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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jul. 01, 2017	Jul. 28, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	KADANT INC
Entity Central Index Key	0000886346
Current Fiscal Year End Date	--12-30
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jul. 01, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		11,004,321

Condensed Consolidated Balance Sheet - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 85,840	$ 71,487
Restricted cash	2,141	2,082
Accounts receivable, less allowances of $2,490 and $2,395	68,994	65,963
Inventories	63,390	54,951
Unbilled contract costs and fees	6,421	3,068
Other current assets	14,377	9,799
Total Current Assets	241,163	207,350
Property, Plant, and Equipment, at Cost	130,518	124,424
Less: accumulated depreciation and amortization	80,535	76,720
Property, Plant and Equipment, at Cost, Net	49,983	47,704
Other Assets	13,182	11,452
Intangible Assets, Net	51,659	52,730
Goodwill	158,827	151,455
Total Assets	514,814	470,691
Current Liabilities:
Current maturities of long-term obligations	696	643
Accounts payable	28,875	23,929
Customer deposits	29,073	21,168
Accrued payroll and employee benefits	19,010	20,508
Other current liabilities	27,703	22,665
Total Current Liabilities	105,357	88,913
Long-Term Deferred Income Taxes	15,011	14,631
Other Long-Term Liabilities	18,038	17,100
Long-Term Obligations	65,071	65,768
Commitments and Contingencies
Stockholders' Equity:
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued	0	0
Common stock, $.01 par value, 150,000,000 shares authorized; 14,624,159 shares issued	146	146
Capital in excess of par value	100,301	101,405
Retained earnings	333,476	321,050
Treasury stock at cost, 3,619,838 and 3,686,532 shares	(88,701)	(90,335)
Accumulated other comprehensive items	(35,916)	(49,637)
Total Kadant Stockholders' Equity	309,306	282,629
Noncontrolling interest	2,031	1,650
Total Stockholders' Equity	311,337	284,279
Total Liabilities and Stockholders' Equity	$ 514,814	$ 470,691

Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Current Assets:
Accounts receivable, allowances	$ 2,490	$ 2,395
Stockholders' Equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	14,624,159	14,624,159
Treasury stock (in shares)	3,619,838	3,686,532

Condensed Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Income Statement [Abstract]
Revenues	$ 110,242	$ 111,828	$ 213,099	$ 208,366
Costs and Operating Expenses:
Cost of revenues	57,418	61,567	111,283	114,129
Selling, general, and administrative expenses	39,159	36,072	73,958	68,568
Research and development expenses	2,222	1,945	4,369	3,649
Other income	0	0	0	(317)
Total Costs and Operating Expenses	98,799	99,584	189,610	186,029
Operating Income	11,443	12,244	23,489	22,337
Interest Income	102	66	206	121
Interest Expense	(392)	(340)	(740)	(609)
Income Before Provision for Income Taxes	11,153	11,970	22,955	21,849
Provision for Income Taxes	2,955	3,531	5,690	6,419
Net Income	8,198	8,439	17,265	15,430
Net Income Attributable to Noncontrolling Interest	(102)	(128)	(218)	(243)
Net Income Attributable to Kadant	$ 8,096	$ 8,311	$ 17,047	$ 15,187
Earnings per Share Attributable to Kadant:
Basic (in dollars per share)	$ 0.74	$ 0.76	$ 1.55	$ 1.40
Diluted (in dollars per share)	$ 0.72	$ 0.75	$ 1.52	$ 1.37
Weighted Average Shares:
Basic (in shares)	11,001	10,870	10,976	10,831
Diluted (in shares)	11,296	11,152	11,250	11,085
Cash Dividends Declared per Common Share (in dollars per share)	$ 0.21	$ 0.19	$ 0.42	$ 0.38

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Statement of Comprehensive Income [Abstract]
Net Income	$ 8,198	$ 8,439	$ 17,265	$ 15,430
Other Comprehensive Items:
Foreign currency translation adjustment	8,655	(5,194)	13,687	736
Pension and other post-retirement liability adjustments (net of tax provision (benefit) of $11 and $60 in the three and six months ended July 1, 2017, respectively, and $77 and $(159) in the three and six months ended July 2, 2016, respectively)	81	147	163	(271)
Deferred gain (loss) on hedging instruments (net of tax provision (benefit) of $1 and $16 in the three and six months ended July 1, 2017, respectively, and $(151) and $(223) in the three and six months ended July 2, 2016, respectively)	7	86	34	(40)
Other Comprehensive Items	8,743	(4,961)	13,884	425
Comprehensive Income	16,941	3,478	31,149	15,855
Comprehensive Income Attributable to Noncontrolling Interest	(219)	(92)	(381)	(266)
Comprehensive Income Attributable to Kadant	$ 16,722	$ 3,386	$ 30,768	$ 15,589

Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Other Comprehensive Items:
Pension and other post-retirement liability adjustments, tax effect	$ 11	$ 77	$ 60	$ (159)
Deferred gain (loss) on hedging instruments, tax effect	$ 1	$ (151)	$ 16	$ (223)

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016
Operating Activities:
Net Income Attributable to Kadant	$ 17,047	$ 15,187
Net income attributable to noncontrolling interest	218	243
Net income	17,265	15,430
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,531	7,477
Stock-based compensation expense	2,736	2,596
Provision for losses on accounts receivable	84	320
Loss (gain) on the sale of property, plant, and equipment	30	(350)
Other items, net	2,161	289
Contributions to U.S. pension plan	(540)	(540)
Changes in current assets and liabilities, net of effects of acquisition:
Accounts receivable	(476)	3,699
Unbilled contract costs and fees	(2,968)	818
Inventories	(6,147)	(2,498)
Other current assets	(2,652)	459
Accounts payable	3,363	172
Other current liabilities	5,989	(8,663)
Net cash provided by operating activities	25,376	19,209
Investing Activities:
Acquisition	(165)	(56,617)
Purchases of property, plant, and equipment	(3,435)	(1,736)
Proceeds from sale of property, plant, and equipment	50	399
Net cash used in investing activities	(3,550)	(57,954)
Financing Activities:
Proceeds from issuance of debt	8,000	46,046
Repayment of debt	(11,235)	(12,250)
Dividends paid	(4,388)	(3,894)
Tax withholding payments related to stock-based compensation	(2,206)	(2,435)
Payment of debt issuance costs	(1,147)	0
Payment of contingent consideration	0	(1,091)
Proceeds from issuance of Company common stock	0	1,374
Change in restricted cash	93	724
Other financing activities	(215)	0
Net cash (used in) provided by financing activities	(11,098)	28,474
Exchange Rate Effect on Cash and Cash Equivalents	3,625	(1,048)
Increase (Decrease) in Cash and Cash Equivalents	14,353	(11,319)
Cash and Cash Equivalents at Beginning of Period	71,487	65,530
Cash and Cash Equivalents at End of Period	$ 85,840	$ 54,211

Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Capital in Excess of Par Value [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Items [Member]	Noncontrolling Interest [Member]
Beginning balance (in shares) at Jan. 02, 2016		14,624,159			3,850,779
Beginning balance at Jan. 02, 2016	$ 267,945	$ 146	$ 100,536	$ 297,258	$ (94,359)	$ (36,972)	$ 1,336
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	15,430			15,187			243
Dividends declared	(4,133)			(4,133)
Activity under stock plans (in shares)					(123,872)
Activity under stock plans	1,544		(1,491)		$ 3,035
Other comprehensive items	425					402	23
Ending balance (in shares) at Jul. 02, 2016		14,624,159			3,726,907
Ending balance at Jul. 02, 2016	281,211	$ 146	99,045	308,312	$ (91,324)	(36,570)	1,602
Beginning balance (in shares) at Dec. 31, 2016		14,624,159			3,686,532
Beginning balance at Dec. 31, 2016	284,279	$ 146	101,405	321,050	$ (90,335)	(49,637)	1,650
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	17,265			17,047			218
Dividends declared	(4,621)			(4,621)
Activity under stock plans (in shares)					(66,694)
Activity under stock plans	530		(1,104)		$ 1,634
Other comprehensive items	13,884					13,721	163
Ending balance (in shares) at Jul. 01, 2017		14,624,159			3,619,838
Ending balance at Jul. 01, 2017	$ 311,337	$ 146	$ 100,301	$ 333,476	$ (88,701)	$ (35,916)	$ 2,031

Nature of Operations and Summary of Significant Accounting Policies

6 Months Ended

Jul. 01, 2017

Accounting Policies [Abstract]

Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

Kadant Inc. (collectively, "Kadant," "the Company," or "the Registrant") was incorporated in Delaware in November 1991 and currently trades on the New York Stock Exchange under the ticker symbol "KAI."

The Company and its subsidiaries' operations include two reportable operating segments, Papermaking Systems and Wood Processing Systems, and a separate product line, Fiber-based Products.

Through its Papermaking Systems segment, the Company develops, manufactures, and markets a range of equipment and products primarily for the global papermaking, paper recycling, recycling and waste management, and other process industries. The Company's principal products in this segment include custom-engineered stock-preparation systems and equipment for the preparation of wastepaper for conversion into recycled paper and balers and related equipment used in the processing of recyclable and waste materials; fluid-handling systems used primarily in the dryer section of the papermaking process and during the production of corrugated boxboard, metals, plastics, rubber, textiles, chemicals, and food; doctoring systems and equipment and related consumables important to the efficient operation of paper machines; and cleaning and filtration systems essential for draining, purifying, and recycling process water and cleaning paper machine fabrics and rolls.

Through its Wood Processing Systems segment, the Company develops, manufactures, and markets stranders and related equipment used in the production of oriented strand board (OSB), an engineered wood panel product used primarily in home construction. This segment also sells debarking and wood chipping equipment used in the forest products and the pulp and paper industries. Through this segment, the Company also provides refurbishment and repair of pulping equipment for the pulp and paper industry.

Through its Fiber-based Products business, the Company manufactures and sells granules derived from papermaking by-products primarily for use as agricultural carriers and for home lawn and garden applications, as well as for oil and grease absorption.

Interim Financial Statements

The interim condensed consolidated financial statements and related notes presented have been prepared by the Company, are unaudited, and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair statement of the Company's financial position at July 1, 2017 and its results of operations and comprehensive income for the three- and six-month periods ended July 1, 2017 and July 2, 2016, and its cash flows and stockholders' equity for the six-month periods ended July 1, 2017 and July 2, 2016. Interim results are not necessarily indicative of results for a full year or for any other interim period.

The condensed consolidated balance sheet presented as of December 31, 2016 has been derived from the consolidated financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016. The condensed consolidated financial statements and related notes are presented as permitted by the Securities and Exchange Commission (SEC) rules and regulations for Form 10-Q and do not contain certain information included in the annual consolidated financial statements and related notes of the Company. The condensed consolidated financial statements and notes included herein should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the SEC.

Critical Accounting Policies

Critical accounting policies are defined as those that entail significant judgments and estimates, and could potentially result in materially different results under different assumptions and conditions. The Company believes that the most critical accounting policies upon which its financial position depends, and which involve the most complex or subjective decisions or assessments, concern revenue recognition and accounts receivable, warranty obligations, income taxes, the valuation of goodwill and intangible assets, inventories and pension obligations. A discussion of the application of these and other accounting policies is included in Notes 1 and 3 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.

Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its condensed consolidated financial statements or in the application of accounting policies, if business conditions were different, or if the Company were to use different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's condensed consolidated financial statements.

Supplemental Cash Flow Information

The Company paid additional post-closing consideration of $165,000 in the first quarter of 2017 associated with the April 2016 acquisition of RT Holding GmbH, the parent corporation of a group of companies known as the PAALGROUP (PAAL).



	Six Months Ended
(In thousands)	July 1, 2017		July 2, 2016
Non-Cash Investing Activities:
Fair value of assets acquired	$	—	$	86,555
Cash paid for acquired business	—		(58,894		)
Liabilities assumed of acquired business	$	—	$	27,661
Non-Cash Financing Activities:
Issuance of Company common stock	$	2,814	$	3,057
Dividends declared but unpaid	$	2,311	$	2,070

Restricted Cash

As of July 1, 2017 and December 31, 2016, the Company had restricted cash of $2,141,000 and $2,082,000, respectively. This cash serves as collateral for bank guarantees primarily associated with providing assurance to customers that the Company will fulfill certain customer obligations entered into in the normal course of business. The majority of the bank guarantees will expire by the end of 2018.

Banker's Acceptance Drafts

The Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The banker's acceptance drafts are non-interest bearing obligations of the issuing bank and mature within six months of the origination date. The Company can sell the drafts at a discount to a third-party financial institution or transfer the drafts to vendors in settlement of current accounts payable prior to the scheduled maturity date. These drafts, which totaled $10,181,000 and $7,852,000 at July 1, 2017 and December 31, 2016, respectively, are included in accounts receivable in the accompanying condensed consolidated balance sheet until the subsidiary sells the drafts to a bank and receives a discounted amount, transfers the banker's acceptance drafts in settlement of current accounts payable prior to maturity, or obtains cash payment on the scheduled maturity date.

