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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Jul. 27, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	KADANT INC
Entity Central Index Key	0000886346
Current Fiscal Year End Date	--12-29
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		11,098,493

Condensed Consolidated Balance Sheet - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Current Assets:
Cash and cash equivalents	$ 60,177	$ 75,425
Restricted cash	975	1,421
Accounts receivable, less allowances of $3,210 and $2,879	88,223	89,624
Inventories	96,261	84,933
Unbilled revenues	2,183	2,374
Other current assets	15,397	12,246
Total Current Assets	263,216	266,023
Property, Plant, and Equipment, at Cost	167,382	165,231
Less: accumulated depreciation and amortization	87,495	85,508
Property, Plant, and Equipment, at Cost, Net	79,887	79,723
Other Assets	14,353	14,311
Intangible Assets, Net	122,242	133,036
Goodwill	261,488	268,001
Total Assets	741,186	761,094
Current Liabilities:
Current maturities of long-term obligations	665	696
Accounts payable	35,069	35,461
Customer deposits	41,601	30,103
Accrued payroll and employee benefits	25,500	29,616
Advanced billings	11,463	7,316
Other current liabilities	26,487	29,038
Total Current Liabilities	140,785	132,230
Long-Term Obligations	206,231	241,384
Long-Term Deferred Income Taxes	26,484	29,085
Other Long-Term Liabilities	26,001	25,891
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	101,842	103,221
Retained earnings	361,262	342,893
Treasury stock at cost, 3,528,550 and 3,613,838 shares	(86,464)	(88,554)
Accumulated other comprehensive items	(36,853)	(26,715)
Total Kadant Stockholders' Equity	339,933	330,991
Noncontrolling interest	1,752	1,513
Total Stockholders' Equity	341,685	332,504
Total Liabilities and Stockholders' Equity	$ 741,186	$ 761,094

Condensed Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Current Assets:
Accounts receivable, allowances	$ 3,120	$ 2,879
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)	3,528,550	3,613,838

Condensed Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Income Statement [Abstract]
Revenues	$ 154,913	$ 110,242	$ 304,106	$ 213,099
Costs and Operating Expenses:
Cost of revenues	86,749	57,390	169,863	111,230
Selling, general, and administrative expenses	45,132	38,970	90,908	73,590
Research and development expenses	2,728	2,222	5,597	4,369
Restructuring costs	569	0	1,339	0
Total Costs and Operating Expenses	135,178	98,582	267,707	189,189
Operating Income	19,735	11,660	36,399	23,910
Interest Income	122	102	305	206
Interest Expense	(1,850)	(392)	(3,582)	(740)
Other Expense, Net	(245)	(217)	(491)	(421)
Income Before Provision for Income Taxes	17,762	11,153	32,631	22,955
Provision for Income Taxes	5,271	2,955	9,132	5,690
Net Income	12,491	8,198	23,499	17,265
Net Income Attributable to Noncontrolling Interest	(142)	(102)	(292)	(218)
Net Income Attributable to Kadant	$ 12,349	$ 8,096	$ 23,207	$ 17,047
Earnings per Share Attributable to Kadant:
Basic (in dollars per share)	$ 1.11	$ 0.74	$ 2.10	$ 1.55
Diluted (in dollars per share)	$ 1.08	$ 0.72	$ 2.04	$ 1.52
Weighted Average Shares:
Basic (in shares)	11,092	11,001	11,067	10,976
Diluted (in shares)	11,400	11,296	11,371	11,250
Cash Dividends Declared per Common Share (in dollars per share)	$ 0.22	$ 0.21	$ 0.44	$ 0.42

Condensed Consolidated Statement of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Statement of Comprehensive Income [Abstract]
Net Income	$ 12,491	$ 8,198	$ 23,499	$ 17,265
Other Comprehensive Items:
Foreign currency translation adjustment	(15,776)	8,655	(10,440)	13,687
Pension and other post-retirement liability adjustments (net of tax provision of $75, $11, $109 and $60)	212	81	329	163
Deferred (loss) gain on cash flow hedges (net of tax (benefit) provision of ($55), $1, ($47) and $16)	(173)	7	(80)	34
Other Comprehensive Items	(15,737)	8,743	(10,191)	13,884
Comprehensive (Loss) Income	(3,246)	16,941	13,308	31,149
Comprehensive Income Attributable to Noncontrolling Interest	(46)	(219)	(239)	(381)
Comprehensive (Loss) Income Attributable to Kadant	$ (3,292)	$ 16,722	$ 13,069	$ 30,768

Condensed Consolidated Statement of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Other Comprehensive Items:
Pension and other post-retirement liability adjustments, tax effect	$ 75	$ 11	$ 109	$ 60
Deferred (loss) gain on cash flow hedges, tax effect	$ (55)	$ 1	$ (47)	$ 16

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Operating Activities
Net Income Attributable to Kadant	$ 23,207	$ 17,047
Net income attributable to noncontrolling interest	292	218
Net income	23,499	17,265
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	11,943	6,531
Stock-based compensation expense	3,610	2,736
Provision for losses on accounts receivable	438	84
Loss on the sale of property, plant, and equipment	54	30
Other items, net	(869)	2,161
Contributions to U.S. pension plan	0	(540)
Changes in current assets and liabilities, net of effects of acquisitions:
Accounts receivable	(974)	(476)
Unbilled revenues	2,228	(2,968)
Inventories	(14,238)	(6,147)
Other current assets	(2,781)	(2,652)
Accounts payable	4,039	3,363
Other current liabilities	8,622	5,989
Net cash provided by operating activities	35,571	25,376
Investing Activities
Purchases of property, plant, and equipment	(10,211)	(3,435)
Proceeds from sale of property, plant, and equipment	213	50
Acquisition	0	(165)
Net cash used in investing activities	(9,998)	(3,550)
Financing Activities
Repayment of debt	(46,838)	(11,235)
Proceeds from issuance of debt	16,000	8,000
Dividends paid	(4,756)	(4,388)
Tax withholding payments related to stock-based compensation	(3,641)	(2,206)
Proceeds from issuance of Company common stock	742	0
Payment of debt issuance costs	0	(1,147)
Other financing activities	(258)	(215)
Net cash used in financing activities	(38,751)	(11,191)
Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash	(2,516)	3,777
(Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash	(15,694)	14,412
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	76,846	73,569
Cash, Cash Equivalents, and Restricted Cash at End of Period	$ 61,152	$ 87,981

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 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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustments for the adoption of ASC 2014-09 and ASU No. 2016-16 \| ASU No. 2014-09 [Member]	119			119
Adjustments for the adoption of ASC 2014-09 and ASU No. 2016-16 \| ASU No. 2016-16 [Member]	(75)			(75)
Beginning balance (in shares) at Dec. 30, 2017		14,624,159			3,613,838
Beginning balance at Dec. 30, 2017	332,504	$ 146	103,221	342,893	$ (88,554)	(26,715)	1,513
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	23,499			23,207			292
Dividends declared	(4,882)			(4,882)
Activity under stock plans (in shares)					(85,288)
Activity under stock plans	711		(1,379)		$ 2,090
Other comprehensive items	(10,191)					(10,138)	(53)
Ending balance (in shares) at Jun. 30, 2018		14,624,159			3,528,550
Ending balance at Jun. 30, 2018	$ 341,685	$ 146	$ 101,842	$ 361,262	$ (86,464)	$ (36,853)	$ 1,752

Nature of Operations and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

Kadant Inc. was incorporated in Delaware in November 1991 and currently trades on the New York Stock Exchange under the ticker symbol "KAI."

Kadant Inc. and its subsidiaries' (collectively, the Company) 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 for the global papermaking, paper recycling, recycling and waste management, and other process industries. The Company's principal products include custom-engineered stock-preparation systems and equipment for the preparation of wastepaper for conversion into recycled paper and balers and related equipment used in the processing of recyclable and waste materials; fluid-handling systems and equipment used in industrial piping systems to compensate for movement and to efficiently transfer fluid, power, and data; doctoring systems and equipment and related consumables important to the efficient operation of paper machines and other industrial processes; and filtration and cleaning systems essential for draining, purifying, and recycling process water and cleaning fabrics, belts, and rolls in various process industries.

Through its Wood Processing Systems segment, the Company develops, manufactures, and markets stranders, debarkers, chippers, and logging machinery used in the harvesting and production of lumber and oriented strand board. 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 biodegradable, absorbent granules derived from papermaking by-products for use primarily as carriers for agricultural, home lawn and garden, and professional lawn, turf and ornamental applications, as well as for oil and grease absorption.

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 June 30, 2018 and its results of operations and comprehensive (loss) income for the three- and six-month periods ended June 30, 2018 and July 1, 2017, and its cash flows and stockholders' equity for the six-month periods ended June 30, 2018 and July 1, 2017. 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 30, 2017 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 30, 2017. 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 30, 2017, filed with the SEC.

Financial Statement Presentation

Certain reclassifications have been made to prior periods to conform with current reporting. As a result of the adoption of the Financial Accounting Standards Board's (FASB) Accounting Standards Update (ASU) No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost, certain components of net benefit cost have been reclassified from operating income to non-operating expenses and included in other expense, net in the condensed consolidated statement of income in the 2017 period. In addition, as a result of the adoption of the FASB's ASU No. 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash, the change in restricted cash has been reclassified from financing activities and exchange rate effect on cash and included in cash, cash equivalents, and restricted cash in the condensed consolidated statement of cash flows in the 2017 period.

Effective at the beginning of fiscal 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Topic 606), using a modified retrospective method. See Recently Adopted Accounting Pronouncements in this note for further discussion. Results for fiscal 2018 are presented under Topic 606, while prior period amounts are not adjusted and are reported under the Company's prior method of reporting revenue recognition in accordance with Accounting Standards Codification (ASC), Revenue Recognition (Topic 605) (Topic 605). The impact on any financial statement line item arising from the application of Topic 606 versus Topic 605 on the Company's results for the second quarter and first six months of 2018 is not material.

Use of Estimates and Critical Accounting Policies

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

Critical accounting policies are defined as those that entail significant judgments and estimates, and could potentially result in materially different results under different assumptions and conditions. The Company believes that the most critical accounting policies upon which its financial position depends, and which involve the most complex or subjective decisions or assessments, concern revenue recognition, income taxes, the valuation of goodwill and intangible assets, inventories, and pension obligations. A discussion of the application of these and other accounting policies is included in Notes 1 and 3 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2017, and in Revenue Recognition and Recently Adopted Accounting Pronouncements, Revenue from Contracts with Customers (Topic 606), in this note.

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



	Six Months Ended
(In thousands)	June 30, 2018		July 1, 2017
Cash Paid for Interest	$	4,268	$	366
Cash Paid for Income Taxes, Net of Refunds	$	14,808	$	7,076

Non-Cash Investing Activities:
Estimated post-closing adjustment (a)	$	237	$	—

Non-cash additions to property, plant and equipment	$	1,033	$	390

Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of restricted stock units	$	3,264	$	2,814
Dividends declared but unpaid	$	2,442	$	2,311

(a) Represents an estimated post-closing purchase price adjustment related to the 2017 acquisition of certain assets of Unaflex, LLC, which is expected to be settled in 2018.

Restricted Cash

The Company's restricted cash serves as collateral for bank guarantees primarily associated with providing assurance to customers that the Company will fulfill certain customer obligations entered into in the normal course of business. The majority of the bank guarantees will expire over the next twelve months.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's condensed consolidated balance sheet that are shown in aggregate in the accompanying condensed consolidated statement of cash flows:



(In thousands)	June 30, 2018		July 1, 2017		December 30, 2017		December 31, 2016
Cash and cash equivalents	$	60,177	$	85,840	$	75,425	$	71,487
Restricted cash	975		2,141		1,421		2,082
Total Cash, Cash Equivalents, and Restricted Cash	$	61,152	$	87,981	$	76,846	$	73,569

Banker's Acceptance Drafts included in Accounts Receivable

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 noninterest-bearing obligations of the issuing bank and mature within six months of the origination date. The Company's subsidiaries may sell the drafts at a discount to a third-party financial institution or transfer the drafts to vendors in settlement of current accounts payable prior to the scheduled maturity date. These drafts, which totaled $10,735,000 at June 30, 2018 and $15,960,000 at December 30, 2017, 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:



	June 30, 2018		December 30, 2017
(In thousands)	June 30, 2018		December 30, 2017
Raw Materials and Supplies	$	45,522	$	38,952
Work in Process	24,722		18,203
Finished Goods	26,017		27,778
	$	96,261	$	84,933

Intangible Assets, Net

Acquired intangible assets by major asset class are as follows:



(In thousands)	Gross		Currency Translation			Accumulated Amortization			Net
June 30, 2018
Definite-Lived
Customer relationships	$	113,283	$	(3,058	)	$	(33,555	)	$	76,670
Product technology	46,501		(1,351		)	(21,733		)	23,417
Tradenames	5,227		(345		)	(1,747		)	3,135
Other	13,744		(96		)	(11,277		)	2,371
	178,755		(4,850		)	(68,312		)	105,593
Indefinite-Lived
Tradenames	16,600		49			—			16,649
Acquired Intangible Assets	$	195,355	$	(4,801	)	$	(68,312	)	$	122,242



(In thousands)	Gross		Currency Translation			Accumulated Amortization			Net
December 30, 2017
Definite-Lived
Customer relationships	$	113,301	$	(621	)	$	(28,789	)	$	83,891
Product technology	46,501		(737		)	(19,841		)	25,923
Tradenames	5,227		(262		)	(1,504		)	3,461
Other	13,754		(35		)	(10,863		)	2,856
	178,783		(1,655		)	(60,997		)	116,131
Indefinite-Lived
Tradenames	16,600		305			—			16,905
Acquired Intangible Assets	$	195,383	$	(1,350	)	$	(60,997	)	$	133,036

Intangible assets are initially recorded at fair value at the date of acquisition and are stated net of accumulated amortization and currency translation in the accompanying condensed consolidated balance sheet. The Company amortizes definite-lived intangible assets over lives that have been determined based on the anticipated cash flow benefits of the intangible asset.

