0000886346-20-000019 | 10-K | XBRL Viewer

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Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
Document and Entity Information - USD ($) $ in Thousands	Dec. 28, 2019	Feb. 14, 2020	Jun. 29, 2019
Cover page.
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 28, 2019
Document Transition Report	false
Entity File Number	001-11406
Entity Registrant Name	KADANT INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-1762325
Entity Address, Address Line One	One Technology Park Drive
Entity Address, City or Town	Westford
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01886
City Area Code	978
Local Phone Number	776-2000
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	KAI
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 1,001,332
Entity Common Stock, Shares Outstanding		11,422,466
Documents Incorporated by Reference	Portions of the Registrant's definitive Proxy Statement pursuant to Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended, to be used in connection with the Registrant's 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K.
Entity Central Index Key	0000886346
Current Fiscal Year End Date	--12-28
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheet - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Current Assets:
Cash and cash equivalents	$ 66,786	$ 45,830
Restricted cash	1,487	287
Accounts receivable, less allowances of $2,698 and $2,897	95,740	92,624
Inventories	102,715	86,373
Unbilled revenues	13,162	15,741
Other current assets	17,686	11,906
Total Current Assets	297,576	252,761
Property, Plant, and Equipment, at Cost, Net	86,032	80,157
Other Assets (Note 9)	45,851	21,310
Intangible Assets, Net (Notes 1 and 2)	173,896	113,347
Goodwill (Notes 1 and 2)	336,032	258,174
Total Assets	939,387	725,749
Current Liabilities:
Current maturities of long-term obligations (Note 6)	2,851	1,668
Accounts payable	45,852	35,720
Accrued payroll and employee benefits	31,968	30,902
Customer deposits	24,012	26,987
Advanced billings	11,280	5,534
Other current liabilities	30,206	28,178
Total Current Liabilities	146,169	128,989
Long-Term Obligations (Note 6)	298,174	174,153
Long-Term Deferred Income Taxes (Note 5)	19,736	22,962
Other Long-Term Liabilities (Note 3 and 9)	48,229	25,074
Commitments and Contingencies (Note 7)
Stockholders' Equity (Notes 3 and 4):
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued	0	0
Common stock, $.01 par value, 150,000,000 shares authorized; 14,624,159 shares issued	146	146
Capital in excess of par value	106,698	104,731
Retained earnings	435,249	393,578
Treasury stock at cost, 3,214,888 and 3,514,163 shares	(78,778)	(86,111)
Accumulated other comprehensive items (Note 14)	(37,620)	(39,376)
Total Kadant Stockholders' Equity	425,695	372,968
Noncontrolling interest	1,384	1,603
Total Stockholders' Equity	427,079	374,571
Total Liabilities and Stockholders' Equity	$ 939,387	$ 725,749

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 2,698	$ 2,897
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	14,624,159	14,624,159
Treasury stock (in shares)	3,214,888	3,514,163

Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Statement [Abstract]
Revenues (Note 1 and 12)	$ 704,644	$ 633,786	$ 515,033
Costs and Operating Expenses:
Cost of revenues	410,884	355,505	283,886
Selling, general, and administrative expenses	192,525	177,414	159,756
Research and development expenses	10,884	10,552	9,563
Impairment and restructuring costs (Notes 1 and 8)	2,528	1,717	203
Total Costs and Operating Expenses	616,821	545,188	453,408
Operating Income	87,823	88,598	61,625
Interest income	213	379	447
Interest expense	(12,755)	(7,032)	(3,547)
Other expense, net (Note 3)	(6,359)	(2,417)	(872)
Income Before Provision for Income Taxes	68,922	79,528	57,653
Provision for income taxes (Note 5)	16,358	18,482	26,070
Net Income	52,564	61,046	31,583
Net Income Attributable to Noncontrolling Interest	(496)	(633)	(491)
Net Income Attributable to Kadant	$ 52,068	$ 60,413	$ 31,092
Earnings per Share Attributable to Kadant (Note 13)
Basic (in dollars per share)	$ 4.63	$ 5.45	$ 2.83
Diluted (in dollars per share)	$ 4.54	$ 5.30	$ 2.75
Weighted Average Shares (Note 13)
Basic (in shares)	11,235	11,086	10,991
Diluted (in shares)	11,457	11,400	11,312
Cash Dividends Declared per Common Share (in dollars per share)	$ 0.92	$ 0.88	$ 0.84

Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Statement of Comprehensive Income [Abstract]
Net Income	$ 52,564	$ 61,046	$ 31,583
Other Comprehensive Items:
Foreign currency translation adjustment	(1,392)	(17,381)	23,847
Pension and other post-retirement liability adjustments, net (net of tax of ($137), $412, and ($150))	(282)	1,248	(738)
Effect of pension and other post-retirement plan amendments (net of tax of $351)	0	(1,087)	0
Effect of pension and other post-retirement plan curtailments (net of tax of $1,183)	0	3,679	0
Effect of pension and other post-retirement settlement and curtailment losses (net of tax of ($653) and $347)	3,826	1,078	0
Deferred (loss) gain on cash flow hedges (net of tax of ($143), ($93), and $39)	(447)	(276)	67
Other Comprehensive Items	1,705	(12,739)	23,176
Comprehensive Income	54,269	48,307	54,759
Comprehensive Income Attributable to Noncontrolling Interest	(445)	(555)	(745)
Comprehensive Income Attributable to Kadant	$ 53,824	$ 47,752	$ 54,014

Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Other Comprehensive Items:
Pension and other post-retirement liability adjustments, net	$ (137)	$ 412	$ (150)
Deferred (loss) gain on cash flow hedges	(143)	(93)	$ 39
Effect of pension and other post-retirement plan amendments		351
Effect of pension and other post-retirement plan curtailments		1,183
Effect of pension and other post-retirement settlement and curtailment losses	$ (653)	$ 347

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Operating Activities
Net Income Attributable to Kadant	$ 52,068	$ 60,413	$ 31,092
Net income attributable to noncontrolling interest	496	633	491
Net Income	52,564	61,046	31,583
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	32,390	23,568	19,375
Stock-based compensation expense	6,815	7,027	5,803
Provision for losses on accounts receivable	114	355	436
(Gain) loss on sale of property, plant, and equipment	(79)	110	42
U.S. benefit plans settlement and curtailment losses	5,887	1,425	0
Impairment costs	2,336	0	0
Deferred income tax (benefit) provision	(2,491)	(4,240)	578
Other items, net	(2,097)	1,310	1,420
Contributions to U.S. pension plan	0	0	(1,080)
Changes in current assets and liabilities, net of effects of acquisitions:
Accounts receivable	6,553	(7,016)	(10,907)
Unbilled revenues	2,559	(11,350)	1,310
Inventories	(3,076)	(6,577)	1,163
Other current assets	(5,618)	3,820	(130)
Accounts payable	7,358	5,419	(522)
Other current liabilities	(5,802)	(11,912)	16,093
Net cash provided by operating activities	97,413	62,985	65,164
Investing Activities
Acquisitions, net of cash acquired (Note 2)	(177,798)	0	(204,731)
Purchases of property, plant, and equipment	(9,957)	(16,559)	(17,281)
Proceeds from sale of property, plant, and equipment	398	195	130
Net cash used in investing activities	(187,357)	(16,364)	(221,882)
Financing Activities
Proceeds from issuance of long-term obligations	247,196	50,055	232,019
Repayment of long-term obligations	(126,315)	(110,094)	(68,187)
Dividends paid	(10,196)	(9,644)	(9,011)
Proceeds from issuance of Company common stock	5,176	813	0
Tax withholding payments related to stock-based compensation	(2,691)	(3,886)	(2,206)
Dividend paid to noncontrolling interest	(664)	(465)	(882)
Payment of debt issuance costs (Note 6)	(56)	(934)	(1,257)
Net cash provided by (used in) financing activities	112,450	(74,155)	150,476
Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash	(350)	(3,195)	9,519
Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash	22,156	(30,729)	3,277
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year	46,117	76,846	73,569
Cash, Cash Equivalents, and Restricted Cash at End of Year	$ 68,273	$ 46,117	$ 76,846

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Items	Noncontrolling Interest
Beginning balance (in shares) at 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	31,583			31,092			491
Dividends declared - Common Stock	(9,249)			(9,249)
Dividend paid to noncontrolling interest	(882)						(882)
Activity under stock plans (in shares)					(72,694)
Activity under stock plans	3,597		1,816		$ 1,781
Other comprehensive items	23,176					22,922	254
Ending balance (in shares) at Dec. 30, 2017		14,624,159			3,613,838
Ending balance at Dec. 30, 2017	332,504	$ 146	103,221	342,893	$ (88,554)	(26,715)	1,513
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of new accounting principle \| Accounting Standards Update 2014-09	119			119
Cumulative effect of new accounting principle \| Accounting Standards Update 2016-16	(75)			(75)
Net Income	61,046			60,413			633
Dividends declared - Common Stock	(9,772)			(9,772)
Dividend paid to noncontrolling interest	(465)						(465)
Activity under stock plans (in shares)					(99,675)
Activity under stock plans	3,953		1,510		$ 2,443
Other comprehensive items	(12,739)					(12,661)	(78)
Ending balance (in shares) at Dec. 29, 2018		14,624,159			3,514,163
Ending balance at Dec. 29, 2018	374,571	$ 146	104,731	393,578	$ (86,111)	(39,376)	1,603
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of new accounting principle \| Accounting Standards Update 2016-02	(17)			(17)
Net Income	52,564			52,068			496
Dividends declared - Common Stock	(10,380)			(10,380)
Dividend paid to noncontrolling interest	(664)						(664)
Activity under stock plans (in shares)					(299,275)
Activity under stock plans	9,300		1,967		$ 7,333
Other comprehensive items	1,705					1,756	(51)
Ending balance (in shares) at Dec. 28, 2019		14,624,159			3,214,888
Ending balance at Dec. 28, 2019	$ 427,079	$ 146	$ 106,698	$ 435,249	$ (78,778)	$ (37,620)	$ 1,384

Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Statement of Stockholders' Equity [Abstract]
Cash Dividends Declared per Common Share (in dollars per share)	$ 0.23	$ 0.23	$ 0.23	$ 0.23	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 0.92	$ 0.88	$ 0.84

Nature of Operations and Summary of Significant Accounting Policies

12 Months Ended

Dec. 28, 2019

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 trades on the New York Stock Exchange under the ticker symbol "KAI."

Kadant Inc. (together with its subsidiaries, the Company) is a global supplier of high-value, critical components and engineered systems used in process industries worldwide. The Company has a diverse and large customer base, including most of the world's major paper producers and lumber and oriented strand board (OSB) manufacturers, as well as various mining and industrial processing companies that require bulk material handling solutions. Its products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries.

The Company's operations include three reportable operating segments, Papermaking Systems, Wood Processing Systems, and Material Handling Systems, and a separate product line, Fiber-based Products.

See Note 12, Business Segment and Geographical Information, for further details regarding all the Company's segments.

Noncontrolling Interest

One of the Company's foreign subsidiaries that manufactures fluid-handling products is part of a joint venture agreement with an Italian company in which each holds a 50 percent ownership interest. The agreement provides the Company's subsidiary with the option to purchase the remaining 50 percent interest in the joint venture.

Principles of Consolidation

The accompanying consolidated financial statements of the Company include the accounts of its wholly and majority-owned subsidiaries. All material intercompany accounts and transactions have been eliminated.

Fiscal Year

The Company has adopted a fiscal year ending on the Saturday nearest to December 31. References to 2019, 2018, and 2017 are for the fiscal years ended December 28, 2019, December 29, 2018, and December 30, 2017, respectively.

Financial Statement Presentation

Effective at the beginning of 2018, the Company adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (Topic 606), using the modified retrospective method. Results for 2019 and 2018 are presented under Topic 606, while 2017 amounts are not adjusted and are reported under the Company's prior method of reporting revenue recognition in accordance with Accounting Standards Codification (ASC), Revenue Recognition (Topic 605) (Topic 605). The impact on any financial statement line item arising from the application of Topic 606 compared to Topic 605 on the Company's results for the 2018 period was not material.

Effective at the beginning of 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) (Topic 842), using the cumulative-effect adjustment method. Financial statement amounts and disclosures in 2019 are presented under Topic 842, while 2018 and 2017 are not adjusted and are reported under the Company's prior method of accounting for leases in accordance with ASC 840, Leases (Topic 840) (Topic 840), which did not require the recognition of operating leases on the balance sheet and is not comparative.

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. 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.

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.

Revenue Recognition

Effective at the beginning of 2018, the Company adopted Topic 606, using a modified retrospective method. Results for 2019 and 2018 are presented under Topic 606, while 2017 amounts are not adjusted and are reported in accordance with Topic 605. The impact on any financial statement line item arising from the application of Topic 606 compared to Topic 605 on the Company's results for the 2018 period was not material.

Most of the Company’s revenue is recognized at a point in time for each performance obligation under the contract when the customer obtains control of the goods or service. Most of the Company’s parts and consumables products and its 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 reflected in cost of revenues when revenue is recognized.

The remaining portion of the Company’s revenue is 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. Most of the contracts recognized on an over time basis are for large capital projects within the Company’s Stock-Preparation product line and Material Handling Systems segment and, to a lesser extent, its Fluid-Handling and Doctoring, Cleaning, & Filtration product lines. These projects are highly customized for the customer and, as a result, would include a significant cost to rework in the event of cancellation.

The following table presents revenue by revenue recognition method:



(In thousands)	December 28, 2019		December 29, 2018
Point in Time	$	611,528	$	577,506
Over Time	93,116		56,280
	$	704,644	$	633,786

The transaction price includes estimated variable consideration where applicable. Such variable consideration relates to certain performance guarantees and rights to return the product. The Company estimates variable consideration as the most likely amount to which it expects to be entitled based on the terms of the contracts with customers and historical experience, where relevant. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation based on the relative stand-alone selling price.

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

The following table presents the disaggregation of revenues by product type and geography:



(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Revenues by Product Type:
Parts and Consumables	$	440,699	$	374,433	$	316,506
Capital	263,945		259,353		198,527
	$	704,644	$	633,786	$	515,033
Revenues by Geography:
North America	$	386,952	$	305,618	$	238,483
Europe	180,888		174,681		157,994
Asia	84,705		109,688		78,443
Rest of World	52,099		43,799		40,113
	$	704,644	$	633,786	$	515,033

See Note 12, Business Segment and Geographical Information, for information on the disaggregation of revenues by segment and product line.

The following tables presents contract balances from contracts with customers:



(In thousands)	December 28, 2019		December 29, 2018
Accounts receivable	$	95,740	$	92,624
Contract assets	$	13,162	$	15,741
Contract liabilities	$	37,216	$	34,774

Contract assets represent unbilled revenues associated with revenue recognized on contracts accounted for on an over time basis, which will be billed in future periods based on the contract terms. Contract liabilities consist of customer deposits, advanced billings, and deferred revenue. Deferred revenue is included in other current liabilities in the accompanying consolidated balance sheet. Contract liabilities will be recognized as revenue in future periods once the revenue recognition criteria are met. The majority of the contract liabilities relate to advance payments on contracts accounted for at a point in time. These advance payments will be recognized as revenue when the Company's performance obligations have been satisfied, which typically occurs within nine to twelve months after the product has shipped and control of the asset has transferred to the customer. The Company recognized revenue of $29,220,000 in 2019 and $36,556,000 in 2018 that was included in the contract liabilities balance at the beginning of 2019 and 2018. The majority of the Company's contracts for capital equipment have an original expected duration of one year or less. For contracts with an original expected duration of over one year, the aggregate amount of the transaction price allocated to the remaining partially unsatisfied performance obligations as of year-end 2019 was $13,176,000. The Company will recognize revenue for these performance obligations as they are satisfied, approximately 90% of which is expected to occur within the next twelve months.

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 draft matures or is settled prior to maturity. For customers outside of China, final payment for the majority of the Company's products is received in the quarter following the product shipment. Certain of the Company's contracts include a longer period before final payment is due, which is typically within one year of final shipment or transfer of control to the customer.

The Company includes in revenue amounts invoiced for shipping and handling with the corresponding costs reflected in cost of revenues. Provisions for discounts, warranties, returns and other adjustments are provided for in the period in which the related sale was recorded. Sales taxes, value-added taxes and certain excise taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from revenue.

In 2017, the Company recognized revenue under ASC 605, "Revenue Recognition," (ASC 605), when the following criteria had been met: persuasive evidence of an arrangement existed, delivery had occurred or service had been rendered, the sales price was fixed or determinable, and collectability was reasonably assured. When the terms of the sale included customer acceptance provisions, and compliance with those provisions could not be demonstrated until customer acceptance, revenue was recognized upon such acceptance. Most of the Company's revenue in 2017 was recognized in accordance with these policies. However, when a sale arrangement involved multiple elements, such as equipment and installation, the Company determined whether the deliverables in the arrangement represented separate units of accounting. Revenue was allocated to each unit of accounting or element based on relative selling prices and was recognized as each element was delivered or completed. Additionally, revenues and profits on certain long-term contracts in 2017 were recognized using the percentage-of-completion method or the completed-contract method of accounting pursuant to ASC 605. Revenues recorded under the percentage-of-completion method were $27,676,000 in 2017. For long-term contracts that did not meet the criteria under ASC 605 to be accounted for under the percentage-of-completion method in 2017, the Company recognized revenue using the completed-contract method.

Accounts Receivable

Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company exercises judgment in determining its allowance for doubtful accounts, which is based on its historical collection experience, current trends, credit policies, specific customer collection issues, and accounts receivable aging categories. In determining this allowance, the Company looks at historical write-offs of its receivables. The Company also looks at current trends in the credit quality of its customer base as well as changes in its credit policies. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and each customer's current creditworthiness. The Company continuously monitors collections and payments from its customers. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. In some instances, the Company utilizes letters of credit to mitigate its credit exposure.

The changes in the allowance for doubtful accounts are as follows:



(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Balance at Beginning of Year	$	2,897		$	2,879		$	2,395
Provision charged to expense	114			355			436
Accounts written off	(263		)	(165		)	(159		)
Currency translation	(50		)	(172		)	207
Balance at End of Year	$	2,698		$	2,897		$	2,879

The Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The drafts are noninterest-bearing obligations of the issuing bank and mature within six months of the origination date. The Company's Chinese subsidiaries may sell the drafts at a discount to a third-party financial institution or transfer the drafts to vendors in settlement of current accounts payable prior to the scheduled maturity date. These drafts, which totaled $5,230,000 at year-end 2019 and $7,976,000 at year-end 2018, are included in accounts receivable in the accompanying consolidated balance sheet until the subsidiary sells the drafts to a bank and receives a discounted amount, transfers the banker's acceptance drafts in settlement of current accounts payable prior to maturity, or obtains cash payment on the scheduled maturity date.

Warranty Obligations

The Company's contracts covering the sale of its products include warranty provisions that provide assurance to its customers that the products will comply with agreed-upon specifications during a defined period of time. The Company provides for the estimated cost of product warranties at the time of sale based on the historical occurrence rates and repair costs, as well as knowledge of any specific warranty problems that indicate projected warranty costs may vary from historical patterns. The Company negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications. While the Company engages in extensive product quality programs and processes, the Company's warranty obligation is affected by product failure rates, repair costs, service delivery costs incurred in correcting a product failure, and supplier warranties on parts delivered to the Company. Should these factors or actual results differ from the Company's estimates, revisions to the estimated warranty liability would be required.

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



(In thousands)	December 28, 2019			December 29, 2018
Balance at Beginning of Year	$	5,726		$	5,498
Provision charged to expense	4,727			3,708
Usage	(4,255		)	(3,140		)
Acquisition	303			—
Currency translation	(34		)	(340		)
Balance at End of Year	$	6,467		$	5,726

Income Taxes

In accordance with ASC 740, Income Taxes, (ASC 740), the Company recognizes deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which these differences are expected to reverse. A tax valuation allowance is established, as needed, to reduce deferred tax assets to the amount expected to be realized. In the period in which it becomes more likely than not that some or all of the deferred tax assets will be realized, the valuation allowance will be adjusted.

It is the Company's policy to provide for uncertain tax positions and the related interest and penalties based upon management's assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. At December 28, 2019, the Company believes that it has appropriately accounted for any liability for unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established, the statute of

limitations expires for a tax jurisdiction year, or the Company is required to pay amounts in excess of the liability, its effective tax rate in a given financial statement period may be affected.

Earnings per Share

Basic earnings per share (EPS) is computed by dividing net income attributable to Kadant by the weighted average number of shares outstanding during the year. Diluted EPS is computed using the treasury stock method assuming the effect of all potentially dilutive securities, including stock options, restricted stock units (RSUs) and employee stock purchase plan shares.

Cash and Cash Equivalents

At year-end 2019 and year-end 2018, the Company's cash equivalents included investments in money market funds and marketable securities, which had maturities of three months or less at the date of purchase. The carrying amounts of cash equivalents approximate their fair values due to the short-term nature of these instruments.