Inventories

The components of inventories are as follows:



	July 1, 2017		December 31, 2016
(In thousands)	July 1, 2017		December 31, 2016
Raw Materials and Supplies	$	27,555	$	21,086
Work in Process	14,418		12,293
Finished Goods	21,417		21,572
Total Inventories	$	63,390	$	54,951

Intangible Assets, Net

Intangible assets are as follows:



	July 1, 2017			December 31, 2016
(In thousands)	July 1, 2017			December 31, 2016
Indefinite-Lived	$	8,100		$	8,100

Definite-Lived, Gross	$	101,743		$	77,052
Acquisition	—			24,691
Accumulated amortization	(52,494		)	(49,040		)
Currency translation	(5,690		)	(8,073		)
Definite-Lived, Net	$	43,559		$	44,630

Total Intangible Assets, Net	$	51,659		$	52,730

Goodwill

The changes in the carrying amount of goodwill by segment are as follows:



(In thousands)	Papermaking Systems Segment			Wood Processing Systems Segment		Total
Balance at December 31, 2016
Gross balance	$	219,699		$	17,265	$	236,964
Accumulated impairment losses	(85,509		)	—		(85,509		)
Net balance	134,190			17,265		151,455
Currency Translation	6,704			668		7,372
Total 2017 Adjustments	6,704			668		7,372
Balance at July 1, 2017
Gross balance	226,403			17,933		244,336
Accumulated impairment losses	(85,509		)	—		(85,509		)
Net balance	$	140,894		$	17,933	$	158,827

Warranty Obligations

The Company provides for the estimated cost of product warranties at the time of sale based on the actual historical occurrence rates and repair costs, as well as knowledge of any specific warranty problems that indicate that projected warranty costs may vary from historical patterns. The Company typically negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications. While the Company engages in extensive product quality programs and processes, the Company's warranty obligation is affected by product failure rates, repair costs, service delivery costs incurred in correcting a product failure, and supplier warranties on parts delivered to the Company. Should actual product failure rates,

repair costs, service delivery costs, or supplier warranties on parts differ from the Company's estimates, revisions to the estimated warranty liability would be required.

The changes in the carrying amount of accrued warranty costs included in other current liabilities in the accompanying condensed consolidated balance sheet are as follows:



	Six Months Ended
(In thousands)	July 1, 2017			July 2, 2016
Balance at Beginning of Year	$	3,843		$	3,670
Provision charged to income	1,209			1,524
Usage	(1,056		)	(1,623		)
Acquisition	—			991
Currency translation	224			(20		)
Balance at End of Period	$	4,220		$	4,542

Recent Accounting Pronouncements

Revenue from Contracts with Customers (Topic 606), Section A-Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. In March 2016, the FASB issued ASU No. 2016-08, which further clarifies the guidance on the principal versus agent considerations within ASU No. 2014-09. In April 2016, the FASB issued ASU No. 2016-10 to expand the guidance on identifying performance obligations and licensing within ASU 2014-09. In May 2016, the FASB issued ASU No. 2016-11, which rescinds certain previously-issued guidance, including, among other items, guidance relating to accounting for shipping and handling fees and freight services effective upon adoption of ASU No. 2014-09. Also in May 2016, the FASB issued ASU No. 2016-12, which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition. In December 2016, the FASB issued ASU No. 2016-20, which clarifies narrow aspects of Topic 606 and corrects unintended application of the guidance. These new ASUs are effective for the Company beginning in fiscal 2018. Early adoption is permitted in fiscal 2017. The Company is continuing to assess the potential effects of these ASUs on its condensed consolidated financial statements, business processes, systems and controls. While the assessment process is ongoing, the Company currently anticipates adopting these ASUs using the modified retrospective transition approach. Under this approach, this guidance would apply to all new contracts initiated in fiscal 2018. For existing contracts that have remaining obligations as of the beginning of fiscal 2018, any difference between the recognition criteria in these ASUs and the Company’s current revenue recognition practices would be recognized using a cumulative effect adjustment to the opening balance of retained earnings. The Company is also in the process of developing and implementing appropriate changes to its business processes, systems and controls to support the recognition criteria and disclosure requirements of these ASUs.

Inventory (Topic 330), Simplifying the Measurement of Inventory. In July 2015, the FASB issued ASU No. 2015-11, which requires that an entity measure inventory within the scope of this ASU at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Substantial and unusual losses that result from subsequent measurement of inventory should be disclosed in the financial statements. The Company adopted this ASU at the beginning of fiscal 2017. Adoption of this ASU did not have a material effect on the Company's condensed consolidated financial statements.

Leases (Topic 842). In February 2016, the FASB issued ASU No. 2016-02, which requires a lessee to recognize a right-of-use asset and a lease liability for operating leases, initially measured at the present value of the future lease payments, in its balance sheet. This ASU also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. This new guidance is effective for the Company in fiscal 2019. Early adoption is permitted. As part of the implementation of this new standard, the Company is in the process of reviewing current accounting policies and assessing the practical expedients allowed under this new guidance. The Company expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption, which is required using the modified retrospective transition method. The Company is currently evaluating the other effects that the adoption of this ASU will have on its condensed consolidated financial statements.

Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU No. 2016-13, which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining lives. This new guidance is effective for the Company in fiscal 2020. Early adoption is permitted beginning in fiscal 2019. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements.

Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued ASU No. 2016-15, which simplifies the diversity in practice related to the presentation and classification of certain cash receipts and cash payments in the statement of cash flows under Topic 230. This ASU addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This new guidance is effective for the Company in fiscal 2018. Early adoption is permitted. The Company does not believe that adoption of this ASU will have a material impact on its condensed consolidated financial statements.

Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory. In October 2016, the FASB issued ASU No. 2016-16, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This new guidance is effective for the Company in fiscal 2018 with adoption required on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. The Company is currently evaluating the effect that the adoption of this ASU will have on its condensed consolidated financial statements.

Statement of Cash Flows (Topic 230), Restricted Cash. In November 2016, the FASB issued ASU No. 2016-18, which requires inclusion of restricted cash and restricted cash equivalents within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This new guidance is effective for the Company in fiscal 2018. Early adoption is permitted. As this ASU is presentation-related only, adoption of this ASU will not have a material impact on the Company's condensed consolidated financial statements.

Business Combinations (Topic 805), Clarifying the Definition of a Business. In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The revised definition of a business under this ASU will reduce the number of transactions that are accounted for as business combinations. This new guidance is effective on a prospective basis for the Company in fiscal 2018. Early adoption is allowed for certain transactions. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements.

Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued ASU No. 2017-04, which eliminates Step 2 in goodwill impairment testing, which requires that goodwill impairment losses be measured as the difference between the implied value of a reporting unit’s goodwill and its carrying amount. This ASU will reduce the cost and complexity of impairment testing by requiring goodwill impairment losses to be measured as the excess of the reporting unit’s carrying amount, including goodwill and related goodwill tax effects, over its fair value. This new guidance is effective on a prospective basis for the Company in fiscal 2020. Early adoption is permitted. The Company does not believe that adoption of this ASU will have a material effect on its condensed consolidated financial statements.

Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. In March 2017, the FASB issued ASU No. 2017-07, which requires employers to include only the service cost component of net periodic pension cost and net periodic post-retirement benefit cost in operating expenses in the same income statement line item as the related employees' compensation costs. The other components of net benefit cost, including interest costs, amortization of prior service costs and settlement and curtailment effects, are to be included in non-operating expenses. The ASU also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This new guidance is effective on a retrospective basis for the Company in fiscal 2018. Early adoption is permitted. The Company is currently evaluating the effects that adoption of this ASU will have on its condensed consolidated financial statements.

Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. In May 2017, the FASB issued ASU No. 2017-09, which provides clarity on which changes to the terms or conditions of share-based payment awards require entities to apply the modification accounting provisions required in Topic 718. This new guidance is effective on a prospective basis for the Company in fiscal 2018. Early adoption is permitted. The Company does not believe that adoption of this ASU will have a material effect on its condensed consolidated financial statements.

Other Income	6 Months Ended
Other Income	Jul. 01, 2017
Other Income and Expenses [Abstract]
Other Income	Other Income In the first six months of 2016, other income consisted of a pre-tax gain of $317,000 from the sale of real estate in Sweden for cash proceeds of $368,000.

Earnings per Share

6 Months Ended

Jul. 01, 2017

Earnings Per Share [Abstract]

Earnings per Share

Basic and diluted earnings per share (EPS) are calculated as follows:



	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
(In thousands, except per share amounts)	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Amounts Attributable to Kadant:
Net Income	$	8,096	$	8,311	$	17,047	$	15,187

Basic Weighted Average Shares	11,001		10,870		10,976		10,831
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	295		282		274		254
Diluted Weighted Average Shares	11,296		11,152		11,250		11,085

Basic Earnings per Share	$	0.74	$	0.76	$	1.55	$	1.40

Diluted Earnings per Share	$	0.72	$	0.75	$	1.52	$	1.37

Unvested restricted stock units (RSUs) equivalent to approximately 19,000 and 26,000 shares of common stock in the second quarters of 2017 and 2016, respectively, and 29,000 and 87,000 shares of common stock in the first six months of 2017 and 2016, respectively, were not included in the computation of diluted EPS as the effect would have been antidilutive or, for unvested performance-based RSUs, the performance conditions had not been met as of the end of the reporting periods.

Provision for Income Taxes	6 Months Ended
Provision for Income Taxes	Jul. 01, 2017
Income Tax Disclosure [Abstract]
Provision for Income Taxes	Provision for Income Taxes The provision for income taxes was $5,690,000 and $6,419,000 in the first six months of 2017 and 2016, respectively, and represented 25% and 29% of pre-tax income. The effective tax rate of 25% in the first six months of 2017 was lower than the Company's statutory tax rate primarily due to the distribution of the Company's worldwide earnings and the net excess income tax benefits from stock-based compensation arrangements, offset in part by an increase in tax related to non-deductible expenses and unrecognized tax benefits. The effective tax rate of 29% in the first six months of 2016 was lower than the Company's statutory tax rate primarily due to the distribution of the Company's worldwide earnings and the net excess income tax benefits from stock-based compensation arrangements. These items were offset in part by an increase in tax related to non-deductible expenses and state taxes.

Long-Term Obligations

6 Months Ended

Jul. 01, 2017

Debt Disclosure [Abstract]

Long-Term Obligations

Long-term obligations are as follows:



	July 1, 2017			December 31, 2016
(In thousands)	July 1, 2017			December 31, 2016
Revolving Credit Facility, due 2022	$	60,673		$	61,494
Obligations Under Capital Lease, due 2017 to 2022	4,557			4,309
Other Borrowings, due 2017 to 2023	537			608
Total	65,767			66,411
Less: Current Maturities of Long-Term Obligations	(696		)	(643		)
Long-Term Obligations	$	65,071		$	65,768

Revolving Credit Facility

On March 1, 2017, the Company entered into an Amended and Restated Credit Agreement (2017 Credit Agreement) which became effective on March 2, 2017. The 2017 Credit Agreement is a five-year unsecured multi-currency revolving credit facility in the aggregate principal amount of up to $200,000,000. On May 24, 2017, the Company entered into a first amendment and limited consent (First Amendment) which increased the revolving loan commitment to $300,000,000. The 2017 Credit Agreement also included an uncommitted unsecured incremental borrowing facility of up to an additional $100,000,000. The principal on any borrowings made under the 2017 Credit Agreement is due on March 1, 2022. Borrowing may be denominated in U.S. dollars or certain foreign currencies, as defined in the 2017 Credit Agreement. Interest on any loans outstanding under the 2017 Credit Agreement accrues and generally is payable quarterly in arrears at one of the following rates selected by the Company: (i) the Base Rate, calculated as the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate as published by Citizens Bank, and (c) the thirty-day London Inter-Bank Offered Rate (LIBOR) rate, as defined, plus 0.50%; or (ii) the LIBOR rate (with a zero percent floor), as defined, plus an applicable margin of 1% to 2%. The applicable margin is determined based upon the ratio of the Company's total debt, net of certain cash, as defined, to earnings before interest, taxes, depreciation, and amortization (EBITDA), as defined in the 2017 Credit Agreement. For this purpose, total debt net of certain cash is defined as total debt less the sum of (i) unrestricted U.S. cash, and (ii) 65% of unrestricted cash outside of the United States, but no more than an aggregate amount of $30,000,000. Contemporaneously with the execution of the 2017 Credit Agreement, the Company borrowed $42,000,000 and 26,300,000 euros under the 2017 Credit Agreement and applied the proceeds to pay off the previous credit facility.