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 30, 2017
Gross balance	$	247,014		$	106,496		$	353,510
Accumulated impairment losses	(85,509		)	—			(85,509		)
Net balance	161,505			106,496			268,001
2018 Adjustments
Acquisitions (a)	(282		)	(75		)	(357		)
Currency translation	(3,280		)	(2,876		)	(6,156		)
Total 2018 adjustments	(3,562		)	(2,951		)	(6,513		)
Balance at June 30, 2018
Gross balance	243,452			103,545			346,997
Accumulated impairment losses	(85,509		)	—			(85,509		)
Net balance	$	157,943		$	103,545		$	261,488

(a) Relates to a purchase price allocation adjustment primarily for inventory valuation and a purchase price adjustment for acquisitions completed in 2017. The purchase price allocations for the Company's 2017 acquisitions were finalized in the second quarter of 2018, except for the purchase price allocation for the August 2017 acquisition of Unaflex, LLC, which will be finalized in the third quarter of 2018.

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)	June 30, 2018			July 1, 2017
Balance at December 30, 2017	$	5,498		$	3,843
Provision charged to expense	1,656			1,209
Usage	(881		)	(1,056		)
Currency translation	(192		)	224
Balance at June 30, 2018	$	6,081		$	4,220

Revenue Recognition

Effective at the beginning of fiscal 2018, the Company adopted Topic 606, using a modified retrospective method. See Recently Adopted Accounting Pronouncements in this note for further discussion. Results for fiscal 2018 are presented under Topic 606, while prior period amounts are not adjusted and are reported in accordance with Topic 605. The impact on any financial statement line item arising from the application of Topic 606 versus Topic 605 on the Company's results for the second quarter and first six months of 2018 is not material.

Approximately 94% in the second quarter of 2018 and 95% in the first six months of 2018 of the Company’s revenue was recognized at a point in time for each performance obligation under the contract when the customer obtains control of the goods or service. The majority of the Company’s parts and consumables products and capital products with minimal customization are accounted for at a point in time. The Company has made a policy election to not treat the obligation to ship as a separate performance obligation under the contract and, as a result, the associated shipping costs are accrued when revenue is recognized.

The remaining 6% in the second quarter of 2018 and 5% in the first six months of 2018 of the Company’s revenue was recognized on an over time basis based on an input method that compares the costs incurred to date to the total expected costs required to satisfy the performance obligation. Contracts are accounted for on an over time basis when they include products which have no alternative use and an enforceable right to payment over time. The majority of the contracts recognized on an over time basis are for large capital projects within the Company's Stock-Preparation product line and, to a lesser extent, its Fluid-Handling and Doctoring, Cleaning, and Filtration product lines. These projects are highly customized for the customer and, as a result, would include a significant cost to rework in the event of cancellation.

The Company's contracts covering the sale of its products include warranty provisions that provide assurance to its customers that the products will comply with agreed-upon specifications. The Company negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications.

The Company disaggregates its revenue from contracts with customers by product line, product type, and geography as this best depicts how its revenue is affected by economic factors as shown below:



	Three Months Ended				Six Months Ended
	June 30,		July 1,		June 30,		July 1,
(In thousands)	2018		2017		2018		2017
Revenues by Product Line:
Papermaking Systems:
Stock-Preparation	$	56,376	$	46,178	$	101,859	$	87,331
Doctoring, Cleaning, & Filtration	29,543		27,033		56,765		52,383
Fluid-Handling	32,531		22,520		65,417		44,567
Papermaking Systems	$	118,450	$	95,731	$	224,041	$	184,281
Wood Processing Systems	33,152		11,393		72,293		21,336
Fiber-based Products	3,311		3,118		7,772		7,482
	$	154,913	$	110,242	$	304,106	$	213,099
Revenues by Product Type:
Parts and Consumables	$	94,857	$	70,040	$	190,842	$	140,484
Capital	60,056		40,202		113,264		72,615
	$	154,913	$	110,242	$	304,106	$	213,099
Revenues by Geography:
North America	$	75,375	$	51,557	$	152,991	$	101,723
Europe	45,032		33,952		86,525		66,703
Asia	25,502		16,545		45,650		28,443
Rest of World	9,004		8,188		18,940		16,230
	$	154,913	$	110,242	$	304,106	$	213,099

The following table presents revenue by revenue recognition method:



	Three Months Ended		Six Months Ended
	June 30,		June 30,
(In thousands)	2018		2018
Timing of Revenue Recognition:
Point in Time	$	145,998	$	288,003
Over Time	8,915		16,103
	$	154,913	$	304,106

The following tables present the balances from contracts with customers:



	June 30, 2018		December 30, 2017
(In thousands)	June 30, 2018		December 30, 2017
Balances from Contracts with Customers:
Accounts receivable	$	88,223	$	89,624
Contract assets	2,183		2,374
Contract liabilities	54,525		38,702

Contract assets represent unbilled revenue associated with revenue recognized on contracts accounted for on an over time basis. Unbilled amounts will be billed in future periods based on the contract terms. Contract liabilities consist of customer deposits and advanced billings in addition to deferred revenue, which is included in other current liabilities in the accompanying condensed consolidated balance sheet. Contract liabilities will be recognized as revenue in future periods once the revenue recognition criteria are met. The majority of the contract liabilities relate to advanced payments on contracts accounted for at a point in time. These advance payments will be recognized as revenue when the Company's performance obligations have been satisfied, which typically occurs when the product has been delivered and control of the asset has transferred to the customer. The company recognized revenue of $2,788,000 in the second quarter of 2018 and $30,113,000 in the first six months of 2018 that was included in the contract liabilities balance at the beginning of fiscal 2018.

Customers in China will often settle their accounts receivable with a banker's acceptance draft, in which case cash settlement will be delayed until the banker's acceptance draft matures or is settled prior to maturity. For customers outside of China, final payment for the majority of the Company's products is received in the quarter following the product shipment. Certain of the Company's contracts include a longer period before final payment is due, which is typically within one year of final shipment or transfer of control to the customer.

Recently Adopted Accounting Pronouncements

Revenue from Contracts with Customers (Topic 606), Section A-Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). In May 2014, the FASB issued ASU No. 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted this ASU using the modified retrospective transition approach effective at the beginning of fiscal 2018. The guidance applies to all new contracts initiated in fiscal 2018. For existing contracts that have remaining obligations as of the beginning of fiscal 2018, any difference between the recognition criteria in this ASU and the Company's previous revenue recognition practices under Topic 605 was recognized using a cumulative-effect adjustment that increased retained earnings by $119,000. The increase in retained earnings primarily related to contracts, which meet the over time criteria under the new revenue standard and, as a result, the portion of the contract completed as of the beginning of fiscal 2018 was recognized immediately in retained earnings. Partially offsetting this increase was a reduction of retained earnings associated with certain contracts which were previously accounted for under the percentage-of-completion method of accounting, but do not meet the requirements for over time recognition under Topic 606. Amounts previously recognized in fiscal 2017 based on the percentage-of-completion method of accounting were deferred at the beginning of fiscal 2018 and will be recognized along with the remaining revenue and costs in fiscal 2018 when control of the asset has been transferred to the customer.

The Company has implemented certain modifications to its existing internal controls to support the recognition criteria and disclosure requirements of this ASU. See Revenue Recognition in this note for further disclosures required by this ASU.

Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued ASU No. 2016-15, which simplifies the diversity in practice related to the presentation and classification of certain cash receipts and cash payments in the statement of cash flows under Topic 230. The Company adopted this ASU at the beginning of fiscal 2018 with no impact on the Company's condensed consolidated statement of cash flows.

Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory. In October 2016, the FASB issued ASU No. 2016-16, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. The Company adopted this ASU at the beginning of fiscal 2018 on a modified retrospective basis, which resulted in an immaterial adjustment to retained earnings. The impact of the adoption of this standard on future periods will be dependent on future asset transfers, which generally occur in connection with acquisitions and other business structuring activities.

Statement of Cash Flows (Topic 230), Restricted Cash. In November 2016, the FASB issued ASU No. 2016-18, which requires inclusion of restricted cash and restricted cash equivalents within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this ASU at the beginning of fiscal 2018. Prior period amounts related to the Company's cash flows from financing activities, exchange rate effect on cash, and cash, cash equivalents, and restricted cash were restated as required by this ASU, which did not have a material effect on the Company's statement of cash flows. See Restricted Cash in this note for further disclosures required by this ASU.

Business Combinations (Topic 805), Clarifying the Definition of a Business. In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The Company adopted this ASU on a prospective basis at the beginning of fiscal 2018. The adoption of this ASU will impact how the Company assesses acquisitions and disposals of businesses in the future.

Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. In March 2017, the FASB issued ASU No. 2017-07, which requires employers to include only the service cost component of net periodic pension cost and net periodic post-retirement benefit cost in costs and operating expenses in the same income statement line item as the related employees' compensation costs. The other components of net benefit cost are to be included in non-operating expenses. The Company adopted this ASU at the beginning of fiscal 2018 and prior period amounts were reclassified with no impact on the Company’s condensed consolidated net income. As a result of the adoption, the Company reclassified $217,000 in the second quarter of 2017 and $421,000 in the first six months of 2017 from operating income to other expense, net in the accompanying condensed consolidated statement of income.

Compensation - Stock Compensation (Topic 718), Scope of Modification Accounting. In May 2017, the FASB issued ASU No. 2017-09, which provides clarity on which changes to the terms or conditions of share-based payment awards require entities to apply the modification accounting provisions required in Topic 718. The Company adopted this ASU on a prospective basis at the beginning of fiscal 2018. The adoption of this ASU did not have a material impact on the Company's condensed consolidated financial statements.

Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. In March 2018, the FASB issued ASU No. 2018-05, an amendment to the December 2017 SEC Staff Accounting Bulletin No. 118 (SAB 118), which allowed SEC registrants to record provisional amounts in earnings due to the complexities involved in accounting for the December 22, 2017 enactment of The Tax Cuts and Jobs Act of 2017 (2017 Tax Act). While the Company’s accounting for certain tax effects is incomplete, it has determined reasonable estimates for those effects and has recorded provisional amounts in the condensed consolidated financial statements as of June 30, 2018 and December 30, 2017.

Recent Accounting Pronouncements Not Yet Adopted

Leases (Topic 842). In February 2016, the FASB issued ASU No. 2016-02, which requires a lessee to recognize a right-of-use asset and a lease liability for operating leases, initially measured at the present value of the future lease payments, in its balance sheet. This ASU also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. This new guidance is effective for the Company in fiscal 2019 using the modified retrospective transition method and early adoption is permitted. The Company is assessing the practical expedients allowed under this new guidance as well as reviewing the impact on its systems, processes and controls to account for its leases. The Company has not completed its evaluation but believes this standard will have a significant impact on its balance sheet, but is not expected to have a material impact on the Company’s results of operations or cash flows. As of the end of fiscal 2017, the Company had approximately $8.1 million of future lease payments due after fiscal 2018. The actual impact of this new standard will depend on the total amount of the Company’s lease commitments as of the adoption date.

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

Derivatives and Hedging (Topic 815), Targeted Improvements in Accounting for Hedging Activity. In August 2017, the FASB issued ASU No. 2017-12, which provides improvements to current hedge accounting to better portray the economic results of an entity’s risk management activities and to simplify the application of current hedge accounting guidance. This new guidance is effective on a prospective basis for the Company in fiscal 2019. 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.

Income Statement - Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In February 2018, the FASB issued ASU No. 2018-02, which allows a reclassification from accumulated other comprehensive items (AOCI) to retained earnings for stranded tax effects resulting from the 2017 Tax Act. The reclassification is elective and would allow the income tax effects on items that were originally recorded in AOCI be reclassified from AOCI to retained earnings. This ASU is effective for the Company in fiscal year 2019 and interim periods therein and should be applied either at the beginning of the period of adoption or retrospectively to each period in which the income tax effects of the 2017 Tax Act are recognized. Early adoption is permitted. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements.