Restricted Cash

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

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



(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Cash and cash equivalents	$	66,786	$	45,830	$	75,425
Restricted cash	1,487		287		1,421
Total Cash, Cash Equivalents, and Restricted Cash	$	68,273	$	46,117	$	76,846

Supplemental Cash Flow Information



(In thousands)	December 28, 2019			December 29, 2018		December 30, 2017
Cash Paid for Interest	$	12,344		$	7,550	$	2,624
Cash Paid for Income Taxes, Net of Refunds	$	24,533		$	25,654	$	20,559

Non-Cash Investing Activities:
Fair value of assets of acquired	$	207,223		$	—	$	242,399
Cash paid for acquired businesses	(179,693		)	—		(206,785		)
Liabilities Assumed of Acquired Businesses	$	27,530		$	—	$	35,614

Non-cash additions to property, plant, and equipment	$	626		$	917	$	4,620

Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of RSUs	$	4,100		$	4,231	$	3,192
Dividends declared but unpaid	$	2,628		$	2,444	$	2,316

Inventories

Inventories are stated at the lower of cost (on a first-in, first-out; or weighted average basis) or net realizable value and include materials, labor, and manufacturing overhead. The Company regularly reviews its quantities of inventories on hand and compares these amounts to the historical and forecasted usage of and demand for each particular product or product line. The Company records a charge to cost of revenues for excess and obsolete inventory to reduce the carrying value of inventories to net realizable value.

The components of inventories are as follows:



(In thousands)	December 28, 2019		December 29, 2018
Raw Materials	$	49,332	$	44,522
Work in Process	15,344		15,876
Finished Goods (includes $559 and $494 at customer locations)	38,039		25,975
	$	102,715	$	86,373

Property, Plant, and Equipment

Property, plant, and equipment are stated at cost. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. The Company provides for depreciation and amortization primarily using the straight-line method over the estimated useful lives of the property as follows: buildings, 10 to 40 years; machinery and equipment, 2 to 10 years; and leasehold improvements, the shorter of the term of the lease or the life of the asset. For construction in progress, no provision for depreciation is made until the assets are available and ready for use.

Property, plant, and equipment consist of the following:



(In thousands)	December 28, 2019		December 29, 2018
Land	$	7,347	$	7,614
Buildings	58,509		58,866
Machinery, Equipment, and Leasehold Improvements	112,655		100,453
Construction in Progress	2,830		3,764
	181,341		170,697
Less: Accumulated Depreciation and Amortization	95,309		90,540
	$	86,032	$	80,157

Depreciation and amortization expense was $12,236,000 in 2019, $9,386,000 in 2018, and $7,418,000 in 2017. See Note 9, Leases, for further details relating to assets under financing leases included in property, plant and equipment in the accompanying consolidated balance sheet.

Intangible Assets, Net

Acquired intangible assets by major asset class are as follows:



(In thousands)	Gross		Accumulated Amortization			Currency Translation			Net
December 28, 2019
Definite-Lived
Customer relationships	$	171,583	$	(51,798	)	$	(4,141	)	$	115,644
Product technology	56,011		(27,819		)	(1,709		)	26,483
Tradenames	6,527		(2,421		)	(427		)	3,679
Other	17,964		(13,295		)	(593		)	4,076
	252,085		(95,333		)	(6,870		)	149,882
Indefinite-Lived
Tradenames	24,100		—			(86		)	24,014
Acquired Intangible Assets	$	276,185	$	(95,333	)	$	(6,956	)	$	173,896

December 29, 2018
Definite-Lived
Customer relationships	$	113,283	$	(38,160	)	$	(4,520	)	$	70,603
Product technology	46,501		(23,563		)	(1,677		)	21,261
Tradenames	5,227		(1,980		)	(390		)	2,857
Other	13,744		(11,476		)	(127		)	2,141
	178,755		(75,179		)	(6,714		)	96,862
Indefinite-Lived
Tradenames	16,600		—			(115		)	16,485
Acquired Intangible Assets	$	195,355	$	(75,179	)	$	(6,829	)	$	113,347

In the fourth quarter of 2019, the Company recorded impairment charges related to its definite- and indefinite-lived intangible assets totaling $2,336,000 and reclassified $1,300,000 of an indefinite-lived tradename to definite-lived. See Impairment of Long-Lived Assets within this note for further details.

Intangible assets are initially recorded at fair value at the date of acquisition. Definite-lived intangible assets are stated net of accumulated amortization and currency translation in the accompanying consolidated balance sheet. The Company amortizes definite-lived intangible assets over lives that have been determined based on the anticipated cash flow benefits of the intangible asset. Definite-lived intangible assets have a weighted average amortization period of 12 years. Amortization of definite-lived intangible assets was $20,154,000 in 2019, $14,182,000 in 2018, and $11,957,000 in 2017. The estimated future amortization expense of definite-lived intangible assets is $18,714,000 in 2020; $17,875,000 in 2021; $16,797,000 in 2022; $15,164,000 in 2023; $14,272,000 in 2024; and $67,060,000 in the aggregate thereafter.

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the identifiable net assets of the acquired business at the date of acquisition. The Company’s acquisitions have historically been made at prices above the fair value of the acquired net assets, resulting in goodwill, due to the expectation of synergies from combining the businesses.

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



(In thousands)	Papermaking Systems			Wood Processing Systems			Material Handling Systems		Total
Balance as of December 30, 2017
Gross balance	$	247,014		$	106,496		$	—	$	353,510
Accumulated impairment losses	(85,509		)	—			—		(85,509		)
Net balance	161,505			106,496			—		268,001
2018 Adjustments
Acquisitions (Note 2)	(17		)	(75		)	—		(92		)
Currency translation	(5,085		)	(4,650		)	—		(9,735		)
Total 2018 Adjustments	(5,102		)	(4,725		)	—		(9,827		)
Balance at December 29, 2018
Gross balance	241,912			101,771			—		343,683
Accumulated impairment losses	(85,509		)	—			—		(85,509		)
Net balance	156,403			101,771			—		258,174
2019 Adjustments
Acquisition (Note 2)	—			—			78,592		78,592
Currency translation	(1,592		)	858			—		(734		)
Total 2019 Adjustments	(1,592		)	858			78,592		77,858
Balance at December 28, 2019
Gross balance	240,320			102,629			78,592		421,541
Accumulated impairment losses	(85,509		)	—			—		(85,509		)
Net balance	$	154,811		$	102,629		$	78,592	$	336,032

Impairment of Long-Lived Assets

The Company evaluates the recoverability of goodwill and indefinite-lived intangible assets as of the end of each fiscal year, or more frequently if events or changes in circumstances, such as a significant decline in sales, earnings, or cash flows, or material adverse changes in the business climate, indicate that the carrying value of an asset might be impaired.

Goodwill

At year-end 2019, the Company performed a qualitative impairment analysis (Step 0) of its goodwill and determined that the asset was not impaired. The impairment analysis included an assessment of certain qualitative factors including, but not limited to, the results of prior fair value calculations, the movement of the Company's share price and market capitalization, the reporting unit and overall financial performance, and macroeconomic and industry conditions. The Company considered the qualitative factors and weighed the evidence obtained, and determined that it was not more likely than not that the fair value of any of the assets was less than its carrying amount. Although the Company believes the factors considered in the impairment analysis are reasonable, significant changes in any one of the assumptions used could have produced a different result.

At year-end 2018, the Company performed a quantitative goodwill impairment assessment (Step 1) for all of its reporting units, which indicated that the fair value of each reporting unit exceeded its carrying value, and determined that the asset was not impaired.

Goodwill by reporting unit is as follows:



(In thousands)	December 28, 2019		December 29, 2018
Stock-Preparation	$	57,132	$	58,142
Fluid-Handling	63,382		64,052
Doctoring, Cleaning, & Filtration	34,297		34,209
Wood Processing Systems	102,629		101,771
Material Handling Systems	78,592		—
	$	336,032	$	258,174

Intangible Assets

At year-end 2019, the Company performed a qualitative impairment analysis on its indefinite-lived intangible assets and determined that the assets were not impaired, except for the indefinite-lived tradename associated with the Company's timber-harvesting product line discussed below. At year-end 2018, the Company performed a quantitative impairment analysis on its indefinite-lived intangible assets and determined that the assets were not impaired.

The Company assesses its long-lived assets, other than goodwill and indefinite-lived intangible assets, for impairment whenever facts and circumstances indicate that the carrying amounts may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining lives of such assets or asset groups. If these projected cash flows were to be less than the carrying amounts, an impairment loss would be recognized, resulting in a write-down of the assets with a corresponding charge to earnings. The impairment loss would be measured based upon the difference between the carrying amounts of the assets and their fair values calculated using projected cash flows. No indicators of impairment were identified in 2019 or 2018, except for the definite-lived product technology associated with the Company's timber-harvesting product line discussed below.

During 2019, the Company experienced a significant decrease in revenues and operating results in its timber-harvesting product line included in its Wood Processing Systems segment, which it acquired in 2017 as part of the Company's acquisition of the forest products business of NII FPG Company (NII FPG) (see Note 2, Acquisitions). The decrease was primarily driven by the deterioration of several market conditions in the Pacific Northwest, including a widespread timber shortage in this region and high stumpage fees. These factors, along with a shift in demand for timber to the Southeastern part of the United States, resulted in sawmill closures in western Canada where the Company's steep terrain equipment is generally used. Given the decline in demand for this business' products, which the Company expects to continue into 2020, the Company performed a quantitative analysis of the recoverability of the related intangible assets. As a result of this analysis in which the income approach discounted cash flow methodology was used, the Company determined that the fair values of certain of the timber-harvesting product line's intangible assets were less than their carrying values, and therefore, recorded impairment charges in the fourth quarter of 2019 totaling $2,336,000. These impairment charges, which are included in impairment and restructuring costs in the accompanying consolidated statement of income, consist of $1,636,000 related to the definite-lived product technology of the timber-harvesting product line and $700,000 related to its indefinite-lived tradename. The Company reclassified the remaining carrying value of $1,300,000 related to the indefinite-lived tradename associated with the timber-harvesting product line to definite-lived tradenames, as the indefinite use of the tradename is no longer certain.

Business Combinations

The Company's acquisitions have been accounted for using the purchase method of accounting under ASC 805, Business Combinations (ASC 805), and the results of the acquired businesses have been included in its consolidated financial statements from their respective dates of acquisition. The Company accounts for all transactions and events in which it obtains control over a business under ASC 805 to recognize the fair value of all assets and liabilities acquired and in establishing the acquisition date for all assets acquired and liabilities assumed. The Company’s acquisitions have historically been made at prices above the fair value of identifiable net assets, resulting in goodwill, due to synergies expected to be realized by combining the businesses.

While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business acquisition date, the estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the purchase price allocation period, which is generally one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. For changes in the valuation of intangible assets between the preliminary and final purchase price allocation, the related amortization is adjusted in the period it occurs. Subsequent to the purchase price allocation period, any adjustment to assets acquired or liabilities assumed is included in operating results in the period in which the adjustment is determined. Acquisition transaction costs are recorded as incurred in selling, general, and administrative expenses (SG&A) in the accompanying consolidated statement of income and were $843,000 in 2019, $1,321,000 in 2018, and $5,375,000 in 2017.

Foreign Currency Translation and Transactions

All assets and liabilities of the Company's foreign subsidiaries are translated at fiscal year-end exchange rates, and revenues and expenses are translated at average exchange rates for each quarter in accordance with ASC 830, Foreign Currency Matters. Resulting translation adjustments are reflected in the "accumulated other comprehensive items" (AOCI) component of stockholders' equity (see Note 14, Accumulated Other Comprehensive Items). Foreign currency transaction gains and losses are included in the accompanying consolidated statement of income and are not material in the three years presented.

Stock-Based Compensation

The Company recognizes compensation 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. The fair value of stock options is based on the Black-Scholes option-pricing model. For stock options and time-based RSUs, compensation expense is recognized ratably over the requisite service period for the entire award, and net of actual forfeitures recorded when they occur. For performance-based RSUs, compensation expense is recognized ratably over the requisite service period for each separately-vesting portion of the award based on the grant date fair value, net of actual forfeitures recorded when they occur, and remeasured each reporting period until the total number of RSUs to be issued is known. Compensation expense related to any modified stock-based awards is based on the fair value for those awards as of the modification date with any remaining incremental compensation expense recognized ratably over the remaining requisite service period.

Derivatives

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

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

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Leases (Topic 842). In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, which requires a lessee to recognize a right-of-use (ROU) asset and a corresponding lease liability for operating leases, initially measured at the present value of the future lease payments, on 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. The Company adopted this ASU as of the beginning of 2019 using the cumulative-effect adjustment method. As a result, prior period amounts were not restated and continue to be accounted for under Topic 840, Leases, which did not require the recognition of operating leases on the balance sheet and is not comparative. As permitted under ASC 842, the Company elected the package of practical expedients for expired or existing contracts, which does not require the reassessment of prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected practical expedients relating to its ongoing accounting, including a short-term lease recognition exemption allowing lessees not to recognize ROU assets and liabilities with terms of 12 months or less and an election not to separate lease and non-lease components for all leases except vehicle leases.

The adoption of this standard as of the beginning of 2019 resulted in increases of 2.3% to total assets and 4.8% to total liabilities and an immaterial decrease to retained earnings. In addition, the adoption of this ASU did not have a material impact on the Company’s condensed consolidated statements of income or cash flows. See Note 9, Leases, for the required lease accounting disclosures.

Derivatives and Hedging (Topic 815), Targeted Improvements in Accounting for Hedging Activity. In August 2017, the FASB issued ASU No. 2017-12, which revises hedge accounting to better portray the economic results of an entity’s risk management activities, simplifies hedge accounting guidance, and improves disclosures of hedge accounting arrangements. The

Company adopted this ASU on a prospective basis at the beginning of 2019. The adoption of this ASU did not have an impact on the Company's condensed consolidated financial statements.

Compensation-Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20), Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. In August 2018, the FASB issued ASU 2018-14, which removes, adds and clarifies several disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This new guidance is effective on a retrospective basis for the Company in fiscal 2020. Early adoption is permitted. The Company elected to early adopt this ASU in the fourth quarter of 2019, which did not have a material effect on its consolidated financial statements. See Note 3, Employee Benefit Plans, for revised disclosures.

Recent Accounting Pronouncements Not Yet Adopted

Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU No. 2016-13, which changes the way entities recognize impairment of financial assets measured at amortized costs, such as accounts receivable, 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. The Company does not expect the adoption of this ASU will have a material impact on its consolidated financial statements.

Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. In December 2019, the FASB issued ASU No. 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance, including the recognition of franchise tax, the treatment of a step up in the tax basis of goodwill, and the timing for recognition of enacted changes in tax laws or rates in the interim period annual effective tax rate computation. This new guidance is effective for the Company in fiscal 2021, with early adoption permitted. The Company is currently evaluating the effects that the adoption of this ASU will have on its consolidated financial statements.

Acquisitions

12 Months Ended

Dec. 28, 2019

Business Combinations [Abstract]

Acquisitions

2019

In September 2019, the Company acquired certain assets of a business in Brazil for its Papermaking Systems segment for approximately $407,000 in cash.

In January 2019, the Company acquired, directly and indirectly, all the outstanding equity interests of Syntron Material Handling Group, LLC and certain of its affiliates (SMH) pursuant to an equity purchase agreement, dated December 9, 2018, for $176,855,000, net of cash acquired. The Company funded the acquisition through borrowings under its revolving credit facility.

SMH, which comprises the Company's Material Handling Systems segment, has manufacturing operations in Mississippi, United States, and China. SMH is a leading provider of material handling equipment and systems to various process industries, including mining, aggregates, food processing, packaging, and pulp and paper. The Company expects several synergies in connection with this acquisition, including expansion of product sales into new markets by leveraging SMH's existing presence, strengthening of SMH's relationships in the pulp and paper industry, and sourcing efficiencies. Goodwill from the SMH acquisition was $78,592,000, of which $59,195,000 is expected to be deductible for tax purposes over 15 years. In addition, intangible assets acquired were $83,020,000, of which $69,969,000 is expected to be deductible for tax purposes over 15 years. For 2019, the Company recorded revenues of $83,364,000 and operating income of $3,132,000 for SMH from the date of acquisition, including amortization expense of $4,872,000 associated with acquired profit in inventory and backlog and $843,000 of acquisition transaction costs.

The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price for SMH. During the fourth quarter of 2019, the Company made an adjustment to reduce goodwill by $1,704,000, principally due to a reduction of long-term deferred income tax liabilities as a result of the tax attributes acquired.



	SMH
(In thousands)	January 2, 2019
Net Assets Acquired:
Cash, Cash Equivalents, and Restricted Cash	$	2,431
Accounts Receivable	10,275
Inventories	13,061
Property, Plant, and Equipment	7,383
Other Assets	12,054
Definite-Lived Intangible Assets
Customer relationships	58,300
Product technology	11,000
Other	4,220
Indefinite-Lived Intangible Assets
Tradenames	9,500
Goodwill	78,592
Total assets acquired	206,816

Accounts Payable	3,380
Other Current Liabilities	7,954
Long-Term Lease Liabilities	15,244
Long-Term Deferred Income Taxes	952
Total liabilities assumed	27,530
Net assets acquired	$	179,286

Purchase Price:
Cash Paid to Seller Borrowed Under Revolving Credit Facility	$	179,286

The weighted-average amortization period for the definite-lived intangible assets above is 14 years, including weighted-average amortization periods of 15 years for customer relationships, 14 years for product technology, and 8 years for other intangible assets.

Unaudited Supplemental Pro Forma Information

Had the acquisition of SMH been completed as of the beginning of 2018, the Company’s pro forma results of operations for 2019 and 2018 would have been as follows:



(In thousands, except per share amounts)	December 28, 2019		December 29, 2018
Revenues	$	704,644	$	719,142
Net Income Attributable to Kadant	$	56,409	$	56,511
Earnings per Share Attributable to Kadant
Basic	$	5.02	$	5.10
Diluted	$	4.92	$	4.96

The historical consolidated financial information of the Company and SMH has been adjusted in the pro forma information to give effect to pro forma events that are directly attributable to the acquisition and related financing arrangements, are expected to have a continuing impact on the Company, and are factually supportable.

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


•	Pre-tax charge to SG&A expenses of $843,000 in 2018 and reversal of $843,000 in 2019 for acquisition transaction costs.


•	Pre-tax charge to cost of revenues of $3,549,000 in 2018 and reversal of $3,549,000 in 2019 for the sale of inventory revalued at the date of acquisition.


•	Pre-tax charge to SG&A expenses of $1,323,000 in 2018 and reversal of $1,323,000 in 2019 for intangible asset amortization related to acquired backlog.


•	Tax effects related to pro forma adjustments.

2017

On August 14, 2017, the Company acquired certain assets of Unaflex, LLC (Unaflex) for $31,274,000 in cash. The Company funded the acquisition through borrowings under its revolving credit facility. Unaflex, located principally in South Carolina, is a leading manufacturer of expansion joints and related products for process industries. This acquisition complemented the Company’s existing Fluid-Handling product line within its Papermaking Systems segment. The Company anticipated and continues to achieve several synergies in connection with this acquisition, including the expansion of sales by Unaflex through leveraging the Company’s sales efforts, as well as sourcing and manufacturing efficiencies. Goodwill from the Unaflex acquisition was $15,640,000, all of which is expected to be deductible for tax purposes over 15 years. In addition, intangible assets acquired were $11,200,000, all of which is expected to be deductible for tax purposes over 15 years. For 2017, the Company recorded revenues of $7,335,000 and operating income of $187,000 for Unaflex from its date of acquisition, including amortization expense of $176,000 associated with acquired profit in inventory, and $596,000 of acquisition transaction costs.

On July 5, 2017, the Company acquired NII FPG pursuant to a Stock and Asset Purchase Agreement dated May 24, 2017, for $170,792,000, net of cash acquired. In connection with the acquisition, the Company borrowed an aggregate $170,018,000 under its revolving credit facility, including $62,690,000 of Canadian dollar-denominated and $61,769,000 of euro-denominated borrowings. NII FPG, which has two primary manufacturing facilities located in Canada and Finland, is a global leader in the design and manufacture of equipment used by sawmills, veneer mills, and other manufacturers in the forest products industry. NII FPG also designs and manufactures logging equipment used in harvesting timber from forest plantations. This acquisition extended the Company's presence deeper into the forest products industry and complemented its existing Wood Processing Systems segment. Goodwill from the NII FPG acquisition was $85,432,000, of which $33,993,000 is expected to be deductible for tax purposes over 15 years. In addition, intangible assets acquired were $72,812,000, of which $10,044,000 is expected to be deductible for tax purposes over 15 years. For 2017, the Company recorded revenues of $48,363,000 and operating income of $1,238,000 for NII FPG from its date of acquisition, including amortization expense of $6,399,000 associated with acquired profit in inventory and backlog, and $4,764,000 of acquisition transaction costs.

In addition, the Company paid $2,500,000 in cash in 2017 for another acquisition within the Fluid-Handling product line in the Company's Papermaking Systems segment.

The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price for the Company's 2017 acquisitions.