The obligations of the Company under the 2017 Credit Agreement may be accelerated upon the occurrence of an event of default under the 2017 Credit Agreement, which includes customary events of default including, without limitation, payment defaults, defaults in the performance of affirmative and negative covenants, the inaccuracy of representations or warranties, bankruptcy- and insolvency-related defaults, defaults relating to such matters as the Employment Retirement Income Security Act (ERISA), unsatisfied judgments, the failure to pay certain indebtedness, and a change of control default. In addition, the 2017 Credit Agreement contains negative covenants applicable to the Company and its subsidiaries, including financial covenants requiring the Company to comply with a maximum consolidated leverage ratio of 3.5 to 1, a minimum consolidated interest coverage ratio of 3 to 1, and restrictions on liens, indebtedness, fundamental changes, dispositions of property, making certain restricted payments (including dividends and stock repurchases), investments, transactions with affiliates, sale and leaseback transactions, swap agreements, changing its fiscal year, arrangements affecting subsidiary distributions, entering into new lines of business, and certain actions related to a discontinued operation. As of July 1, 2017, the Company was in compliance with these covenants.

Loans under the 2017 Credit Agreement are guaranteed by certain domestic subsidiaries of the Company pursuant to an Amended and Restated Guarantee Agreement, dated as of March 1, 2017. In addition, one of the Company's foreign subsidiaries entered into a Guarantee Agreement limited to certain obligations of two foreign subsidiary borrowers pursuant to a Guarantee Agreement dated as of March 1, 2017.

As of July 1, 2017, the outstanding balance under the 2017 Credit Agreement was $60,673,000, of which $25,673,000 was euro-denominated. As of July 1, 2017, the Company had $239,841,000 of borrowing capacity available under its 2017 Credit Agreement, which is calculated by translating its foreign-denominated borrowings using transaction date foreign exchange rates.

The weighted average interest rate for the borrowings under the 2017 Credit Agreement was 1.78% as of July 1, 2017.

Subsequent to the end of the quarter, the Company borrowed an aggregate $170,018,000 under the 2017 Credit Agreement, of which $62,690,000 was Canadian dollar-denominated and $61,769,000 was euro-denominated, which was used to fund the acquisition of the forest products business of NII FPG Company (NII). See Note 13, Subsequent Event, for further details. Under the First Amendment, the lenders agreed to certain limited funding conditions under the 2017 Credit Agreement in connection with the closing of the acquisition.

Debt Issuance Costs

During the first six months of 2017, the Company incurred an additional $1,147,000 of debt issuance costs related to the 2017 Credit Agreement and First Amendment. Unamortized debt issuance costs were $1,325,000 as of July 1, 2017, which are included in other assets in the accompanying condensed consolidated balance sheet and are being amortized to interest expense based on the straight-line method.

Obligations Under Capital Lease

In connection with the acquisition of PAAL, the Company assumed a sale-leaseback financing arrangement for PAAL's facility in Germany. Under this arrangement, the quarterly lease payment includes principal and interest based on an interest rate which is reset, from time to time, to prevailing short-term borrowing rates in Germany. The interest rate at July 1, 2017 was 1.70%. The quarterly lease payment also includes a payment toward a corresponding loan receivable from the landlord. The loan receivable, which is included in other assets in the accompanying condensed consolidated balance sheet, was $357,000 at July 1, 2017. The lease arrangement provides for a fixed price purchase option, net of the loan receivable, of $1,518,000 at the end of the lease term in 2022. If the Company does not exercise the purchase option for the facility, the Company will receive cash from the landlord to settle the loan receivable. As of July 1, 2017, $4,444,000 was outstanding under this capital lease obligation. The Company also assumed capital lease obligations for certain equipment as part of the PAAL acquisition. These capital lease obligations bear a weighted average interest rate of 3.43% and have an average remaining term of 2.7 years. As of July 1, 2017, $113,000 was outstanding under these capital lease obligations.

Other Borrowings

The Company's PAAL subsidiary sells certain equipment to an intermediary who leases the equipment to a third party. The revenue from the equipment sale is deferred due to risk of default and repurchase obligation provisions. Revenue is recognized and borrowings reduced over the corresponding lease term with the remaining residual value of the equipment recognized when the default provisions lapse.

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jul. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company recognized stock-based compensation expense of $1,441,000 and $1,273,000 in the second quarters of 2017 and 2016, respectively, and $2,736,000 and $2,596,000 in the first six months of 2017 and 2016, respectively, within selling, general, and administrative (SG&A) expenses in the accompanying condensed consolidated statement of income. The Company recognizes compensation expense for all stock-based awards granted to employees and directors based on the grant date estimate of fair value for those awards. The fair value of RSUs is based on the grant date trading price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period. For time-based RSUs, compensation expense is recognized ratably over the requisite service period for the entire award net of forfeitures. For performance-based RSUs, compensation expense is recognized ratably over the requisite service period for each separately-vesting portion of the award net of forfeitures and remeasured at each reporting period until the total number of RSUs to be issued is known. During the first quarter of 2017, the Company granted stock-based compensation to executive officers and employees consisting of 39,229 shares of performance-based RSUs and 38,331 shares of time-based RSUs and granted 12,000 shares of time-based RSUs to its non-employee directors. Unrecognized compensation expense related to stock-based compensation totaled approximately $6,515,000 at July 1, 2017, and will be recognized over a weighted average period of 1.8 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Employee Benefit Plans

6 Months Ended

Jul. 01, 2017

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

The Company sponsors a noncontributory defined benefit pension plan for eligible employees at one of its U.S. divisions and its corporate office. Three of the Company’s non-U.S. subsidiaries also sponsor defined benefit pension plans covering certain employees at those subsidiaries. Funds for the U.S. pension plan and one of the non-U.S. pension plans are contributed to a trustee as necessary to provide for current service and for any unfunded projected benefit obligation over a reasonable period. The remaining two non-U.S. pension plans are unfunded as permitted under their plans and applicable laws. Benefits under the Company’s pension plans are based on years of service and employee compensation.

The Company also provides other post-retirement benefits under two plans in the United States and at one of its non-U.S. subsidiaries. In addition, the Company provides a restoration plan for certain executive officers which fully supplements benefits lost under the noncontributory defined benefit retirement plan as a consequence of applicable Internal Revenue Service limits and restores benefits for the limitation of years of service under the retirement plan.

The components of net periodic benefit cost for the Company's U.S. and non-U.S. pension plans and other post-retirement benefit plans are as follows:



	Three Months Ended July 1, 2017									Three Months Ended July 2, 2016
(In thousands, except percentages)	U.S. Pension Benefits			Non-U.S. Pension Benefits			Other Post-Retirement Benefits			U.S. Pension Benefits			Non-U.S. Pension Benefits			Other Post-Retirement Benefits
Components of Net Periodic Benefit Cost:
Service cost	$	147		33			$	53		$	181		27			$	33
Interest cost	302			26			45			318			26			38
Expected return on plan assets	(328		)	(9		)	—			(322		)	(7		)	—
Recognized net actuarial loss	108			9			27			124			10			12
Amortization of prior service cost	13			1			23			14			1			22
Net Periodic Benefit Cost	$	242		$	60		$	148		$	315		$	57		$	105

The weighted average assumptions used to determine net periodic benefit cost are as follows:

Discount Rate	4.03		%	3.47		%	4.11		%	4.22		%	3.88		%	4.30		%
Expected Long-Term Return on Plan Assets	5.00		%	7.72		%	7.72		%	5.00		%	6.90		%	6.90		%
Rate of Compensation Increase	3.00		%	3.44		%	3.06		%	3.00		%	2.98		%	3.03		%



	Six Months Ended July 1, 2017									Six Months Ended July 2, 2016
(In thousands, except percentages)	U.S. Pension Benefits			Non-U.S. Pension Benefits			Other Post-Retirement Benefits			U.S. Pension Benefits			Non-U.S. Pension Benefits			Other Post-Retirement Benefits
Components of Net Periodic Benefit Cost:
Service cost	$	343		$	65		$	88		$	362		$	52		$	66
Interest cost	616			50			84			636			52			76
Expected return on plan assets	(663		)	(17		)	—			(644		)	(14		)	—
Recognized net actuarial loss	221			18			40			248			20			24
Amortization of prior service cost	26			2			44			28			2			45
Settlement loss	—			—			—			—			—			114
Net Periodic Benefit Cost	$	543		$	118		$	256		$	630		$	112		$	325

The weighted average assumptions used to determine net periodic benefit cost are as follows:

Discount Rate	4.03		%	3.43		%	4.12		%	4.22		%	3.89		%	4.27		%
Expected Long-Term Return on Plan Assets	5.00		%	7.72		%	7.72		%	5.00		%	6.90		%	6.90		%
Rate of Compensation Increase	3.00		%	3.42		%	3.07		%	3.00		%	2.99		%	3.02		%

The Company made cash contributions of $540,000 to its U.S. noncontributory defined benefit pension plan in the first six months of 2017 and expects to make cash contributions of $540,000 over the remainder of 2017. For the remaining pension and post-retirement benefit plans, no cash contributions other than to fund current benefit payments are expected in 2017.

Accumulated Other Comprehensive Items

6 Months Ended

Jul. 01, 2017

Equity [Abstract]

Accumulated Other Comprehensive Items

Comprehensive income combines net income and other comprehensive items, which represent certain amounts that are reported as components of stockholders' equity in the accompanying condensed consolidated balance sheet, including foreign currency translation adjustments, unrecognized prior service cost and deferred losses associated with pension and other post-retirement benefit plans, and deferred gains (losses) on hedging instruments.

Changes in each component of accumulated other comprehensive items (AOCI), net of tax, in the accompanying condensed consolidated balance sheet are as follows:



(In thousands)	Foreign Currency Translation Adjustment			Unrecognized Prior Service Cost on Pension and Other Post- Retirement Benefit Plans			Deferred Loss on Pension and Other Post- Retirement Benefit Plans			Deferred Gain (Loss) on Hedging Instruments			Accumulated Other Comprehensive Items
Balance at December 31, 2016	$	(41,094	)	$	(397	)	$	(8,158	)	$	12		$	(49,637	)
Other comprehensive income (loss) before reclassifications	13,524			(3		)	(62		)	16			13,475
Reclassifications from AOCI	—			47			181			18			246
Net current period other comprehensive income	13,524			44			119			34			13,721
Balance at July 1, 2017	$	(27,570	)	$	(353	)	$	(8,039	)	$	46		$	(35,916	)

Balance at January 2, 2016	$	(27,932	)	$	(489	)	$	(8,322	)	$	(229	)	$	(36,972	)
Other comprehensive income (loss) before reclassifications	713			(1		)	(583		)	(317		)	(188		)
Reclassifications from AOCI	—			48			265			277			590
Net current period other comprehensive income (loss)	713			47			(318		)	(40		)	402
Balance at July 2, 2016	$	(27,219	)	$	(442	)	$	(8,640	)	$	(269	)	$	(36,570	)

Amounts reclassified from AOCI are as follows:



	Three Months Ended						Six Months Ended
(In thousands)	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016			Statement of Income Line Item
Pension and Other Post-Retirement Plans: (a)
Amortization of actuarial losses	$	(144	)	$	(146	)	$	(279	)	$	(406	)	SG&A expenses
Amortization of prior service costs	(37		)	(36		)	(72		)	(74		)	SG&A expenses
Total expense before income taxes	(181		)	(182		)	(351		)	(480		)
Income tax benefit	64			63			123			167			Provision for income taxes
	(117		)	(119		)	(228		)	(313		)
Cash Flow Hedges: (b)
Interest rate swap agreements	(6		)	(47		)	(18		)	(136		)	Interest expense
Forward currency-exchange contracts	—			37			—			(24		)	Revenues
Forward currency-exchange contracts	—			(46		)	(11		)	(69		)	Cost of revenues
Total expense before income taxes	(6		)	(56		)	(29		)	(229		)
Income tax benefit (provision)	3			(108		)	11			(48		)	Provision for income taxes
	(3		)	(164		)	(18		)	(277		)
Total Reclassifications	$	(120	)	$	(283	)	$	(246	)	$	(590	)


(a)	Included in the computation of net periodic benefit cost. See Note 7 for additional information.


(b)	See Note 9 for additional information.