Restructuring Costs

6 Months Ended

Jun. 30, 2018

Restructuring Costs [Abstract]

Restructuring Costs

In 2017, the Company constructed a 160,000 square foot manufacturing facility in the United States that integrates its U.S. and Swedish Papermaking stock-preparation product lines into a single manufacturing facility to achieve economies of scale and greater efficiencies. As a result of the consolidation and integration of these facilities, the Company developed a restructuring plan totaling approximately $1,745,000, primarily related to costs for the relocation of machinery and equipment and administrative offices, severance, and abandonment of leased facilities in the Papermaking Systems segment. As a result of this plan, the Company recorded restructuring charges of $203,000 in 2017 associated with severance costs for the reduction of four employees in the United States and six employees in Sweden. In the first six months of 2018, the Company recorded additional restructuring costs of $1,339,000 related to this plan, including $1,018,000 for the relocation of machinery and equipment and administrative offices, $376,000 associated with employee retention costs and abandonment of excess facility and other closure costs, and a reversal of $55,000 of severance costs no longer required. The Company expects to record additional restructuring charges of approximately $203,000 in the second half of 2018 primarily for relocation and moving expenses.

A summary of the changes in accrued restructuring costs included in other accrued expenses in the accompanying condensed consolidated balance sheet are as follows:



(In thousands)	Severance			Relocation			Other (a)			Total
Balance at December 30, 2017	$	203		$	—		$	—		$	203
(Reversal) provision	(55		)	1,018			376			1,339
Usage	—			(1,015		)	(356		)	(1,371		)
Currency translation	(11		)	(3		)	—			(14		)
Balance at June 30, 2018	$	137		$	—		$	20		$	157

(a) Includes employee retention costs that are accrued ratably over the period through which employees must work to qualify for a payment and facility closure and clean-up costs associated with the U.S. and Sweden stock-preparation operations.

The Company expects to complete this restructuring plan and pay all accrued restructuring costs in 2018.

Earnings per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings per Share

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



	Three Months Ended				Six Months Ended
	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
(In thousands, except per share amounts)	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
Amounts Attributable to Kadant:
Net Income	$	12,349	$	8,096	$	23,207	$	17,047

Basic Weighted Average Shares	11,092		11,001		11,067		10,976
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	308		295		304		274
Diluted Weighted Average Shares	11,400		11,296		11,371		11,250

Basic Earnings per Share	$	1.11	$	0.74	$	2.10	$	1.55

Diluted Earnings per Share	$	1.08	$	0.72	$	2.04	$	1.52

Restricted stock units (RSUs) totaling 34,000 shares of common stock in the second quarter of 2018, 19,000 in the second quarter of 2017, 32,000 in the first six months of 2018 and 29,000 in the first six months of 2017 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	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Provision for Income Taxes	Provision for Income Taxes The 2017 Tax Act was signed into law on December 22, 2017 and its provisions are generally effective for tax years beginning January 1, 2018. The most significant impacts of the 2017 Tax Act to the Company include a decrease in the federal corporate income tax rate from 35% to 21% and a one-time mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings. On December 22, 2017, the SEC staff issued SAB 118 to provide guidance on accounting for the 2017 Tax Act’s impact. In accordance with SAB 118, the Company recognized the provisional tax impacts related to the remeasurement of its deferred income tax assets and liabilities and the one-time mandatory transition tax on deemed repatriation of unremitted foreign earnings in the three months ended December 30, 2017. In the first six months of 2018, the Company recorded an additional provisional net income tax expense of $792,000, which included the impact of state taxes for the one-time mandatory transition tax, primarily due to a 2018 tax law change associated with the 2017 Tax Act that impacted the provisional amount initially recorded. Additional work is still necessary to finalize the provisional tax impacts of the 2017 Tax Act, including the completion of a more detailed analysis of the Company’s historical foreign earnings and the understanding and application of anticipated additional regulatory guidance regarding the provisions of the 2017 Tax Act that may be issued by the Internal Revenue Service and state and local jurisdictions. Any subsequent adjustment to the provisional amounts will be recorded to current tax expense in the quarter of 2018 in which the analysis is complete. The provision for income taxes was $9,132,000 in the first six months of 2018 and $5,690,000 in the first six months of 2017. The effective tax rate of 28% in the first six months of 2018 was higher than the Company's 2018 statutory tax rate of 21% primarily due to the global intangible low-taxed income (GILTI) provisions of the 2017 Tax Act, the distribution of the Company's worldwide earnings, and a change in estimate to the federal and state provisional net income tax expense initially recorded in 2017 for the 2017 Tax Act. This incremental tax expense was offset in part by a decrease in tax related to the net excess income tax benefits from stock-based compensation arrangements, the release of tax reserves, and a change in estimate for foreign income tax that the Company had previously accrued on certain distributed earnings. With the enactment of the 2017 Tax Act, the Company is now providing for the cost of repatriating the earnings of certain foreign subsidiaries on a recurring basis, resulting in $426,000 of incremental tax expense in the first six months of 2018. The effective tax rate of 25% in the first six months of 2017 was lower than the Company's 2017 statutory tax rate of 35% 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 Company has elected to account for GILTI as a current period expense when incurred (the period cost method). Because of the complexity of the GILTI tax rules and the lack of legislative guidance, the Company continues to evaluate the provisions of the 2017 Tax Act and the application of ASC 740, Income Taxes. The final impact on the Company from the 2017 Tax Act’s GILTI tax legislation may differ from the estimate calculated by the Company. Such differences could be material, due to, among other things, changes in interpretations of the 2017 Tax Act, future legislative action to address questions that arise because of the 2017 Tax Act, changes in accounting standards for income taxes or related interpretations in response to the 2017 Tax Act, or any updates or changes to estimates the Company has utilized to calculate the GILTI inclusion.

Long-Term Obligations

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Long-Term Obligations

Long-term obligations are as follows:



	June 30, 2018			December 30, 2017
(In thousands)	June 30, 2018			December 30, 2017
Revolving Credit Facility, due 2022	$	202,205		$	237,011
Obligations Under Capital Lease, due 2018 to 2022	4,362			4,633
Other Borrowings, due 2018 to 2023	329			436
Total	206,896			242,080
Less: Current Maturities of Long-Term Obligations	(665		)	(696		)
Long-Term Obligations	$	206,231		$	241,384

See Note 10 for the fair value information related to the Company's long-term obligations.

Revolving Credit Facility

In 2017, the Company entered into an Amended and Restated Credit Agreement, as amended (the 2017 Credit Agreement), which is a five-year unsecured multi-currency revolving credit facility in the aggregate principal amount of up to $300,000,000. The 2017 Credit Agreement also includes an uncommitted unsecured incremental borrowing facility of up to an additional $100,000,000. The principal on any borrowings 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 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 and debt, 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 and debt 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.

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 June 30, 2018, 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. In addition, one of the Company's foreign subsidiaries entered into a guarantee agreement limited to certain obligations of two foreign subsidiary borrowers.

As of June 30, 2018, the outstanding balance under the 2017 Credit Agreement was $202,205,000, including $44,856,000 of Canadian dollar-denominated borrowings and $40,349,000 of euro-denominated borrowings. As of June 30, 2018, the Company had $98,289,000 of borrowing capacity available under its 2017 Credit Agreement, which was calculated by translating its foreign-denominated borrowings using borrowing date foreign exchange rates.

The weighted average interest rate for the revolving credit facility was 2.97% as of June 30, 2018.

Obligations Under Capital Lease

The Company's obligations under capital leases include a sale-leaseback financing arrangement for a manufacturing facility in Germany. Under this arrangement, the quarterly lease payment includes principal, interest, and a payment to the landlord toward a loan receivable. The interest rate on the outstanding obligation is 1.79%. The secured loan receivable, which is included in other assets in the accompanying condensed consolidated balance sheet, was $590,000 at June 30, 2018. The lease arrangement provides for a fixed price purchase option, net of the projected loan receivable, of $1,550,000 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 June 30, 2018, $4,282,000 was outstanding under this capital lease obligation and $80,000 was outstanding under other capital lease obligations.

Commercial Real Estate Loan

See Note 13, Subsequent Event, for further details.

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company recognizes compensation expense for all stock-based awards granted to employees and directors based on the grant date estimate of fair value for those awards. The fair value of RSUs is based on the grant date price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period. For time-based RSUs, compensation expense is recognized ratably over the requisite service period for the entire award based on the grant date fair value, and net of actual forfeitures recorded when they occur. For performance-based RSUs, compensation expense is recognized ratably over the requisite service period for each separately-vesting portion of the award based on the grant date fair value, net of actual forfeitures recorded when they occur and remeasured each reporting period until the total number of RSUs to be issued is known. The Company recognized stock-based compensation expense of $2,146,000 in the second quarter of 2018, $1,441,000 in the second quarter of 2017, $3,610,000 in the first six months of 2018 and $2,736,000 in the first six months of 2017 within selling, general, and administrative (SG&A) expenses in the accompanying condensed consolidated statement of income. Unrecognized compensation expense related to stock-based compensation totaled approximately $8,374,000 at June 30, 2018, and will be recognized over a weighted average period of 1.8 years. On May 16, 2018, the Company granted 10,800 RSUs in the aggregate to its non-employee directors with a grant date fair value of $1,019,000. Half of these RSUs vested on June 1, 2018 and the remaining shares will vest ratably on the last day of the third and fourth fiscal quarters of 2018.

Retirement Benefit Plans

6 Months Ended

Jun. 30, 2018

Retirement Benefits [Abstract]

Retirement Benefit Plans

Effective at the beginning of fiscal 2018, the Company retrospectively adopted ASU No. 2017-07. See Recently Adopted Accounting Pronouncements in Note 1 for further discussion. As a result, only the service cost component of net periodic benefit cost is included in operating income. All other components are included in other expense, net in the accompanying condensed consolidated statement of income. The components of net periodic benefit cost are as follows:



	Three Months Ended June 30, 2018									Three Months Ended July 1, 2017
(In thousands, except percentages)	U.S. Pension			Non-U.S. Pension			Other Post-Retirement			U.S. Pension			Non-U.S. Pension			Other Post-Retirement
Service Cost	$	175		$	35		$	53		$	147		$	33		$	53
Interest Cost	298			30			43			302			26			45
Expected Return on Plan Assets	(322		)	(11		)	(1		)	(328		)	(9		)	—
Recognized Net Actuarial Loss	135			15			34			108			9			27
Amortization of Prior Service Cost	—			2			22			13			1			23
	$	286		$	71		$	151		$	242		$	60		$	148

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

Discount Rate	3.51		%	3.80		%	3.64		%	4.03		%	3.47		%	4.11		%
Expected Long-Term Return on Plan Assets	4.50		%	7.43		%	7.43		%	5.00		%	7.72		%	7.72		%
Rate of Compensation Increase	3.00		%	3.69		%	3.07		%	3.00		%	3.44		%	3.06		%



	Six Months Ended June 30, 2018									Six Months Ended July 1, 2017
(In thousands, except percentages)	U.S. Pension			Non-U.S. Pension			Other Post-Retirement			U.S. Pension			Non-U.S. Pension			Other Post-Retirement
Service Cost	$	350		$	71		$	106		$	343		$	65		$	88
Interest Cost	596			60			86			616			50			84
Expected Return on Plan Assets	(644		)	(22		)	(2		)	(663		)	(17		)	—
Recognized Net Actuarial Loss	270			31			68			221			18			40
Amortization of Prior Service Cost	—			4			44			26			2			44
Net Periodic Benefit Cost	$	572		$	144		$	302		$	543		$	118		$	256

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

Discount Rate	3.51		%	3.80		%	3.64		%	4.03		%	3.43		%	4.12		%
Expected Long-Term Return on Plan Assets	4.50		%	7.43		%	7.43		%	5.00		%	7.72		%	7.72		%
Rate of Compensation Increase	3.00		%	3.69		%	3.07		%	3.00		%	3.42		%	3.07		%

Accumulated Other Comprehensive Items

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Accumulated Other Comprehensive Items

Comprehensive (loss) income combines net income and other comprehensive items, which represent certain amounts that are reported as components of stockholders' equity in the accompanying condensed consolidated balance sheet.