	NII FPG		Unaflex		Other
(In thousands)	July 5, 2017		August 14, 2017		October 30, 2017		Total
Net Assets Acquired:
Cash and Cash Equivalents	$	2,219	$	—	$	—	$	2,219
Accounts Receivable	6,542		2,079		—		8,621
Inventories	25,304		2,033		—		27,337
Property, Plant, and Equipment	12,912		1,279		284		14,475
Other Assets	2,375		72		—		2,447
Definite-Lived Intangible Assets
Customer relationships	44,682		8,000		1,500		54,182
Product technology	17,100		2,300		—		19,400
Other	2,530		900		—		3,430
Indefinite-Lived Intangible Assets
Tradenames	8,500		—		—		8,500
Goodwill	85,432		15,640		716		101,788
Total assets acquired	207,596		32,303		2,500		242,399

Accounts Payable	4,970		358		—		5,328
Customer Deposits	7,396		100		—		7,496
Long-Term Deferred Income Taxes	16,622		—		—		16,622
Other Liabilities	5,597		571		—		6,168
Total liabilities assumed	34,585		1,029		—		35,614
Net assets acquired	$	173,011	$	31,274	$	2,500	$	206,785

Purchase Price:
Cash Paid	$	2,993	$	—	$	—	$	2,993
Cash Paid to Seller Borrowed Under the Revolving Credit Facility	170,018		31,274		2,500		203,792
Total purchase price	$	173,011	$	31,274	$	2,500	$	206,785

For NII FPG, the weighted-average amortization period for definite-lived intangible assets acquired is 12 years, including weighted-average amortization periods of 15 years for product technology, 11 years for customer relationships, and 4 years for other intangible assets. For Unaflex, the weighted average amortization period for definite-lived intangible assets acquired, including customer relationships, product technology and other intangible assets, is 10 years. For the other acquisition, the amortization period for customer relationships is 11 years.

Unaudited Supplemental Pro Forma Information

Had the acquisitions of NII FPG and Unaflex been completed as of the beginning of 2016, the Company’s pro forma results of operations for 2017 would have been as follows:



(In thousands, except per share amounts)	December 30, 2017
Revenues	$	565,710
Net Income Attributable to Kadant	$	44,159
Earnings per Share Attributable to Kadant
Basic	$	4.02
Diluted	$	3.90

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


•	Reversal of pre-tax charge to SG&A expenses of $5,360,000 in 2017 for acquisition transaction costs.


•	Reversal of pre-tax charge to cost of revenues of $5,137,000 in 2017 for the sale of inventory revalued at the date of acquisition.


•	Reversal of pre-tax charge to SG&A expenses of $1,438,000 in 2017 for intangible asset amortization related to acquired backlog.


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


•	Tax effects related to pro forma adjustments.

These pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that would have resulted had the acquisitions of NII FPG and Unaflex occurred as of the beginning of 2016, or that may result in the future. The Company's pro forma results above exclude its other 2017 acquisition as those results would not have been materially different then the results presented above had they occurred at the beginning of 2016.

Employee Benefit Plans

12 Months Ended

Dec. 28, 2019

Share-based Payment Arrangement [Abstract]

Employee Benefit Plans

Stock-Based Compensation Plans

The Company maintains stock-based compensation plans primarily for its key employees and directors, although the plans permit awards to others expected to make significant contributions to the future of the Company. The plans authorize the compensation committee of the Company's board of directors (the board committee) to award a variety of stock and stock-based incentives, such as restricted stock, RSUs, nonqualified and incentive stock options, stock bonus shares, or performance-based shares. The award recipients and the terms of awards granted under these plans are determined by the board committee. Upon a change of control, as defined in the plans, all options or other awards become fully vested and all restrictions lapse. The Company had 409,295 shares available for grant under stock-based compensation plans at year-end 2019. The Company generally issues its common stock out of treasury stock, to the extent available, for share issuances related to its stock-based compensation plans.

The Company recognizes compensation cost for all stock-based awards granted to employees and directors based on the grant date estimate of fair value for those awards. The fair value of RSUs is based on the grant date price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period. The fair value of stock options is based on the Black-Scholes option-pricing model.

The components of pre-tax stock-based compensation expense included in SG&A expenses in the accompanying consolidated statement of income are as follows:



(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
RSU Awards	$	6,616	$	6,838	$	5,621
Employee Stock Purchase Plan Awards	199		189		182
Total	$	6,815	$	7,027	$	5,803

The Company grants RSUs to non-employee directors and certain employees. Holders of RSUs have no voting rights and are not entitled to receive cash dividends.

Non-Employee Director Restricted Stock Units

The Company granted RSU awards consisting of 1,858 RSUs in 2019, 2,700 RSUs in 2018 and 3,000 RSUs in 2017 to each of its incumbent non-employee directors. Each RSU represents the right to receive one share of the Company's common stock upon vesting. Of the RSUs granted in 2019 and 2018, half of the RSUs vested on June 1 of each year and the remaining RSUs vested ratably on the last day of the third and fourth fiscal quarters of each year. The 2017 RSUs vested ratably on the last day of each fiscal quarter within the year.

Performance-Based Restricted Stock Units

The Company grants performance-based RSUs to certain officers of the Company. Each performance-based RSU represents the right to receive one share of the Company's common stock upon vesting. The RSUs are subject to adjustment based on the achievement of a performance measure selected for the fiscal year, which historically has been a specified target for adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) generated from operations. Following the adjustment, the RSUs are subject to additional time-based vesting, and vest in three equal annual installments, provided that the officer is employed by the Company on the applicable vesting dates.

The Company recognizes compensation expense associated with performance-based RSUs ratably over the requisite service period for each separately-vesting portion of the award based on the grant date fair value, net of actual forfeitures recorded when they occur, and remeasured each reporting period until the total number of RSUs to be issued is known. Unrecognized compensation expense related to the unvested performance-based RSUs totaled $1,688,000 at year-end 2019, and will be recognized over a weighted average period of 1.3 years.

The performance-based RSU agreements provide for forfeiture in certain events, such as voluntary or involuntary termination of employment, and for acceleration of vesting in certain events, such as death, disability or a change in control of the Company. If death, disability, or a change in control occurs prior to the end of the performance period, the officer will receive the target RSU amount; otherwise, the officer will receive the number of deliverable RSUs based on the achievement of the performance goal, as stated in the RSU agreements.

Time-Based Restricted Stock Units

The Company grants time-based RSUs to its officers and other employees of the Company. Each time-based RSU represents the right to receive one share of the Company's common stock upon vesting. The Company recognizes compensation expense associated with these time-based RSUs ratably over the requisite service period for the entire award based on the grant date fair value, and net of actual forfeitures recorded when they occur. The time-based RSU agreement provides for forfeiture in certain events, such as voluntary or involuntary termination of employment, and for acceleration of vesting in certain events, such as death, disability, or a change in control of the Company. Unrecognized compensation expense related to the time-based RSUs totaled $3,170,000 at year-end 2019, and will be recognized over a weighted average period of 1.7 years.

A summary of the activity of the Company's unvested RSUs in 2019 is as follows:



	Units (In thousands)		Weighted Average Grant- Date Fair Value
Unvested RSUs at December 29, 2018	156		$	68.57
Granted	75		$	86.50
Vested	(94	)	$	57.81
Forfeited	(2	)	$	65.02
Unvested RSUs at December 28, 2019	135		$	86.11

The weighted-average grant date fair value of RSUs granted was $86.50 in 2019, $98.12 in 2018, and $59.30 in 2017. The total fair value of shares vested was $5,452,000 in 2019, $11,932,000 in 2018, and $6,719,000 in 2017.

Stock Options

The Company has not granted stock options since 2013. Prior to 2014, the Company granted nonqualified stock options to its executive officers that vested over three years and were not exercisable until vested. All options awarded in prior periods were granted at an exercise price equal to the fair market value of the Company's common stock on the date of grant. Stock options vested in three equal annual installments beginning on the first anniversary of the grant date, provided that the recipient remained employed by the Company on the applicable vesting dates and expire on the tenth anniversary of the grant date. All outstanding stock options are fully vested. The Company recognized compensation expense associated with these stock options ratably over the requisite service period for the entire award based on the grant date fair value, net of forfeitures. There was no unrecognized compensation expense related to these stock options at year-end 2019.

The Company used the Black-Scholes option-pricing model to determine the fair value of stock options, which was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. Option-pricing models require the input of highly subjective assumptions, including expected stock price volatility. Expected stock price volatility was calculated based on a review of the Company's actual historic stock prices commensurate with the expected life of the award. The expected option life was derived based on a review of the Company's historic option holding periods, including consideration of the holding period inherent in currently vested but unexercised options. The expected annual dividend rate was calculated by dividing the Company's annual dividend by the closing stock price on the grant date. The risk-free interest rate is based on the yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected term of the option. The compensation expense recognized for these equity-based awards was net of estimated forfeitures. Forfeitures were estimated based on an analysis of actual option forfeitures.

A summary of the Company's stock option activity in 2019 is as follows:



(In thousands, except per share amounts)	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (a)
Options Outstanding at December 29, 2018	299		$	20.86
Exercised	(225	)	$	19.75
Options Outstanding at December 28, 2019	74		$	24.28	2.3 years	$	6,002
Vested and Exercisable at December 28, 2019	74		$	24.28	2.3 years	$	6,002


(a)	The closing price per share on the last trading day prior to year-end 2019 was $105.76.

There were no stock option exercises in 2017. A summary of the Company's stock option exercises in 2019 and 2018 are as follows:



(In thousands)	December 28, 2019		December 29, 2018
Total Intrinsic Value of Options Exercised	$	16,796	$	515
Cash Received from Options Exercised	$	4,454	$	127

Modified Awards

On September 20, 2017, the Company entered into an executive transition agreement with its vice president, general counsel and secretary in connection with her retirement on July 1, 2018. This agreement included provisions for post-employment compensation and modifications to outstanding equity awards. The Company recognized $374,000 of post-employment compensation ratably through the retirement date. Pursuant to this agreement, all unvested RSUs vested at the retirement date. As of September 20, 2017, 4,254 RSUs were remeasured at a fair value of $93.82 per unit. The remaining compensation expense associated with the modified RSUs totaled $332,000 as of September 20, 2017, which was recognized ratably through the retirement date.

Employee Stock Purchase Plan

The Company's eligible U.S. employees may elect to participate in its employee stock purchase plan. Under the plan, shares of the Company's common stock may be purchased at a 15% discount from the fair market value at the beginning or end of the purchase period, whichever is lower. Shares purchased under the plan are subject to a one-year resale restriction and are purchased through payroll deductions of up to 10% of each participating employee's gross wages. The Company issued 13,195 shares for 2019 (issued in 2020), 10,439 shares for 2018 (issued in 2019), and 13,156 shares for 2017 (issued in 2018) of its common stock under this plan.

401(k) Savings and Other Defined Contribution Plans

The Company's U.S. subsidiaries participate in the Kadant Inc. 401(k) Retirement Savings Plan sponsored by the Company. Contributions to the plan are made by both the employee and the Company and are immediately vested. Company contributions are based upon the level of employee contributions.

Certain of the Company's subsidiaries offer other retirement plans, the majority of which are defined contribution plans. Company contributions to these plans are based on formulas determined by the Company.

For these plans, the Company contributed and charged to expense $4,412,000 in 2019, $3,705,000 in 2018, and $3,327,000 in 2017. The increases in the Company's contributions to these benefit plans in 2019 and 2018 are primarily due to the acquisitions of SMH and Unaflex, respectively.

Pension and Other Post-Retirement Benefits Plans

Prior to its termination at year-end 2018, the Company sponsored a noncontributory defined benefit pension plan for eligible employees at one of its U.S. divisions and its corporate office (Retirement Plan). Funds for the Retirement Plan were contributed to a trustee to provide for current service and for any unfunded projected benefit obligation over a reasonable period. Certain of the Company’s non-U.S. subsidiaries also sponsor defined benefit pension plans covering certain employees at those subsidiaries. One of the non-U.S. pension plans also contributes funds to a trustee. The remaining non-U.S. pension plans are unfunded as permitted under their plans and applicable laws. Benefits under the Company’s pension plans are based on years of service and employee compensation.

The Company also provides other post-retirement benefits under plans in the United States and at one of its non-U.S. subsidiaries. Prior to its termination at year-end 2018, the Company provided for a restoration plan (Restoration Plan) for certain executive officers which fully supplemented benefits lost under the Retirement Plan.

In accordance with ASC 715, Compensation-Retirement Benefits (ASC 715), the Company recognizes the funded status of its defined benefit pension and other post-retirement benefit plans as an asset or liability and changes in the funded status through AOCI, net of tax. The amounts in AOCI are recognized as net periodic pension cost pursuant to the Company's historical accounting policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic benefit cost will be recognized as a component of AOCI, net of tax.

In 2018, the Company's board of directors and its compensation committee approved amendments to freeze and terminate the Retirement Plan and Restoration Plan as of December 29, 2018 and, as a result, incurred a curtailment loss of $1,425,000, which was reclassified from AOCI and included in other expense, net in the accompanying consolidated statement of income in the fourth quarter of 2018. Additionally, an effect of curtailment of $4,862,000 was recognized as a reduction in AOCI and accrued pension liability in the accompanying consolidated balance sheet at year-end 2018.

In the fourth quarter of 2019, the Company settled its Retirement Plan obligation, which required adjustment based on the number of plan participants who elected to receive either a lump sum payment or an annuity, and the increased costs to purchase the annuity contracts due to changes in certain market conditions, including a decrease in long-term interest rates in 2019. As a result, the Company recognized a settlement loss of $5,887,000, which is included in other expense, net in the accompanying consolidated statement of income, and was calculated as the sum of the unrecognized actuarial loss and $3,839,000 of additional cash to be paid, less the accrued pension liability. Subsequent to year-end 2019, the Company settled its Restoration Plan obligation of $2,427,000 by paying a lump sum to its plan participants.

The Company does not plan to make any other material cash contributions to its other pension and post-retirement plans in 2020.

The following table summarizes the change in benefit obligation; the change in plan assets; the unfunded status; and the amounts recognized in the accompanying consolidated balance sheet for the Company's U.S. and non-U.S. pension benefit plans and other post-retirement benefit plans. In accordance with ASU No. 2015-04, Compensation - Retirement Benefits (Topic 715), the Company elects to measure its plan assets and benefit obligations as of December 31.



	U.S. Pension (a)						Non-U.S. Pension						Other Post-Retirement
(In thousands)	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year	$	29,715		$	34,757		$	3,671		$	4,270		$	3,672		$	4,704
Service cost	—			699			205			173			4			213
Interest cost	1,134			1,193			121			126			149			172
Actuarial loss (gain)	4,039			(2,674		)	393			(368		)	144			(508		)
Benefits paid	(966		)	(1,589		)	(184		)	(394		)	(232		)	(157		)
Plan amendment	—			1,116			—			—			—			322
Effect of curtailment	—			(3,787		)	—			—			—			(1,075		)
Settlement payment	(33,922		)	—			—			—			—			—
Currency translation	—			—			(38		)	(136		)	5			1
Projected benefit obligation at end of year	$	—		$	29,715		$	4,168		$	3,671		$	3,742		$	3,672
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	28,729		$	31,754		$	726		$	557		$	44		$	35
Actual return on plan assets	2,320			(1,436		)	58			38			4			2
Employer contributions	3,839			—			340			528			246			164
Benefits paid	(966		)	(1,589		)	(184		)	(394		)	(232		)	(157		)
Settlement payment	(33,922		)	—			—			—			—			—
Currency translation	—			—			33			(3		)	2			—
Fair value of plan assets at end of year	$	—		$	28,729		$	973		$	726		$	64		$	44
Unfunded Status	$	—		$	(986	)	$	(3,195	)	$	(2,945	)	$	(3,678	)	$	(3,628	)
Accumulated Benefit Obligation at End of Year	$	—		$	29,715		$	3,046		$	2,604		$	—		$	—

Amounts Included in the Balance Sheet:
Current liability	$	—		$	(986	)	$	(189	)	$	(58	)	$	(2,569	)	$	(144	)
Non-current liability	$	—		$	—		$	(3,006	)	$	(2,887	)	$	(1,109	)	$	(3,484	)

Amounts Included in Accumulated Other Comprehensive Items Before Tax:
Unrecognized net actuarial loss	$	—		$	(3,205	)	$	(1,034	)	$	(674	)	$	(144	)	$	(69	)
Unrecognized prior service cost	—			—			(38		)	(45		)	—			—
	$	—		$	(3,205	)	$	(1,072	)	$	(719	)	$	(144	)	$	(69	)

(a)

The actuarial loss of $4,039,000 in 2019 resulted from the settlement of the Retirement Plan obligation in which participants' lump sum elections were lower than assumed, and the cost of the liabilities for the participants' annuity contracts increased primarily due to a decline in long-term interest rates in 2019. The actuarial gain of $2,674,000 in 2018 related to an increase in the Retirement Plan's weighted average discount rate and the impact of an updated mortality table, net of a decrease due to a change in the demographic mix.



	U.S. Pension						Non-U.S. Pension						Other Post-Retirement
(In thousands)	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Changes in Amounts Included in Accumulated Other Comprehensive Items Before Tax:
Net actuarial (loss) gain	$	(2,714	)	$	(48	)	$	(402	)	$	368		$	(88	)	$	508
Amortization of net actuarial loss	32			541			25			63			13			136
Amortization of prior service cost	—			—			6			6			—			86
Plan amendment	—			(1,116		)	—			—			—			(322		)
Effect of curtailment	—			3,787			—			—			—			1,075
Settlement loss	5,887			—			—			—			—			—
Curtailment loss	—			1,116			—			—			—			309
Currency translation	—			—			18			(19		)	—			2
	$	3,205		$	4,280		$	(353	)	$	418		$	(75	)	$	1,794

The weighted-average assumptions used to determine the benefit obligation are as follows:



	U.S. Pension				Non-U.S. Pension				Other Post-Retirement
	U.S. Pension				Non-U.S. Pension				Other Post-Retirement
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Discount rate	—	%	4.10	%	2.59	%	3.56	%	3.82	%	4.32	%
Rate of compensation increase	—		—	%	3.40	%	3.24	%	5.57	%	5.57	%

The discount rates for pension and other post-retirement plans are based on market yields on high-quality corporate bonds currently available and expected to be available during the period to maturity of the benefits. For pension and post-retirement plans that have been closed to new participants thereby shortening the duration, the discount rate is determined based on discounting the projected benefit streams against the Citigroup Pension discount curve.

The projected benefit obligations and fair values of plan assets for the Company's pension plans with projected benefit obligations in excess of plan assets are as follows:



	U.S. Pension				Non-U.S. Pension
	U.S. Pension				Non-U.S. Pension
(In thousands)	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Projected benefit obligation	$	—	$	29,715	$	4,168	$	3,671
Fair value of plan assets	$	—	$	28,729	$	973	$	726

The accumulated benefit obligations and fair values of plan assets for the Company's pension plans with accumulated benefit obligations in excess of plan assets are as follows:



	U.S. Pension				Non-U.S. Pension
	U.S. Pension				Non-U.S. Pension
(In thousands)	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Accumulated benefit obligation	$	—	$	29,715	$	2,408	$	2,307
Fair value of plan assets	$	—	$	28,729	$	—	$	—

The components of net periodic benefit cost are as follows:



	U.S. Pension									Non-U.S. Pension									Other Post-Retirement
	U.S. Pension									Non-U.S. Pension									Other Post-Retirement
(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017			December 28, 2019			December 29, 2018			December 30, 2017			December 28, 2019			December 29, 2018			December 30, 2017
Service cost	$	—		$	699		$	685		$	205		$	173		$	148		$	4		$	213		$	175
Interest cost	1,134			1,193			1,231			121			126			114			149			172			170
Expected return on plan assets	(995		)	(1,286		)	(1,326		)	(66		)	(42		)	(25		)	(4		)	(3		)	(2		)
Amortization of net actuarial loss	32			541			442			25			63			38			13			136			83
Amortization of prior service cost	—			—			53			6			6			6			—			86			88
Settlement loss	5,887			—			—			—			—			—			57			—			—
Curtailment loss	—			1,116			—			—			—			—			—			309			—
Net Periodic Benefit Cost	$	6,058		$	2,263		$	1,085		$	291		$	326		$	281		$	219		$	913		$	514

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



	U.S. Pension						Non-U.S. Pension						Other Post-Retirement
	U.S. Pension						Non-U.S. Pension						Other Post-Retirement
	December 28, 2019		December 29, 2018		December 30, 2017		December 28, 2019		December 29, 2018		December 30, 2017		December 28, 2019		December 29, 2018		December 30, 2017
Discount Rate	4.10	%	3.51	%	4.03	%	2.58	%	3.49	%	3.45	%	4.33	%	3.58	%	4.10	%
Expected Long-Term Return on Plan Assets	4.10	%	4.50	%	5.00	%	9.22	%	7.43	%	7.53	%	9.22	%	7.43	%	7.53	%
Rate of Compensation Increase	—	%	3.00	%	3.00	%	2.81	%	3.97	%	3.65	%	5.57	%	3.05	%	3.08	%

In developing the overall expected long-term return on plan assets assumption, a building block approach was used in which rates of return in excess of inflation were considered separately for equity securities, debt securities, and other assets. The excess returns were weighted by the representative target allocation and added along with an appropriate rate of inflation to develop the overall expected long-term return on plan assets assumption. The Company believes this determination is consistent with ASC 715, Compensation – Retirement Benefits.

Plan Assets

The fair values of the Company's noncontributory defined benefit retirement plan assets at year-end 2019 and year-end 2018 by asset category are as follows:



	December 28, 2019 Fair Value Measurement
(In thousands)	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Non-U.S. Pension Plan Assets:
Mutual funds	$	973	$	—	$	—	$	973
Total assets at fair value							$	973



	December 29, 2018 Fair Value Measurement
(In thousands)	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Retirement Plan Assets:
Mutual funds:
Fixed income funds	$	12,852	$	—	$	—	$	12,852
Equity funds	11,581		—		—		11,581
Investments measured at NAV							4,296
Total assets at fair value							$	28,729

Non-U.S. Pension Plan Assets:
Mutual funds	$	726	$	—	$	—	$	726
Total assets at fair value							$	726

Description of Fair Value Measurements

Level 1 – Quoted, active market prices for identical assets.