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=66004124&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 220
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-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

Derivatives

6 Months Ended

Jul. 01, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

The Company uses derivative instruments primarily to reduce its exposure to changes in currency exchange rates and interest rates. When the Company enters into a derivative contract, the Company makes a determination as to whether the transaction is deemed to be a hedge for accounting purposes. For a contract deemed to be a hedge, the Company formally documents the relationship between the derivative instrument and the risk being hedged. In this documentation, the Company specifically identifies the asset, liability, forecasted transaction, cash flow, or net investment that has been designated as the hedged item, and evaluates whether the derivative instrument is expected to reduce the risks associated with the hedged item. To the extent these criteria are not met, the Company does not use hedge accounting for the derivative. The changes in the fair value of a derivative not deemed to be a hedge are recorded currently in earnings. The Company does not hold or engage in transactions involving derivative instruments for purposes other than risk management.

Accounting Standards Codification (ASC) 815, Derivatives and Hedging, requires that all derivatives be recognized in the accompanying condensed consolidated balance sheet at fair value. For derivatives designated as cash flow hedges, the related gains or losses on these contracts are deferred as a component of AOCI. These deferred gains and losses are recognized in the accompanying condensed consolidated statement of income in the period in which the underlying anticipated transaction occurs. For derivatives designated as fair value hedges, the unrealized gains and losses resulting from the impact of currency exchange rate movements are recognized in earnings in the period in which the exchange rates change and offset the currency gains and losses on the underlying exposures being hedged. The Company performs an evaluation of the effectiveness of the hedge both at inception and on an ongoing basis. The ineffective portion of a hedge, if any, and changes in the fair value of a derivative not deemed to be a hedge are recorded in the accompanying condensed consolidated statement of income.

Interest Rate Swap Agreement

On January 16, 2015, the Company entered into a swap agreement (2015 Swap Agreement) to hedge its exposure to movements in the three-month LIBOR rate on future outstanding debt and has designated the 2015 Swap Agreement as a cash flow hedge. The 2015 Swap Agreement expires on March 27, 2020 and has a $10,000,000 notional value. Under the 2015 Swap Agreement, on a quarterly basis, the Company receives a three-month LIBOR rate and pays a fixed rate of interest of 1.50% plus an applicable margin. The fair value of the 2015 Swap Agreement is included in other assets, with an offset to AOCI, net of tax, in the accompanying condensed consolidated balance sheet.

The Company has structured the 2015 Swap Agreement to be 100% effective and as a result there is no current impact to earnings resulting from hedge ineffectiveness. Management believes that any credit risk associated with the 2015 Swap Agreement is remote based on the Company's financial position and the creditworthiness of the financial institution that issued the 2015 Swap Agreement.

The counterparty to the 2015 Swap Agreement could demand an early termination of the 2015 Swap Agreement if the Company is in default under the 2017 Credit Agreement, or any agreement that amends or replaces the 2017 Credit Agreement in which the counterparty is a member, and the Company is unable to cure the default. An event of default under the 2017 Credit Agreement includes customary events of default and failure to comply with financial covenants, including a maximum consolidated leverage ratio of 3.5 to 1, a minimum consolidated interest coverage ratio of 3 to 1, and restrictions on liens, indebtedness, fundamental changes, dispositions of property, making certain restricted payments (including dividends and stock repurchases), investments, transactions with affiliates, sale and leaseback transactions, swap agreements, changing its fiscal year, arrangements affecting subsidiary distributions, entering into new lines of business, and certain actions related to a discontinued operation. As of July 1, 2017, the Company was in compliance with these covenants. The unrealized gain associated with the 2015 Swap Agreement was $48,000 as of July 1, 2017, which represents the estimated amount that the Company would receive from the counterparty in the event of an early termination.

Forward Currency-Exchange Contracts

The Company uses forward currency-exchange contracts primarily to hedge exposures resulting from fluctuations in currency exchange rates. Such exposures result primarily from portions of the Company's operations and assets and liabilities that are denominated in currencies other than the functional currencies of the businesses conducting the operations or holding the assets and liabilities. The Company typically manages its level of exposure to the risk of currency-exchange fluctuations by hedging a portion of its anticipated currency exposures over the ensuing 12-month period, using forward currency-exchange contracts that have maturities of 12 months or less.

Forward currency-exchange contracts that hedge forecasted accounts receivable or accounts payable are designated as cash flow hedges. The fair value for these instruments is included in other current assets for unrecognized gains and in other current liabilities for unrecognized losses, with an offset in AOCI, net of tax. For forward currency-exchange contracts that are designated as fair value hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item are recognized currently in earnings. The fair value of forward currency-exchange contracts that are not designated as hedges is recorded currently in earnings with gains reported in other current assets and losses reported in other current liabilities.

In the second quarter of 2017, the Company entered into forward currency-exchange contracts associated with the anticipated consideration to be paid for the acquisition of NII (see Note 13, Subsequent Event, for further details) and recognized a loss of $1,754,000 associated with these transactions. The Company recognized within SG&A expenses in the accompanying condensed consolidated statement of income losses of $1,846,000 and $225,000 in the second quarters of 2017 and 2016, respectively, and losses of $1,493,000 and $436,000 in the first six months of 2017 and 2016, respectively, associated with its forward currency-exchange contracts that were not designated as hedges, including the contracts related to the NII acquisition. Management believes that any credit risk associated with forward currency-exchange contracts is remote based on the Company's financial position and the creditworthiness of the financial institutions issuing the contracts.

The following table summarizes the fair value of the Company's derivative instruments designated and not designated as hedging instruments, the notional value of the associated derivative contracts, and the location of these instruments in the accompanying condensed consolidated balance sheet:



		July 1, 2017					December 31, 2016
	Balance Sheet Location	Asset (Liability) (a)			Notional Amount (b)		Asset (Liability) (a)			Notional Amount
(In thousands)	Balance Sheet Location	Asset (Liability) (a)			Notional Amount (b)		Asset (Liability) (a)			Notional Amount
Derivatives Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	58		$	950	$	—		$	—
Interest rate swap agreement	Other Long-Term Assets	$	48		$	10,000	$	62		$	10,000
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(37	)	$	863	$	(41	)	$	2,380

Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	9		$	386	$	2		$	227
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(2,005	)	$	141,396	$	(237	)	$	17,185


(a)	See Note 10 for the fair value measurements relating to these financial instruments.

(b)

The total notional amount is indicative of the level of the Company's derivative activity during the first six months of 2017, except for $124,459,000 for the one-time purchase of forward currency-exchange contracts entered into in anticipation of consideration to be paid for the acquisition of NII. These contracts are included in derivatives not designated as hedging instruments in a liability position in the table above.

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 six months ended July 1, 2017:



(In thousands)	Interest Rate Swap Agreement			Forward Currency- Exchange Contracts			Total
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	$	40		$	(28	)	$	12
Loss reclassified to earnings (a)	11			7			18
(Loss) Gain recognized in AOCI	(21		)	37			16
Unrealized Gain, Net of Tax, at July 1, 2017	$	30		$	16		$	46

(a) See Note 8 for the income statement classification.

As of July 1, 2017, the Company expects to reclassify $11,000 of the net unrealized gains included in AOCI to earnings over the next twelve months.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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+ Details

Fair Value Measurements and Fair Value of Financial Instruments

6 Months Ended

Jul. 01, 2017

Fair Value Disclosures [Abstract]

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 July 1, 2017
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	16,166	$	—	$	—	$	16,166
Forward currency-exchange contracts	$	—	$	67	$	—	$	67
Interest rate swap agreement	$	—	$	48	$	—	$	48
Banker's acceptance drafts (a)	$	—	$	10,181	$	—	$	10,181

Liabilities:
Forward currency-exchange contracts	$	—	$	2,042	$	—	$	2,042



	Fair Value as of December 31, 2016
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	10,855	$	—	$	—	$	10,855
Forward currency-exchange contracts	$	—	$	2	$	—	$	2
Interest rate swap agreement	$	—	$	62	$	—	$	62
Banker's acceptance drafts (a)	$	—	$	7,852	$	—	$	7,852

Liabilities:
Forward currency-exchange contracts	$	—	$	278	$	—	$	278


(a)	Included in accounts receivable in the accompanying condensed consolidated balance sheet.

The Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during the first six months of 2017. The Company's financial assets and liabilities carried at fair value are comprised of cash equivalents, banker's acceptance drafts, and derivative instruments used to hedge the Company's foreign currency and interest rate risks. The Company's cash equivalents are comprised of money market funds and bank deposits which are highly liquid and readily tradable. These cash equivalents are valued using inputs observable in active markets for identical securities. The carrying value of banker's acceptance drafts approximates their fair value due to the short-term nature of the negotiable instrument. The fair value of the Company's interest rate swap agreement is based on LIBOR yield curves at the reporting date. The fair values of the Company's forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date or acquisition date spot rates. The forward currency-exchange contracts and interest rate swap agreement are hedges of either recorded assets or liabilities or anticipated transactions. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above.

The carrying value and fair value of the Company's long-term debt obligations are as follows:



	July 1, 2017				December 31, 2016
	Carrying Value		Fair Value		Carrying Value		Fair Value
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term Debt Obligations:
Revolving credit facility	$	60,673	$	60,673	$	61,494	$	61,494
Capital lease obligations	4,050		4,050		3,857		3,857
Other borrowings	348		348		417		417
	$	65,071	$	65,071	$	65,768	$	65,768

The carrying values of the Company's revolving credit facility and capital lease obligations approximate fair value as the obligations bear variable rates of interest, which adjust quarterly based on prevailing market rates.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Business Segment Information

6 Months Ended

Jul. 01, 2017

Segment Reporting [Abstract]

Business Segment Information

The Company has combined its operating entities into two reportable operating segments, Papermaking Systems and Wood Processing Systems, and a separate product line, Fiber-based Products. In classifying operational entities into a particular segment, the Company has aggregated businesses with similar economic characteristics, products and services, production processes, customers, and methods of distribution.



	Three Months Ended						Six Months Ended
	July 1,			July 2,			July 1,			July 2,
(In thousands)	2017			2016			2017			2016
Revenues:
Papermaking Systems	$	95,731		$	100,331		$	184,281		$	184,358
Wood Processing Systems	11,393			8,768			21,336			17,475
Fiber-based Products	3,118			2,729			7,482			6,533
	$	110,242		$	111,828		$	213,099		$	208,366

Income Before Provision for Income Taxes:
Papermaking Systems	$	17,445		$	14,335		$	31,703		$	27,832
Wood Processing Systems (a)	(724		)	2,451			1,462			3,257
Corporate and Fiber-based Products (b)	(5,278		)	(4,542		)	(9,676		)	(8,752		)
Total operating income	11,443			12,244			23,489			22,337
Interest expense, net	(290		)	(274		)	(534		)	(488		)
	$	11,153		$	11,970		$	22,955		$	21,849

Capital Expenditures:
Papermaking Systems	$	1,293		$	1,140		$	2,777		$	1,658
Other	420			72			658			78
	$	1,713		$	1,212		$	3,435		$	1,736

(a) Includes $4,098,000 and $4,417,000 of acquisition-related expenses in the three- and six-month periods ended July 1, 2017, respectively.

(b) Corporate primarily includes general and administrative expenses.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Contingencies and Litigation	6 Months Ended
Contingencies and Litigation	Jul. 01, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies and Litigation	Contingencies and Litigation Right of Recourse In the ordinary course of business, the Company's subsidiaries in China may receive banker's acceptance drafts from customers as payment for outstanding accounts receivable. These banker's acceptance drafts are non-interest bearing and mature within six months of the origination date. The Company's subsidiaries in China may use these banker's acceptance drafts prior to the scheduled maturity date to settle outstanding accounts payable with vendors. Banker's acceptance drafts transferred to vendors are subject to customary right of recourse provisions prior to their scheduled maturity dates. As of July 1, 2017 and December 31, 2016, the Company had $9,210,000 and $4,824,000, respectively, of banker's acceptance drafts subject to recourse, which were transferred to vendors and had not reached their scheduled maturity dates. Historically, the banker's acceptance drafts have settled upon maturity without any claim of recourse against the Company. Litigation From time to time, the Company is subject to various claims and legal proceedings covering a range of matters that arise in the ordinary course of business. Such litigation may include, but is not limited to, claims and counterclaims by and against the Company for breach of contract or warranty, canceled contracts, product liability, or bankruptcy-related claims. For legal proceedings in which a loss is probable and estimable, the Company accrues a loss based on the low end of the range of estimated loss when there is no better estimate within the range. If the Company were found to be liable for any of the claims or counterclaims against it, the Company would incur a charge against earnings for amounts in excess of legal accruals.