Changes in each component of AOCI, net of tax, are as follows:



(In thousands)	Foreign Currency Translation Adjustment			Unrecognized Prior Service Cost on Retirement Benefit Plans			Net Actuarial Loss on Retirement Benefit Plans			Deferred Gain (Loss) on Cash Flow Hedges			Total
Balance at December 30, 2017	$	(17,501	)	$	(319	)	$	(8,974	)	$	79		$	(26,715	)
Other comprehensive (loss) income before reclassifications	(10,387		)	1			14			(79		)	(10,451		)
Reclassifications from AOCI	—			36			278			(1		)	313
Net current period other comprehensive (loss) income	(10,387		)	37			292			(80		)	(10,138		)
Balance at June 30, 2018	$	(27,888	)	$	(282	)	$	(8,682	)	$	(1	)	$	(36,853	)

Amounts reclassified from AOCI are as follows:



	Three Months Ended						Six Months Ended
(In thousands)	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017			Statement of Income Line Item
Retirement Benefit Plans: (a)
Recognized net actuarial loss	$	(184	)	$	(144	)	$	(369	)	$	(279	)	Other expense, net
Amortization of prior service cost	(24		)	(37		)	(48		)	(72		)	Other expense, net
Total expense before income taxes	(208		)	(181		)	(417		)	(351		)
Income tax benefit	51			64			103			123			Provision for income taxes
	(157		)	(117		)	(314		)	(228		)
Cash Flow Hedges: (b)
Interest rate swap agreements	(17		)	(6		)	(22		)	(18		)	Interest expense
Forward currency-exchange contracts	24			—			24			(11		)	Cost of revenues
Total income (expense) before income taxes	7			(6		)	2			(29		)
Income tax (provision) benefit	(2		)	3			(1		)	11			Provision for income taxes
	5			(3		)	1			(18		)
Total Reclassifications	$	(152	)	$	(120	)	$	(313	)	$	(246	)


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


(b)	See Note 9 for additional information.

Derivatives

6 Months Ended

Jun. 30, 2018

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

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

Interest Rate Swap Agreements

In May 2018, the Company entered into an interest rate swap agreement (2018 Swap Agreement) which has a $15,000,000 notional value and expires on June 30, 2023. In 2015, the Company also entered into an interest rate swap agreement (2015 Swap Agreement) which has a $10,000,000 notional value and expires on March 27, 2020. The swap agreements hedge the Company’s exposure to movements in the three-month LIBOR rate on U.S. dollar-denominated debt. On a quarterly basis, the Company receives a three-month LIBOR rate and pays a fixed rate of interest of 3.15% plus an applicable margin as defined in the revolving credit facility on the 2018 Swap Agreement and 1.50% plus an applicable margin as defined in the revolving credit facility on the 2015 Swap Agreement. The 2018 Swap Agreement is subject to a zero percent floor on the three-month LIBOR rate. The interest rate swap agreements are designated as cash flow hedges and, accordingly, unrecognized gains and losses are recorded to AOCI, net of tax.

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

The counterparty to the interest rate swap agreements could demand an early termination of those agreements if the Company were to be in default under the 2017 Credit Agreement, or any agreement that amends or replaces the 2017 Credit Agreement in which the counterparty is a member, and if the Company were to be 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 June 30, 2018, the Company was in compliance with these covenants. The fair values of the interest rate swap agreements represent the estimated amounts that the Company would receive from or pay to the counterparty in the event of early termination.

Forward Currency-Exchange Contracts

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

Forward currency-exchange contracts that hedge forecasted accounts receivable or accounts payable are designated as cash flow hedges and unrecognized gains and losses are recorded to AOCI, net of tax. For forward currency-exchange contracts that are designated as fair value hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item are recognized currently in earnings. The fair values of forward currency-exchange contracts that are not designated as hedges are recorded currently in earnings. The Company recognized within SG&A expenses in the accompanying condensed consolidated statement of income gains of $14,000 in the second quarter of 2018, losses of $1,846,000 in the second quarter of 2017, gains of $27,000 in the first six months of 2018 and losses of $1,493,000 in the first six months of 2017 associated with forward currency-exchange contracts that were not designated as hedges. Management believes that any credit risk associated with forward currency-exchange contracts is remote based on the Company's financial position and the creditworthiness of the financial institutions issuing the contracts.

The following table summarizes the fair value of the Company's derivative instruments in the accompanying condensed consolidated balance sheet:



		June 30, 2018					December 30, 2017
	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:
2015 Swap Agreement (c)	Other Long-Term Assets	$	209		$	10,000	$	126		$	10,000
Derivatives in a Liability Position:
2018 Swap Agreement (c)	Other Long-Term Liabilities	$	(210	)	$	15,000	$	—		$	—

Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	—		$	—	$	17		$	1,244
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(52	)	$	2,712	$	(16	)	$	2,049


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


(b)	The total 2018 notional amounts are indicative of the level of the Company's recurring derivative activity.


(c)	The asset or liability balance represents the settlement value received from or paid to the counterparty in the event of early termination.

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 June 30, 2018:



(In thousands)	Interest Rate Swap Agreements			Forward Currency- Exchange Contracts			Total
Unrealized Gain, Net of Tax, at December 30, 2017	$	79		$	—		$	79
Loss (gain) reclassified to earnings (a)	17			(18		)	(1		)
(Loss) gain recognized in AOCI	(97		)	18			(79		)
Unrealized Loss, Net of Tax, at June 30, 2018	$	(1	)	$	—		$	(1	)

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

As of June 30, 2018, the Company expects to reclassify $12,000 from AOCI to earnings over the next twelve months as a result of the interest rate swap agreements' estimated cash flows.

Fair Value Measurements and Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2018

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:



(In thousands)	Level 1		Level 2		Level 3		Total
June 30, 2018
Assets:
Money market funds and time deposits	$	3,579	$	—	$	—	$	3,579
2015 Swap Agreement	$	—	$	209	$	—	$	209
Banker's acceptance drafts (a)	$	—	$	10,735	$	—	$	10,735

Liabilities:
Forward currency-exchange contracts	$	—	$	52	$	—	$	52
2018 Swap Agreement	$	—	$	210	$	—	$	210



December 30, 2017
Assets:
Money market funds and time deposits	$	17,728	$	—	$	—	$	17,728
Forward currency-exchange contracts	$	—	$	17	$	—	$	17
2015 Swap Agreement	$	—	$	126	$	—	$	126
Banker's acceptance drafts (a)	$	—	$	15,960	$	—	$	15,960

Liabilities:
Forward currency-exchange contracts	$	—	$	16	$	—	$	16


(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 2018. The Company's financial assets and liabilities carried at fair value are cash equivalents, banker's acceptance drafts, derivative instruments used to hedge the Company's foreign currency and interest rate risks, variable rate debt, and capital lease obligations. The Company's cash equivalents are comprised of money market funds and bank deposits which are highly liquid and readily tradable. These cash equivalents are valued using inputs observable in active markets for identical securities. The carrying value of banker's acceptance drafts approximates their fair value due to the short-term nature of the negotiable instrument. The fair values of the Company's forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date. The fair values of the Company's interest rate swap agreements are based on LIBOR yield curves at the reporting date. The forward currency-exchange contracts and interest rate swap agreements are hedges of either recorded assets or liabilities or anticipated transactions. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above.

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



	June 30, 2018				December 30, 2017
	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	$	202,205	$	202,205	$	237,011	$	237,011
Capital lease obligations	3,843		3,843		4,101		4,101
Other borrowings	183		183		272		272
	$	206,231	$	206,231	$	241,384	$	241,384

The carrying value of the Company's revolving credit facility approximates the fair value as the obligation bears variable rates of interest, which adjust quarterly based on prevailing market rates. The carrying values of the Company's capital lease obligations and other borrowings approximate fair value as the stipulated interest rates are comparable to prevailing market rates for those obligations.

- 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

Jun. 30, 2018

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.

The following table presents financial information for the Company's reportable operating segments:



	Three Months Ended						Six Months Ended
	June 30,			July 1,			June 30,			July 1,
(In thousands)	2018			2017			2018			2017
Revenues:
Papermaking Systems (a)	$	118,450		$	95,731		$	224,041		$	184,281
Wood Processing Systems (b)	33,152			11,393			72,293			21,336
Fiber-based Products	3,311			3,118			7,772			7,482
	$	154,913		$	110,242		$	304,106		$	213,099

Income Before Provision for Income Taxes:
Papermaking Systems (c)	$	20,899		$	17,264		$	35,483		$	31,563
Wood Processing Systems (d)	5,313			(411		)	12,676			2,093
Corporate and Fiber-based Products (e)	(6,477		)	(5,193		)	(11,760		)	(9,746		)
Total operating income	19,735			11,660			36,399			23,910
Interest expense, net (f)	(1,728		)	(290		)	(3,277		)	(534		)
Other expense, net	(245		)	(217		)	(491		)	(421		)
	$	17,762		$	11,153		$	32,631		$	22,955

Capital Expenditures:
Papermaking Systems	$	3,840		$	1,293		$	8,489		$	2,777
Wood Processing Systems	1,184			105			1,560			291
Other	36			315			162			367
	$	5,060		$	1,713		$	10,211		$	3,435


(a)	Includes $5,430,000 in the three-month period ended June 30, 2018 and $11,330,000 in the six-month period ended June 30, 2018 from 2017 acquisitions.

(b) Includes $23,440,000 in the three-month period ended June 30, 2018 and $52,310,000 in the six-month period ended June 30, 2018 from a 2017 acquisition.

(c) Includes $569,000 in the three-month period ended June 30, 2018 and $1,339,000 in the six-month period ended June 30, 2018 for restructuring costs (see Note 2) and $315,000 in the three-month period ended July 1, 2017 and $315,000 in the six-month period ended July 1, 2017 for acquisition transaction costs.

(d) Includes acquisition-related expenses of $252,000 in the six-month period ended June 30, 2018 for the amortization of acquired backlog. Includes $3,783,000 in the three-month period ended July 1, 2017 and $4,102,000 in the six-month period ended July 1, 2017 for acquisition transaction costs.

(e) Corporate primarily includes general and administrative expenses.

(f) The Company does not allocate interest expense, net to its segments.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Right of Recourse In the ordinary course of business, the Company's subsidiaries in China may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The banker's acceptance drafts are noninterest-bearing obligations of the issuing bank and mature within six months of the origination date. The Company's subsidiaries in China may use these banker's acceptance drafts prior to the scheduled maturity date to settle outstanding accounts payable with vendors. Banker's acceptance drafts transferred to vendors are subject to customary right of recourse provisions prior to their scheduled maturity dates. The Company had outstanding $10,433,000 at June 30, 2018 and $10,035,000 at December 30, 2017 of banker's acceptance drafts subject to recourse, which were transferred to vendors and had not reached their scheduled maturity dates. Historically, the banker's acceptance drafts have settled upon maturity without any claim of recourse against the Company. 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
Subsequent Event	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event Commercial Real Estate Loan On July 6, 2018, the Company and certain domestic subsidiaries borrowed $21,000,000 under a promissory note (Real Estate Loan). The Real Estate Loan is repayable in quarterly principal installments of $262,500 over a ten-year period with the remaining principal balance of $10,500,000 due upon maturity. Interest on the Real Estate Loan accrues and is payable quarterly in arrears at a fixed rate of 4.45% per annum. The Company is not permitted to prepay the Real Estate Loan in any amount in the first twelve months of the term of the Real Estate Loan. Any voluntary prepayments are subject to a 2% prepayment fee if paid in the second twelve months of the term of the Real Estate Loan, and are subject to a 1% prepayment fee if paid in the third twelve months of the term of the Real Estate Loan. Thereafter, no prepayment fee will be applied to voluntary prepayment by the Company. The Real Estate Loan is secured by real estate and related personal property of the Company and certain of its domestic subsidiaries located in Auburn, Massachusetts, Three Rivers, Michigan and Lebanon, Ohio, pursuant to mortgage and security agreements dated July 6, 2018 (Mortgage and Security Agreements). The obligations of the Company under the Real Estate Loan may be accelerated upon the occurrence of an event of default under the Real Estate Loan and the Mortgage and Security Agreements, which includes customary events of default including, without limitation, payment defaults, defaults in the performance of covenants and obligations, the inaccuracy of representations or warranties, bankruptcy- and insolvency-related defaults, liens on the properties or collateral and uninsured judgments. In addition, the occurrence of an event of default under the 2017 Credit Agreement or any successor credit facility would be an event of default under the Real Estate Loan. The Company used the proceeds from the Real Estate Loan to repay a portion of its U.S. dollar-denominated debt under the 2017 Credit Agreement.