Level 2 – Observable inputs other than Level 1 prices, based on model-derived valuations in which all significant inputs are observable in active markets.

Level 3 – Unobservable inputs based on the Company's own assumptions.

The following is a description of the valuation methodologies used for assets measured at fair value. There were no changes in valuation techniques during 2019 or 2018.

Mutual funds - Investments in money market, common stock index and fixed income funds. Share prices of the funds, referred to as a fund's Net Asset Value (NAV), are calculated daily based on the closing market prices and accruals of securities in the fund's total portfolio (total value of the fund) divided by the number of fund shares currently issued and outstanding. There are no redemption restrictions.

Investments measured at NAV - Investments in common collective trusts that invest in a diversified blend of investment and non-investment grade fixed income securities and are valued at NAV provided by the fund administrator. The NAV is used as the practical expedient to estimate fair value. The NAVs of the funds are calculated monthly based on the closing market prices and accruals of securities in the fund's total portfolio (total value of the fund) divided by the number of fund shares currently issued and outstanding. Redemptions of the investments occur by contract at the respective fund's redemption date NAV.

Estimated Future Benefit Payments

Expected benefit payments are based on the same assumptions used to measure the Company's benefit obligation at year-end 2019. Estimated future benefit payments during the next five years and in aggregate for the five years thereafter are as follows:



			Other Post-retirement
(In thousands)	Non-U.S. Pension		Other Post-retirement
2020	$	189	$	2,569
2021	180		132
2022	143		124
2023	290		121
2024	393		108
2025-2029	2,156		444

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 28, 2019
Equity [Abstract]
Stockholder's Equity	Stockholders' Equity Preferred Stock The Company's Certificate of Incorporation authorizes up to 5,000,000 shares of preferred stock, $.01 par value per share, for issuance by the Company's board of directors without further shareholder approval. Common Stock At year-end 2019, the Company had reserved 646,004 unissued shares of its common stock for possible issuance under its stock-based compensation plans.

Income Taxes

12 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Abstract]

Income Taxes

The Tax Cuts and Jobs Act of 2017 (2017 Tax Act) was signed into law on December 22, 2017 and its provisions are generally effective for tax years beginning January 1, 2018. The most significant impacts of the 2017 Tax Act to the Company include a decrease in the federal corporate income tax rate from 35% to 21%, and a one-time mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) related to the income tax accounting implications of the 2017 Tax Act, which provides guidance on accounting for the 2017 Tax Act’s impact. In accordance with SAB 118, the Company recorded a provisional net income tax expense of $7,487,000, including the impact of state taxes, in the fourth quarter of 2017, which consisted of a provisional amount for the one-time mandatory transition tax of $10,303,000, partially offset by a provisional net tax benefit of $2,816,000 for the re-measurement of the Company's deferred income tax assets and liabilities at the 21% federal corporate income tax rate. During 2018, the Company completed its accounting for the 2017 Tax Act under the SAB 118 guidance and recorded a net reduction of $138,000 to the 2017 provisional amount related to the one-time mandatory transition tax.

While the 2017 Tax Act provides for a territorial tax system, beginning in 2018, it includes two new U.S. tax base erosion provisions, Global Intangible Low-Taxed Income (GILTI) and Base Erosion Anti-Abuse Tax (BEAT). The Company has elected to account for the GILTI tax in the period in which it is incurred and, therefore, has not provided the deferred income tax impact of GILTI in its consolidated financial statements. In addition, the Company is not subject to the minimum tax pursuant to the BEAT provisions, but may be subject to such provision in the future.

The components of income before provision for income taxes are as follows:



(In thousands)	December 28, 2019		December 29, 2018			December 30, 2017
Domestic	$	93	$	(397	)	$	2,797
Foreign	68,829		79,925			54,856
	$	68,922	$	79,528		$	57,653

The components of the provision for income taxes are as follows:



(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Current (Benefit) Provision:
Federal	$	(264	)	$	724		$	7,835
Foreign	18,778			21,829			17,372
State	335			169			285
	18,849			22,722			25,492
Deferred (Benefit) Provision:
Federal	(453		)	(2,551		)	4,682
Foreign	(1,253		)	(1,761		)	(3,563		)
State	(785		)	72			(541		)
	(2,491		)	(4,240		)	578
	$	16,358		$	18,482		$	26,070

The Company receives a tax deduction upon the exercise of nonqualified stock options and the vesting of RSUs. The Company recognizes excess income tax benefits and tax deficiencies related to stock-based compensation arrangements as discrete items within the provision for income taxes in the reporting period in which they occur. The Company recognized an income tax benefit of $3,807,000 in 2019, $1,097,000 in 2018 and $608,000 in 2017 in the Company's accompanying consolidated statement of income.

The provision for income taxes in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate to income before provision for income taxes due to the following:



(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Provision for Income Taxes at Statutory Rate (21% in 2019 and 2018 and 35% in 2017)	$	14,474		$	16,701		$	20,179
Increases (Decreases) Resulting From:
State income taxes, net of federal tax	(355		)	164			151
U.S. tax cost of foreign earnings	146			1,215			761
Foreign tax rate differential	2,584			3,158			(3,747		)
(Reversal of) provision for tax benefit reserves, net	(286		)	(1,785		)	1,517
Change in valuation allowance	81			141			(341		)
Nondeductible expenses	2,454			781			1,177
Research and development tax credits	(381		)	(445		)	(297		)
Excess tax benefit related to stock-based compensation	(3,352		)	(967		)	(581		)
Impact of the U.S. Tax Cuts and Jobs Act	—			(106		)	7,093
Other	993			(375		)	158
	$	16,358		$	18,482		$	26,070

Net deferred tax liability in the accompanying consolidated balance sheet consists of the following:



(In thousands)	December 28, 2019			December 29, 2018
Deferred Tax Asset:
Foreign, state, and alternative minimum tax credit carryforwards	$	776		$	184
Reserves and accruals	3,007			3,555
Net operating loss carryforwards	12,478			12,785
Inventory basis difference	4,107			3,692
Capitalized research expenses	2,813			—
Research and development	65			—
Employee compensation	3,630			4,382
Allowance for doubtful accounts	351			482
Lease liabilities	7,543			—
Other	478			294
Deferred tax asset, gross	35,248			25,374
Less: valuation allowance	(8,531		)	(9,946		)
Deferred tax asset, net	26,717			15,428
Deferred Tax Liability:
Goodwill and intangible assets	(30,003		)	(28,060		)
Fixed asset basis difference	(4,557		)	(3,565		)
Provision for unremitted foreign earnings	(809		)	(1,124		)
Research and development	—			(54		)
ROU assets	(6,433		)	—
Other	(943		)	(619		)
Deferred tax liability	(42,745		)	(33,422		)
Net deferred tax liability	$	(16,028	)	$	(17,994	)

The deferred tax assets and liabilities are presented in the accompanying consolidated balance sheet within other assets and long-term deferred income taxes on a net basis by tax jurisdiction. The Company has established valuation allowances related to certain domestic and foreign deferred tax assets on deductible temporary differences, tax losses, and tax credit carryforwards. The valuation allowance at year-end 2019 was $8,531,000, consisting of $285,000 in the United States and $8,246,000 in foreign jurisdictions. The decrease in the valuation allowance in 2019 of $1,415,000 related primarily to tax rate changes and fluctuations in foreign currency exchange rates. Compliance with ASC 740 requires the Company to periodically evaluate the necessity of establishing or adjusting a valuation allowance for deferred tax assets depending on whether it is more likely than not that a related tax benefit will be realized in future periods. When assessing the need for a valuation allowance in a tax jurisdiction, the Company evaluates the weight of all available evidence to determine whether it is more likely than not

that some portion or all of the deferred tax assets will not be realized. As part of this evaluation, the Company considers its cumulative three-year history of earnings before income taxes, taxable income in prior carryback years, future reversals of existing taxable temporary differences, prudent and feasible tax planning strategies, and expected future results of operations. As of year-end 2019, the Company continued to maintain a valuation allowance in the United States against a portion of its state net operating loss carryforwards due to the uncertainty of future profitability in state jurisdictions. As of year-end 2019, the Company maintained valuation allowances in certain foreign jurisdictions because of the uncertainty of future profitability within those foreign jurisdictions.

At year-end 2019, the Company had U.S. federal and state net operating loss carryforwards of $2,809,000 and $35,879,000, respectively, and foreign net operating loss carryforwards of $44,048,000. Of the U.S. federal net operating loss carryforwards, $72,000 expires in 2036 and the remainder do not expire. The state net operating loss carryforwards begin to expire in 2020 and a portion does not expire. Of the foreign net operating loss carryforwards, $461,000 will expire in the years 2022 through 2024, and the remainder do not expire. The Company also had a carryforward of disallowed business interest expense of $2,151,000 from its acquisition of SMH in 2019 and foreign tax credits of $687,000, of which $120,000 came from the acquisition of SMH. The disallowed business interest expense carryforward does not expire, and the foreign tax credit carryforward begins to expire in 2024. The utilization of these tax attributes is limited to the Company’s future taxable income, and certain of these tax attributes are subject to an annual limitation as a result of the acquisition of SMH, which constitutes a change of ownership as defined under Internal Revenue Code Section 382.

At year-end 2019, the Company had approximately $240,302,000 of unremitted foreign earnings. During 2019, the Company repatriated $93,456,000 of previously taxed foreign earnings to the United States and recognized an associated tax benefit of $1,186,000. The Company intends to repatriate the distributable reserves of select foreign subsidiaries back to the United States and has recognized $783,000 of net tax expense on the estimated repatriation amount during 2019. Except for these select foreign subsidiaries, the Company intends to indefinitely reinvest $233,852,000 of these earnings of its international subsidiaries in order to support the current and future capital needs of their operations in the foreign jurisdictions, including the repayment of the Company’s foreign debt. The related foreign withholding taxes, which would be required if the Company were to remit these foreign earnings to the United States, would be approximately $5,790,000.

The Company operates within multiple tax jurisdictions and could be subject to audit in those jurisdictions. Such audits can involve complex income tax issues, which may require an extended period of time to resolve and may cover multiple years. In management's opinion, adequate provisions for income taxes have been made for all years subject to audit.

As of year-end 2019, the Company had $8,331,000 of unrecognized tax benefits which, if recognized, would reduce the effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits at year-end 2019 and year-end 2018 is as follows:



(In thousands)	December 28, 2019			December 29, 2018
Unrecognized Tax Benefits, Beginning of Year	$	12,364		$	7,843
Gross Increases—Tax Positions in Prior Periods	615			1,019
Gross Decreases—Tax Positions in Prior Periods	(4,373		)	(390		)
Gross Increases—Current-period Tax Positions	804			7,344
Settlements	—			(131		)
Lapses of Statutes of Limitations	(1,094		)	(3,190		)
Currency Translation	15			(131		)
Unrecognized Tax Benefits, End of Year	$	8,331		$	12,364

A portion of the unrecognized tax benefits generated in 2019 is offset by deferred tax assets in the accompanying consolidated balance sheet. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company has accrued $1,717,000 at year-end 2019 and $2,087,000 at year-end 2018 for the potential payment of interest and penalties. The interest and penalties included in the accompanying consolidated statement of income was an expense of $420,000 in 2019 and $544,000 in 2018.

The Company is currently under audit in certain tax jurisdictions. It is reasonably possible that over the next fiscal year the amount of liability for unrecognized tax benefits may be reduced by up to $767,000 primarily from the expiration of tax statutes of limitations.

The Company remains subject to U.S. Federal income tax examinations for the tax years 2016 through 2019, and to non-U.S. income tax examinations for the tax years 2008 through 2019. In addition, the Company remains subject to state and local income tax examinations in the United States for the tax years 2004 through 2019.

Long-Term Obligations

12 Months Ended

Dec. 28, 2019

Debt Disclosure [Abstract]

Long-Term Obligations

Long-term obligations are as follows:



(In thousands)	December 28, 2019			December 29, 2018
Revolving Credit Facility, due 2023	$	265,419		$	141,106
Commercial Real Estate Loan, due 2020 to 2028	19,425			20,475
Senior Promissory Notes, due 2023 to 2028	10,000			10,000
Finance Leases, due 2020 to 2025	2,308			—
Other Borrowings, due 2020 to 2023	4,000			4,388
Unamortized Debt Issuance Costs	(127		)	(148		)
Total	301,025			175,821
Less: Current Maturities of Long-Term Obligations	(2,851		)	(1,668		)
Long-Term Obligations	$	298,174		$	174,153

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

Revolving Credit Facility

In 2018, the Company entered into a second amendment (Second Amendment) to its existing amended and restated five-year, unsecured multi-currency revolving credit facility, dated as of March 1, 2017 (as amended, the Credit Agreement). Pursuant to the Second Amendment, the Company has a borrowing capacity of $400,000,000, with an uncommitted unsecured incremental borrowing facility of $150,000,000 under its Credit Agreement, with a maturity date of December 14, 2023. Interest on borrowings outstanding accrues and is payable in arrears calculated at one of the following rates selected by the Company: (i) the Base Rate, plus an applicable margin of 0% to 1.25%, or (ii) the London Inter-Bank Offered Rate (LIBOR) (with a zero percent floor), as defined, plus an applicable margin of 1% to 2.25%. The Base Rate is calculated as the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate as published by Citizens Bank, N.A. (Citizens) and (c) thirty-day USD LIBOR, as defined, plus 0.50%. The applicable margin is determined based upon the ratio of the Company's total debt, net of unrestricted cash up to $30,000,000 and certain debt obligations, to earnings before interest, taxes, depreciation, and amortization (EBITDA) as defined in the Credit Agreement.

The obligations of the Company under the Credit Agreement may be accelerated upon the occurrence of an event of default, which includes customary events of default under such financing arrangements. In addition, the Credit Agreement contains negative covenants applicable to the Company and its subsidiaries, including financial covenants requiring the Company to maintain a maximum consolidated leverage ratio of 3.75 to 1.00, or for the quarter during which a material acquisition occurs and for the three fiscal quarters thereafter, 4.00 to 1.00, and limitations on making certain restricted payments (including dividends and stock repurchases).

Loans under the Credit Agreement are guaranteed by certain domestic subsidiaries of the Company. In addition, one of the Company’s foreign subsidiaries entered into a separate guarantee agreement limited to certain obligations of two foreign subsidiary borrowers.

At year-end 2019, the outstanding balance under the Credit Agreement was $265,419,000, and included $62,423,000 of euro-denominated borrowings and $32,996,000 of Canadian dollar-denominated borrowings. At year-end 2019, the Company had $135,095,000 of borrowing capacity available under its Credit Agreement, which was calculated by translating its foreign-denominated borrowings using borrowing date foreign exchange rates.

See Note 10, Derivatives, under the heading Interest Rate Swap Agreements, for information relating to the swap agreements used to hedge the Company’s exposure to movements in the three-month LIBOR rate on its U.S. dollar-denominated debt borrowed under the Credit Agreement.

Unamortized debt issuance costs related to the Credit Agreement, of $1,407,000 at year-end 2019 and $1,735,000 at year-end 2018, are included in other assets in the accompanying consolidated balance sheet, and are being amortized to interest expense using the straight-line method.

The weighted average interest rate for the outstanding balance under the Credit Agreement was 2.97% as of year-end 2019.

Commercial Real Estate Loan

In 2018, the Company and certain domestic subsidiaries borrowed $21,000,000 under a promissory note (Real Estate Loan) which is repayable in quarterly principal installments of $262,500 over a ten-year period with the remaining principal balance of $10,500,000 due upon maturity. Interest accrues and is payable quarterly in arrears at a fixed rate of 4.45% per annum. Any voluntary prepayments are subject to a 2% prepayment fee if paid in the twelve months following July 6, 2019 and are subject to a 1% prepayment fee if paid in the twelve months following July 6, 2020. Thereafter, no prepayment fee will be applied to voluntary prepayment by the Company.

The Real Estate Loan is secured by real estate and related personal property of the Company and certain of its domestic subsidiaries, pursuant to the mortgage and security agreements dated July 6, 2018 (Mortgage and Security Agreements). The obligations of the Company under the Real Estate Loan may be accelerated upon the occurrence of an event of default under the Real Estate Loan and the Mortgage and Security Agreements, which includes customary events of default for financings of this type. In addition, a default under the Credit Agreement or any successor credit facility would be an event of default under the Real Estate Loan. The effective interest rate for the Real Estate Loan, including amortization of debt issuance costs, was 4.60% as of December 28, 2019.

Senior Promissory Notes

In 2018, the Company entered into an uncommitted, unsecured Multi-Currency Note Purchase and Private Shelf Agreement (Note Purchase Agreement). Simultaneous with the execution of the Note Purchase Agreement, the Company issued senior promissory notes (Initial Notes) in an aggregate principal amount of $10,000,000, with a per annum interest rate of 4.90% payable semiannually, and a maturity date of December 14, 2028. The Company is required to prepay a portion of the principal of the Initial Notes beginning on December 14, 2023 and each year thereafter, and may optionally prepay the principal on the Initial Notes, together with any prepayment premium, at any time (in a minimum amount of $1,000,000, or the foreign currency equivalent thereof, if applicable) in accordance with the Note Purchase Agreement. The obligations of the Initial Notes may be accelerated upon an event of default as defined in the Note Purchase Agreement, which includes customary events of default under such financing arrangements.

In accordance with the Note Purchase Agreement, the Company may also issue additional senior promissory notes (together with the Initial Notes, the Senior Promissory Notes) up to an additional $115,000,000 until the earlier of December 14, 2021 or the thirtieth day after written notice to terminate the issuance and sale of additional notes pursuant to the Note Purchase Agreement. The Senior Promissory Notes are pari passu with the Company’s indebtedness under the Credit Agreement, and any other senior debt of the Company, subject to certain specified exceptions, and participate in a sharing agreement with respect to the obligations of the Company and its subsidiaries under the Credit Agreement. The Senior Promissory Notes are guaranteed by certain of the Company’s domestic subsidiaries.

Annual Repayment Requirements

The following schedule presents the annual repayment requirements for the Company’s long-term obligations, excluding its finance leases and its sales-leaseback financing arrangement, as of year-end 2019.



(In thousands)
2020	$	1,253
2021	1,117
2022	1,050
2023	268,136
2024	2,717
2025 and Thereafter	20,843
	$	295,116

Debt Compliance

At year-end 2019, the Company was in compliance with the covenants related to its debt obligations.

Finance Leases

The Company's finance leases primarily relate to contracts for its vehicles. See Note 9, Leases, for further information relating to the Company's finance leases.

Other Borrowings

Other borrowings include a sale-leaseback financing arrangement for a manufacturing facility in Germany. Under this arrangement, the quarterly lease payment includes principal, interest, and a payment to the landlord toward a loan receivable. The interest rate on the outstanding obligation is 1.79%. The secured loan receivable, which is included in other assets in the accompanying consolidated balance sheet, was $901,000 at year-end 2019. The lease arrangement provides for a fixed price purchase option, net of the projected loan receivable, of $1,483,000 at the end of the lease term in 2022. If the Company does not exercise the purchase option for the facility, the Company will receive cash from the landlord to settle the loan receivable. As of year-end 2019, $3,728,000 was outstanding under this obligation.

The following schedule presents future minimum lease payments for the Company's sales-leaseback financing arrangement as of year-end 2019.



(In thousands)
2020	$	528
2021	528
2022	1,297
Total Minimum Lease Payments	$	2,353
Less: Imputed Interest	(108		)
Present Value of Minimum Lease Payments	$	2,245

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 28, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Letters of Credit and Bank Guarantees Outstanding letters of credit and bank guarantees issued on behalf of the Company, principally relating to performance obligations and customer deposit guarantees, totaled $19,647,000 at year-end 2019. Certain of the Company's contracts, particularly for stock-preparation and systems orders, require the Company to provide a standby letter of credit or bank guarantee to a customer as beneficiary, limited in amount to a negotiated percentage of the total contract value, in order to guarantee warranty and performance obligations of the Company under the contract. Typically, these standby letters of credit and bank guarantees expire without being drawn by the beneficiary. Right of Recourse In the ordinary course of business, the Company's subsidiaries in China may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The drafts are noninterest-bearing obligations of the issuing bank and mature within six months of the origination date. The Company's subsidiaries in China may use these banker's acceptance drafts prior to the scheduled maturity date to settle outstanding accounts payable with vendors. Banker's acceptance drafts transferred to vendors are subject to customary right of recourse provisions prior to their scheduled maturity dates. The Company had $7,003,000 at year-end 2019 and $12,406,000 at year-end 2018 of banker's acceptance drafts subject to recourse, which were transferred to vendors and had not reached their scheduled maturity dates. Historically, the banker's acceptance drafts have settled upon maturity without any claim of recourse against the Company. Contingencies In the ordinary course of business, the Company is, at times, required to issue limited performance guarantees, some of which do not require the issuance of letters of credit to customers in support of these guarantees, relating to its equipment and systems. The Company generally limits its liability under these guarantees to amounts typically capped at 10% or less of the value of the contract. The Company believes that it has adequate reserves for any potential liability in connection with such guarantees. Litigation From time to time, the Company is subject to various claims and legal proceedings covering a range of matters that arise in the ordinary course of business. Such litigation may include, but is not limited to, claims and counterclaims by and against the Company for breach of contract or warranty, canceled contracts, product liability, or bankruptcy-related claims. For legal proceedings in which a loss is probable and estimable, the Company accrues a loss based on the low end of the range of estimated loss when there is no better estimate within the range. If the Company were found to be liable for any of the claims or counterclaims against it, the Company would incur a charge against earnings for amounts in excess of legal accruals.

