
Reclassifications from AOCI	(46)
Other comprehensive items	(39)
Ending balance	$ 19

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Items - Reclassification Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Apr. 02, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	$ (21)	$ (22)
Total expense before income taxes	38,022	54,819
Income tax (provision) benefit	(9,763)	(13,378)
Interest expense	(2,370)	(1,234)
Net Income	28,259	41,441
Reclassification out of Accumulated Other Comprehensive Items
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Net Income	44	(91)
Reclassification out of Accumulated Other Comprehensive Items | Retirement Benefit Plans
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total expense before income taxes	(3)	(10)
Income tax (provision) benefit	1	3
Net Income	(2)	(7)
Reclassification out of Accumulated Other Comprehensive Items | Recognized net actuarial loss
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(1)	(7)
Reclassification out of Accumulated Other Comprehensive Items | Amortization of prior service cost
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(2)	(3)
Reclassification out of Accumulated Other Comprehensive Items | Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Income tax (provision) benefit	(14)	27
Net Income	46	(84)
Reclassification out of Accumulated Other Comprehensive Items | Cash Flow Hedges | Interest rate swap agreements
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Interest expense	$ 60	$ (111)

Derivatives - Narrative (Detail

Derivatives - Narrative (Details)	3 Months Ended
	Apr. 01, 2023 USD ($)	Dec. 29, 2018 USD ($)
Derivatives, Fair Value [Line Items]
Net unrealized gains included in AOCI expected to be reclassified to earnings over the next 12 months	$ 19,000
Cash Flow Hedging | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Rate of effectiveness of derivative agreement	100%
Cash Flow Hedging | 2018 Swap Agreement | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative, notional amount		$ 15,000,000
Derivative, floor rate		0
Fixed rate of interest		3.15%
Cash Flow Hedging | Forward Currency- Exchange Contract | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Period over which entity manages its level of exposure of risk	12 months

Derivatives - Fair Value of Der

Derivatives - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Designated as Hedging Instrument | 2018 Swap Agreement
Derivative in an Asset Position:
Derivative asset, fair value, gross asset	$ 75	$ 131
Derivative asset, notional amount	15,000	15,000
Designated as Hedging Instrument | Forward currency-exchange contracts
Derivatives in a Liability Position:
Derivative liability, fair value, gross liability	(51)	(54)
Derivative liability, notional amount	430	430
Not Designated as Hedging Instrument | Forward currency-exchange contracts
Derivative in an Asset Position:
Derivative asset, fair value, gross asset	2	15
Derivative asset, notional amount	$ 189	$ 647

Derivatives - Activity in Accum

Derivatives - Activity in Accumulated Other Comprehensive Items (OCI) (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 655,571
Ending balance	684,305
Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	58
Gain reclassified to earnings	(46)
Gain recognized in AOCI	7
Ending balance	19
Cash Flow Hedges | Interest Rate Swap Agreement
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	99
Gain reclassified to earnings	(46)
Gain recognized in AOCI	4
Ending balance	57
Cash Flow Hedges | Forward Currency- Exchange Contract
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(41)
Gain reclassified to earnings	0
Gain recognized in AOCI	3
Ending balance	$ (38)

Fair Value Measurements and F_3

Fair Value Measurements and Fair Value of Financial Instruments - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Assets:
Money market funds and time deposits	$ 5,162	$ 8,351
Banker's acceptance drafts	5,325	5,729
2018 Swap Agreement	75	131
Forward currency-exchange contracts	2	15
Liabilities:
Forward currency-exchange contracts	51	54
Level 1
Assets:
Money market funds and time deposits	5,162	8,351
Banker's acceptance drafts	0	0
2018 Swap Agreement	0	0
Forward currency-exchange contracts	0	0
Liabilities:
Forward currency-exchange contracts	0	0
Level 2
Assets:
Money market funds and time deposits	0	0
Banker's acceptance drafts	5,325	5,729
2018 Swap Agreement	75	131
Forward currency-exchange contracts	2	15
Liabilities:
Forward currency-exchange contracts	51	54
Level 3
Assets:
Money market funds and time deposits	0	0
Banker's acceptance drafts	0	0
2018 Swap Agreement	0	0
Forward currency-exchange contracts	0	0
Liabilities:
Forward currency-exchange contracts	$ 0	$ 0

Fair Value Measurements and F_4

Fair Value Measurements and Fair Value of Financial Instruments - Carrying Value and Fair Value of Debt Obligations (Details) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Carrying Value
Debt Obligations:
Debt obligations	$ 180,148	$ 199,221
Carrying Value | Revolving credit facility
Debt Obligations:
Debt obligations	167,514	186,131
Carrying Value | Senior promissory notes
Debt Obligations:
Debt obligations	10,000	10,000
Carrying Value | Other
Debt Obligations:
Debt obligations	2,634	3,090
Fair Value
Debt Obligations:
Debt obligations	180,167	198,994
Fair Value | Revolving credit facility
Debt Obligations:
Debt obligations	167,514	186,131
Fair Value | Senior promissory notes
Debt Obligations:
Debt obligations	10,019	9,773
Fair Value | Other
Debt Obligations:
Debt obligations	$ 2,634	$ 3,090

Business Segment Information (D

Business Segment Information (Details) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($) segment	Apr. 02, 2022 USD ($)
Segment Reporting [Abstract]
Number of reportable operating segments | segment	3
Revenue
Revenue	$ 229,758	$ 226,480
Income Before Provision for Income Taxes
Total operating income	40,114	55,973
Interest expense, net	(2,071)	(1,132)
Other expense, net	(21)	(22)
Income Before Provision for Income Taxes	38,022	54,819
Capital Expenditures
Capital expenditures	4,469	2,868
Gain on the sale of assets	0	20,190
Industrial Processing
Capital Expenditures
Gain on the sale of assets		20,190
Write-off of indemnification asset		575
Machinery and equipment write-down		182
Material Handling
Capital Expenditures
Acquisition related (income) expense		717
Operating Segment | Flow Control
Revenue
Revenue	89,521	85,826
Income Before Provision for Income Taxes
Total operating income	24,189	21,725
Capital Expenditures
Capital expenditures	1,404	525
Operating Segment | Industrial Processing
Revenue
Revenue	83,542	93,085
Income Before Provision for Income Taxes
Total operating income	15,967	38,159
Capital Expenditures
Capital expenditures	2,579	1,952
Operating Segment | Material Handling
Revenue
Revenue	56,695	47,569
Income Before Provision for Income Taxes
Total operating income	9,287	5,844
Capital Expenditures
Capital expenditures	462	384
Corporate
Income Before Provision for Income Taxes
Total operating income	(9,329)	(9,755)
Capital Expenditures
Capital expenditures	$ 24	$ 7

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Banker's acceptance drafts, maturity period (in months)	6 months
Banker's acceptance drafts with recourse	$ 5,981	$ 11,238