Nature of Operations and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Critical Accounting Policies	The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Critical accounting policies are defined as those that entail significant judgments and estimates, and could potentially result in materially different results under different assumptions and conditions. The Company believes that the most critical accounting policies upon which its financial position depends, and which involve the most complex or subjective decisions or assessments, concern revenue recognition, income taxes, the valuation of goodwill and intangible assets, inventories, and pension obligations. A discussion of the application of these and other accounting policies is included in Notes 1 and 3 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2017, and in Revenue Recognition and Recently Adopted Accounting Pronouncements, Revenue from Contracts with Customers (Topic 606), in this note.
Use of Estimates	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	The Company's restricted cash serves as collateral for bank guarantees primarily associated with providing assurance to customers that the Company will fulfill certain customer obligations entered into in the normal course of business. The majority of the bank guarantees will expire over the next twelve months.
Banker's Acceptance Drafts Included in Accounts Receivable	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 noninterest-bearing obligations of the issuing bank and mature within six months of the origination date. The Company's subsidiaries may sell the drafts at a discount to a third-party financial institution or transfer the drafts to vendors in settlement of current accounts payable prior to the scheduled maturity date. These drafts, which totaled $10,735,000 at June 30, 2018 and $15,960,000 at December 30, 2017, 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.
Revenue Recognition	Approximately 94% in the second quarter of 2018 and 95% in the first six months of 2018 of the Company’s revenue was recognized at a point in time for each performance obligation under the contract when the customer obtains control of the goods or service. The majority of the Company’s parts and consumables products and capital products with minimal customization are accounted for at a point in time. The Company has made a policy election to not treat the obligation to ship as a separate performance obligation under the contract and, as a result, the associated shipping costs are accrued when revenue is recognized. The remaining 6% in the second quarter of 2018 and 5% in the first six months of 2018 of the Company’s revenue was recognized on an over time basis based on an input method that compares the costs incurred to date to the total expected costs required to satisfy the performance obligation. Contracts are accounted for on an over time basis when they include products which have no alternative use and an enforceable right to payment over time. The majority of the contracts recognized on an over time basis are for large capital projects within the Company's Stock-Preparation product line and, to a lesser extent, its Fluid-Handling and Doctoring, Cleaning, and Filtration product lines. These projects are highly customized for the customer and, as a result, would include a significant cost to rework in the event of cancellation. The Company's contracts covering the sale of its products include warranty provisions that provide assurance to its customers that the products will comply with agreed-upon specifications. The Company negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers (Topic 606), Section A-Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs-Contracts with Customers (Subtopic 340-40). In May 2014, the FASB issued ASU No. 2014-09, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted this ASU using the modified retrospective transition approach effective at the beginning of fiscal 2018. The guidance applies to all new contracts initiated in fiscal 2018. For existing contracts that have remaining obligations as of the beginning of fiscal 2018, any difference between the recognition criteria in this ASU and the Company's previous revenue recognition practices under Topic 605 was recognized using a cumulative-effect adjustment that increased retained earnings by $119,000. The increase in retained earnings primarily related to contracts, which meet the over time criteria under the new revenue standard and, as a result, the portion of the contract completed as of the beginning of fiscal 2018 was recognized immediately in retained earnings. Partially offsetting this increase was a reduction of retained earnings associated with certain contracts which were previously accounted for under the percentage-of-completion method of accounting, but do not meet the requirements for over time recognition under Topic 606. Amounts previously recognized in fiscal 2017 based on the percentage-of-completion method of accounting were deferred at the beginning of fiscal 2018 and will be recognized along with the remaining revenue and costs in fiscal 2018 when control of the asset has been transferred to the customer. The Company has implemented certain modifications to its existing internal controls to support the recognition criteria and disclosure requirements of this ASU. See Revenue Recognition in this note for further disclosures required by this ASU. Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. In August 2016, the FASB issued ASU No. 2016-15, which simplifies the diversity in practice related to the presentation and classification of certain cash receipts and cash payments in the statement of cash flows under Topic 230. The Company adopted this ASU at the beginning of fiscal 2018 with no impact on the Company's condensed consolidated statement of cash flows. Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory. In October 2016, the FASB issued ASU No. 2016-16, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. The Company adopted this ASU at the beginning of fiscal 2018 on a modified retrospective basis, which resulted in an immaterial adjustment to retained earnings. The impact of the adoption of this standard on future periods will be dependent on future asset transfers, which generally occur in connection with acquisitions and other business structuring activities. Statement of Cash Flows (Topic 230), Restricted Cash. In November 2016, the FASB issued ASU No. 2016-18, which requires inclusion of restricted cash and restricted cash equivalents within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted this ASU at the beginning of fiscal 2018. Prior period amounts related to the Company's cash flows from financing activities, exchange rate effect on cash, and cash, cash equivalents, and restricted cash were restated as required by this ASU, which did not have a material effect on the Company's statement of cash flows. See Restricted Cash in this note for further disclosures required by this ASU. Business Combinations (Topic 805), Clarifying the Definition of a Business. In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The Company adopted this ASU on a prospective basis at the beginning of fiscal 2018. The adoption of this ASU will impact how the Company assesses acquisitions and disposals of businesses in the future. Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost. In March 2017, the FASB issued ASU No. 2017-07, which requires employers to include only the service cost component of net periodic pension cost and net periodic post-retirement benefit cost in costs and operating expenses in the same income statement line item as the related employees' compensation costs. The other components of net benefit cost are to be included in non-operating expenses. The Company adopted this ASU at the beginning of fiscal 2018 and prior period amounts were reclassified with no impact on the Company’s condensed consolidated net income. As a result of the adoption, the Company reclassified $217,000 in the second quarter of 2017 and $421,000 in the first six months of 2017 from operating income to other expense, net in the accompanying condensed consolidated statement of income. Compensation - Stock Compensation (Topic 718), Scope of Modification Accounting. In May 2017, the FASB issued ASU No. 2017-09, which provides clarity on which changes to the terms or conditions of share-based payment awards require entities to apply the modification accounting provisions required in Topic 718. The Company adopted this ASU on a prospective basis at the beginning of fiscal 2018. The adoption of this ASU did not have a material impact on the Company's condensed consolidated financial statements. Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. In March 2018, the FASB issued ASU No. 2018-05, an amendment to the December 2017 SEC Staff Accounting Bulletin No. 118 (SAB 118), which allowed SEC registrants to record provisional amounts in earnings due to the complexities involved in accounting for the December 22, 2017 enactment of The Tax Cuts and Jobs Act of 2017 (2017 Tax Act). While the Company’s accounting for certain tax effects is incomplete, it has determined reasonable estimates for those effects and has recorded provisional amounts in the condensed consolidated financial statements as of June 30, 2018 and December 30, 2017. Recent Accounting Pronouncements Not Yet Adopted Leases (Topic 842). In February 2016, the FASB issued ASU No. 2016-02, which requires a lessee to recognize a right-of-use asset and a lease liability for operating leases, initially measured at the present value of the future lease payments, in its balance sheet. This ASU also requires a lessee to recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. This new guidance is effective for the Company in fiscal 2019 using the modified retrospective transition method and early adoption is permitted. The Company is assessing the practical expedients allowed under this new guidance as well as reviewing the impact on its systems, processes and controls to account for its leases. The Company has not completed its evaluation but believes this standard will have a significant impact on its balance sheet, but is not expected to have a material impact on the Company’s results of operations or cash flows. As of the end of fiscal 2017, the Company had approximately $8.1 million of future lease payments due after fiscal 2018. The actual impact of this new standard will depend on the total amount of the Company’s lease commitments as of the adoption date. Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU No. 2016-13, which significantly changes the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining lives. This new guidance is effective for the Company in fiscal 2020 with early adoption permitted beginning in fiscal 2019. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements. Derivatives and Hedging (Topic 815), Targeted Improvements in Accounting for Hedging Activity. In August 2017, the FASB issued ASU No. 2017-12, which provides improvements to current hedge accounting to better portray the economic results of an entity’s risk management activities and to simplify the application of current hedge accounting guidance. This new guidance is effective on a prospective basis for the Company in fiscal 2019. 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. Income Statement - Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In February 2018, the FASB issued ASU No. 2018-02, which allows a reclassification from accumulated other comprehensive items (AOCI) to retained earnings for stranded tax effects resulting from the 2017 Tax Act. The reclassification is elective and would allow the income tax effects on items that were originally recorded in AOCI be reclassified from AOCI to retained earnings. This ASU is effective for the Company in fiscal year 2019 and interim periods therein and should be applied either at the beginning of the period of adoption or retrospectively to each period in which the income tax effects of the 2017 Tax Act are recognized. Early adoption is permitted. The Company is currently evaluating the effects that the adoption of this ASU will have on its condensed consolidated financial statements.
Derivatives	The Company uses derivative instruments primarily to reduce its exposure to changes in currency exchange rates and interest rates. When the Company enters into a derivative contract, the Company makes a determination as to whether the transaction is deemed to be a hedge for accounting purposes. If a contract is deemed a hedge, the Company formally documents the relationship between the derivative instrument and the risk being hedged. In this documentation, the Company specifically identifies the asset, liability, forecasted transaction, cash flow, or net investment that has been designated as the hedged item, and evaluates whether the derivative instrument is expected to reduce the risks associated with the hedged item. To the extent these criteria are not met, the Company does not use hedge accounting for the derivative. The changes in the fair value of a derivative not deemed to be a hedge are recorded currently in earnings. The Company does not hold or engage in transactions involving derivative instruments for purposes other than risk management. ASC 815, Derivatives and Hedging, requires that all derivatives be recognized on the balance sheet at fair value. For derivatives designated as cash flow hedges, the related gains or losses on these contracts are deferred as a component of AOCI. These deferred gains and losses are recognized in the statement of income in the period in which the underlying anticipated transaction occurs. For derivatives designated as fair value hedges, the unrealized gains and losses resulting from the impact of currency exchange rate movements are recognized in earnings in the period in which the exchange rates change and offset the currency gains and losses on the underlying exposures being hedged. The Company performs an evaluation of the effectiveness of the hedge both at inception and on an ongoing basis. The ineffective portion of a hedge, if any, and changes in the fair value of a derivative not deemed to be a hedge, are recorded in the accompanying condensed consolidated statement of income.
Fair Value Measurement	The carrying value of the Company's revolving credit facility approximates the fair value as the obligation bears variable rates of interest, which adjust quarterly based on prevailing market rates. The carrying values of the Company's capital lease obligations and other borrowings approximate fair value as the stipulated interest rates are comparable to prevailing market rates for those obligations. 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 2018. The Company's financial assets and liabilities carried at fair value are cash equivalents, banker's acceptance drafts, derivative instruments used to hedge the Company's foreign currency and interest rate risks, variable rate debt, and capital lease obligations. The Company's cash equivalents are comprised of money market funds and bank deposits which are highly liquid and readily tradable. These cash equivalents are valued using inputs observable in active markets for identical securities. The carrying value of banker's acceptance drafts approximates their fair value due to the short-term nature of the negotiable instrument. The fair values of the Company's forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date. The fair values of the Company's interest rate swap agreements are based on LIBOR yield curves at the reporting date. The forward currency-exchange contracts and interest rate swap agreements are hedges of either recorded assets or liabilities or anticipated transactions.

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

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Supplemental Cash Flow Information



	Six Months Ended
(In thousands)	June 30, 2018		July 1, 2017
Cash Paid for Interest	$	4,268	$	366
Cash Paid for Income Taxes, Net of Refunds	$	14,808	$	7,076

Non-Cash Investing Activities:
Estimated post-closing adjustment (a)	$	237	$	—

Non-cash additions to property, plant and equipment	$	1,033	$	390

Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of restricted stock units	$	3,264	$	2,814
Dividends declared but unpaid	$	2,442	$	2,311

(a) Represents an estimated post-closing purchase price adjustment related to the 2017 acquisition of certain assets of Unaflex, LLC, which is expected to be settled in 2018.

Cash and Cash Equivalents



(In thousands)	June 30, 2018		July 1, 2017		December 30, 2017		December 31, 2016
Cash and cash equivalents	$	60,177	$	85,840	$	75,425	$	71,487
Restricted cash	975		2,141		1,421		2,082
Total Cash, Cash Equivalents, and Restricted Cash	$	61,152	$	87,981	$	76,846	$	73,569

Restricted Cash



(In thousands)	June 30, 2018		July 1, 2017		December 30, 2017		December 31, 2016
Cash and cash equivalents	$	60,177	$	85,840	$	75,425	$	71,487
Restricted cash	975		2,141		1,421		2,082
Total Cash, Cash Equivalents, and Restricted Cash	$	61,152	$	87,981	$	76,846	$	73,569

Inventories

The components of inventories are as follows:



	June 30, 2018		December 30, 2017
(In thousands)	June 30, 2018		December 30, 2017
Raw Materials and Supplies	$	45,522	$	38,952
Work in Process	24,722		18,203
Finished Goods	26,017		27,778
	$	96,261	$	84,933

Acquired Intangible Assets

Acquired intangible assets by major asset class are as follows:



(In thousands)	Gross		Currency Translation			Accumulated Amortization			Net
June 30, 2018
Definite-Lived
Customer relationships	$	113,283	$	(3,058	)	$	(33,555	)	$	76,670
Product technology	46,501		(1,351		)	(21,733		)	23,417
Tradenames	5,227		(345		)	(1,747		)	3,135
Other	13,744		(96		)	(11,277		)	2,371
	178,755		(4,850		)	(68,312		)	105,593
Indefinite-Lived
Tradenames	16,600		49			—			16,649
Acquired Intangible Assets	$	195,355	$	(4,801	)	$	(68,312	)	$	122,242



(In thousands)	Gross		Currency Translation			Accumulated Amortization			Net
December 30, 2017
Definite-Lived
Customer relationships	$	113,301	$	(621	)	$	(28,789	)	$	83,891
Product technology	46,501		(737		)	(19,841		)	25,923
Tradenames	5,227		(262		)	(1,504		)	3,461
Other	13,754		(35		)	(10,863		)	2,856
	178,783		(1,655		)	(60,997		)	116,131
Indefinite-Lived
Tradenames	16,600		305			—			16,905
Acquired Intangible Assets	$	195,383	$	(1,350	)	$	(60,997	)	$	133,036