Restructuring Costs

12 Months Ended

Dec. 28, 2019

Restructuring and Related Activities [Abstract]

Restructuring Costs

In 2017, the Company constructed a 160,000 square foot manufacturing facility in the United States that integrated its U.S. and Swedish papermaking stock-preparation product lines into a single manufacturing facility to achieve economies of scale and greater efficiencies. As a result of the consolidation and integration of these facilities, the Company developed a restructuring plan totaling $1,920,000, primarily related to costs for the relocation of machinery and equipment and administrative offices, severance, and abandonment of leased facilities in the Papermaking Systems segment. As a result of this plan, the Company recorded restructuring charges of $203,000 in 2017 associated with severance costs for the reduction of four employees in the United States and six employees in Sweden. In 2018, the Company recorded additional restructuring costs of $1,717,000 related to this plan, including $1,318,000 primarily for the relocation of machinery and equipment and administrative offices, $454,000 associated with employee retention costs and abandonment of excess facility and other closure costs, and a reversal of $55,000 of severance costs no longer required. These costs are included in impairment and restructuring costs in the accompanying consolidated statement of income. The Company does not expect to incur additional charges related to this restructuring plan.

A summary of the changes in accrued restructuring costs included in other accrued expenses in the accompanying consolidated balance sheet, which are expected to be paid in 2020, are as follows:



(In thousands)	Severance			Relocation			Other (a)			Total
2019 Restructuring Plan
Provision	$	192		$	—		$	—		$	192
Usage	(109		)	—			—			(109		)
Currency translation	1			—			—			1
Balance at December 28, 2019	$	84		$	—		$	—		$	84

2017 Restructuring Plan
Provision	$	203		$	—		$	—		$	203
Balance at December 30, 2017	203			—			—			203
(Reversal) Provision	(55		)	1,318			454			1,717
Usage	(77		)	(1,315		)	(448		)	(1,840		)
Currency translation	(8		)	(3		)	(6		)	(17		)
Balance at December 29, 2018	63			—			—			63
Usage	—			—			—			—
Balance at December 28, 2019	$	63		$	—		$	—		$	63

(a) Includes employee retention costs that are accrued ratably over the period through which employees must work to qualify for a payment and facility closure and clean-up costs.

Leases

12 Months Ended

Dec. 28, 2019

Leases [Abstract]

Leases

Under ASC 842, Leases, the Company determines if an arrangement is a lease obligation at inception of the contract. The Company enters into operating and finance lease commitments primarily for its manufacturing and office space, vehicles, and equipment leases that expire on various dates over the next 15 years, some of which include one or more options to extend the lease for up to 5 years. In addition, the Company leases land associated with certain of its buildings in Canada and China, under long-term leases expiring on various dates ranging from 2032 to 2062, one of which includes an assumed option to extend the lease for up to 10 years.

The Company's operating lease ROU assets and corresponding lease liabilities with contract terms greater than 12 months are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. In determining the present value of future lease payments, the Company utilizes either the rate implicit in the lease if that rate is readily determinable or the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease. In addition, the calculation may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company recognizes its operating lease expense for lease payments on a straight-line basis over the lease term. Variable lease costs are not included in fixed lease payments and, as a result, are excluded from the measurement of the ROU assets and lease liabilities. The Company expenses all variable lease costs as incurred, which were not material for 2019.

The Company's lease agreements often contain lease and non-lease components. For real estate and equipment leases, the Company accounts for the lease and non-lease components as a single lease component. For vehicle leases, the Company does not combine lease and non-lease components.

The components of lease expense are as follows:



(In thousands)	December 28, 2019
Operating Lease Cost	$	5,534

Short-Term Lease Cost	715

Finance Lease Cost:
ROU asset amortization	1,213
Interest on lease liabilities	94
Total Finance Lease Cost	1,307

Total Lease Costs	$	7,556

The accompanying consolidated statement of income included expenses from operating leases of $5,575,000 in 2018 and $4,955,000 in 2017 recognized under Topic 840, the Company's previous lease accounting standard.

Supplemental cash flow information related to leases is as follows:



(In thousands)	December 28, 2019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$	5,636
Operating cash flows from finance leases	$	93
Financing cash flows from finance leases	$	1,144

ROU Assets Obtained in Exchange for Lease Obligations (a):
Operating leases	$	28,484
Finance leases	$	3,847


(a)	Includes additions related to the transition adjustment for the adoption of ASC 842. The post-adoption additions of operating leases were $13,167,000, of which $10,994,000 related to ROU assets obtained as part of the acquisition of SMH. The post-adoption additions of finance leases were $2,496,000, of which $528,000 related to ROU assets obtained as part of the acquisition of SMH.

Supplemental balance sheet information related to leases is as follows:



(In thousands, except lease term and discount rate)	Balance Sheet Line Item	December 28, 2019
Operating Leases:
ROU assets	Other assets	$	27,139

Short-term liabilities	Other current liabilities	$	4,184
Long-term liabilities	Other long-term liabilities	24,411
Total operating lease liabilities		$	28,595

Finance Leases:
ROU assets, at cost	Property, plant, and equipment, at cost	$	3,775
ROU assets accumulated amortization	Less: accumulated depreciation and amortization	(1,475		)
ROU assets, net	Property, plant, and equipment, net	$	2,300

Short-term obligations	Current maturities of long-term obligations	$	1,116
Long-term obligations	Long-term obligations	1,192
Total finance lease liabilities		$	2,308

Weighted Average Remaining Lease Term:
Operating leases		10.2
Finance leases		2.3

Weighted Average Discount Rate:
Operating leases		3.96		%
Finance leases		4.10		%

As of December 28, 2019, future lease payments for lease liabilities are as follows:



	Operating			Finance
(In thousands)	Leases			Leases
2020	$	5,221		$	1,186
2021	4,406			815
2022	3,687			319
2023	3,108			85
2024	2,703			7
Thereafter	15,998			5
Total Future Lease Payments	35,123			2,417
Less: Imputed Interest	(6,528		)	(109		)
Present Value of Lease Payments	$	28,595		$	2,308

As of December 28, 2019, the Company had no significant operating and finance leases that had not yet commenced.

Supplemental information is presented for comparative purposes of the Company's future minimum lease payments for noncancelable operating leases under Topic 840, its previous lease accounting standard, as follows:



(In thousands)	December 29, 2018
2019	$	4,507
2020	3,275
2021	2,230
2022	1,579
2023	987
Thereafter	1,713
Total Future Minimum Lease Payments	$	14,291

Leases

The components of lease expense are as follows:



(In thousands)	December 28, 2019
Operating Lease Cost	$	5,534

Short-Term Lease Cost	715

Finance Lease Cost:
ROU asset amortization	1,213
Interest on lease liabilities	94
Total Finance Lease Cost	1,307

Total Lease Costs	$	7,556

Supplemental cash flow information related to leases is as follows:



(In thousands)	December 28, 2019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$	5,636
Operating cash flows from finance leases	$	93
Financing cash flows from finance leases	$	1,144

ROU Assets Obtained in Exchange for Lease Obligations (a):
Operating leases	$	28,484
Finance leases	$	3,847


(a)	Includes additions related to the transition adjustment for the adoption of ASC 842. The post-adoption additions of operating leases were $13,167,000, of which $10,994,000 related to ROU assets obtained as part of the acquisition of SMH. The post-adoption additions of finance leases were $2,496,000, of which $528,000 related to ROU assets obtained as part of the acquisition of SMH.

Supplemental balance sheet information related to leases is as follows:



(In thousands, except lease term and discount rate)	Balance Sheet Line Item	December 28, 2019
Operating Leases:
ROU assets	Other assets	$	27,139

Short-term liabilities	Other current liabilities	$	4,184
Long-term liabilities	Other long-term liabilities	24,411
Total operating lease liabilities		$	28,595

Finance Leases:
ROU assets, at cost	Property, plant, and equipment, at cost	$	3,775
ROU assets accumulated amortization	Less: accumulated depreciation and amortization	(1,475		)
ROU assets, net	Property, plant, and equipment, net	$	2,300

Short-term obligations	Current maturities of long-term obligations	$	1,116
Long-term obligations	Long-term obligations	1,192
Total finance lease liabilities		$	2,308

Weighted Average Remaining Lease Term:
Operating leases		10.2
Finance leases		2.3

Weighted Average Discount Rate:
Operating leases		3.96		%
Finance leases		4.10		%

As of December 28, 2019, future lease payments for lease liabilities are as follows:



	Operating			Finance
(In thousands)	Leases			Leases
2020	$	5,221		$	1,186
2021	4,406			815
2022	3,687			319
2023	3,108			85
2024	2,703			7
Thereafter	15,998			5
Total Future Lease Payments	35,123			2,417
Less: Imputed Interest	(6,528		)	(109		)
Present Value of Lease Payments	$	28,595		$	2,308

As of December 28, 2019, the Company had no significant operating and finance leases that had not yet commenced.



(In thousands)	December 29, 2018
2019	$	4,507
2020	3,275
2021	2,230
2022	1,579
2023	987
Thereafter	1,713
Total Future Minimum Lease Payments	$	14,291

Derivatives

12 Months Ended

Dec. 28, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Interest Rate Swap Agreements

In 2018, the Company entered into an interest rate swap agreement (2018 Swap Agreement) with Citizens 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) with Citizens which has a $10,000,000 notional value and expires on March 27, 2020. The swap agreements hedge the Company’s exposure to movements in the three-month LIBOR rate on U.S. dollar-denominated debt. On a quarterly basis, the Company receives a three-month LIBOR rate and pays a fixed rate of interest of 3.15% plus an applicable margin as defined in the Credit Agreement on the 2018 Swap Agreement and receives a three-month LIBOR rate and pays a fixed rate of interest of 1.50% plus an applicable margin as defined in the Credit Agreement on the 2015 Swap Agreement. The 2018 Swap Agreement is subject to a zero percent floor on the three-month LIBOR rate. The interest rate swap agreements are designated as cash flow hedges and the Company has structured its interest rate swap agreements to be 100% effective. Unrealized gains and losses related to the fair values of the swap agreements are recorded to AOCI, net of tax. In the event of early termination, the Company would receive from or pay to the counterparty the fair values of the interest rate swap agreements, and the unrealized gain or loss outstanding would be recognized in earnings.

The counterparty to the interest rate swap agreements could demand an early termination of those agreements if the Company were to be in default under the Credit Agreement, or any agreement that amends or replaces the Credit Agreement in which the counterparty is a member, and if the Company were to be unable to cure the default (see Note 6, Long-Term Obligations).

Forward Currency-Exchange Contracts

The Company uses forward currency-exchange contracts that typically have maturities of twelve months or less to hedge exposures resulting from fluctuations in currency exchange rates. Such exposures result from assets and liabilities that are denominated in currencies other than the functional currencies.

Forward currency-exchange contracts that hedge forecasted accounts receivable or accounts payable are designated as cash flow hedges and unrecognized gains and losses are recorded to AOCI, net of tax. Deferred gains and losses are recognized in the statement of income in the period in which the underlying transaction occurs. The fair values of forward currency-exchange contracts that are designated as fair value hedges and forward currency-exchange contracts that are not designated as hedges are recognized currently in earnings.

The Company recognized within SG&A expenses in the accompanying consolidated statement of income losses of $46,000 in 2019, $27,000 in 2018 and $1,367,000 in 2017, associated with forward currency-exchange contracts that were not designated as hedges.

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



		December 28, 2019					December 29, 2018
(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	Other Current Assets	$	11		$	10,000	$	—		$	—
2015 Swap Agreement	Other Long-Term Assets	$	—		$	—	$	148		$	10,000
Forward currency-exchange contracts	Other Long Term Assets	$	—		$	—	$	11		$	842
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(75	)	$	4,825	$	(50	)	$	2,946
2018 Swap Agreement	Other Long-Term Liabilities	$	(770	)	$	15,000	$	(352	)	$	15,000
Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	3		$	387	$	9		$	1,192
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(43	)	$	2,545	$	(31	)	$	1,384


(a)	See Note 11 for the fair value measurements relating to these financial instruments.


(b)	The total 2019 notional amounts are indicative of the level of the Company's recurring derivative activity.

The following table summarizes the activity in AOCI associated with the Company's derivative instruments designated as cash flow hedges as of and for the year ended December 28, 2019:



(In thousands)	Interest Rate Swap Agreements			Forward Currency- Exchange Contracts			Total
Unrealized Loss, Net of Tax, at December 29, 2018	$	(170	)	$	(27	)	$	(197	)
Loss reclassified to earnings (a)	6			117			123
Loss recognized in AOCI	(425		)	(145		)	(570		)
Unrealized Loss, Net of Tax, at December 28, 2019	$	(589	)	$	(55	)	$	(644	)


(a)	See Note 14 for the income statement classification.

At year-end 2019, the Company expects to reclassify losses of $209,000 from AOCI to earnings over the next twelve months based on the estimated cash flows of the interest rate swap agreements and the maturity dates of the forward currency- exchange contracts.

Fair Value Measurements and Fair Value of Financial Instruments

12 Months Ended

Dec. 28, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements and Fair Value of Financial Instruments

Fair value measurement is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy is established, which prioritizes the inputs used in measuring fair value into three broad levels as follows:


•	Level 1—Quoted prices in active markets for identical assets or liabilities.


•	Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.


•	Level 3—Unobservable inputs based on the Company's own assumptions.

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



	Fair Value as of December 28, 2019
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	9,920	$	—	$	—	$	9,920
Banker's acceptance drafts (a)	$	—	$	5,230	$	—	$	5,230
2015 Swap Agreement	$	—	$	11	$	—	$	11
Forward currency-exchange contracts	$	—	$	3	$	—	$	3
Liabilities:
2018 Swap Agreement	$	—	$	770	$	—	$	770
Forward currency-exchange contracts	$	—	$	118	$	—	$	118



	Fair Value as of December 29, 2018
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	6,902	$	—	$	—	$	6,902
Banker's acceptance drafts (a)	$	—	$	7,976	$	—	$	7,976
2015 Swap Agreement	$	—	$	148	$	—	$	148
Forward currency-exchange contracts	$	—	$	20	$	—	$	20
Liabilities:
2018 Swap Agreement	$	—	$	352	$	—	$	352
Forward currency-exchange contracts	$	—	$	81	$	—	$	81


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

The Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during 2019. The Company's banker's acceptance drafts are carried at face value which approximates their fair value due to the short-term nature of the negotiable instrument. The fair values of the 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 and represent the estimated amount the Company would receive or pay upon liquidation of the contracts. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above.

The carrying value and fair value of the Company's debt obligations, excluding lease obligations and other borrowings, are as follows:



	December 28, 2019				December 29, 2018
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Debt Obligations:
Revolving credit facility	$	265,419	$	265,419	$	141,106	$	141,106
Commercial real estate loan	19,425		20,541		20,475		20,575
Senior promissory notes	10,000		10,803		10,000		10,120
	$	294,844	$	296,763	$	171,581	$	171,801

The carrying value of the Company's revolving credit facility approximates the fair value as the obligation bears variable rates of interest, which adjust frequently, based on prevailing market rates. The fair values of the commercial real estate loan and senior promissory notes are primarily calculated based on quoted market rates plus an applicable margin available to the Company at the respective period ends, which represent Level 2 measurements.

- 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 and Geographical Information

12 Months Ended

Dec. 28, 2019

Segment Reporting [Abstract]

Business Segment and Geographical Information

The Company has combined its operating entities into three reportable operating segments, Papermaking Systems, Wood Processing Systems, and Material Handling Systems, and a separate product line, Fiber-based Products, as described below. 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.

•

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 Papermaking Systems segment consists of the following product lines: Stock-Preparation; Fluid-Handling; and Doctoring, Cleaning, & Filtration. 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.

•

Wood Processing Systems Segment – The Company develops, manufactures, and markets debarkers, stranders, chippers, logging machinery, and related equipment used in the harvesting and production of lumber and OSB. Material Handling Systems Segment – The Company develops, manufactures, and markets material handling equipment and systems, including vibratory and conveying equipment, to various process industries, including mining, aggregates, food processing, packaging, and pulp and paper.


•	Fiber-based Products business – The Company manufactures and sells biodegradable, absorbent granules derived from papermaking by-products. These materials are primarily used as carriers in agricultural, home lawn and garden, professional lawn, turf and ornamental applications, and for oil and grease absorption.

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



(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Business Segment Information
Revenues by Product Line:
Stock-Preparation	$	215,091		$	221,933		$	193,838
Fluid-Handling	132,501			131,830			104,136
Doctoring, Cleaning, & Filtration	117,838			116,136			109,631
Papermaking Systems	465,430			469,899			407,605
Wood Processing Systems	143,187			151,366			95,053
Material Handling Systems (a)	83,364			—			—
Fiber-based Products	12,663			12,521			12,375
	$	704,644		$	633,786		$	515,033
Income Before Provision for Income Taxes:
Papermaking Systems (b)	$	81,232		$	83,454		$	73,069
Wood Processing Systems (c)	28,166			31,237			10,005
Material Handling Systems (a, d)	3,132			—			—
Corporate and Fiber-based Products (e)	(24,707		)	(26,093		)	(21,449		)
Total operating income	87,823			88,598			61,625
Interest expense, net (f)	(12,542		)	(6,653		)	(3,100		)
Other expense, net (f, g)	(6,359		)	(2,417		)	(872		)
	$	68,922		$	79,528		$	57,653



(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Total Assets:
Papermaking Systems	$	464,069	$	462,297	$	494,919
Wood Processing Systems	249,689		247,553		257,467
Material Handling Systems (a)	196,884		—		—
Corporate and Fiber-based Products (h)	28,745		15,899		8,708
	$	939,387	$	725,749	$	761,094
Depreciation and Amortization:
Papermaking Systems	$	13,010	$	12,561	$	11,239
Wood Processing Systems	9,571		10,317		7,515
Material Handling Systems (a)	9,018		—		—
Corporate and Fiber-based Products	791		690		621
	$	32,390	$	23,568	$	19,375
Capital Expenditures:
Papermaking Systems	$	6,127	$	12,717	$	14,359
Wood Processing Systems	2,133		3,272		2,333
Material Handling Systems (a)	1,195		—		—
Corporate and Fiber-based Products	502		570		589
	$	9,957	$	16,559	$	17,281
Geographical Information
Revenues (i):
United States	$	309,957	$	234,487	$	182,788
China	66,480		89,645		63,910
Canada	64,010		61,096		47,611
Germany	29,076		26,577		32,026
Finland	11,113		10,934		8,607
Other	224,008		211,047		180,091
	$	704,644	$	633,786	$	515,033
Long-lived Assets (j):
United States	$	42,094	$	35,446	$	32,852
China	10,319		11,069		11,685
Canada	7,948		8,193		9,449
Finland	6,960		6,998		5,841
Germany	5,925		6,223		6,452
Other	12,786		12,228		13,444
	$	86,032	$	80,157	$	79,723


(a)	Comprised of the SMH business, which was acquired on January 2, 2019 (see Note 2).


(b)	Includes $787,000 in 2017 of acquisition-related expenses, comprised of acquisition transaction costs and amortization of acquired profit in inventory and backlog. Includes restructuring costs of $1,717,000 in 2018 and $203,000 in 2017 (see Note 8).


(c)	Includes $2,336,000 and $192,000 in 2019 of impairment and restructuring costs, respectively, related to the timber-harvesting product line (see Notes 1 and 8). Includes $252,000 in 2018 and $11,163,000 in 2017 of acquisition-related expenses.


(d)	Includes $5,715,000 in 2019 of acquisition-related expenses, comprised of amortization expense associated with acquired profit in inventory and backlog and acquisition transaction costs.


(e)	Corporate primarily includes general and administrative expenses, including $1,321,000 in 2018 of acquisition transaction costs.


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


(g)	Includes a settlement loss of $5,887,000 in 2019 and a curtailment loss of $1,425,000 in 2018 (see Note 3).


(h)	Primarily includes Corporate and Fiber-based Products' cash and cash equivalents, tax assets, ROU assets, and property, plant, and equipment, net.


(i)	Revenues are attributed to countries based on customer location.

(j)

Represents property, plant, and equipment, net.

Earnings per Share

12 Months Ended

Dec. 28, 2019

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per Share

Basic and diluted EPS were calculated as follows:



(In thousands, except per share amounts)	December 28, 2019		December 29, 2018		December 30, 2017
Net Income Attributable to Kadant	$	52,068	$	60,413	$	31,092

Basic Weighted Average Shares	11,235		11,086		10,991
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	222		314		321
Diluted Weighted Average Shares	11,457		11,400		11,312

Basic Earnings per Share	$	4.63	$	5.45	$	2.83

Diluted Earnings per Share	$	4.54	$	5.30	$	2.75

The effect of outstanding and unvested RSUs of the Company's common stock totaling 24,000 shares in 2019, 18,700 shares in 2018, and 15,600 shares in 2017 was not included in the computation of diluted EPS for the respective periods as the effect would have been antidilutive or, for unvested performance-based RSUs, the performance conditions had not been met as of the end of the reporting periods.