Subsequent Event

6 Months Ended

Jul. 01, 2017

Subsequent Events [Abstract]

Subsequent Event

Acquisition

On July 5, 2017, the Company acquired the forest products business of NII pursuant to a Stock and Asset Purchase Agreement dated May 24, 2017, for approximately $173,000,000, net of cash acquired, subject to a post-closing adjustment. In connection with the acquisition, the Company funded a portion of the purchase price with its existing cash and borrowed an aggregate $170,018,000 under its 2017 Credit Agreement in the third quarter of 2017, of which $62,690,000 was Canadian dollar-denominated and $61,769,000 was euro-denominated. NII is a global leader in the design and manufacture of equipment used by sawmills, veneer mills, and other manufacturers in the forest products industry. NII also designs and manufactures harvesting equipment used in cutting, gathering, and removing timber from forest plantations. This acquisition extends the Company's presence deeper into the forest products industry and complements its existing Wood Processing Systems segment. The Company expects several synergies in connection with this acquisition, including expansion of product sales at the Company's existing businesses by leveraging NII's geographic presence, as well as sourcing and manufacturing efficiencies. NII has two primary manufacturing facilities located in Canada and Finland and had approximately $81,000,000 in revenue for the twelve months ended December 31, 2016. The Company recognized acquisition-related costs of $4,417,000 in the first six months of 2017 within SG&A expenses in the accompanying condensed consolidated statement of income. The excess of the purchase price for the acquisition of NII over the net assets acquired will be recorded as goodwill in the Wood Processing Systems segment. The purchase price allocation for this acquisition is not presented as the preliminary valuation of NII has not been completed.

Unaudited Supplemental Pro Forma Information

Had the acquisition of NII been completed as of the beginning of 2016, the Company’s pro forma results of operations for the six months ended July 1, 2017 and July 2, 2016 would have been as follows:



	Six Months Ended
(In thousands, except per share amounts)	July 1, 2017		July 2, 2016
Revenues	$	252,842	$	245,548

Net Income Attributable to Kadant	$	24,010	$	9,488

Earnings per Share Attributable to Kadant:
Basic	$	2.19	$	0.88
Diluted	$	2.13	$	0.86

Pro forma results include the following non-recurring pro forma adjustments that were directly attributable to the business combination:


•	Pre-tax charge to SG&A expenses of $4,417,000 in 2016 and reversal in 2017, for acquisition-related transaction costs.


•	Estimated pre-tax charge to cost of revenues of $5,822,000 in 2016, for the sale of NII inventory revalued at the date of acquisition.


•	Estimated pre-tax charge to SG&A expenses of $1,170,000 in 2016, for intangible amortization related to acquired backlog.


•	Reversal of pretax income of $852,000 in 2017, related to NII's gain on the sale of a building.

These pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that actually would have resulted had the acquisition of NII occurred as of the beginning of 2016, or that may result in the future.

Nature of Operations and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 01, 2017
Accounting Policies [Abstract]
Critical Accounting Policies	Critical Accounting Policies Critical accounting policies are defined as those that entail significant judgments and estimates, and could potentially result in materially different results under different assumptions and conditions. The Company believes that the most critical accounting policies upon which its financial position depends, and which involve the most complex or subjective decisions or assessments, concern revenue recognition and accounts receivable, warranty obligations, income taxes, the valuation of goodwill and intangible assets, inventories and pension obligations. A discussion of the application of these and other accounting policies is included in Notes 1 and 3 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its condensed consolidated financial statements or in the application of accounting policies, if business conditions were different, or if the Company were to use different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's condensed consolidated financial statements.
Restricted Cash	Restricted Cash As of July 1, 2017 and December 31, 2016, the Company had restricted cash of $2,141,000 and $2,082,000, respectively. This cash serves as collateral for bank guarantees primarily associated with providing assurance to customers that the Company will fulfill certain customer obligations entered into in the normal course of business. The majority of the bank guarantees will expire by the end of 2018.
Banker's Acceptance Drafts	Banker's Acceptance Drafts The Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The banker's acceptance drafts are non-interest bearing obligations of the issuing bank and mature within six months of the origination date. The Company can sell the drafts at a discount to a third-party financial institution or transfer the drafts to vendors in settlement of current accounts payable prior to the scheduled maturity date. These drafts, which totaled $10,181,000 and $7,852,000 at July 1, 2017 and December 31, 2016, respectively, are included in accounts receivable in the accompanying condensed consolidated balance sheet until the subsidiary sells the drafts to a bank and receives a discounted amount, transfers the banker's acceptance drafts in settlement of current accounts payable prior to maturity, or obtains cash payment on the scheduled maturity date.
Warranty Obligations	Warranty Obligations The Company provides for the estimated cost of product warranties at the time of sale based on the actual historical occurrence rates and repair costs, as well as knowledge of any specific warranty problems that indicate that projected warranty costs may vary from historical patterns. The Company typically negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications. While the Company engages in extensive product quality programs and processes, the Company's warranty obligation is affected by product failure rates, repair costs, service delivery costs incurred in correcting a product failure, and supplier warranties on parts delivered to the Company. Should actual product failure rates, repair costs, service delivery costs, or supplier warranties on parts differ from the Company's estimates, revisions to the estimated warranty liability would be required.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Revenue from Contracts with Customers (Topic 606), Section A-Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The ASU will replace most existing revenue recognition guidance in GAAP when it becomes effective. In March 2016, the FASB issued ASU No. 2016-08, which further clarifies the guidance on the principal versus agent considerations within ASU No. 2014-09. In April 2016, the FASB issued ASU No. 2016-10 to expand the guidance on identifying performance obligations and licensing within ASU 2014-09. In May 2016, the FASB issued ASU No. 2016-11, which rescinds certain previously-issued guidance, including, among other items, guidance relating to accounting for shipping and handling fees and freight services effective upon adoption of ASU No. 2014-09. Also in May 2016, the FASB issued ASU No. 2016-12, which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition. In December 2016, the FASB issued ASU No. 2016-20, which clarifies narrow aspects of Topic 606 and corrects unintended application of the guidance. These new ASUs are effective for the Company beginning in fiscal 2018. Early adoption is permitted in fiscal 2017. The Company is continuing to assess the potential effects of these ASUs on its condensed consolidated financial statements, business processes, systems and controls. While the assessment process is ongoing, the Company currently anticipates adopting these ASUs using the modified retrospective transition approach. Under this approach, this guidance would apply to all new contracts initiated in fiscal 2018. For existing contracts that have remaining obligations as of the beginning of fiscal 2018, any difference between the recognition criteria in these ASUs and the Company’s current revenue recognition practices would be recognized using a cumulative effect adjustment to the opening balance of retained earnings. The Company is also in the process of developing and implementing appropriate changes to its business processes, systems and controls to support the recognition criteria and disclosure requirements of these ASUs. Inventory (Topic 330), Simplifying the Measurement of Inventory. In July 2015, the FASB issued ASU No. 2015-11, which requires that an entity measure inventory within the scope of this ASU at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Substantial and unusual losses that result from subsequent measurement of inventory should be disclosed in the financial statements. The Company adopted this ASU at the beginning of fiscal 2017. Adoption of this ASU did not have a material effect on the Company's condensed consolidated financial statements. Leases (Topic 842). In February 2016, the FASB issued ASU No. 2016-02, which requires a lessee to recognize a right-of-use asset and a lease liability for operating leases, initially measured at the present value of the future lease payments, in its balance sheet. This ASU also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. This new guidance is effective for the Company in fiscal 2019. Early adoption is permitted. As part of the implementation of this new standard, the Company is in the process of reviewing current accounting policies and assessing the practical expedients allowed under this new guidance. The Company expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption, which is required using the modified retrospective transition method. The Company is currently evaluating the other effects that the adoption of this ASU will have on its condensed consolidated financial statements. Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU No. 2016-13, which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining lives. This new guidance is effective for the Company in fiscal 2020. Early adoption is permitted beginning in fiscal 2019. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements. Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued ASU No. 2016-15, which simplifies the diversity in practice related to the presentation and classification of certain cash receipts and cash payments in the statement of cash flows under Topic 230. This ASU addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This new guidance is effective for the Company in fiscal 2018. Early adoption is permitted. The Company does not believe that adoption of this ASU will have a material impact on its condensed consolidated financial statements. Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory. In October 2016, the FASB issued ASU No. 2016-16, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. This new guidance is effective for the Company in fiscal 2018 with adoption required on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted. The Company is currently evaluating the effect that the adoption of this ASU will have on its condensed consolidated financial statements. Statement of Cash Flows (Topic 230), Restricted Cash. In November 2016, the FASB issued ASU No. 2016-18, which requires inclusion of restricted cash and restricted cash equivalents within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This new guidance is effective for the Company in fiscal 2018. Early adoption is permitted. As this ASU is presentation-related only, adoption of this ASU will not have a material impact on the Company's condensed consolidated financial statements. Business Combinations (Topic 805), Clarifying the Definition of a Business. In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The revised definition of a business under this ASU will reduce the number of transactions that are accounted for as business combinations. This new guidance is effective on a prospective basis for the Company in fiscal 2018. Early adoption is allowed for certain transactions. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements. Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued ASU No. 2017-04, which eliminates Step 2 in goodwill impairment testing, which requires that goodwill impairment losses be measured as the difference between the implied value of a reporting unit’s goodwill and its carrying amount. This ASU will reduce the cost and complexity of impairment testing by requiring goodwill impairment losses to be measured as the excess of the reporting unit’s carrying amount, including goodwill and related goodwill tax effects, over its fair value. This new guidance is effective on a prospective basis for the Company in fiscal 2020. Early adoption is permitted. The Company does not believe that adoption of this ASU will have a material effect on its condensed consolidated financial statements. Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. In March 2017, the FASB issued ASU No. 2017-07, which requires employers to include only the service cost component of net periodic pension cost and net periodic post-retirement benefit cost in operating expenses in the same income statement line item as the related employees' compensation costs. The other components of net benefit cost, including interest costs, amortization of prior service costs and settlement and curtailment effects, are to be included in non-operating expenses. The ASU also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This new guidance is effective on a retrospective basis for the Company in fiscal 2018. Early adoption is permitted. The Company is currently evaluating the effects that adoption of this ASU will have on its condensed consolidated financial statements. Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. In May 2017, the FASB issued ASU No. 2017-09, which provides clarity on which changes to the terms or conditions of share-based payment awards require entities to apply the modification accounting provisions required in Topic 718. This new guidance is effective on a prospective basis for the Company in fiscal 2018. Early adoption is permitted. The Company does not believe that adoption of this ASU will have a material effect on its condensed consolidated financial statements.
Derivatives	The Company uses derivative instruments primarily to reduce its exposure to changes in currency exchange rates and interest rates. When the Company enters into a derivative contract, the Company makes a determination as to whether the transaction is deemed to be a hedge for accounting purposes. For a contract deemed to be a hedge, the Company formally documents the relationship between the derivative instrument and the risk being hedged. In this documentation, the Company specifically identifies the asset, liability, forecasted transaction, cash flow, or net investment that has been designated as the hedged item, and evaluates whether the derivative instrument is expected to reduce the risks associated with the hedged item. To the extent these criteria are not met, the Company does not use hedge accounting for the derivative. The changes in the fair value of a derivative not deemed to be a hedge are recorded currently in earnings. The Company does not hold or engage in transactions involving derivative instruments for purposes other than risk management. Accounting Standards Codification (ASC) 815, Derivatives and Hedging, requires that all derivatives be recognized in the accompanying condensed consolidated balance sheet at fair value. For derivatives designated as cash flow hedges, the related gains or losses on these contracts are deferred as a component of AOCI. These deferred gains and losses are recognized in the accompanying condensed consolidated statement of income in the period in which the underlying anticipated transaction occurs. For derivatives designated as fair value hedges, the unrealized gains and losses resulting from the impact of currency exchange rate movements are recognized in earnings in the period in which the exchange rates change and offset the currency gains and losses on the underlying exposures being hedged. The Company performs an evaluation of the effectiveness of the hedge both at inception and on an ongoing basis. The ineffective portion of a hedge, if any, and changes in the fair value of a derivative not deemed to be a hedge are recorded in the accompanying condensed consolidated statement of income.
Fair Value Measurement	The carrying values of the Company's revolving credit facility and capital lease obligations approximate fair value as the obligations bear variable rates of interest, which adjust quarterly based on prevailing market rates. 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 six months of 2017. The Company's financial assets and liabilities carried at fair value are comprised of cash equivalents, banker's acceptance drafts, and derivative instruments used to hedge the Company's foreign currency and interest rate risks. The Company's cash equivalents are comprised of money market funds and bank deposits which are highly liquid and readily tradable. These cash equivalents are valued using inputs observable in active markets for identical securities. The carrying value of banker's acceptance drafts approximates their fair value due to the short-term nature of the negotiable instrument. The fair value of the Company's interest rate swap agreement is based on LIBOR yield curves at the reporting date. The fair values of the Company's forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date or acquisition date spot rates. The forward currency-exchange contracts and interest rate swap agreement are hedges of either recorded assets or liabilities or anticipated transactions. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above.