Changes in the Carrying Amount of Goodwill

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



(In thousands)	Papermaking Systems Segment			Wood Processing Systems Segment			Total
Balance at December 30, 2017
Gross balance	$	247,014		$	106,496		$	353,510
Accumulated impairment losses	(85,509		)	—			(85,509		)
Net balance	161,505			106,496			268,001
2018 Adjustments
Acquisitions (a)	(282		)	(75		)	(357		)
Currency translation	(3,280		)	(2,876		)	(6,156		)
Total 2018 adjustments	(3,562		)	(2,951		)	(6,513		)
Balance at June 30, 2018
Gross balance	243,452			103,545			346,997
Accumulated impairment losses	(85,509		)	—			(85,509		)
Net balance	$	157,943		$	103,545		$	261,488

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)	June 30, 2018			July 1, 2017
Balance at December 30, 2017	$	5,498		$	3,843
Provision charged to expense	1,656			1,209
Usage	(881		)	(1,056		)
Currency translation	(192		)	224
Balance at June 30, 2018	$	6,081		$	4,220

Revenue by Product Line, Product Type, Geography, and Revenue Recognition Method

The Company disaggregates its revenue from contracts with customers by product line, product type, and geography as this best depicts how its revenue is affected by economic factors as shown below:



	Three Months Ended				Six Months Ended
	June 30,		July 1,		June 30,		July 1,
(In thousands)	2018		2017		2018		2017
Revenues by Product Line:
Papermaking Systems:
Stock-Preparation	$	56,376	$	46,178	$	101,859	$	87,331
Doctoring, Cleaning, & Filtration	29,543		27,033		56,765		52,383
Fluid-Handling	32,531		22,520		65,417		44,567
Papermaking Systems	$	118,450	$	95,731	$	224,041	$	184,281
Wood Processing Systems	33,152		11,393		72,293		21,336
Fiber-based Products	3,311		3,118		7,772		7,482
	$	154,913	$	110,242	$	304,106	$	213,099
Revenues by Product Type:
Parts and Consumables	$	94,857	$	70,040	$	190,842	$	140,484
Capital	60,056		40,202		113,264		72,615
	$	154,913	$	110,242	$	304,106	$	213,099
Revenues by Geography:
North America	$	75,375	$	51,557	$	152,991	$	101,723
Europe	45,032		33,952		86,525		66,703
Asia	25,502		16,545		45,650		28,443
Rest of World	9,004		8,188		18,940		16,230
	$	154,913	$	110,242	$	304,106	$	213,099

The following table presents revenue by revenue recognition method:



	Three Months Ended		Six Months Ended
	June 30,		June 30,
(In thousands)	2018		2018
Timing of Revenue Recognition:
Point in Time	$	145,998	$	288,003
Over Time	8,915		16,103
	$	154,913	$	304,106

Balances from Contracts with Customers

The following tables present the balances from contracts with customers:



	June 30, 2018		December 30, 2017
(In thousands)	June 30, 2018		December 30, 2017
Balances from Contracts with Customers:
Accounts receivable	$	88,223	$	89,624
Contract assets	2,183		2,374
Contract liabilities	54,525		38,702

Restructuring Costs (Tables)

6 Months Ended

Jun. 30, 2018

Restructuring Costs [Abstract]

Restructuring and Related Costs

A summary of the changes in accrued restructuring costs included in other accrued expenses in the accompanying condensed consolidated balance sheet are as follows:



(In thousands)	Severance			Relocation			Other (a)			Total
Balance at December 30, 2017	$	203		$	—		$	—		$	203
(Reversal) provision	(55		)	1,018			376			1,339
Usage	—			(1,015		)	(356		)	(1,371		)
Currency translation	(11		)	(3		)	—			(14		)
Balance at June 30, 2018	$	137		$	—		$	20		$	157

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2018

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
	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
(In thousands, except per share amounts)	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
Amounts Attributable to Kadant:
Net Income	$	12,349	$	8,096	$	23,207	$	17,047

Basic Weighted Average Shares	11,092		11,001		11,067		10,976
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	308		295		304		274
Diluted Weighted Average Shares	11,400		11,296		11,371		11,250

Basic Earnings per Share	$	1.11	$	0.74	$	2.10	$	1.55

Diluted Earnings per Share	$	1.08	$	0.72	$	2.04	$	1.52

Long-Term Obligations (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule of Long-Term Obligations

Long-term obligations are as follows:



	June 30, 2018			December 30, 2017
(In thousands)	June 30, 2018			December 30, 2017
Revolving Credit Facility, due 2022	$	202,205		$	237,011
Obligations Under Capital Lease, due 2018 to 2022	4,362			4,633
Other Borrowings, due 2018 to 2023	329			436
Total	206,896			242,080
Less: Current Maturities of Long-Term Obligations	(665		)	(696		)
Long-Term Obligations	$	206,231		$	241,384

Retirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2018

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost and Assumptions Used

The components of net periodic benefit cost are as follows:



	Three Months Ended June 30, 2018									Three Months Ended July 1, 2017
(In thousands, except percentages)	U.S. Pension			Non-U.S. Pension			Other Post-Retirement			U.S. Pension			Non-U.S. Pension			Other Post-Retirement
Service Cost	$	175		$	35		$	53		$	147		$	33		$	53
Interest Cost	298			30			43			302			26			45
Expected Return on Plan Assets	(322		)	(11		)	(1		)	(328		)	(9		)	—
Recognized Net Actuarial Loss	135			15			34			108			9			27
Amortization of Prior Service Cost	—			2			22			13			1			23
	$	286		$	71		$	151		$	242		$	60		$	148

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

Discount Rate	3.51		%	3.80		%	3.64		%	4.03		%	3.47		%	4.11		%
Expected Long-Term Return on Plan Assets	4.50		%	7.43		%	7.43		%	5.00		%	7.72		%	7.72		%
Rate of Compensation Increase	3.00		%	3.69		%	3.07		%	3.00		%	3.44		%	3.06		%



	Six Months Ended June 30, 2018									Six Months Ended July 1, 2017
(In thousands, except percentages)	U.S. Pension			Non-U.S. Pension			Other Post-Retirement			U.S. Pension			Non-U.S. Pension			Other Post-Retirement
Service Cost	$	350		$	71		$	106		$	343		$	65		$	88
Interest Cost	596			60			86			616			50			84
Expected Return on Plan Assets	(644		)	(22		)	(2		)	(663		)	(17		)	—
Recognized Net Actuarial Loss	270			31			68			221			18			40
Amortization of Prior Service Cost	—			4			44			26			2			44
Net Periodic Benefit Cost	$	572		$	144		$	302		$	543		$	118		$	256

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

Discount Rate	3.51		%	3.80		%	3.64		%	4.03		%	3.43		%	4.12		%
Expected Long-Term Return on Plan Assets	4.50		%	7.43		%	7.43		%	5.00		%	7.72		%	7.72		%
Rate of Compensation Increase	3.00		%	3.69		%	3.07		%	3.00		%	3.42		%	3.07		%

Accumulated Other Comprehensive Items (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Components of Accumulated Other Comprehensive Items

Changes in each component of AOCI, net of tax, are as follows:



(In thousands)	Foreign Currency Translation Adjustment			Unrecognized Prior Service Cost on Retirement Benefit Plans			Net Actuarial Loss on Retirement Benefit Plans			Deferred Gain (Loss) on Cash Flow Hedges			Total
Balance at December 30, 2017	$	(17,501	)	$	(319	)	$	(8,974	)	$	79		$	(26,715	)
Other comprehensive (loss) income before reclassifications	(10,387		)	1			14			(79		)	(10,451		)
Reclassifications from AOCI	—			36			278			(1		)	313
Net current period other comprehensive (loss) income	(10,387		)	37			292			(80		)	(10,138		)
Balance at June 30, 2018	$	(27,888	)	$	(282	)	$	(8,682	)	$	(1	)	$	(36,853	)

Reclassification Out of Accumulated Other Comprehensive Items

Amounts reclassified from AOCI are as follows:



	Three Months Ended						Six Months Ended
(In thousands)	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017			Statement of Income Line Item
Retirement Benefit Plans: (a)
Recognized net actuarial loss	$	(184	)	$	(144	)	$	(369	)	$	(279	)	Other expense, net
Amortization of prior service cost	(24		)	(37		)	(48		)	(72		)	Other expense, net
Total expense before income taxes	(208		)	(181		)	(417		)	(351		)
Income tax benefit	51			64			103			123			Provision for income taxes
	(157		)	(117		)	(314		)	(228		)
Cash Flow Hedges: (b)
Interest rate swap agreements	(17		)	(6		)	(22		)	(18		)	Interest expense
Forward currency-exchange contracts	24			—			24			(11		)	Cost of revenues
Total income (expense) before income taxes	7			(6		)	2			(29		)
Income tax (provision) benefit	(2		)	3			(1		)	11			Provision for income taxes
	5			(3		)	1			(18		)
Total Reclassifications	$	(152	)	$	(120	)	$	(313	)	$	(246	)


(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

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

The following table summarizes the fair value of the Company's derivative instruments in the accompanying condensed consolidated balance sheet:



		June 30, 2018					December 30, 2017
	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:
2015 Swap Agreement (c)	Other Long-Term Assets	$	209		$	10,000	$	126		$	10,000
Derivatives in a Liability Position:
2018 Swap Agreement (c)	Other Long-Term Liabilities	$	(210	)	$	15,000	$	—		$	—

Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	—		$	—	$	17		$	1,244
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(52	)	$	2,712	$	(16	)	$	2,049


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


(b)	The total 2018 notional amounts are indicative of the level of the Company's recurring derivative activity.


(c)	The asset or liability balance represents the settlement value received from or paid to the counterparty in the event of early termination.

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 June 30, 2018:



(In thousands)	Interest Rate Swap Agreements			Forward Currency- Exchange Contracts			Total
Unrealized Gain, Net of Tax, at December 30, 2017	$	79		$	—		$	79
Loss (gain) reclassified to earnings (a)	17			(18		)	(1		)
(Loss) gain recognized in AOCI	(97		)	18			(79		)
Unrealized Loss, Net of Tax, at June 30, 2018	$	(1	)	$	—		$	(1	)

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

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

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities Measured on a Recurring Basis

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



(In thousands)	Level 1		Level 2		Level 3		Total
June 30, 2018
Assets:
Money market funds and time deposits	$	3,579	$	—	$	—	$	3,579
2015 Swap Agreement	$	—	$	209	$	—	$	209
Banker's acceptance drafts (a)	$	—	$	10,735	$	—	$	10,735

Liabilities:
Forward currency-exchange contracts	$	—	$	52	$	—	$	52
2018 Swap Agreement	$	—	$	210	$	—	$	210



December 30, 2017
Assets:
Money market funds and time deposits	$	17,728	$	—	$	—	$	17,728
Forward currency-exchange contracts	$	—	$	17	$	—	$	17
2015 Swap Agreement	$	—	$	126	$	—	$	126
Banker's acceptance drafts (a)	$	—	$	15,960	$	—	$	15,960

Liabilities:
Forward currency-exchange contracts	$	—	$	16	$	—	$	16


(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:



	June 30, 2018				December 30, 2017
	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	$	202,205	$	202,205	$	237,011	$	237,011
Capital lease obligations	3,843		3,843		4,101		4,101
Other borrowings	183		183		272		272
	$	206,231	$	206,231	$	241,384	$	241,384

Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Business Segment Reporting Information

The following table presents financial information for the Company's reportable operating segments:



	Three Months Ended						Six Months Ended
	June 30,			July 1,			June 30,			July 1,
(In thousands)	2018			2017			2018			2017
Revenues:
Papermaking Systems (a)	$	118,450		$	95,731		$	224,041		$	184,281
Wood Processing Systems (b)	33,152			11,393			72,293			21,336
Fiber-based Products	3,311			3,118			7,772			7,482
	$	154,913		$	110,242		$	304,106		$	213,099

Income Before Provision for Income Taxes:
Papermaking Systems (c)	$	20,899		$	17,264		$	35,483		$	31,563
Wood Processing Systems (d)	5,313			(411		)	12,676			2,093
Corporate and Fiber-based Products (e)	(6,477		)	(5,193		)	(11,760		)	(9,746		)
Total operating income	19,735			11,660			36,399			23,910
Interest expense, net (f)	(1,728		)	(290		)	(3,277		)	(534		)
Other expense, net	(245		)	(217		)	(491		)	(421		)
	$	17,762		$	11,153		$	32,631		$	22,955

Capital Expenditures:
Papermaking Systems	$	3,840		$	1,293		$	8,489		$	2,777
Wood Processing Systems	1,184			105			1,560			291
Other	36			315			162			367
	$	5,060		$	1,713		$	10,211		$	3,435


(a)	Includes $5,430,000 in the three-month period ended June 30, 2018 and $11,330,000 in the six-month period ended June 30, 2018 from 2017 acquisitions.

(b) Includes $23,440,000 in the three-month period ended June 30, 2018 and $52,310,000 in the six-month period ended June 30, 2018 from a 2017 acquisition.