Accumulated Other Comprehensive Items

12 Months Ended

Dec. 28, 2019

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Items

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

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



(In thousands)	Foreign Currency Translation Adjustment			Pension and Other Post-Retirement Benefit Liability Adjustments			Deferred Loss on Cash Flow Hedges			Total
Balance at December 29, 2018	$	(34,804	)	$	(4,375	)	$	(197	)	$	(39,376	)
Other comprehensive loss before reclassifications	(1,341		)	(3,060		)	(570		)	(4,971		)
Reclassifications from AOCI	—			6,604			123			6,727
Net current period other comprehensive items	(1,341		)	3,544			(447		)	1,756
Balance at December 28, 2019	$	(36,145	)	$	(831	)	$	(644	)	$	(37,620	)

Amounts reclassified out of AOCI are as follows:



(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017			Statement of Income Line Item
Retirement Benefit Plans (a)
Recognized net actuarial loss	$	(70	)	$	(740	)	$	(563	)	Other expense, net
Amortization of prior service cost	(6		)	(92		)	(147		)	Other expense, net
Settlement and curtailment losses	(5,887		)	(1,425		)	—			Other expense, net
Total expense before income taxes	(5,963		)	(2,257		)	(710		)
Income tax (provision) benefit	(641		)	549			246			Provision for income taxes
	(6,604		)	(1,708		)	(464		)
Cash Flow Hedges (b)
Interest rate swap agreements	(8		)	(11		)	(30		)	Interest expense
Forward currency-exchange contracts	(169		)	22			(97		)	Cost of revenues
Total (expense) income before income taxes	(177		)	11			(127		)
Income tax benefit (provision)	54			(3		)	43			Provision for income taxes
	(123		)	8			(84		)
Total Reclassifications	$	(6,727	)	$	(1,700	)	$	(548	)


(a)	Included in the computation of net periodic benefit cost. See Note 3 for additional information.

(b)

See Note 10 for additional information.

Unaudited Quarterly Information

12 Months Ended

Dec. 28, 2019

Quarterly Financial Information Disclosure [Abstract]

Unaudited Quarterly Information



2019 (In thousands, except per share amounts)	First		Second		Third		Fourth
Revenues	$	171,316	$	177,165	$	173,504	$	182,659
Gross Profit	$	70,515	$	74,371	$	74,247	$	74,627

Net Income Attributable to Kadant	$	10,900	$	16,304	$	16,115	$	8,749

Earnings per Share Attributable to Kadant
Basic	$	0.98	$	1.46	$	1.43	$	0.77
Diluted	$	0.96	$	1.42	$	1.41	$	0.76

Cash Dividends Declared per Common Share	$	0.23	$	0.23	$	0.23	$	0.23

2018 (In thousands, except per share amounts)	First		Second		Third		Fourth
Revenues	$	149,193	$	154,913	$	165,745	$	163,935
Gross Profit	$	66,079	$	68,164	$	73,093	$	70,945

Net Income Attributable to Kadant	$	10,858	$	12,349	$	18,784	$	18,422

Earnings per Share Attributable to Kadant
Basic	$	0.98	$	1.11	$	1.69	$	1.66
Diluted	$	0.96	$	1.08	$	1.64	$	1.61

Cash Dividends Declared per Common Share	$	0.22	$	0.22	$	0.22	$	0.22

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

12 Months Ended

Dec. 28, 2019

Accounting Policies [Abstract]

Principles of Consolidation

Fiscal Year

Use of Estimates and Critical Accounting Policies

se of Estimates and Critical Accounting Policies

Revenue Recognition

The following table presents revenue by revenue recognition method:



(In thousands)	December 28, 2019		December 29, 2018
Point in Time	$	611,528	$	577,506
Over Time	93,116		56,280
	$	704,644	$	633,786

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

The following table presents the disaggregation of revenues by product type and geography:



(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Revenues by Product Type:
Parts and Consumables	$	440,699	$	374,433	$	316,506
Capital	263,945		259,353		198,527
	$	704,644	$	633,786	$	515,033
Revenues by Geography:
North America	$	386,952	$	305,618	$	238,483
Europe	180,888		174,681		157,994
Asia	84,705		109,688		78,443
Rest of World	52,099		43,799		40,113
	$	704,644	$	633,786	$	515,033

See Note 12, Business Segment and Geographical Information, for information on the disaggregation of revenues by segment and product line.

The following tables presents contract balances from contracts with customers:



(In thousands)	December 28, 2019		December 29, 2018
Accounts receivable	$	95,740	$	92,624
Contract assets	$	13,162	$	15,741
Contract liabilities	$	37,216	$	34,774

Accounts Receivable

The changes in the allowance for doubtful accounts are as follows:



(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Balance at Beginning of Year	$	2,897		$	2,879		$	2,395
Provision charged to expense	114			355			436
Accounts written off	(263		)	(165		)	(159		)
Currency translation	(50		)	(172		)	207
Balance at End of Year	$	2,698		$	2,897		$	2,879

Warranty Obligations

Income Taxes

limitations expires for a tax jurisdiction year, or the Company is required to pay amounts in excess of the liability, its effective tax rate in a given financial statement period may be affected.

Earnings per Share

Cash and Cash Equivalents

Restricted Cash

Inventories

Property, Plant, and Equipment

Intangible Assets

Goodwill

Impairment of Long-Lived Assets

Goodwill

Business Combinations

Foreign Currency Translation and Transactions

Stock-Based Compensation

Derivatives

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Company adopted this ASU on a prospective basis at the beginning of 2019. The adoption of this ASU did not have an impact on the Company's condensed consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

Pension and Other Post-Retirement Benefits Plans

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

12 Months Ended

Dec. 28, 2019

Accounting Policies [Abstract]

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

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

The following table presents the disaggregation of revenues by product type and geography:



(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Revenues by Product Type:
Parts and Consumables	$	440,699	$	374,433	$	316,506
Capital	263,945		259,353		198,527
	$	704,644	$	633,786	$	515,033
Revenues by Geography:
North America	$	386,952	$	305,618	$	238,483
Europe	180,888		174,681		157,994
Asia	84,705		109,688		78,443
Rest of World	52,099		43,799		40,113
	$	704,644	$	633,786	$	515,033

The following table presents revenue by revenue recognition method:



(In thousands)	December 28, 2019		December 29, 2018
Point in Time	$	611,528	$	577,506
Over Time	93,116		56,280
	$	704,644	$	633,786

Revenue from Contract with Customers

The following tables presents contract balances from contracts with customers:



(In thousands)	December 28, 2019		December 29, 2018
Accounts receivable	$	95,740	$	92,624
Contract assets	$	13,162	$	15,741
Contract liabilities	$	37,216	$	34,774

Changes in Allowance for Doubtful Accounts

The changes in the allowance for doubtful accounts are as follows:



(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Balance at Beginning of Year	$	2,897		$	2,879		$	2,395
Provision charged to expense	114			355			436
Accounts written off	(263		)	(165		)	(159		)
Currency translation	(50		)	(172		)	207
Balance at End of Year	$	2,698		$	2,897		$	2,879

Changes in Estimated Product Warranty Liability

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



(In thousands)	December 28, 2019			December 29, 2018
Balance at Beginning of Year	$	5,726		$	5,498
Provision charged to expense	4,727			3,708
Usage	(4,255		)	(3,140		)
Acquisition	303			—
Currency translation	(34		)	(340		)
Balance at End of Year	$	6,467		$	5,726

Cash and Cash Equivalents



(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Cash and cash equivalents	$	66,786	$	45,830	$	75,425
Restricted cash	1,487		287		1,421
Total Cash, Cash Equivalents, and Restricted Cash	$	68,273	$	46,117	$	76,846

Restricted Cash



(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Cash and cash equivalents	$	66,786	$	45,830	$	75,425
Restricted cash	1,487		287		1,421
Total Cash, Cash Equivalents, and Restricted Cash	$	68,273	$	46,117	$	76,846

Supplemental Cash Flow Information



(In thousands)	December 28, 2019			December 29, 2018		December 30, 2017
Cash Paid for Interest	$	12,344		$	7,550	$	2,624
Cash Paid for Income Taxes, Net of Refunds	$	24,533		$	25,654	$	20,559

Non-Cash Investing Activities:
Fair value of assets of acquired	$	207,223		$	—	$	242,399
Cash paid for acquired businesses	(179,693		)	—		(206,785		)
Liabilities Assumed of Acquired Businesses	$	27,530		$	—	$	35,614

Non-cash additions to property, plant, and equipment	$	626		$	917	$	4,620

Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of RSUs	$	4,100		$	4,231	$	3,192
Dividends declared but unpaid	$	2,628		$	2,444	$	2,316

Components of Inventory

The components of inventories are as follows:



(In thousands)	December 28, 2019		December 29, 2018
Raw Materials	$	49,332	$	44,522
Work in Process	15,344		15,876
Finished Goods (includes $559 and $494 at customer locations)	38,039		25,975
	$	102,715	$	86,373

Property, Plant and Equipment

Property, plant, and equipment consist of the following:



(In thousands)	December 28, 2019		December 29, 2018
Land	$	7,347	$	7,614
Buildings	58,509		58,866
Machinery, Equipment, and Leasehold Improvements	112,655		100,453
Construction in Progress	2,830		3,764
	181,341		170,697
Less: Accumulated Depreciation and Amortization	95,309		90,540
	$	86,032	$	80,157

Acquired Intangible Assets

Acquired intangible assets by major asset class are as follows:



(In thousands)	Gross		Accumulated Amortization			Currency Translation			Net
December 28, 2019
Definite-Lived
Customer relationships	$	171,583	$	(51,798	)	$	(4,141	)	$	115,644
Product technology	56,011		(27,819		)	(1,709		)	26,483
Tradenames	6,527		(2,421		)	(427		)	3,679
Other	17,964		(13,295		)	(593		)	4,076
	252,085		(95,333		)	(6,870		)	149,882
Indefinite-Lived
Tradenames	24,100		—			(86		)	24,014
Acquired Intangible Assets	$	276,185	$	(95,333	)	$	(6,956	)	$	173,896

December 29, 2018
Definite-Lived
Customer relationships	$	113,283	$	(38,160	)	$	(4,520	)	$	70,603
Product technology	46,501		(23,563		)	(1,677		)	21,261
Tradenames	5,227		(1,980		)	(390		)	2,857
Other	13,744		(11,476		)	(127		)	2,141
	178,755		(75,179		)	(6,714		)	96,862
Indefinite-Lived
Tradenames	16,600		—			(115		)	16,485
Acquired Intangible Assets	$	195,355	$	(75,179	)	$	(6,829	)	$	113,347

Changes in the Carrying Amount of Goodwill

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



(In thousands)	Papermaking Systems			Wood Processing Systems			Material Handling Systems		Total
Balance as of December 30, 2017
Gross balance	$	247,014		$	106,496		$	—	$	353,510
Accumulated impairment losses	(85,509		)	—			—		(85,509		)
Net balance	161,505			106,496			—		268,001
2018 Adjustments
Acquisitions (Note 2)	(17		)	(75		)	—		(92		)
Currency translation	(5,085		)	(4,650		)	—		(9,735		)
Total 2018 Adjustments	(5,102		)	(4,725		)	—		(9,827		)
Balance at December 29, 2018
Gross balance	241,912			101,771			—		343,683
Accumulated impairment losses	(85,509		)	—			—		(85,509		)
Net balance	156,403			101,771			—		258,174
2019 Adjustments
Acquisition (Note 2)	—			—			78,592		78,592
Currency translation	(1,592		)	858			—		(734		)
Total 2019 Adjustments	(1,592		)	858			78,592		77,858
Balance at December 28, 2019
Gross balance	240,320			102,629			78,592		421,541
Accumulated impairment losses	(85,509		)	—			—		(85,509		)
Net balance	$	154,811		$	102,629		$	78,592	$	336,032

Goodwill by Reporting Unit

Goodwill by reporting unit is as follows:



(In thousands)	December 28, 2019		December 29, 2018
Stock-Preparation	$	57,132	$	58,142
Fluid-Handling	63,382		64,052
Doctoring, Cleaning, & Filtration	34,297		34,209
Wood Processing Systems	102,629		101,771
Material Handling Systems	78,592		—
	$	336,032	$	258,174

Acquisitions (Tables)

12 Months Ended

Dec. 28, 2019

Business Combinations [Abstract]

Purchase Price Allocation



	SMH
(In thousands)	January 2, 2019
Net Assets Acquired:
Cash, Cash Equivalents, and Restricted Cash	$	2,431
Accounts Receivable	10,275
Inventories	13,061
Property, Plant, and Equipment	7,383
Other Assets	12,054
Definite-Lived Intangible Assets
Customer relationships	58,300
Product technology	11,000
Other	4,220
Indefinite-Lived Intangible Assets
Tradenames	9,500
Goodwill	78,592
Total assets acquired	206,816

Accounts Payable	3,380
Other Current Liabilities	7,954
Long-Term Lease Liabilities	15,244
Long-Term Deferred Income Taxes	952
Total liabilities assumed	27,530
Net assets acquired	$	179,286

Purchase Price:
Cash Paid to Seller Borrowed Under Revolving Credit Facility	$	179,286

The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price for the Company's 2017 acquisitions.



	NII FPG		Unaflex		Other
(In thousands)	July 5, 2017		August 14, 2017		October 30, 2017		Total
Net Assets Acquired:
Cash and Cash Equivalents	$	2,219	$	—	$	—	$	2,219
Accounts Receivable	6,542		2,079		—		8,621
Inventories	25,304		2,033		—		27,337
Property, Plant, and Equipment	12,912		1,279		284		14,475
Other Assets	2,375		72		—		2,447
Definite-Lived Intangible Assets
Customer relationships	44,682		8,000		1,500		54,182
Product technology	17,100		2,300		—		19,400
Other	2,530		900		—		3,430
Indefinite-Lived Intangible Assets
Tradenames	8,500		—		—		8,500
Goodwill	85,432		15,640		716		101,788
Total assets acquired	207,596		32,303		2,500		242,399

Accounts Payable	4,970		358		—		5,328
Customer Deposits	7,396		100		—		7,496
Long-Term Deferred Income Taxes	16,622		—		—		16,622
Other Liabilities	5,597		571		—		6,168
Total liabilities assumed	34,585		1,029		—		35,614
Net assets acquired	$	173,011	$	31,274	$	2,500	$	206,785

Purchase Price:
Cash Paid	$	2,993	$	—	$	—	$	2,993
Cash Paid to Seller Borrowed Under the Revolving Credit Facility	170,018		31,274		2,500		203,792
Total purchase price	$	173,011	$	31,274	$	2,500	$	206,785

Unaudited Supplemental Pro Forma Information

Had the acquisitions of NII FPG and Unaflex been completed as of the beginning of 2016, the Company’s pro forma results of operations for 2017 would have been as follows:



(In thousands, except per share amounts)	December 30, 2017
Revenues	$	565,710
Net Income Attributable to Kadant	$	44,159
Earnings per Share Attributable to Kadant
Basic	$	4.02
Diluted	$	3.90

Had the acquisition of SMH been completed as of the beginning of 2018, the Company’s pro forma results of operations for 2019 and 2018 would have been as follows:



(In thousands, except per share amounts)	December 28, 2019		December 29, 2018
Revenues	$	704,644	$	719,142
Net Income Attributable to Kadant	$	56,409	$	56,511
Earnings per Share Attributable to Kadant
Basic	$	5.02	$	5.10
Diluted	$	4.92	$	4.96

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 28, 2019

Share-based Payment Arrangement [Abstract]

Components of Pre-Tax Stock-Based Compensation Expense

The components of pre-tax stock-based compensation expense included in SG&A expenses in the accompanying consolidated statement of income are as follows:



(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
RSU Awards	$	6,616	$	6,838	$	5,621
Employee Stock Purchase Plan Awards	199		189		182
Total	$	6,815	$	7,027	$	5,803

Summary of Activity of the Unvested Restricted Stock Units

A summary of the activity of the Company's unvested RSUs in 2019 is as follows:



	Units (In thousands)		Weighted Average Grant- Date Fair Value
Unvested RSUs at December 29, 2018	156		$	68.57
Granted	75		$	86.50
Vested	(94	)	$	57.81
Forfeited	(2	)	$	65.02
Unvested RSUs at December 28, 2019	135		$	86.11

Stock Option Activity

A summary of the Company's stock option activity in 2019 is as follows:



(In thousands, except per share amounts)	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (a)
Options Outstanding at December 29, 2018	299		$	20.86
Exercised	(225	)	$	19.75
Options Outstanding at December 28, 2019	74		$	24.28	2.3 years	$	6,002
Vested and Exercisable at December 28, 2019	74		$	24.28	2.3 years	$	6,002

(a)

The closing price per share on the last trading day prior to year-end 2019 was $105.76.

Summary of Stock Option Exercises

A summary of the Company's stock option exercises in 2019 and 2018 are as follows:



(In thousands)	December 28, 2019		December 29, 2018
Total Intrinsic Value of Options Exercised	$	16,796	$	515
Cash Received from Options Exercised	$	4,454	$	127

Changes In Projected Benefit Obligations, Plan Assets, Unfunded Status, and Accumulated Other Comprehensive Items



	U.S. Pension (a)						Non-U.S. Pension						Other Post-Retirement
(In thousands)	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year	$	29,715		$	34,757		$	3,671		$	4,270		$	3,672		$	4,704
Service cost	—			699			205			173			4			213
Interest cost	1,134			1,193			121			126			149			172
Actuarial loss (gain)	4,039			(2,674		)	393			(368		)	144			(508		)
Benefits paid	(966		)	(1,589		)	(184		)	(394		)	(232		)	(157		)
Plan amendment	—			1,116			—			—			—			322
Effect of curtailment	—			(3,787		)	—			—			—			(1,075		)
Settlement payment	(33,922		)	—			—			—			—			—
Currency translation	—			—			(38		)	(136		)	5			1
Projected benefit obligation at end of year	$	—		$	29,715		$	4,168		$	3,671		$	3,742		$	3,672
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	28,729		$	31,754		$	726		$	557		$	44		$	35
Actual return on plan assets	2,320			(1,436		)	58			38			4			2
Employer contributions	3,839			—			340			528			246			164
Benefits paid	(966		)	(1,589		)	(184		)	(394		)	(232		)	(157		)
Settlement payment	(33,922		)	—			—			—			—			—
Currency translation	—			—			33			(3		)	2			—
Fair value of plan assets at end of year	$	—		$	28,729		$	973		$	726		$	64		$	44
Unfunded Status	$	—		$	(986	)	$	(3,195	)	$	(2,945	)	$	(3,678	)	$	(3,628	)
Accumulated Benefit Obligation at End of Year	$	—		$	29,715		$	3,046		$	2,604		$	—		$	—

Amounts Included in the Balance Sheet:
Current liability	$	—		$	(986	)	$	(189	)	$	(58	)	$	(2,569	)	$	(144	)
Non-current liability	$	—		$	—		$	(3,006	)	$	(2,887	)	$	(1,109	)	$	(3,484	)

Amounts Included in Accumulated Other Comprehensive Items Before Tax:
Unrecognized net actuarial loss	$	—		$	(3,205	)	$	(1,034	)	$	(674	)	$	(144	)	$	(69	)
Unrecognized prior service cost	—			—			(38		)	(45		)	—			—
	$	—		$	(3,205	)	$	(1,072	)	$	(719	)	$	(144	)	$	(69	)

(a)



	U.S. Pension						Non-U.S. Pension						Other Post-Retirement
(In thousands)	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Changes in Amounts Included in Accumulated Other Comprehensive Items Before Tax:
Net actuarial (loss) gain	$	(2,714	)	$	(48	)	$	(402	)	$	368		$	(88	)	$	508
Amortization of net actuarial loss	32			541			25			63			13			136
Amortization of prior service cost	—			—			6			6			—			86
Plan amendment	—			(1,116		)	—			—			—			(322		)
Effect of curtailment	—			3,787			—			—			—			1,075
Settlement loss	5,887			—			—			—			—			—
Curtailment loss	—			1,116			—			—			—			309
Currency translation	—			—			18			(19		)	—			2
	$	3,205		$	4,280		$	(353	)	$	418		$	(75	)	$	1,794

Weighted-Average Assumptions Used to Determine the Benefit Obligation and Net Periodic Benefit Cost

The weighted-average assumptions used to determine the benefit obligation are as follows:



	U.S. Pension				Non-U.S. Pension				Other Post-Retirement
	U.S. Pension				Non-U.S. Pension				Other Post-Retirement
	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Discount rate	—	%	4.10	%	2.59	%	3.56	%	3.82	%	4.32	%
Rate of compensation increase	—		—	%	3.40	%	3.24	%	5.57	%	5.57	%

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



	U.S. Pension						Non-U.S. Pension						Other Post-Retirement
	U.S. Pension						Non-U.S. Pension						Other Post-Retirement
	December 28, 2019		December 29, 2018		December 30, 2017		December 28, 2019		December 29, 2018		December 30, 2017		December 28, 2019		December 29, 2018		December 30, 2017
Discount Rate	4.10	%	3.51	%	4.03	%	2.58	%	3.49	%	3.45	%	4.33	%	3.58	%	4.10	%
Expected Long-Term Return on Plan Assets	4.10	%	4.50	%	5.00	%	9.22	%	7.43	%	7.53	%	9.22	%	7.43	%	7.53	%
Rate of Compensation Increase	—	%	3.00	%	3.00	%	2.81	%	3.97	%	3.65	%	5.57	%	3.05	%	3.08	%