Nature of Operations and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jul. 01, 2017

Accounting Policies [Abstract]

Supplemental Cash Flow Information



	Six Months Ended
(In thousands)	July 1, 2017		July 2, 2016
Non-Cash Investing Activities:
Fair value of assets acquired	$	—	$	86,555
Cash paid for acquired business	—		(58,894		)
Liabilities assumed of acquired business	$	—	$	27,661
Non-Cash Financing Activities:
Issuance of Company common stock	$	2,814	$	3,057
Dividends declared but unpaid	$	2,311	$	2,070

Inventories

The components of inventories are as follows:



	July 1, 2017		December 31, 2016
(In thousands)	July 1, 2017		December 31, 2016
Raw Materials and Supplies	$	27,555	$	21,086
Work in Process	14,418		12,293
Finished Goods	21,417		21,572
Total Inventories	$	63,390	$	54,951

Intangible Assets, Net

Intangible assets are as follows:



	July 1, 2017			December 31, 2016
(In thousands)	July 1, 2017			December 31, 2016
Indefinite-Lived	$	8,100		$	8,100

Definite-Lived, Gross	$	101,743		$	77,052
Acquisition	—			24,691
Accumulated amortization	(52,494		)	(49,040		)
Currency translation	(5,690		)	(8,073		)
Definite-Lived, Net	$	43,559		$	44,630

Total Intangible Assets, Net	$	51,659		$	52,730

Changes in the Carrying Amount of Goodwill

The changes in the carrying amount of goodwill by segment are as follows:



(In thousands)	Papermaking Systems Segment			Wood Processing Systems Segment		Total
Balance at December 31, 2016
Gross balance	$	219,699		$	17,265	$	236,964
Accumulated impairment losses	(85,509		)	—		(85,509		)
Net balance	134,190			17,265		151,455
Currency Translation	6,704			668		7,372
Total 2017 Adjustments	6,704			668		7,372
Balance at July 1, 2017
Gross balance	226,403			17,933		244,336
Accumulated impairment losses	(85,509		)	—		(85,509		)
Net balance	$	140,894		$	17,933	$	158,827

Warranty Obligations

The changes in the carrying amount of accrued warranty costs included in other current liabilities in the accompanying condensed consolidated balance sheet are as follows:



	Six Months Ended
(In thousands)	July 1, 2017			July 2, 2016
Balance at Beginning of Year	$	3,843		$	3,670
Provision charged to income	1,209			1,524
Usage	(1,056		)	(1,623		)
Acquisition	—			991
Currency translation	224			(20		)
Balance at End of Period	$	4,220		$	4,542

Earnings per Share (Tables)

6 Months Ended

Jul. 01, 2017

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share

Basic and diluted earnings per share (EPS) are calculated as follows:



	Three Months Ended				Six Months Ended
	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
(In thousands, except per share amounts)	July 1, 2017		July 2, 2016		July 1, 2017		July 2, 2016
Amounts Attributable to Kadant:
Net Income	$	8,096	$	8,311	$	17,047	$	15,187

Basic Weighted Average Shares	11,001		10,870		10,976		10,831
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	295		282		274		254
Diluted Weighted Average Shares	11,296		11,152		11,250		11,085

Basic Earnings per Share	$	0.74	$	0.76	$	1.55	$	1.40

Diluted Earnings per Share	$	0.72	$	0.75	$	1.52	$	1.37

Long-Term Obligations (Tables)

6 Months Ended

Jul. 01, 2017

Debt Disclosure [Abstract]

Schedule of Long-Term Obligations

Long-term obligations are as follows:



	July 1, 2017			December 31, 2016
(In thousands)	July 1, 2017			December 31, 2016
Revolving Credit Facility, due 2022	$	60,673		$	61,494
Obligations Under Capital Lease, due 2017 to 2022	4,557			4,309
Other Borrowings, due 2017 to 2023	537			608
Total	65,767			66,411
Less: Current Maturities of Long-Term Obligations	(696		)	(643		)
Long-Term Obligations	$	65,071		$	65,768

Employee Benefit Plans (Tables)

6 Months Ended

Jul. 01, 2017

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost and Assumptions Used

The components of net periodic benefit cost for the Company's U.S. and non-U.S. pension plans and other post-retirement benefit plans are as follows:



	Three Months Ended July 1, 2017									Three Months Ended July 2, 2016
(In thousands, except percentages)	U.S. Pension Benefits			Non-U.S. Pension Benefits			Other Post-Retirement Benefits			U.S. Pension Benefits			Non-U.S. Pension Benefits			Other Post-Retirement Benefits
Components of Net Periodic Benefit Cost:
Service cost	$	147		33			$	53		$	181		27			$	33
Interest cost	302			26			45			318			26			38
Expected return on plan assets	(328		)	(9		)	—			(322		)	(7		)	—
Recognized net actuarial loss	108			9			27			124			10			12
Amortization of prior service cost	13			1			23			14			1			22
Net Periodic Benefit Cost	$	242		$	60		$	148		$	315		$	57		$	105

The weighted average assumptions used to determine net periodic benefit cost are as follows:

Discount Rate	4.03		%	3.47		%	4.11		%	4.22		%	3.88		%	4.30		%
Expected Long-Term Return on Plan Assets	5.00		%	7.72		%	7.72		%	5.00		%	6.90		%	6.90		%
Rate of Compensation Increase	3.00		%	3.44		%	3.06		%	3.00		%	2.98		%	3.03		%



	Six Months Ended July 1, 2017									Six Months Ended July 2, 2016
(In thousands, except percentages)	U.S. Pension Benefits			Non-U.S. Pension Benefits			Other Post-Retirement Benefits			U.S. Pension Benefits			Non-U.S. Pension Benefits			Other Post-Retirement Benefits
Components of Net Periodic Benefit Cost:
Service cost	$	343		$	65		$	88		$	362		$	52		$	66
Interest cost	616			50			84			636			52			76
Expected return on plan assets	(663		)	(17		)	—			(644		)	(14		)	—
Recognized net actuarial loss	221			18			40			248			20			24
Amortization of prior service cost	26			2			44			28			2			45
Settlement loss	—			—			—			—			—			114
Net Periodic Benefit Cost	$	543		$	118		$	256		$	630		$	112		$	325

The weighted average assumptions used to determine net periodic benefit cost are as follows:

Discount Rate	4.03		%	3.43		%	4.12		%	4.22		%	3.89		%	4.27		%
Expected Long-Term Return on Plan Assets	5.00		%	7.72		%	7.72		%	5.00		%	6.90		%	6.90		%
Rate of Compensation Increase	3.00		%	3.42		%	3.07		%	3.00		%	2.99		%	3.02		%

Accumulated Other Comprehensive Items (Tables)

6 Months Ended

Jul. 01, 2017

Equity [Abstract]

Components of Accumulated Other Comprehensive Items

Changes in each component of accumulated other comprehensive items (AOCI), net of tax, in the accompanying condensed consolidated balance sheet are as follows:



(In thousands)	Foreign Currency Translation Adjustment			Unrecognized Prior Service Cost on Pension and Other Post- Retirement Benefit Plans			Deferred Loss on Pension and Other Post- Retirement Benefit Plans			Deferred Gain (Loss) on Hedging Instruments			Accumulated Other Comprehensive Items
Balance at December 31, 2016	$	(41,094	)	$	(397	)	$	(8,158	)	$	12		$	(49,637	)
Other comprehensive income (loss) before reclassifications	13,524			(3		)	(62		)	16			13,475
Reclassifications from AOCI	—			47			181			18			246
Net current period other comprehensive income	13,524			44			119			34			13,721
Balance at July 1, 2017	$	(27,570	)	$	(353	)	$	(8,039	)	$	46		$	(35,916	)

Balance at January 2, 2016	$	(27,932	)	$	(489	)	$	(8,322	)	$	(229	)	$	(36,972	)
Other comprehensive income (loss) before reclassifications	713			(1		)	(583		)	(317		)	(188		)
Reclassifications from AOCI	—			48			265			277			590
Net current period other comprehensive income (loss)	713			47			(318		)	(40		)	402
Balance at July 2, 2016	$	(27,219	)	$	(442	)	$	(8,640	)	$	(269	)	$	(36,570	)

Reclassification Out of Accumulated Other Comprehensive Items

Amounts reclassified from AOCI are as follows:



	Three Months Ended						Six Months Ended
(In thousands)	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016			Statement of Income Line Item
Pension and Other Post-Retirement Plans: (a)
Amortization of actuarial losses	$	(144	)	$	(146	)	$	(279	)	$	(406	)	SG&A expenses
Amortization of prior service costs	(37		)	(36		)	(72		)	(74		)	SG&A expenses
Total expense before income taxes	(181		)	(182		)	(351		)	(480		)
Income tax benefit	64			63			123			167			Provision for income taxes
	(117		)	(119		)	(228		)	(313		)
Cash Flow Hedges: (b)
Interest rate swap agreements	(6		)	(47		)	(18		)	(136		)	Interest expense
Forward currency-exchange contracts	—			37			—			(24		)	Revenues
Forward currency-exchange contracts	—			(46		)	(11		)	(69		)	Cost of revenues
Total expense before income taxes	(6		)	(56		)	(29		)	(229		)
Income tax benefit (provision)	3			(108		)	11			(48		)	Provision for income taxes
	(3		)	(164		)	(18		)	(277		)
Total Reclassifications	$	(120	)	$	(283	)	$	(246	)	$	(590	)


(a)	Included in the computation of net periodic benefit cost. See Note 7 for additional information.


(b)	See Note 9 for additional information.

Derivatives (Tables)

6 Months Ended

Jul. 01, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments



		July 1, 2017					December 31, 2016
	Balance Sheet Location	Asset (Liability) (a)			Notional Amount (b)		Asset (Liability) (a)			Notional Amount
(In thousands)	Balance Sheet Location	Asset (Liability) (a)			Notional Amount (b)		Asset (Liability) (a)			Notional Amount
Derivatives Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	58		$	950	$	—		$	—
Interest rate swap agreement	Other Long-Term Assets	$	48		$	10,000	$	62		$	10,000
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(37	)	$	863	$	(41	)	$	2,380

Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	9		$	386	$	2		$	227
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(2,005	)	$	141,396	$	(237	)	$	17,185


(a)	See Note 10 for the fair value measurements relating to these financial instruments.

(b)

Activity in Accumulated Other Comprehensive Items (OCI)

The following table summarizes the activity in AOCI associated with the Company's derivative instruments designated as cash flow hedges as of and for the six months ended July 1, 2017:



(In thousands)	Interest Rate Swap Agreement			Forward Currency- Exchange Contracts			Total
Unrealized Gain (Loss), Net of Tax, at December 31, 2016	$	40		$	(28	)	$	12
Loss reclassified to earnings (a)	11			7			18
(Loss) Gain recognized in AOCI	(21		)	37			16
Unrealized Gain, Net of Tax, at July 1, 2017	$	30		$	16		$	46

(a) See Note 8 for the income statement classification.

Fair Value Measurements and Fair Value of Financial Instruments (Tables)

6 Months Ended

Jul. 01, 2017

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities Measured on a Recurring Basis

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis:



	Fair Value as of July 1, 2017
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	16,166	$	—	$	—	$	16,166
Forward currency-exchange contracts	$	—	$	67	$	—	$	67
Interest rate swap agreement	$	—	$	48	$	—	$	48
Banker's acceptance drafts (a)	$	—	$	10,181	$	—	$	10,181

Liabilities:
Forward currency-exchange contracts	$	—	$	2,042	$	—	$	2,042



	Fair Value as of December 31, 2016
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	10,855	$	—	$	—	$	10,855
Forward currency-exchange contracts	$	—	$	2	$	—	$	2
Interest rate swap agreement	$	—	$	62	$	—	$	62
Banker's acceptance drafts (a)	$	—	$	7,852	$	—	$	7,852

Liabilities:
Forward currency-exchange contracts	$	—	$	278	$	—	$	278


(a)	Included in accounts receivable in the accompanying condensed consolidated balance sheet.