(e) Corporate primarily includes general and administrative expenses.

(f) The Company does not allocate interest expense, net to its segments.

Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2018 USD ($)	Jul. 01, 2017 USD ($)	Apr. 01, 2017 USD ($)	Jun. 30, 2018 USD ($) Segment	Jul. 01, 2017 USD ($)	Jan. 01, 2018 USD ($)	Dec. 30, 2017 USD ($)
Accounting Policies [Abstract]
Number of reportable segments \| Segment				2
Bank guarantees, expiration period				12 months
Banker's acceptance drafts, maturity period				6 months
Banker's acceptance drafts	$ 10,735			$ 10,735			$ 15,960
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue recognized	2,788			30,113
Cumulative-effect adjustment to increase retained earnings	361,262			361,262			342,893
Reclassification from operating income	19,735	$ 11,660		36,399	$ 23,910
Reclassification to other expense, net	$ 245	217		$ 491	421
Future lease payments due after next fiscal year							$ 8,100
ASU No. 2014-09 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment to increase retained earnings						$ 119
ASU No. 2017-07 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification from operating income		$ (217)			$ (421)
Reclassification to other expense, net			$ 204
Timing Of Transfer Of Good Or Service [Member] \| Point in Time [Member] \| Revenue from Contract with Customer [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk percentage	94.00%			95.00%
Timing Of Transfer Of Good Or Service [Member] \| Over Time [Member] \| Revenue from Contract with Customer [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk percentage	6.00%			5.00%

Nature of Operations and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Accounting Policies [Abstract]
Cash Paid for Interest	$ 4,268	$ 366
Cash Paid for Income Taxes, Net of Refunds	14,808	7,076
Non-Cash Investing Activities:
Estimated post-closing adjustment	237	0
Non-cash additions to property, plant and equipment	1,033	390
Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of restricted stock units	3,264	2,814
Dividends declared but unpaid	$ 2,442	$ 2,311

Nature of Operations and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017	Jul. 01, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 60,177	$ 75,425	$ 85,840	$ 71,487
Restricted cash	975	1,421	2,141	2,082
Total Cash, Cash Equivalents, and Restricted Cash	$ 61,152	$ 76,846	$ 87,981	$ 73,569

Nature of Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Accounting Policies [Abstract]
Raw Materials and Supplies	$ 45,522	$ 38,952
Work in Process	24,722	18,203
Finished Goods	26,017	27,778
Total Inventories	$ 96,261	$ 84,933

Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets By Major Asset Class (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 30, 2017
Acquired Definite-Lived Intangible Assets [Line Items]
Gross	$ 178,755	$ 178,783
Currency Translation	(4,850)	(1,655)
Accumulated Amortization	(68,312)	(60,997)
Net	105,593	116,131
Acquired Intangible Assets [Abstract]
Gross	195,355	195,383
Currency Translation	(4,801)	(1,350)
Net	122,242	133,036
Trade Names [Member]
Acquired Indefinite-Lived Intangible Assets [Line Items]
Gross	16,600	16,600
Currency Translation	49	305
Net	16,649	16,905
Customer Relationships [Member]
Acquired Definite-Lived Intangible Assets [Line Items]
Gross	113,283	113,301
Currency Translation	(3,058)	(621)
Accumulated Amortization	(33,555)	(28,789)
Net	76,670	83,891
Product Technology [Member]
Acquired Definite-Lived Intangible Assets [Line Items]
Gross	46,501	46,501
Currency Translation	(1,351)	(737)
Accumulated Amortization	(21,733)	(19,841)
Net	23,417	25,923
Trade Names [Member]
Acquired Definite-Lived Intangible Assets [Line Items]
Gross	5,227	5,227
Currency Translation	(345)	(262)
Accumulated Amortization	(1,747)	(1,504)
Net	3,135	3,461
Other Intangibles [Member]
Acquired Definite-Lived Intangible Assets [Line Items]
Gross	13,744	13,754
Currency Translation	(96)	(35)
Accumulated Amortization	(11,277)	(10,863)
Net	$ 2,371	$ 2,856

Nature of Operations and Summary of Significant Accounting Policies - Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	$ 353,510
Accumulated impairment losses	(85,509)
Net Balance, Beginning Balance	268,001
Acquisitions	(357)
Currency translation	(6,156)
Total 2018 adjustments	(6,513)
Gross Balance, Ending Balance	346,997
Accumulated impairment losses	(85,509)
Net Balance, Ending Balance	261,488
Operating Segment [Member] \| Papermaking Systems [Member]
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	247,014
Accumulated impairment losses	(85,509)
Net Balance, Beginning Balance	161,505
Acquisitions	(282)
Currency translation	(3,280)
Total 2018 adjustments	(3,562)
Gross Balance, Ending Balance	243,452
Accumulated impairment losses	(85,509)
Net Balance, Ending Balance	157,943
Operating Segment [Member] \| Wood Processing Systems [Member]
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	106,496
Accumulated impairment losses	0
Net Balance, Beginning Balance	106,496
Acquisitions	(75)
Currency translation	(2,876)
Total 2018 adjustments	(2,951)
Gross Balance, Ending Balance	103,545
Accumulated impairment losses	0
Net Balance, Ending Balance	$ 103,545

Nature of Operations and Summary of Significant Accounting Policies - Warranty Obligations (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Changes in the carrying amount of accrued warranty costs [Roll Forward]
Balance at December 30, 2017	$ 5,498	$ 3,843
Provision charged to expense	1,656	1,209
Usage	(881)	(1,056)
Currency translation	(192)	224
Balance at June 30, 2018	$ 6,081	$ 4,220

Nature of Operations and Summary of Significant Accounting Policies - Revenue Recognition by Product Line, Product Type, Geography and Revenue Recognition Method (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 154,913	$ 110,242	$ 304,106	$ 213,099
Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	145,998		288,003
Over Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	8,915		16,103
North America [Member]
Disaggregation of Revenue [Line Items]
Revenues	75,375	51,557	152,991	101,723
Europe [Member]
Disaggregation of Revenue [Line Items]
Revenues	45,032	33,952	86,525	66,703
Asia [Member]
Disaggregation of Revenue [Line Items]
Revenues	25,502	16,545	45,650	28,443
Rest of World [Member]
Disaggregation of Revenue [Line Items]
Revenues	9,004	8,188	18,940	16,230
Parts and Consumables [Member]
Disaggregation of Revenue [Line Items]
Revenues	94,857	70,040	190,842	140,484
Capital [Member]
Disaggregation of Revenue [Line Items]
Revenues	60,056	40,202	113,264	72,615
Operating Segment [Member] \| Papermaking Systems [Member]
Disaggregation of Revenue [Line Items]
Revenues	118,450	95,731	224,041	184,281
Operating Segment [Member] \| Papermaking Systems [Member] \| Stock preparation [Member]
Disaggregation of Revenue [Line Items]
Revenues	56,376	46,178	101,859	87,331
Operating Segment [Member] \| Papermaking Systems [Member] \| Doctoring, Cleaning and Filtration [Member]
Disaggregation of Revenue [Line Items]
Revenues	29,543	27,033	56,765	52,383
Operating Segment [Member] \| Papermaking Systems [Member] \| Fluid handling [Member]
Disaggregation of Revenue [Line Items]
Revenues	32,531	22,520	65,417	44,567
Operating Segment [Member] \| Wood Processing Systems Segment [Member]
Disaggregation of Revenue [Line Items]
Revenues	33,152	11,393	72,293	21,336
Corporate And Reconciling Items [Member] \| Fiber based Products [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 3,311	$ 3,118	$ 7,772	$ 7,482

Nature of Operations and Summary of Significant Accounting Policies - Revenue from Contract with Customers (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Revenue from Contract with Customer [Abstract]
Accounts receivable	$ 88,223	$ 89,624
Contract assets	2,183	2,374
Contract liabilities	$ 54,525	$ 38,702

Restructuring Costs - Narrative (Details) ft² in Thousands, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018 USD ($)	Jul. 01, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jul. 01, 2017 USD ($)	Dec. 30, 2017 USD ($) ft² Employee
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 569	$ 0	$ 1,339	$ 0
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs			(55)
Restructuring Plan 2017 [Member]
Restructuring Cost and Reserve [Line Items]
Manufacturing facility square footage (in sqft) \| ft²					160
Expected restructuring costs	1,745		1,745
Restructuring costs			1,339
Expected remaining restructuring costs	$ 203		203
Restructuring Plan 2017 [Member] \| Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs			(55)		$ 203
Restructuring Plan 2017 [Member] \| Relocation Of Machinery And Equipment And Administrative Offices [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs			1,018
Restructuring Plan 2017 [Member] \| Employee Retention, Facility Closing, And Other Closure Costs [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring costs			$ 376
Restructuring Plan 2017 [Member] \| United States [Member]
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated related to restructuring \| Employee					4
Restructuring Plan 2017 [Member] \| Sweden [Member]
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated related to restructuring \| Employee					6

Restructuring Costs - Summary of Changes in Accrued Restructuring Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Restructuring Cost and Reserve [Line Items]
Beginning balance			$ 203
(Reversal) provision	$ 569	$ 0	1,339	$ 0
Usage			(1,371)
Currency translation			(14)
Ending balance	157		157
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			203
(Reversal) provision			(55)
Usage			0
Currency translation			(11)
Ending balance	137		137
Employee Relocation [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			0
(Reversal) provision			1,018
Usage			(1,015)
Currency translation			(3)
Ending balance	0		0
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Beginning balance			0
(Reversal) provision			376
Usage			(356)
Currency translation			0
Ending balance	$ 20		$ 20

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
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Amounts Attributable to Kadant:
Net Income	$ 12,349	$ 8,096	$ 23,207	$ 17,047
Basic Weighted Average Shares (in shares)	11,092	11,001	11,067	10,976
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares (in shares)	308	295	304	274
Diluted Weighted Average Shares (in shares)	11,400	11,296	11,371	11,250
Basic Earnings per Share (in dollars per share)	$ 1.11	$ 0.74	$ 2.10	$ 1.55
Diluted Earnings per Share (in dollars per share)	$ 1.08	$ 0.72	$ 2.04	$ 1.52

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
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-Name Accounting Standards Codification
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-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Earnings per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
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 (in shares)	34	19	32	29

Provision for Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Provisional net income tax expense			$ 792
Provision for income taxes	$ 5,271	$ 2,955	$ 9,132	$ 5,690
Effective tax rate			28.00%	25.00%
Statutory tax rate			21.00%		35.00%
Tax expense related to repatriating earnings of certain foreign subsidiaries			$ 426

Long-Term Obligations - Schedule of Long-Term Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Debt Instrument [Line Items]
Obligations Under Capital Lease, due 2018 to 2022	$ 4,362	$ 4,633
Total	206,896	242,080
Less: Current Maturities of Long-Term Obligations	(665)	(696)
Long-Term Obligations	206,231	241,384
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving Credit Facility, due 2022	202,205	237,011
Other Borrowings [Member]
Debt Instrument [Line Items]
Other Borrowings, due 2018 to 2023	$ 329	$ 436

Long-Term Obligations - Narrative (Details) - USD ($)	12 Months Ended
Long-Term Obligations - Narrative (Details) - USD ($)	Dec. 30, 2017	Jun. 30, 2018
Debt Instrument [Line Items]
Weighted average interest rate for revolving credit facility (in hundredths)		2.97%
Loan receivable		$ 590,000
Capital lease obligations	$ 4,633,000	4,362,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Outstanding balance	$ 237,011,000	202,205,000
Remaining borrowing capacity		98,289,000
Revolving Credit Facility [Member] \| Canadian Denominated Borrowing [Member]
Debt Instrument [Line Items]
Outstanding balance		44,856,000
Revolving Credit Facility [Member] \| Euro-Denominated Borrowing [Member]
Debt Instrument [Line Items]
Outstanding balance		$ 40,349,000
Capital Lease Obligations [Member] \| Sale Leaseback Arrangement [Member]
Debt Instrument [Line Items]
Effective interest rate		1.79%
Net purchase option		$ 1,550,000
Capital lease obligations		4,282,000
Capital Lease Obligations [Member] \| Other Capital Lease Obligations [Member]
Debt Instrument [Line Items]
Capital lease obligations		$ 80,000
Revolving Credit Facility [Member] \| 2017 Credit Agreement [Member]
Debt Instrument [Line Items]
Term of unsecured revolving credit facility	5 years
Borrowing capacity available under committed portion	$ 300,000,000
Additional borrowing capacity	$ 100,000,000
Basis spread on variable rate floor (as a percentage)	0.00%
Percentage of foreign unrestricted cash	65.00%
Maximum unrestricted cash	$ 30,000,000
Maximum consolidated leverage ratio	3.5
Minimum consolidated interest coverage ratio	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%
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%
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%
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%

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	May 16, 2018	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense		$ 2,146	$ 1,441	$ 3,610	$ 2,736
Unrecognized compensation expense related to stock awards		$ 8,374		$ 8,374
Recognition period				1 year 9 months 18 days
Director [Member] \| Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted	10,800
Aggregate grant date fair value	$ 1,019

Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Pension Benefits [Member] \| U.S. [Member]
Defined Benefit Plan Disclosure [Line Items]
Service Cost	$ 175	$ 147	$ 350	$ 343
Interest Cost	298	302	596	616
Expected Return on Plan Assets	(322)	(328)	(644)	(663)
Recognized Net Actuarial Loss	135	108	270	221
Amortization of Prior Service Cost	0	13	0	26
Net Periodic Benefit Cost	$ 286	$ 242	$ 572	$ 543
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount Rate (as a percentage)	3.51%	4.03%	3.51%	4.03%
Expected Long-Term Return on Plan Assets (as a percentage)	4.50%	5.00%	4.50%	5.00%
Rate of Compensation Increase (as a percentage)	3.00%	3.00%	3.00%	3.00%
Pension Benefits [Member] \| Non-U.S. [Member]
Defined Benefit Plan Disclosure [Line Items]
Service Cost	$ 35	$ 33	$ 71	$ 65
Interest Cost	30	26	60	50
Expected Return on Plan Assets	(11)	(9)	(22)	(17)
Recognized Net Actuarial Loss	15	9	31	18
Amortization of Prior Service Cost	2	1	4	2
Net Periodic Benefit Cost	$ 71	$ 60	$ 144	$ 118
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount Rate (as a percentage)	3.80%	3.47%	3.80%	3.43%
Expected Long-Term Return on Plan Assets (as a percentage)	7.43%	7.72%	7.43%	7.72%
Rate of Compensation Increase (as a percentage)	3.69%	3.44%	3.69%	3.42%
Other Postretirement Benefits Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service Cost	$ 53	$ 53	$ 106	$ 88
Interest Cost	43	45	86	84
Expected Return on Plan Assets	(1)	0	(2)	0
Recognized Net Actuarial Loss	34	27	68	40
Amortization of Prior Service Cost	22	23	44	44
Net Periodic Benefit Cost	$ 151	$ 148	$ 302	$ 256
The weighted average assumptions used to determine net periodic benefit cost are as follows:
Discount Rate (as a percentage)	3.64%	4.11%	3.64%	4.12%
Expected Long-Term Return on Plan Assets (as a percentage)	7.43%	7.72%	7.43%	7.72%
Rate of Compensation Increase (as a percentage)	3.07%	3.06%	3.07%	3.07%

Accumulated Other Comprehensive Items - Components of AOCI (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017
Total Stockholders' Equity [Roll Forward]
Beginning balance	$ 332,504	$ 284,279
Ending balance	341,685	311,337
Foreign Currency Translation Adjustment [Member]
Total Stockholders' Equity [Roll Forward]
Beginning balance	(17,501)
Other comprehensive (loss) income before reclassifications	(10,387)
Reclassifications from AOCI	0
Net current period other comprehensive (loss) income	(10,387)
Ending balance	(27,888)
Unrecognized Prior Service Cost on Retirement Benefit Plans [Member]
Total Stockholders' Equity [Roll Forward]
Beginning balance	(319)
Other comprehensive (loss) income before reclassifications	1
Reclassifications from AOCI	36
Net current period other comprehensive (loss) income	37
Ending balance	(282)
Net Actuarial Loss on Pension and Other Post- Retirement Benefit Plans [Member]
Total Stockholders' Equity [Roll Forward]
Beginning balance	(8,974)
Other comprehensive (loss) income before reclassifications	14
Reclassifications from AOCI	278
Net current period other comprehensive (loss) income	292
Ending balance	(8,682)
Deferred Gain (Loss) on Cash Flow Hedges [Member]
Total Stockholders' Equity [Roll Forward]
Beginning balance	79
Other comprehensive (loss) income before reclassifications	(79)
Reclassifications from AOCI	(1)
Net current period other comprehensive (loss) income	(80)
Ending balance	(1)
Accumulated Other Comprehensive Items [Member]
Total Stockholders' Equity [Roll Forward]
Beginning balance	(26,715)	(49,637)
Other comprehensive (loss) income before reclassifications	(10,451)
Reclassifications from AOCI	313
Net current period other comprehensive (loss) income	(10,138)
Ending balance	$ (36,853)	$ (35,916)

Accumulated Other Comprehensive Items - Reclassification Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jul. 01, 2017	Jun. 30, 2018	Jul. 01, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	$ (245)	$ (217)	$ (491)	$ (421)
Interest expense	(1,850)	(392)	(3,582)	(740)
Cost of revenues	(86,749)	(57,390)	(169,863)	(111,230)
Amortization of Actuarial Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total Reclassifications			(278)
Amortization of Prior Service Cost [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total Reclassifications			(36)
Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total Reclassifications			1
Reclassification out of Accumulated Other Comprehensive Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total Reclassifications	(152)	(120)	(313)	(246)
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 income (expense) before income taxes	(208)	(181)	(417)	(351)
Provision for income taxes	51	64	103	123
Total Reclassifications	(157)	(117)	(314)	(228)
Reclassification out of Accumulated Other Comprehensive Items [Member] \| Amortization of Actuarial Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(184)	(144)	(369)	(279)
Reclassification out of Accumulated Other Comprehensive Items [Member] \| Amortization of Prior Service Cost [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(24)	(37)	(48)	(72)
Reclassification out of Accumulated Other Comprehensive Items [Member] \| Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total income (expense) before income taxes	7	(6)	2	(29)
Provision for income taxes	(2)	3	(1)	11
Total Reclassifications	5	(3)	1	(18)
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	(17)	(6)	(22)	(18)
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]
Cost of revenues	$ 24	$ 0	$ 24	$ (11)

Derivatives - Narrative (Details)	3 Months Ended		6 Months Ended
Derivatives - Narrative (Details)	Jun. 30, 2018 USD ($)	Jul. 01, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jul. 01, 2017 USD ($)	May 31, 2018 USD ($)	Jan. 02, 2016 USD ($)
Forward Currency-Exchange Contracts [Abstract]
Recognized gains (losses)	$ 14,000	$ (1,846,000)	$ 27,000	$ (1,493,000)
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
Forward currency-exchange contracts [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 2018 [Member]
Interest Rate Swaps [Abstract]
Derivative, notional amount					$ 15,000,000
Fixed rate of interest (in hundredths)					3.15%
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%
LIBOR [Member] \| Cash Flow Hedging [Member] \| Designated as Hedging Instrument [Member] \| Swap Agreement 2018 [Member]
Interest Rate Swaps [Abstract]
Interest rate floor					0.00%

Derivatives - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Designated as Hedging Instrument [Member] \| Swap Agreement 2015 [Member] \| Other Long-Term Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	$ 209	$ 126
Notional amount, Derivative asset	10,000	10,000
Designated as Hedging Instrument [Member] \| Swap Agreement 2018 [Member] \| Other Long-Term Liabilities [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	(210)	0
Notional amount, Derivative asset	15,000	0
Not Designated as Hedging Instrument [Member] \| Forward currency-exchange contracts [Member] \| Other Current Assets [Member]
Derivatives in an Asset Position:
Derivatives in an asset position	0	17
Notional amount, Derivative asset	0	1,244
Not Designated as Hedging Instrument [Member] \| Forward currency-exchange contracts [Member] \| Other Current Liabilities [Member]
Derivatives in a Liability Position:
Derivatives in a liability position	(52)	(16)
Notional amount, Derivative liability	$ 2,712	$ 2,049

Derivatives - Activity in Accumulated Other Comprehensive Items (OCI) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Total Stockholders' Equity [Roll Forward]
Beginning balance	$ 332,504
Ending balance	341,685
Net unrealized gain included in AOCI expected to be reclassified to earnings over the next 12 months	12
Cash Flow Hedging [Member]
Total Stockholders' Equity [Roll Forward]
Beginning balance	79
Loss (gain) reclassified to earnings	(1)
(Loss) gain recognized in AOCI	(79)
Ending balance	(1)
Cash Flow Hedging [Member] \| Interest Rate Swap Agreement [Member]
Total Stockholders' Equity [Roll Forward]
Beginning balance	79
Loss (gain) reclassified to earnings	17
(Loss) gain recognized in AOCI	(97)
Ending balance	(1)
Cash Flow Hedging [Member] \| Forward currency-exchange contracts [Member]
Total Stockholders' Equity [Roll Forward]
Beginning balance	0
Loss (gain) reclassified to earnings	(18)
(Loss) gain recognized in AOCI	18
Ending balance	$ 0

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	Jun. 30, 2018	Dec. 30, 2017
Assets:
Money market funds and time deposits	$ 3,579	$ 17,728
Forward currency-exchange contract		17
2015 Swap Agreement	209	126
Banker's acceptance drafts	10,735	15,960
Liabilities:
Forward currency-exchange contracts	52	16
2018 Swap Agreement	210
Level 1 [Member]
Assets:
Money market funds and time deposits	3,579	17,728
Forward currency-exchange contract		0
2015 Swap Agreement	0	0
Banker's acceptance drafts	0	0
Liabilities:
Forward currency-exchange contracts	0	0
2018 Swap Agreement	0
Level 2 [Member]
Assets:
Money market funds and time deposits	0	0
Forward currency-exchange contract		17
2015 Swap Agreement	209	126
Banker's acceptance drafts	10,735	15,960
Liabilities:
Forward currency-exchange contracts	52	16
2018 Swap Agreement	210
Level 3 [Member]
Assets:
Money market funds and time deposits	0	0
Forward currency-exchange contract		0
2015 Swap Agreement	0	0
Banker's acceptance drafts	0	0
Liabilities:
Forward currency-exchange contracts	0	$ 0
2018 Swap Agreement	$ 0

Fair Value Measurements and Fair Value of Financial Instruments - Carrying Value and Fair Value of Debt Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 30, 2017
Carrying Value [Member]
Long-term Debt Obligations:
Revolving credit facility	$ 202,205	$ 237,011
Capital lease obligations	3,843	4,101
Other borrowings	183	272
Debt obligations	206,231	241,384
Fair Value [Member]
Long-term Debt Obligations:
Revolving credit facility	202,205	237,011
Capital lease obligations	3,843	4,101
Other borrowings	183	272
Debt obligations	$ 206,231	$ 241,384

Business Segment Information - Summary of Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jul. 01, 2017 USD ($)	Jun. 30, 2018 USD ($) Segment	Jul. 01, 2017 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| Segment			2
Revenues:
Revenues	$ 154,913	$ 110,242	$ 304,106	$ 213,099
Income Before Provision for Income Taxes:
Total operating income (loss)	19,735	11,660	36,399	23,910
Interest expense, net	(1,728)	(290)	(3,277)	(534)
Other expense, net	(245)	(217)	(491)	(421)
Income Before Provision for Income Taxes	17,762	11,153	32,631	22,955
Capital Expenditures:
Capital expenditures	5,060	1,713	10,211	3,435
Restructuring costs	569	0	1,339	0
Operating Segment [Member] \| Papermaking Systems [Member]
Revenues:
Revenues	118,450	95,731	224,041	184,281
Income Before Provision for Income Taxes:
Total operating income (loss)	20,899	17,264	35,483	31,563
Capital Expenditures:
Capital expenditures	3,840	1,293	8,489	2,777
Restructuring costs	569	315	1,339	315
Operating Segment [Member] \| Papermaking Systems [Member] \| 2017 Acquisitions [Member]
Revenues:
Revenues	5,430		11,330
Operating Segment [Member] \| Wood Processing Systems [Member]
Revenues:
Revenues	33,152	11,393	72,293	21,336
Income Before Provision for Income Taxes:
Total operating income (loss)	5,313	(411)	12,676	2,093
Capital Expenditures:
Capital expenditures	1,184	105	1,560	291
Acquisition transaction costs		3,783	252	4,102
Operating Segment [Member] \| Wood Processing Systems [Member] \| 2017 Acquisitions [Member]
Revenues:
Revenues	23,440		52,310
Corporate and Fiber-based Products [Member]
Income Before Provision for Income Taxes:
Total operating income (loss)	(6,477)	(5,193)	(11,760)	(9,746)
Capital Expenditures:
Capital expenditures	36	315	162	367
Corporate and Fiber-based Products [Member] \| Fiber based Products [Member]
Revenues:
Revenues	$ 3,311	$ 3,118	$ 7,772	$ 7,482

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Banker's acceptance drafts, maturity period	6 months
Banker's acceptance drafts with recourse	$ 10,433	$ 10,035

Subsequent Event - Narrative (Details) - Subsequent Event [Member] - Secured Debt [Member] - Commercial Real Estate Loan [Member]	Jul. 06, 2018 USD ($)
Subsequent Event [Line Items]
Principal amount	$ 21,000,000
Quarterly installment amount	$ 262,500
Term	10 years
Outstanding balance	$ 10,500,000
Fixed interest rate	4.45%
Second Twelve Months of the Loan Term [Member]
Subsequent Event [Line Items]
Prepayment fee	2.00%
Third Twelve Months of the Loan Term [Member]
Subsequent Event [Line Items]
Prepayment fee	1.00%