Benefit Obligations in Excess of Fair Value of Plan Assets

The projected benefit obligations and fair values of plan assets for the Company's pension plans with projected benefit obligations in excess of plan assets are as follows:



	U.S. Pension				Non-U.S. Pension
	U.S. Pension				Non-U.S. Pension
(In thousands)	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Projected benefit obligation	$	—	$	29,715	$	4,168	$	3,671
Fair value of plan assets	$	—	$	28,729	$	973	$	726

Accumulated Benefit Obligations in Excess of Plan Assets

The accumulated benefit obligations and fair values of plan assets for the Company's pension plans with accumulated benefit obligations in excess of plan assets are as follows:



	U.S. Pension				Non-U.S. Pension
	U.S. Pension				Non-U.S. Pension
(In thousands)	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Accumulated benefit obligation	$	—	$	29,715	$	2,408	$	2,307
Fair value of plan assets	$	—	$	28,729	$	—	$	—

Components of Net Periodic Benefit Cost (Income)

The components of net periodic benefit cost are as follows:



	U.S. Pension									Non-U.S. Pension									Other Post-Retirement
	U.S. Pension									Non-U.S. Pension									Other Post-Retirement
(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017			December 28, 2019			December 29, 2018			December 30, 2017			December 28, 2019			December 29, 2018			December 30, 2017
Service cost	$	—		$	699		$	685		$	205		$	173		$	148		$	4		$	213		$	175
Interest cost	1,134			1,193			1,231			121			126			114			149			172			170
Expected return on plan assets	(995		)	(1,286		)	(1,326		)	(66		)	(42		)	(25		)	(4		)	(3		)	(2		)
Amortization of net actuarial loss	32			541			442			25			63			38			13			136			83
Amortization of prior service cost	—			—			53			6			6			6			—			86			88
Settlement loss	5,887			—			—			—			—			—			57			—			—
Curtailment loss	—			1,116			—			—			—			—			—			309			—
Net Periodic Benefit Cost	$	6,058		$	2,263		$	1,085		$	291		$	326		$	281		$	219		$	913		$	514

Fair Values of Plan Assets

The fair values of the Company's noncontributory defined benefit retirement plan assets at year-end 2019 and year-end 2018 by asset category are as follows:



	December 28, 2019 Fair Value Measurement
(In thousands)	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Non-U.S. Pension Plan Assets:
Mutual funds	$	973	$	—	$	—	$	973
Total assets at fair value							$	973



	December 29, 2018 Fair Value Measurement
(In thousands)	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Retirement Plan Assets:
Mutual funds:
Fixed income funds	$	12,852	$	—	$	—	$	12,852
Equity funds	11,581		—		—		11,581
Investments measured at NAV							4,296
Total assets at fair value							$	28,729

Non-U.S. Pension Plan Assets:
Mutual funds	$	726	$	—	$	—	$	726
Total assets at fair value							$	726

Estimated Future Benefit Payments

Estimated future benefit payments during the next five years and in aggregate for the five years thereafter are as follows:



			Other Post-retirement
(In thousands)	Non-U.S. Pension		Other Post-retirement
2020	$	189	$	2,569
2021	180		132
2022	143		124
2023	290		121
2024	393		108
2025-2029	2,156		444

Income Taxes (Tables)

12 Months Ended

Dec. 28, 2019

Income Tax Disclosure [Abstract]

Components of Income from Continuing Operations Before Income Taxes

The components of income before provision for income taxes are as follows:



(In thousands)	December 28, 2019		December 29, 2018			December 30, 2017
Domestic	$	93	$	(397	)	$	2,797
Foreign	68,829		79,925			54,856
	$	68,922	$	79,528		$	57,653

Components of the Provision for Income Taxes from Continuing Operations

The components of the provision for income taxes are as follows:



(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Current (Benefit) Provision:
Federal	$	(264	)	$	724		$	7,835
Foreign	18,778			21,829			17,372
State	335			169			285
	18,849			22,722			25,492
Deferred (Benefit) Provision:
Federal	(453		)	(2,551		)	4,682
Foreign	(1,253		)	(1,761		)	(3,563		)
State	(785		)	72			(541		)
	(2,491		)	(4,240		)	578
	$	16,358		$	18,482		$	26,070

Income Tax Reconciliation



(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Provision for Income Taxes at Statutory Rate (21% in 2019 and 2018 and 35% in 2017)	$	14,474		$	16,701		$	20,179
Increases (Decreases) Resulting From:
State income taxes, net of federal tax	(355		)	164			151
U.S. tax cost of foreign earnings	146			1,215			761
Foreign tax rate differential	2,584			3,158			(3,747		)
(Reversal of) provision for tax benefit reserves, net	(286		)	(1,785		)	1,517
Change in valuation allowance	81			141			(341		)
Nondeductible expenses	2,454			781			1,177
Research and development tax credits	(381		)	(445		)	(297		)
Excess tax benefit related to stock-based compensation	(3,352		)	(967		)	(581		)
Impact of the U.S. Tax Cuts and Jobs Act	—			(106		)	7,093
Other	993			(375		)	158
	$	16,358		$	18,482		$	26,070

Net Deferred Tax (Liability) Asset

Net deferred tax liability in the accompanying consolidated balance sheet consists of the following:



(In thousands)	December 28, 2019			December 29, 2018
Deferred Tax Asset:
Foreign, state, and alternative minimum tax credit carryforwards	$	776		$	184
Reserves and accruals	3,007			3,555
Net operating loss carryforwards	12,478			12,785
Inventory basis difference	4,107			3,692
Capitalized research expenses	2,813			—
Research and development	65			—
Employee compensation	3,630			4,382
Allowance for doubtful accounts	351			482
Lease liabilities	7,543			—
Other	478			294
Deferred tax asset, gross	35,248			25,374
Less: valuation allowance	(8,531		)	(9,946		)
Deferred tax asset, net	26,717			15,428
Deferred Tax Liability:
Goodwill and intangible assets	(30,003		)	(28,060		)
Fixed asset basis difference	(4,557		)	(3,565		)
Provision for unremitted foreign earnings	(809		)	(1,124		)
Research and development	—			(54		)
ROU assets	(6,433		)	—
Other	(943		)	(619		)
Deferred tax liability	(42,745		)	(33,422		)
Net deferred tax liability	$	(16,028	)	$	(17,994	)

Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits at year-end 2019 and year-end 2018 is as follows:



(In thousands)	December 28, 2019			December 29, 2018
Unrecognized Tax Benefits, Beginning of Year	$	12,364		$	7,843
Gross Increases—Tax Positions in Prior Periods	615			1,019
Gross Decreases—Tax Positions in Prior Periods	(4,373		)	(390		)
Gross Increases—Current-period Tax Positions	804			7,344
Settlements	—			(131		)
Lapses of Statutes of Limitations	(1,094		)	(3,190		)
Currency Translation	15			(131		)
Unrecognized Tax Benefits, End of Year	$	8,331		$	12,364

Long-Term Obligations (Tables)

12 Months Ended

Dec. 28, 2019

Debt Disclosure [Abstract]

Long-Term Obligations

Long-term obligations are as follows:



(In thousands)	December 28, 2019			December 29, 2018
Revolving Credit Facility, due 2023	$	265,419		$	141,106
Commercial Real Estate Loan, due 2020 to 2028	19,425			20,475
Senior Promissory Notes, due 2023 to 2028	10,000			10,000
Finance Leases, due 2020 to 2025	2,308			—
Other Borrowings, due 2020 to 2023	4,000			4,388
Unamortized Debt Issuance Costs	(127		)	(148		)
Total	301,025			175,821
Less: Current Maturities of Long-Term Obligations	(2,851		)	(1,668		)
Long-Term Obligations	$	298,174		$	174,153

Schedule of repayments of long-term debt



(In thousands)
2020	$	1,253
2021	1,117
2022	1,050
2023	268,136
2024	2,717
2025 and Thereafter	20,843
	$	295,116

Future minimum lease payments under capital lease obligations

The following schedule presents future minimum lease payments for the Company's sales-leaseback financing arrangement as of year-end 2019.



(In thousands)
2020	$	528
2021	528
2022	1,297
Total Minimum Lease Payments	$	2,353
Less: Imputed Interest	(108		)
Present Value of Minimum Lease Payments	$	2,245

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Restructuring Costs (Tables)

12 Months Ended

Dec. 28, 2019

Restructuring and Related Activities [Abstract]

Summary of Changes in Accrued Restructuring Costs

A summary of the changes in accrued restructuring costs included in other accrued expenses in the accompanying consolidated balance sheet, which are expected to be paid in 2020, are as follows:



(In thousands)	Severance			Relocation			Other (a)			Total
2019 Restructuring Plan
Provision	$	192		$	—		$	—		$	192
Usage	(109		)	—			—			(109		)
Currency translation	1			—			—			1
Balance at December 28, 2019	$	84		$	—		$	—		$	84

2017 Restructuring Plan
Provision	$	203		$	—		$	—		$	203
Balance at December 30, 2017	203			—			—			203
(Reversal) Provision	(55		)	1,318			454			1,717
Usage	(77		)	(1,315		)	(448		)	(1,840		)
Currency translation	(8		)	(3		)	(6		)	(17		)
Balance at December 29, 2018	63			—			—			63
Usage	—			—			—			—
Balance at December 28, 2019	$	63		$	—		$	—		$	63

Leases (Tables)

12 Months Ended

Dec. 28, 2019

Leases [Abstract]

Lease, Cost

The components of lease expense are as follows:



(In thousands)	December 28, 2019
Operating Lease Cost	$	5,534

Short-Term Lease Cost	715

Finance Lease Cost:
ROU asset amortization	1,213
Interest on lease liabilities	94
Total Finance Lease Cost	1,307

Total Lease Costs	$	7,556

Supplemental cash flow information related to leases is as follows:



(In thousands)	December 28, 2019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$	5,636
Operating cash flows from finance leases	$	93
Financing cash flows from finance leases	$	1,144

ROU Assets Obtained in Exchange for Lease Obligations (a):
Operating leases	$	28,484
Finance leases	$	3,847

(a)

Includes additions related to the transition adjustment for the adoption of ASC 842. The post-adoption additions of operating leases were $13,167,000, of which $10,994,000 related to ROU assets obtained as part of the acquisition of SMH. The post-adoption additions of finance leases were $2,496,000, of which $528,000 related to ROU assets obtained as part of the acquisition of SMH.

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases is as follows:



(In thousands, except lease term and discount rate)	Balance Sheet Line Item	December 28, 2019
Operating Leases:
ROU assets	Other assets	$	27,139

Short-term liabilities	Other current liabilities	$	4,184
Long-term liabilities	Other long-term liabilities	24,411
Total operating lease liabilities		$	28,595

Finance Leases:
ROU assets, at cost	Property, plant, and equipment, at cost	$	3,775
ROU assets accumulated amortization	Less: accumulated depreciation and amortization	(1,475		)
ROU assets, net	Property, plant, and equipment, net	$	2,300

Short-term obligations	Current maturities of long-term obligations	$	1,116
Long-term obligations	Long-term obligations	1,192
Total finance lease liabilities		$	2,308

Weighted Average Remaining Lease Term:
Operating leases		10.2
Finance leases		2.3

Weighted Average Discount Rate:
Operating leases		3.96		%
Finance leases		4.10		%

Finance Lease, Liability, Maturity

As of December 28, 2019, future lease payments for lease liabilities are as follows:



	Operating			Finance
(In thousands)	Leases			Leases
2020	$	5,221		$	1,186
2021	4,406			815
2022	3,687			319
2023	3,108			85
2024	2,703			7
Thereafter	15,998			5
Total Future Lease Payments	35,123			2,417
Less: Imputed Interest	(6,528		)	(109		)
Present Value of Lease Payments	$	28,595		$	2,308

Lessee, Operating Lease, Liability, Maturity

As of December 28, 2019, future lease payments for lease liabilities are as follows:



	Operating			Finance
(In thousands)	Leases			Leases
2020	$	5,221		$	1,186
2021	4,406			815
2022	3,687			319
2023	3,108			85
2024	2,703			7
Thereafter	15,998			5
Total Future Lease Payments	35,123			2,417
Less: Imputed Interest	(6,528		)	(109		)
Present Value of Lease Payments	$	28,595		$	2,308

Schedule of Future Minimum Rental Payments for Operating Leases

ture minimum lease payments for noncancelable operating leases under Topic 840, its previous lease accounting standard, as follows:



(In thousands)	December 29, 2018
2019	$	4,507
2020	3,275
2021	2,230
2022	1,579
2023	987
Thereafter	1,713
Total Future Minimum Lease Payments	$	14,291

Derivatives (Tables)

12 Months Ended

Dec. 28, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

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



		December 28, 2019					December 29, 2018
(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	Other Current Assets	$	11		$	10,000	$	—		$	—
2015 Swap Agreement	Other Long-Term Assets	$	—		$	—	$	148		$	10,000
Forward currency-exchange contracts	Other Long Term Assets	$	—		$	—	$	11		$	842
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(75	)	$	4,825	$	(50	)	$	2,946
2018 Swap Agreement	Other Long-Term Liabilities	$	(770	)	$	15,000	$	(352	)	$	15,000
Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	3		$	387	$	9		$	1,192
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(43	)	$	2,545	$	(31	)	$	1,384


(a)	See Note 11 for the fair value measurements relating to these financial instruments.


(b)	The total 2019 notional amounts are indicative of the level of the Company's recurring derivative activity.

Activity in Accumulated Other Comprehensive Items (OCI)

The following table summarizes the activity in AOCI associated with the Company's derivative instruments designated as cash flow hedges as of and for the year ended December 28, 2019:



(In thousands)	Interest Rate Swap Agreements			Forward Currency- Exchange Contracts			Total
Unrealized Loss, Net of Tax, at December 29, 2018	$	(170	)	$	(27	)	$	(197	)
Loss reclassified to earnings (a)	6			117			123
Loss recognized in AOCI	(425		)	(145		)	(570		)
Unrealized Loss, Net of Tax, at December 28, 2019	$	(589	)	$	(55	)	$	(644	)


(a)	See Note 14 for the income statement classification.

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

12 Months Ended

Dec. 28, 2019

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities Measured on a Recurring Basis

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



	Fair Value as of December 28, 2019
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	9,920	$	—	$	—	$	9,920
Banker's acceptance drafts (a)	$	—	$	5,230	$	—	$	5,230
2015 Swap Agreement	$	—	$	11	$	—	$	11
Forward currency-exchange contracts	$	—	$	3	$	—	$	3
Liabilities:
2018 Swap Agreement	$	—	$	770	$	—	$	770
Forward currency-exchange contracts	$	—	$	118	$	—	$	118



	Fair Value as of December 29, 2018
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	6,902	$	—	$	—	$	6,902
Banker's acceptance drafts (a)	$	—	$	7,976	$	—	$	7,976
2015 Swap Agreement	$	—	$	148	$	—	$	148
Forward currency-exchange contracts	$	—	$	20	$	—	$	20
Liabilities:
2018 Swap Agreement	$	—	$	352	$	—	$	352
Forward currency-exchange contracts	$	—	$	81	$	—	$	81


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

Carrying Value and Fair Value of Debt Obligations

The carrying value and fair value of the Company's debt obligations, excluding lease obligations and other borrowings, are as follows:



	December 28, 2019				December 29, 2018
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Debt Obligations:
Revolving credit facility	$	265,419	$	265,419	$	141,106	$	141,106
Commercial real estate loan	19,425		20,541		20,475		20,575
Senior promissory notes	10,000		10,803		10,000		10,120
	$	294,844	$	296,763	$	171,581	$	171,801

Business Segment and Geographical Information (Tables)

12 Months Ended

Dec. 28, 2019

Segment Reporting [Abstract]

Business Segment Information

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



(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017
Business Segment Information
Revenues by Product Line:
Stock-Preparation	$	215,091		$	221,933		$	193,838
Fluid-Handling	132,501			131,830			104,136
Doctoring, Cleaning, & Filtration	117,838			116,136			109,631
Papermaking Systems	465,430			469,899			407,605
Wood Processing Systems	143,187			151,366			95,053
Material Handling Systems (a)	83,364			—			—
Fiber-based Products	12,663			12,521			12,375
	$	704,644		$	633,786		$	515,033
Income Before Provision for Income Taxes:
Papermaking Systems (b)	$	81,232		$	83,454		$	73,069
Wood Processing Systems (c)	28,166			31,237			10,005
Material Handling Systems (a, d)	3,132			—			—
Corporate and Fiber-based Products (e)	(24,707		)	(26,093		)	(21,449		)
Total operating income	87,823			88,598			61,625
Interest expense, net (f)	(12,542		)	(6,653		)	(3,100		)
Other expense, net (f, g)	(6,359		)	(2,417		)	(872		)
	$	68,922		$	79,528		$	57,653



(In thousands)	December 28, 2019		December 29, 2018		December 30, 2017
Total Assets:
Papermaking Systems	$	464,069	$	462,297	$	494,919
Wood Processing Systems	249,689		247,553		257,467
Material Handling Systems (a)	196,884		—		—
Corporate and Fiber-based Products (h)	28,745		15,899		8,708
	$	939,387	$	725,749	$	761,094
Depreciation and Amortization:
Papermaking Systems	$	13,010	$	12,561	$	11,239
Wood Processing Systems	9,571		10,317		7,515
Material Handling Systems (a)	9,018		—		—
Corporate and Fiber-based Products	791		690		621
	$	32,390	$	23,568	$	19,375
Capital Expenditures:
Papermaking Systems	$	6,127	$	12,717	$	14,359
Wood Processing Systems	2,133		3,272		2,333
Material Handling Systems (a)	1,195		—		—
Corporate and Fiber-based Products	502		570		589
	$	9,957	$	16,559	$	17,281
Geographical Information
Revenues (i):
United States	$	309,957	$	234,487	$	182,788
China	66,480		89,645		63,910
Canada	64,010		61,096		47,611
Germany	29,076		26,577		32,026
Finland	11,113		10,934		8,607
Other	224,008		211,047		180,091
	$	704,644	$	633,786	$	515,033
Long-lived Assets (j):
United States	$	42,094	$	35,446	$	32,852
China	10,319		11,069		11,685
Canada	7,948		8,193		9,449
Finland	6,960		6,998		5,841
Germany	5,925		6,223		6,452
Other	12,786		12,228		13,444
	$	86,032	$	80,157	$	79,723


(a)	Comprised of the SMH business, which was acquired on January 2, 2019 (see Note 2).


(b)	Includes $787,000 in 2017 of acquisition-related expenses, comprised of acquisition transaction costs and amortization of acquired profit in inventory and backlog. Includes restructuring costs of $1,717,000 in 2018 and $203,000 in 2017 (see Note 8).


(c)	Includes $2,336,000 and $192,000 in 2019 of impairment and restructuring costs, respectively, related to the timber-harvesting product line (see Notes 1 and 8). Includes $252,000 in 2018 and $11,163,000 in 2017 of acquisition-related expenses.


(d)	Includes $5,715,000 in 2019 of acquisition-related expenses, comprised of amortization expense associated with acquired profit in inventory and backlog and acquisition transaction costs.


(e)	Corporate primarily includes general and administrative expenses, including $1,321,000 in 2018 of acquisition transaction costs.


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


(g)	Includes a settlement loss of $5,887,000 in 2019 and a curtailment loss of $1,425,000 in 2018 (see Note 3).


(h)	Primarily includes Corporate and Fiber-based Products' cash and cash equivalents, tax assets, ROU assets, and property, plant, and equipment, net.


(i)	Revenues are attributed to countries based on customer location.

(j)

Represents property, plant, and equipment, net.

Earnings per Share (Tables)

12 Months Ended

Dec. 28, 2019

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share

Basic and diluted EPS were calculated as follows:



(In thousands, except per share amounts)	December 28, 2019		December 29, 2018		December 30, 2017
Net Income Attributable to Kadant	$	52,068	$	60,413	$	31,092

Basic Weighted Average Shares	11,235		11,086		10,991
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	222		314		321
Diluted Weighted Average Shares	11,457		11,400		11,312

Basic Earnings per Share	$	4.63	$	5.45	$	2.83

Diluted Earnings per Share	$	4.54	$	5.30	$	2.75

Accumulated Other Comprehensive Items (Tables)

12 Months Ended

Dec. 28, 2019

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Components of Accumulated Other Comprehensive Items in the Balance Sheet

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



(In thousands)	Foreign Currency Translation Adjustment			Pension and Other Post-Retirement Benefit Liability Adjustments			Deferred Loss on Cash Flow Hedges			Total
Balance at December 29, 2018	$	(34,804	)	$	(4,375	)	$	(197	)	$	(39,376	)
Other comprehensive loss before reclassifications	(1,341		)	(3,060		)	(570		)	(4,971		)
Reclassifications from AOCI	—			6,604			123			6,727
Net current period other comprehensive items	(1,341		)	3,544			(447		)	1,756
Balance at December 28, 2019	$	(36,145	)	$	(831	)	$	(644	)	$	(37,620	)

Reclassification Out of Accumulated Other Comprehensive Items

Amounts reclassified out of AOCI are as follows:



(In thousands)	December 28, 2019			December 29, 2018			December 30, 2017			Statement of Income Line Item
Retirement Benefit Plans (a)
Recognized net actuarial loss	$	(70	)	$	(740	)	$	(563	)	Other expense, net
Amortization of prior service cost	(6		)	(92		)	(147		)	Other expense, net
Settlement and curtailment losses	(5,887		)	(1,425		)	—			Other expense, net
Total expense before income taxes	(5,963		)	(2,257		)	(710		)
Income tax (provision) benefit	(641		)	549			246			Provision for income taxes
	(6,604		)	(1,708		)	(464		)
Cash Flow Hedges (b)
Interest rate swap agreements	(8		)	(11		)	(30		)	Interest expense
Forward currency-exchange contracts	(169		)	22			(97		)	Cost of revenues
Total (expense) income before income taxes	(177		)	11			(127		)
Income tax benefit (provision)	54			(3		)	43			Provision for income taxes
	(123		)	8			(84		)
Total Reclassifications	$	(6,727	)	$	(1,700	)	$	(548	)


(a)	Included in the computation of net periodic benefit cost. See Note 3 for additional information.