Carrying Value and Fair Value of Debt Obligations

The carrying value and fair value of the Company's long-term debt obligations are as follows:



	July 1, 2017				December 31, 2016
	Carrying Value		Fair Value		Carrying Value		Fair Value
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term Debt Obligations:
Revolving credit facility	$	60,673	$	60,673	$	61,494	$	61,494
Capital lease obligations	4,050		4,050		3,857		3,857
Other borrowings	348		348		417		417
	$	65,071	$	65,071	$	65,768	$	65,768

Business Segment Information (Tables)

6 Months Ended

Jul. 01, 2017

Segment Reporting [Abstract]

Business Segment Reporting Information



	Three Months Ended						Six Months Ended
	July 1,			July 2,			July 1,			July 2,
(In thousands)	2017			2016			2017			2016
Revenues:
Papermaking Systems	$	95,731		$	100,331		$	184,281		$	184,358
Wood Processing Systems	11,393			8,768			21,336			17,475
Fiber-based Products	3,118			2,729			7,482			6,533
	$	110,242		$	111,828		$	213,099		$	208,366

Income Before Provision for Income Taxes:
Papermaking Systems	$	17,445		$	14,335		$	31,703		$	27,832
Wood Processing Systems (a)	(724		)	2,451			1,462			3,257
Corporate and Fiber-based Products (b)	(5,278		)	(4,542		)	(9,676		)	(8,752		)
Total operating income	11,443			12,244			23,489			22,337
Interest expense, net	(290		)	(274		)	(534		)	(488		)
	$	11,153		$	11,970		$	22,955		$	21,849

Capital Expenditures:
Papermaking Systems	$	1,293		$	1,140		$	2,777		$	1,658
Other	420			72			658			78
	$	1,713		$	1,212		$	3,435		$	1,736

(a) Includes $4,098,000 and $4,417,000 of acquisition-related expenses in the three- and six-month periods ended July 1, 2017, respectively.

(b) Corporate primarily includes general and administrative expenses.

Subsequent Event (Tables)

6 Months Ended

Jul. 01, 2017

Subsequent Events [Abstract]

Unaudited Supplemental Pro Forma Information



	Six Months Ended
(In thousands, except per share amounts)	July 1, 2017		July 2, 2016
Revenues	$	252,842	$	245,548

Net Income Attributable to Kadant	$	24,010	$	9,488

Earnings per Share Attributable to Kadant:
Basic	$	2.19	$	0.88
Diluted	$	2.13	$	0.86

Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Apr. 01, 2017 USD ($)	Jul. 01, 2017 USD ($) Segment	Jul. 02, 2016 USD ($)	Dec. 31, 2016 USD ($)
Accounting Policies [Abstract]
Number of reportable segments \| Segment		2
Business Acquisition [Line Items]
Additional post-closing consideration		$ 165	$ 56,617
Restricted Cash		$ 2,141		$ 2,082
Banker's acceptance drafts, maturity period		6 months
Banker's acceptance drafts		$ 10,181		$ 7,852
PAAL [Member]
Business Acquisition [Line Items]
Additional post-closing consideration	$ 165

Nature of Operations and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016
Non-Cash Investing Activities:
Fair value of assets acquired	$ 0	$ 86,555
Cash paid for acquired business	0	(58,894)
Liabilities assumed of acquired business	0	27,661
Non-Cash Financing Activities:
Issuance of Company common stock	2,814	3,057
Dividends declared but unpaid	$ 2,311	$ 2,070

Nature of Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Raw Materials and Supplies	$ 27,555	$ 21,086
Work in Process	14,418	12,293
Finished Goods	21,417	21,572
Total Inventories	$ 63,390	$ 54,951

Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets, Net (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 01, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Indefinite-Lived	$ 8,100	$ 8,100
Definite-Lived, Gross	101,743	77,052
Acquisition	0	24,691
Accumulated amortization	(52,494)	(49,040)
Currency translation	(5,690)	(8,073)
Definite-Lived, Net	43,559	44,630
Total Intangible Assets, Net	$ 51,659	$ 52,730

Nature of Operations and Summary of Significant Accounting Policies - Goodwill (Details) $ in Thousands	6 Months Ended
	Jul. 01, 2017 USD ($)
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	$ 236,964
Accumulated impairment losses	(85,509)
Net Balance, Beginning Balance	151,455
Currency Translation	7,372
Total 2017 Adjustments	7,372
Gross Balance, Ending Balance	244,336
Accumulated impairment losses	(85,509)
Net Balance, Ending Balance	158,827
Operating Segment [Member] \| Papermaking Systems [Member]
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	219,699
Accumulated impairment losses	(85,509)
Net Balance, Beginning Balance	134,190
Currency Translation	6,704
Total 2017 Adjustments	6,704
Gross Balance, Ending Balance	226,403
Accumulated impairment losses	(85,509)
Net Balance, Ending Balance	140,894
Operating Segment [Member] \| Wood Processing Systems [Member]
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	17,265
Accumulated impairment losses	0
Net Balance, Beginning Balance	17,265
Currency Translation	668
Total 2017 Adjustments	668
Gross Balance, Ending Balance	17,933
Accumulated impairment losses	0
Net Balance, Ending Balance	$ 17,933

Nature of Operations and Summary of Significant Accounting Policies - Warranty Obligations (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016
Changes in the carrying amount of accrued warranty costs [Roll Forward]
Balance at Beginning of Year	$ 3,843	$ 3,670
Provision charged to income	1,209	1,524
Usage	(1,056)	(1,623)
Acquisition	0	991
Currency translation	224	(20)
Balance at End of Period	$ 4,220	$ 4,542

Other Income - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
Other Income - Narrative (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Jul. 02, 2016
Schedule Of Other Income [Line Items]
Gain on the sale of real estate	$ (30)	$ 350
Proceeds from sale of real estate	$ 50	399
Sweden [Member]
Schedule Of Other Income [Line Items]
Gain on the sale of real estate		317
Proceeds from sale of real estate		$ 368

Earnings per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Amounts Attributable to Kadant:
Net Income	$ 8,096	$ 8,311	$ 17,047	$ 15,187
Basic Weighted Average Shares (in shares)	11,001	10,870	10,976	10,831
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares (in shares)	295	282	274	254
Diluted Weighted Average Shares (in shares)	11,296	11,152	11,250	11,085
Basic Earnings per Share (in dollars per share)	$ 0.74	$ 0.76	$ 1.55	$ 1.40
Diluted Earnings per Share (in dollars per share)	$ 0.72	$ 0.75	$ 1.52	$ 1.37

Earnings per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Amount of antidilutive securities excluded from computation of EPS	19	26	29	87

Provision for Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 2,955	$ 3,531	$ 5,690	$ 6,419
Effective income tax rate (as a percentage)			25.00%	29.00%

Long-Term Obligations - Schedule of Long-Term Obligations (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Obligations Under Capital Lease, due 2017 to 2022	$ 4,557	$ 4,309
Total	65,767	66,411
Less: Current Maturities of Long-Term Obligations	(696)	(643)
Long-Term Obligations	65,071	65,768
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving Credit Facility, due 2022	60,673	61,494
Other Borrowings [Member]
Debt Instrument [Line Items]
Other Borrowings, due 2017 to 2023	$ 537	$ 608

Long-Term Obligations - Narrative (Details) € in Millions				6 Months Ended
Long-Term Obligations - Narrative (Details) € in Millions	Aug. 09, 2017 USD ($)	Mar. 02, 2017 USD ($)	Mar. 02, 2017 EUR (€)	Jul. 01, 2017 USD ($)	Jul. 02, 2016 USD ($)	May 24, 2017 USD ($)	Dec. 31, 2016 USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of debt				$ 8,000,000	$ 46,046,000
Payment of debt issuance costs				1,147,000	$ 0
Unamortized debt issuance costs				$ 1,325,000
Weighted average interest rate for revolving credit facility (in hundredths)				1.78%
Loan receivable				$ 357,000
Capital lease obligations				4,557,000			$ 4,309,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving Credit Facility, due 2022				60,673,000			$ 61,494,000
Remaining borrowing capacity				239,841,000
Revolving Credit Facility [Member] \| 2017 Credit Agreement [Member]
Debt Instrument [Line Items]
Payment of debt issuance costs				1,147,000
Revolving Credit Facility [Member] \| Euro-Denominated Borrowing [Member]
Debt Instrument [Line Items]
Revolving Credit Facility, due 2022				$ 25,673,000
Capital Lease Obligations [Member] \| Sale Leaseback Arrangement [Member]
Debt Instrument [Line Items]
Effective interest rate				1.70%
Net purchase option				$ 1,518,000
Capital lease obligations				4,444,000
Capital Lease Obligations [Member] \| PAAL Equipment Capital Lease [Member]
Debt Instrument [Line Items]
Capital lease obligations				$ 113,000
Weighted average interest rate				3.43%
Remaining term				2 years 8 months 12 days
Revolving Credit Facility [Member] \| 2017 Credit Agreement [Member]
Debt Instrument [Line Items]
Term of unsecured revolving credit facility		5 years	5 years
Borrowing capacity available under committed portion		$ 200,000,000				$ 300,000,000
Additional borrowing capacity		$ 100,000,000
Basis spread on variable rate floor (as a percentage)		0.00%	0.00%
Percentage of foreign unrestricted cash		65.00%
Maximum unrestricted cash		$ 30,000,000
Proceeds from issuance of debt		$ 42,000,000	€ 26.3
Maximum consolidated leverage ratio		3.5	3.5
Minimum consolidated interest coverage ratio		3	3
Revolving Credit Facility [Member] \| 2017 Credit Agreement [Member] \| Federal Funds Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		0.50%	0.50%
Revolving Credit Facility [Member] \| 2017 Credit Agreement [Member] \| Thirty-day LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		0.50%	0.50%
Revolving Credit Facility [Member] \| 2017 Credit Agreement [Member] \| LIBOR [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		1.00%	1.00%
Revolving Credit Facility [Member] \| 2017 Credit Agreement [Member] \| LIBOR [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (in hundredths)		2.00%	2.00%
Subsequent Event [Member] \| Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Proceeds from borrowings	$ 170,018,000
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| Euro-Denominated Borrowing [Member]
Debt Instrument [Line Items]
Proceeds from borrowings	61,769,000
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| Canadian-Denominated Borrowing [Member]
Debt Instrument [Line Items]
Proceeds from borrowings	$ 62,690,000

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 01, 2017	Apr. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense	$ 1,441		$ 1,273	$ 2,736	$ 2,596
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense related to stock awards	$ 6,515			$ 6,515
Recognition period				1 year 9 months 18 days
Executive Officers And Employees [Member] \| Performance Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted		39,229
Executive Officers And Employees [Member] \| Time Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted		38,331
Non-Employee Directors [Member] \| Time Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted		12,000

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017 USD ($) plan defined_benefit_plan	Jul. 02, 2016 USD ($)	Jul. 01, 2017 USD ($) plan defined_benefit_plan	Jul. 02, 2016 USD ($)
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Contributions to noncontributory defined benefit plan			$ 540
Expected contributions to noncontributory defined benefit plan for the remainder of the year			540
Other Benefits [Member]
Components of Net Periodic Benefit Cost:
Service cost	$ 53	$ 33	88	$ 66
Interest cost	45	38	84	76
Expected return on plan assets	0	0	0	0
Recognized net actuarial loss	27	12	40	24
Amortization of prior service cost	23	22	44	45
Settlement loss			0	114
Net Periodic Benefit Cost	$ 148	$ 105	$ 256	$ 325
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount Rate (as a percentage)	4.11%	4.30%	4.12%	4.27%
Expected Long-Term Return on Plan Assets (as a percentage)	7.72%	6.90%	7.72%	6.90%
Rate of Compensation Increase (as a percentage)	3.06%	3.03%	3.07%	3.02%
U.S. [Member] \| Pension Benefits [Member]
Components of Net Periodic Benefit Cost:
Service cost	$ 147	$ 181	$ 343	$ 362
Interest cost	302	318	616	636
Expected return on plan assets	(328)	(322)	(663)	(644)
Recognized net actuarial loss	108	124	221	248
Amortization of prior service cost	13	14	26	28
Settlement loss			0	0
Net Periodic Benefit Cost	$ 242	$ 315	$ 543	$ 630
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount Rate (as a percentage)	4.03%	4.22%	4.03%	4.22%
Expected Long-Term Return on Plan Assets (as a percentage)	5.00%	5.00%	5.00%	5.00%
Rate of Compensation Increase (as a percentage)	3.00%	3.00%	3.00%	3.00%
U.S. [Member] \| Other Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of other post-retirement benefit plans \| plan	2		2
Non-U.S. [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of subsidiary sponsored defined benefit plans \| defined_benefit_plan	3		3
Number of unfunded defined benefit plans \| defined_benefit_plan	2		2
Non-U.S. [Member] \| Pension Benefits [Member]
Components of Net Periodic Benefit Cost:
Service cost	$ 33	$ 27	$ 65	$ 52
Interest cost	26	26	50	52
Expected return on plan assets	(9)	(7)	(17)	(14)
Recognized net actuarial loss	9	10	18	20
Amortization of prior service cost	1	1	2	2
Settlement loss			0	0
Net Periodic Benefit Cost	$ 60	$ 57	$ 118	$ 112
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount Rate (as a percentage)	3.47%	3.88%	3.43%	3.89%
Expected Long-Term Return on Plan Assets (as a percentage)	7.72%	6.90%	7.72%	6.90%
Rate of Compensation Increase (as a percentage)	3.44%	2.98%	3.42%	2.99%
Non-U.S. [Member] \| Other Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of other post-retirement benefit plans \| plan	1		1

Accumulated Other Comprehensive Items - Components of AOCI (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 284,279	$ 267,945
Ending balance	311,337	281,211
Foreign Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(41,094)	(27,932)
Other comprehensive income (loss) before reclassifications	13,524	713
Reclassifications from AOCI	0	0
Net current period other comprehensive income (loss)	13,524	713
Ending balance	(27,570)	(27,219)
Unrecognized Prior Service Cost on Pension and Other Post- Retirement Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(397)	(489)
Other comprehensive income (loss) before reclassifications	(3)	(1)
Reclassifications from AOCI	47	48
Net current period other comprehensive income (loss)	44	47
Ending balance	(353)	(442)
Deferred Loss on Pension and Other Post- Retirement Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(8,158)	(8,322)
Other comprehensive income (loss) before reclassifications	(62)	(583)
Reclassifications from AOCI	181	265
Net current period other comprehensive income (loss)	119	(318)
Ending balance	(8,039)	(8,640)
Deferred Gain (Loss) on Hedging Instruments [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	12	(229)
Other comprehensive income (loss) before reclassifications	16	(317)
Reclassifications from AOCI	18	277
Net current period other comprehensive income (loss)	34	(40)
Ending balance	46	(269)
Accumulated Other Comprehensive Items [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(49,637)	(36,972)
Other comprehensive income (loss) before reclassifications	13,475	(188)
Reclassifications from AOCI	246	590
Net current period other comprehensive income (loss)	13,721	402
Ending balance	$ (35,916)	$ (36,570)

Accumulated Other Comprehensive Items - Reclassification Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Selling, general, and administrative expenses	$ (39,159)	$ (36,072)	$ (73,958)	$ (68,568)
Interest expense	(392)	(340)	(740)	(609)
Cost of revenues	(57,418)	(61,567)	(111,283)	(114,129)
Amortization of Actuarial Losses [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Loss from Continuing Operations			(181)	(265)
Amortization of Prior Service Cost [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Loss from Continuing Operations			(47)	(48)
Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Loss from Continuing Operations			(18)	(277)
Reclassification out of Accumulated Other Comprehensive Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Loss from Continuing Operations	(120)	(283)	(246)	(590)
Reclassification out of Accumulated Other Comprehensive Items [Member] \| Pension and Other Post-retirement Plans [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total expense before income taxes	(181)	(182)	(351)	(480)
Income tax benefit (provision)	64	63	123	167
Loss from Continuing Operations	(117)	(119)	(228)	(313)
Reclassification out of Accumulated Other Comprehensive Items [Member] \| Amortization of Actuarial Losses [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Selling, general, and administrative expenses	(144)	(146)	(279)	(406)
Reclassification out of Accumulated Other Comprehensive Items [Member] \| Amortization of Prior Service Cost [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Selling, general, and administrative expenses	(37)	(36)	(72)	(74)
Reclassification out of Accumulated Other Comprehensive Items [Member] \| Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total expense before income taxes	(6)	(56)	(29)	(229)
Income tax benefit (provision)	3	(108)	11	(48)
Loss from Continuing Operations	(3)	(164)	(18)	(277)
Reclassification out of Accumulated Other Comprehensive Items [Member] \| Cash Flow Hedges [Member] \| Interest Rate Swap [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Interest expense	(6)	(47)	(18)	(136)
Reclassification out of Accumulated Other Comprehensive Items [Member] \| Cash Flow Hedges [Member] \| Forward Currency-Exchange Contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Revenues	0	37	0	(24)
Cost of revenues	$ 0	$ (46)	$ (11)	$ (69)

Derivatives - Narrative (Details)	3 Months Ended		6 Months Ended
Derivatives - Narrative (Details)	Jul. 01, 2017 USD ($)	Jul. 02, 2016 USD ($)	Jul. 01, 2017 USD ($)	Jul. 02, 2016 USD ($)	Jan. 16, 2015 USD ($)
Forward Currency-Exchange Contracts [Abstract]
Recognized losses	$ 1,846,000	$ 225,000	$ 1,493,000	$ 436,000
NII FPG [Member]
Forward Currency-Exchange Contracts [Abstract]
Recognized losses	$ 1,754,000
Interest Rate Swap Agreement [Member]
Interest Rate Swaps [Abstract]
Rate of effectiveness of interest rate swap agreement (in hundredths)			100.00%
Maximum consolidated leverage ratio			3.5
Minimum consolidated interest coverage ratio			3
Unrealized gain on derivatives			$ 48,000
Foreign Exchange Forward [Member]
Forward Currency-Exchange Contracts [Abstract]
Maximum period over which entity manages its level of exposure of risk			12 months
Cash Flow Hedging [Member] \| Designated as Hedging Instrument [Member] \| Swap Agreement 2015 [Member]
Interest Rate Swaps [Abstract]
Derivative, notional amount					$ 10,000,000
Fixed rate of interest (in hundredths)					1.50%

Derivatives - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Designated as Hedging Instrument [Member] \| Foreign Exchange Forward [Member] \| Other Current Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	$ 58	$ 0
Notional amount, Derivative asset	950	0
Designated as Hedging Instrument [Member] \| Foreign Exchange Forward [Member] \| Other Current Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(37)	(41)
Notional amount, Derivative liability	863	2,380
Designated as Hedging Instrument [Member] \| Interest Rate Swap Agreement [Member] \| Other Long-Term Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	48	62
Notional amount, Derivative asset	10,000	10,000
Not Designated as Hedging Instrument [Member] \| Foreign Exchange Forward [Member] \| NII FPG [Member]
Derivatives in a Liability Position:
Notional amount, Derivative liability	124,459
Not Designated as Hedging Instrument [Member] \| Foreign Exchange Forward [Member] \| Other Current Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	9	2
Notional amount, Derivative asset	386	227
Not Designated as Hedging Instrument [Member] \| Foreign Exchange Forward [Member] \| Other Current Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(2,005)	(237)
Notional amount, Derivative liability	$ 141,396	$ 17,185

Derivatives - Activity in Accumulated Other Comprehensive Items (OCI) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 284,279	$ 267,945
Ending balance	311,337	$ 281,211
Net unrealized gain included in OCI expected to be reclassified to earnings over the next 12 months	11
Cash Flow Hedging [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	12
Loss reclassified to earnings	18
(Loss) Gain recognized in AOCI	16
Ending balance	46
Cash Flow Hedging [Member] \| Interest Rate Swap Agreement [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	40
Loss reclassified to earnings	11
(Loss) Gain recognized in AOCI	(21)
Ending balance	30
Cash Flow Hedging [Member] \| Foreign Exchange Forward [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(28)
Loss reclassified to earnings	7
(Loss) Gain recognized in AOCI	37
Ending balance	$ 16

Fair Value Measurements and Fair Value of Financial Instruments - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Assets:
Money market funds and time deposits	$ 16,166	$ 10,855
Forward currency-exchange contracts	67	2
Interest rate swap agreement	48	62
Banker's acceptance drafts	10,181	7,852
Liabilities:
Forward currency-exchange contracts	2,042	278
Level 1 [Member]
Assets:
Money market funds and time deposits	16,166	10,855
Forward currency-exchange contracts	0	0
Interest rate swap agreement	0	0
Banker's acceptance drafts	0	0
Liabilities:
Forward currency-exchange contracts	0	0
Level 2 [Member]
Assets:
Money market funds and time deposits	0	0
Forward currency-exchange contracts	67	2
Interest rate swap agreement	48	62
Banker's acceptance drafts	10,181	7,852
Liabilities:
Forward currency-exchange contracts	2,042	278
Level 3 [Member]
Assets:
Money market funds and time deposits	0	0
Forward currency-exchange contracts	0	0
Interest rate swap agreement	0	0
Banker's acceptance drafts	0	0
Liabilities:
Forward currency-exchange contracts	$ 0	$ 0

Fair Value Measurements and Fair Value of Financial Instruments - Carrying Value and Fair Value of Debt Obligations (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Revolving credit facility	$ 60,673	$ 61,494
Capital lease obligations	4,050	3,857
Other borrowings	348	417
Debt obligations	65,071	65,768
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Revolving credit facility	60,673	61,494
Capital lease obligations	4,050	3,857
Other borrowings	348	417
Debt obligations	$ 65,071	$ 65,768

Business Segment Information - Summary of Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017 USD ($)	Jul. 02, 2016 USD ($)	Jul. 01, 2017 USD ($) Segment	Jul. 02, 2016 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| Segment			2
Segment Reporting Information [Line Items]
Acquisition transaction costs	$ 4,098		$ 4,417
Revenues:
Revenues	110,242	$ 111,828	213,099	$ 208,366
Income Before Provision for Income Taxes:
Total operating income	11,443	12,244	23,489	22,337
Interest expense, net	(290)	(274)	(534)	(488)
Income Before Provision for Income Taxes	11,153	11,970	22,955	21,849
Capital Expenditures:
Capital expenditures	1,713	1,212	3,435	1,736
Operating Segment [Member] \| Papermaking Systems [Member]
Revenues:
Revenues	95,731	100,331	184,281	184,358
Income Before Provision for Income Taxes:
Total operating income	17,445	14,335	31,703	27,832
Capital Expenditures:
Capital expenditures	1,293	1,140	2,777	1,658
Operating Segment [Member] \| Wood Processing Systems [Member]
Revenues:
Revenues	11,393	8,768	21,336	17,475
Income Before Provision for Income Taxes:
Total operating income	(724)	2,451	1,462	3,257
Corporate and Fiber-based Products [Member]
Income Before Provision for Income Taxes:
Total operating income	(5,278)	(4,542)	(9,676)	(8,752)
Capital Expenditures:
Capital expenditures	420	72	658	78
Corporate and Fiber-based Products [Member] \| Fiber-Based Products [Member]
Revenues:
Revenues	$ 3,118	$ 2,729	$ 7,482	$ 6,533

Contingencies and Litigation - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Banker's acceptance drafts, maturity period	6 months
Banker's acceptance drafts with recourse	$ 9,210	$ 4,824

Subsequent Event - Narrative (Details) $ in Thousands			3 Months Ended		6 Months Ended	12 Months Ended
Subsequent Event - Narrative (Details) $ in Thousands	Aug. 09, 2017 USD ($)	Jul. 05, 2017 USD ($) facility	Sep. 30, 2017 USD ($)	Jul. 01, 2017 USD ($)	Jul. 01, 2017 USD ($)	Dec. 31, 2016 USD ($)
Subsequent Event [Line Items]
Acquisition transaction costs				$ 4,098	$ 4,417
NII FPG [Member]
Subsequent Event [Line Items]
Revenues reported by acquired entity						$ 81,000
Acquisition transaction costs					$ 4,417
Subsequent Event [Member] \| Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Proceeds from borrowings	$ 170,018
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| Scenario, Forecast [Member]
Subsequent Event [Line Items]
Proceeds from borrowings			$ 170,018
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| Canadian-Denominated Borrowing [Member]
Subsequent Event [Line Items]
Proceeds from borrowings	62,690
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| Canadian-Denominated Borrowing [Member] \| Scenario, Forecast [Member]
Subsequent Event [Line Items]
Proceeds from borrowings			62,690
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| Euro-Denominated Borrowing [Member]
Subsequent Event [Line Items]
Proceeds from borrowings	$ 61,769
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| Euro-Denominated Borrowing [Member] \| Scenario, Forecast [Member]
Subsequent Event [Line Items]
Proceeds from borrowings			$ 61,769
Subsequent Event [Member] \| NII FPG [Member]
Subsequent Event [Line Items]
Payments to acquire businesses		$ 173,000
Number of primary manufacturing facilities \| facility		2

Subsequent Event - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Pro Forma Information
Nonrecurring adjustments	$ 8,096	$ 8,311	$ 17,047	$ 15,187
NII FPG [Member]
Subsequent Event [Line Items]
Revenues			252,842	245,548
Net Income Attributable to Kadant			$ 24,010	$ 9,488
Earnings per Share Attributable to Kadant:
Basic (in dollars per share)			$ 2.19	$ 0.88
Diluted (in dollars per share)			$ 2.13	$ 0.86
NII FPG [Member] \| Acquisition-related transaction costs [Member]
Pro Forma Information
Nonrecurring adjustments			$ 4,417	$ (4,417)
NII FPG [Member] \| Inventory revalued [Member]
Pro Forma Information
Nonrecurring adjustments				(5,822)
NII FPG [Member] \| Intangible amortization related to acquired backlog [Member]
Pro Forma Information
Nonrecurring adjustments				$ (1,170)
NII FPG [Member] \| Gain on sale of a building [Member]
Pro Forma Information
Nonrecurring adjustments			$ (852)