(b)

See Note 10 for additional information.

Unaudited Quarterly Information (Tables)

12 Months Ended

Dec. 28, 2019

Quarterly Financial Information Disclosure [Abstract]

Unaudited Quarterly Financial Information



2019 (In thousands, except per share amounts)	First		Second		Third		Fourth
Revenues	$	171,316	$	177,165	$	173,504	$	182,659
Gross Profit	$	70,515	$	74,371	$	74,247	$	74,627

Net Income Attributable to Kadant	$	10,900	$	16,304	$	16,115	$	8,749

Earnings per Share Attributable to Kadant
Basic	$	0.98	$	1.46	$	1.43	$	0.77
Diluted	$	0.96	$	1.42	$	1.41	$	0.76

Cash Dividends Declared per Common Share	$	0.23	$	0.23	$	0.23	$	0.23

2018 (In thousands, except per share amounts)	First		Second		Third		Fourth
Revenues	$	149,193	$	154,913	$	165,745	$	163,935
Gross Profit	$	66,079	$	68,164	$	73,093	$	70,945

Net Income Attributable to Kadant	$	10,858	$	12,349	$	18,784	$	18,422

Earnings per Share Attributable to Kadant
Basic	$	0.98	$	1.11	$	1.69	$	1.66
Diluted	$	0.96	$	1.08	$	1.64	$	1.61

Cash Dividends Declared per Common Share	$	0.22	$	0.22	$	0.22	$	0.22

Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended	12 Months Ended
	Dec. 28, 2019 USD ($)	Dec. 28, 2019 USD ($) Segment	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)	Dec. 30, 2018
Nature of Operations [Line Items]
Number of reportable segments \| Segment		3
Revenue recognized from contract liabilities		$ 29,220,000	$ 36,556,000
Revenue, remaining performance obligation, amount	$ 13,176,000	13,176,000
Percentage of completion revenue				$ 27,676,000
Customer deposits	24,012,000	24,012,000	26,987,000
Due from bankers acceptances drafts	5,230,000	$ 5,230,000	7,976,000
Weighted average useful life of acquired intangible assets		12 years
Amortization expense of acquired intangible assets		$ 20,154,000	14,182,000	11,957,000
Acquisition transaction costs		843,000	1,321,000	$ 5,375,000
Estimated Future Amortization Expense [Abstract]
2020	18,714,000	18,714,000
2021	17,875,000	17,875,000
2022	16,797,000	16,797,000
2023	15,164,000	15,164,000
2024	14,272,000	14,272,000
Thereafter	67,060,000	67,060,000
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, impairment loss		0	0
Impairment of intangible assets, indefinite-lived (excluding goodwill)	2,336,000	0	0
Finite-lived intangible assets	$ 149,882,000	$ 149,882,000	96,862,000
Joint Venture with an Italian Company
Nature of Operations [Line Items]
Remaining ownership interest with an option to purchase	50.00%	50.00%
Italian Company \| Joint Venture with an Italian Company
Nature of Operations [Line Items]
Ownership interest	50.00%	50.00%
Assets \| Accounting Standards Update 2016-02
Recent Accounting Pronouncements [Abstract]
Cumulative effect of new accounting principle in period of adoption, percent					2.30%
Liabilities \| Accounting Standards Update 2016-02
Recent Accounting Pronouncements [Abstract]
Cumulative effect of new accounting principle in period of adoption, percent					4.80%
Tradenames
Goodwill and Intangible Assets Disclosure [Abstract]
Indefinite-lived intangible assets	$ 24,014,000	$ 24,014,000	16,485,000
Madill \| Tradenames
Goodwill and Intangible Assets Disclosure [Abstract]
Indefinite-lived intangible assets	1,300,000	1,300,000
Product technology
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets	26,483,000	26,483,000	21,261,000
Tradenames
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets	3,679,000	3,679,000	$ 2,857,000
Wood Processing Systems
Nature of Operations [Line Items]
Impairment of intangible assets, finite-lived	2,336,000
Wood Processing Systems \| Tradenames
Goodwill and Intangible Assets Disclosure [Abstract]
Indefinite-lived intangible assets	700,000	700,000
Wood Processing Systems \| Product technology
Nature of Operations [Line Items]
Impairment of intangible assets, finite-lived	1,636,000
Scenario, Adjustment \| Madill \| Tradenames
Goodwill and Intangible Assets Disclosure [Abstract]
Indefinite-lived intangible assets	(1,300,000)	(1,300,000)
Scenario, Adjustment \| Tradenames \| Madill
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived intangible assets	$ 1,300,000	$ 1,300,000

Nature of Operations and Summary of Significant Accounting Policies - Revenue Recognition by Product Type, Geography and Revenue Recognition Method (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 182,659	$ 173,504	$ 177,165	$ 171,316	$ 163,935	$ 165,745	$ 154,913	$ 149,193	$ 704,644	$ 633,786	$ 515,033
Parts and Consumables
Disaggregation of Revenue [Line Items]
Revenues									440,699	374,433	316,506
Capital
Disaggregation of Revenue [Line Items]
Revenues									263,945	259,353	198,527
North America
Disaggregation of Revenue [Line Items]
Revenues									386,952	305,618	238,483
Europe
Disaggregation of Revenue [Line Items]
Revenues									180,888	174,681	157,994
Asia
Disaggregation of Revenue [Line Items]
Revenues									84,705	109,688	78,443
Rest of World
Disaggregation of Revenue [Line Items]
Revenues									52,099	43,799	$ 40,113
Point in Time
Disaggregation of Revenue [Line Items]
Revenues									611,528	577,506
Over Time
Disaggregation of Revenue [Line Items]
Revenues									$ 93,116	$ 56,280

Nature of Operations and Summary of Significant Accounting Policies - Revenue from Contract with Customers (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Revenue from Contract with Customer [Abstract]
Accounts receivable	$ 95,740	$ 92,624
Contract assets	13,162	15,741
Contract liabilities	$ 37,216	$ 34,774

Nature of Operations and Summary of Significant Accounting Policies - Performance Obligations Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01	Dec. 28, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percent	90.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months

Nature of Operations and Summary of Significant Accounting Policies - Changes in the Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Year	$ 2,897	$ 2,879	$ 2,395
Provision charged to expense	114	355	436
Accounts written off	(263)	(165)	(159)
Currency translation	(50)	(172)	207
Balance at End of Year	$ 2,698	$ 2,897	$ 2,879

Nature of Operations and Summary of Significant Accounting Policies - Product Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Changes in the carrying amount of accrued warranty costs [Roll Forward]
Balance at Beginning of Year	$ 5,726	$ 5,498
Provision charged to expense	4,727	3,708
Usage	(4,255)	(3,140)
Acquisition	303	0
Currency translation	(34)	(340)
Balance at End of Year	$ 6,467	$ 5,726

Nature of Operations and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and cash equivalents	$ 66,786	$ 45,830	$ 75,425
Restricted cash	1,487	287	1,421
Total Cash, Cash Equivalents, and Restricted Cash	$ 68,273	$ 46,117	$ 76,846	$ 73,569

Nature of Operations and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Accounting Policies [Abstract]
Cash Paid for Interest	$ 12,344	$ 7,550	$ 2,624
Cash Paid for Income Taxes, Net of Refunds	24,533	25,654	20,559
Non-Cash Investing Activities:
Fair value of assets of acquired	207,223	0	242,399
Cash paid for acquired businesses	(179,693)	0	(206,785)
Liabilities Assumed of Acquired Businesses	27,530	0	35,614
Non-cash additions to property, plant, and equipment	626	917	4,620
Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of RSUs	4,100	4,231	3,192
Dividends declared but unpaid	$ 2,628	$ 2,444	$ 2,316

Nature of Operations and Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Accounting Policies [Abstract]
Customer deposits	$ 24,012	$ 26,987
Raw Materials	49,332	44,522
Work in Process	15,344	15,876
Finished Goods (includes $559 and $494 at customer locations)	38,039	25,975
Inventories	102,715	86,373
Finished goods, at customer locations	$ 559	$ 494

Nature of Operations and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 181,341	$ 170,697
Less: Accumulated Depreciation and Amortization	95,309	90,540
Property, plant and equipment, at cost, net	86,032	80,157
Property, plant, and equipment and finance lease right-of-use asset, depreciation and amortization expense	12,236	9,386	$ 7,418
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	7,347	7,614
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	58,509	58,866
Machinery, Equipment, and Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	112,655	100,453
Construction in Progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,830	$ 3,764
Minimum \| Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (years)	2 years
Minimum \| Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (years)	10 years
Maximum \| Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (years)	10 years
Maximum \| Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (years)	40 years

Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 252,085	$ 178,755
Accumulated Amortization	(95,333)	(75,179)
Currency Translation	(6,870)	(6,714)
Net	149,882	96,862
Acquired Intangible Assets
Gross	276,185	195,355
Currency Translation	(6,956)	(6,829)
Net	173,896	113,347
Tradenames
Acquired Indefinite-lived Intangible Assets [Line Items]
Gross	24,100	16,600
Currency Translation	(86)	(115)
Net	24,014	16,485
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	171,583	113,283
Accumulated Amortization	(51,798)	(38,160)
Currency Translation	(4,141)	(4,520)
Net	115,644	70,603
Product technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	56,011	46,501
Accumulated Amortization	(27,819)	(23,563)
Currency Translation	(1,709)	(1,677)
Net	26,483	21,261
Tradenames
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	6,527	5,227
Accumulated Amortization	(2,421)	(1,980)
Currency Translation	(427)	(390)
Net	3,679	2,857
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	17,964	13,744
Accumulated Amortization	(13,295)	(11,476)
Currency Translation	(593)	(127)
Net	$ 4,076	$ 2,141

Nature of Operations and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	$ 343,683	$ 353,510
Accumulated impairment losses	(85,509)	(85,509)
Net Balance, Beginning Balance	258,174	268,001
Increase Due to Acquisition	78,592	(92)
Currency translation	(734)	(9,735)
Goodwill period adjustments	77,858	(9,827)
Gross Balance, Ending Balance	421,541	343,683
Accumulated impairment losses	(85,509)	(85,509)
Net Balance, Ending Balance	336,032	258,174
Stock-Preparation
Goodwill [Roll Forward]
Net Balance, Beginning Balance	58,142
Net Balance, Ending Balance	57,132	58,142
Fluid-Handling
Goodwill [Roll Forward]
Net Balance, Beginning Balance	64,052
Net Balance, Ending Balance	63,382	64,052
Doctoring, Cleaning, & Filtration
Goodwill [Roll Forward]
Net Balance, Beginning Balance	34,209
Net Balance, Ending Balance	34,297	34,209
Operating Segments \| Papermaking Systems
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	241,912	247,014
Accumulated impairment losses	(85,509)	(85,509)
Net Balance, Beginning Balance	156,403	161,505
Increase Due to Acquisition	0	(17)
Currency translation	(1,592)	(5,085)
Goodwill period adjustments	(1,592)	(5,102)
Gross Balance, Ending Balance	240,320	241,912
Accumulated impairment losses	(85,509)	(85,509)
Net Balance, Ending Balance	154,811	156,403
Operating Segments \| Wood Processing Systems
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	101,771	106,496
Accumulated impairment losses	0	0
Net Balance, Beginning Balance	101,771	106,496
Increase Due to Acquisition	0	(75)
Currency translation	858	(4,650)
Goodwill period adjustments	858	(4,725)
Gross Balance, Ending Balance	102,629	101,771
Accumulated impairment losses	0	0
Net Balance, Ending Balance	102,629	101,771
Operating Segments \| Material Handling System
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	0	0
Accumulated impairment losses	0	0
Net Balance, Beginning Balance	0	0
Increase Due to Acquisition	78,592	0
Currency translation	0	0
Goodwill period adjustments	78,592	0
Gross Balance, Ending Balance	78,592	0
Accumulated impairment losses	0	0
Net Balance, Ending Balance	$ 78,592	$ 0

Acquisitions - Additional Information (Details) $ in Thousands					1 Months Ended	3 Months Ended	5 Months Ended	6 Months Ended	12 Months Ended
	Jan. 02, 2019 USD ($)	Oct. 30, 2017 USD ($)	Aug. 14, 2017 USD ($)	Jul. 05, 2017 USD ($) facility	Sep. 30, 2019 USD ($)	Dec. 28, 2019 USD ($)	Dec. 30, 2017 USD ($)	Dec. 30, 2017 USD ($)	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)
Business Acquisition [Line Items]
Payments to acquire businesses, net									$ 177,798	$ 0	$ 204,731
Goodwill						$ 336,032	$ 268,001	$ 268,001	336,032	258,174	268,001
Acquisition transaction costs									843	1,321	5,375
Goodwill, period decrease									(77,858)	$ 9,827
Syntron Material Handling Group, LLC
Business Acquisition [Line Items]
Payments to acquire businesses, net	$ 176,855
Goodwill	78,592
Goodwill, expected tax deductible amount	$ 59,195
Deferred income tax payments, period	15 years
Intangible assets other than goodwill acquired	$ 83,020
Intangible assets other than goodwill, expected tax deductible amount	$ 69,969
Acquired intangible assets other than goodwill income tax payments, period (years)	15 years
Revenue from the date of acquisition									83,364
Operating income from date of acquisition									3,132
Amortization expense									4,872
Acquisition transaction costs									$ 843
Goodwill, period decrease						$ 1,704
Cash paid to seller borrowed under revolving credit facility	$ 179,286
Unaflex
Business Acquisition [Line Items]
Goodwill			$ 15,640
Intangible assets other than goodwill acquired			11,200
Revenue from the date of acquisition							7,335
Operating income from date of acquisition							187
Amortization expense							$ 176
Acquisition transaction costs			596
Cash paid to seller borrowed under revolving credit facility			$ 31,274
NII FPG
Business Acquisition [Line Items]
Payments to acquire businesses, net				$ 170,792
Goodwill				85,432
Goodwill, expected tax deductible amount				33,993
Intangible assets other than goodwill acquired				72,812
Intangible assets other than goodwill, expected tax deductible amount				10,044
Revenue from the date of acquisition								48,363
Operating income from date of acquisition								1,238
Amortization expense								$ 6,399
Acquisition transaction costs				4,764
Cash paid to seller borrowed under revolving credit facility				$ 170,018
Number of primary manufacturing facilities \| facility				2
NII FPG \| Revolving credit facility \| Canadian Denominated Borrowing
Business Acquisition [Line Items]
Cash paid to seller borrowed under revolving credit facility				$ 62,690
NII FPG \| Revolving credit facility \| Euro-Denominated Borrowing
Business Acquisition [Line Items]
Cash paid to seller borrowed under revolving credit facility				$ 61,769
Other
Business Acquisition [Line Items]
Goodwill		$ 716
Cash paid to seller borrowed under revolving credit facility		$ 2,500									$ 2,500
Papermaking Systems
Business Acquisition [Line Items]
Payments to acquire productive assets					$ 407

Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Thousands					12 Months Ended
	Jan. 02, 2019	Oct. 30, 2017	Aug. 14, 2017	Jul. 05, 2017	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Net Assets Acquired:
Goodwill					$ 336,032	$ 258,174	$ 268,001
Purchase Price:
Cash					$ 179,693	$ 0	206,785
Weighted average useful life of acquired intangible assets					12 years
Syntron Material Handling Group, LLC
Net Assets Acquired:
Cash, Cash Equivalents, and Restricted Cash	$ 2,431
Accounts Receivable	10,275
Inventories	13,061
Property, Plant & Equipment	7,383
Other Assets	12,054
Goodwill	78,592
Total assets acquired	206,816
Accounts Payable	3,380
Other Current Liabilities	7,954
Long-Term Lease Liabilities	15,244
Long-Term Deferred Income Taxes	952
Total Liabilities Assumed	27,530
Net assets acquired	179,286
Purchase Price:
Cash Paid to Seller Borrowed Under the Revolving Credit Facility	$ 179,286
Weighted average useful life of acquired intangible assets	14 years
Syntron Material Handling Group, LLC \| Tradenames
Net Assets Acquired:
Indefinite-Lived Intangible Assets	$ 9,500
Syntron Material Handling Group, LLC \| Customer relationships
Net Assets Acquired:
Definite-Lived Intangible Assets	$ 58,300
Purchase Price:
Weighted average useful life of acquired intangible assets	15 years
Syntron Material Handling Group, LLC \| Product technology
Net Assets Acquired:
Definite-Lived Intangible Assets	$ 11,000
Purchase Price:
Weighted average useful life of acquired intangible assets	14 years
Syntron Material Handling Group, LLC \| Other
Net Assets Acquired:
Definite-Lived Intangible Assets	$ 4,220
Purchase Price:
Weighted average useful life of acquired intangible assets	8 years
2017 Acquisitions
Net Assets Acquired:
Cash and Cash Equivalents							2,219
Accounts Receivable							8,621
Inventories							27,337
Property, Plant & Equipment							14,475
Other Assets							2,447
Goodwill							101,788
Total assets acquired							242,399
Accounts Payable							5,328
Customer Deposits							7,496
Long-Term Deferred Income Taxes							16,622
Other Liabilities							6,168
Total Liabilities Assumed							35,614
Net assets acquired							206,785
Purchase Price:
Cash							2,993
Cash Paid to Seller Borrowed Under the Revolving Credit Facility							203,792
Total purchase price							206,785
2017 Acquisitions \| Tradenames
Net Assets Acquired:
Indefinite-Lived Intangible Assets							8,500
2017 Acquisitions \| Customer relationships
Net Assets Acquired:
Definite-Lived Intangible Assets							54,182
2017 Acquisitions \| Product technology
Net Assets Acquired:
Definite-Lived Intangible Assets							19,400
2017 Acquisitions \| Other
Net Assets Acquired:
Definite-Lived Intangible Assets							3,430
NII FPG
Net Assets Acquired:
Cash and Cash Equivalents				$ 2,219
Accounts Receivable				6,542
Inventories				25,304
Property, Plant & Equipment				12,912
Other Assets				2,375
Goodwill				85,432
Total assets acquired				207,596
Accounts Payable				4,970
Customer Deposits				7,396
Long-Term Deferred Income Taxes				16,622
Other Liabilities				5,597
Total Liabilities Assumed				34,585
Net assets acquired				173,011
Purchase Price:
Cash				2,993
Cash Paid to Seller Borrowed Under the Revolving Credit Facility				170,018
Total purchase price				$ 173,011
Weighted average useful life of acquired intangible assets				12 years
NII FPG \| Tradenames
Net Assets Acquired:
Indefinite-Lived Intangible Assets				$ 8,500
NII FPG \| Customer relationships
Net Assets Acquired:
Definite-Lived Intangible Assets				$ 44,682
Purchase Price:
Weighted average useful life of acquired intangible assets				11 years
NII FPG \| Product technology
Net Assets Acquired:
Definite-Lived Intangible Assets				$ 17,100
Purchase Price:
Weighted average useful life of acquired intangible assets				15 years
NII FPG \| Other
Net Assets Acquired:
Definite-Lived Intangible Assets				$ 2,530
Purchase Price:
Weighted average useful life of acquired intangible assets				4 years
Unaflex
Net Assets Acquired:
Cash and Cash Equivalents			$ 0
Accounts Receivable			2,079
Inventories			2,033
Property, Plant & Equipment			1,279
Other Assets			72
Goodwill			15,640
Total assets acquired			32,303
Accounts Payable			358
Customer Deposits			100
Long-Term Deferred Income Taxes			0
Other Liabilities			571
Total Liabilities Assumed			1,029
Net assets acquired			31,274
Purchase Price:
Cash			0
Cash Paid to Seller Borrowed Under the Revolving Credit Facility			31,274
Total purchase price			$ 31,274
Weighted average useful life of acquired intangible assets			10 years
Unaflex \| Tradenames
Net Assets Acquired:
Indefinite-Lived Intangible Assets			$ 0
Unaflex \| Customer relationships
Net Assets Acquired:
Definite-Lived Intangible Assets			8,000
Unaflex \| Product technology
Net Assets Acquired:
Definite-Lived Intangible Assets			2,300
Unaflex \| Other
Net Assets Acquired:
Definite-Lived Intangible Assets			$ 900
Other
Net Assets Acquired:
Cash and Cash Equivalents		$ 0
Accounts Receivable		0
Inventories		0
Property, Plant & Equipment		284
Other Assets		0
Goodwill		716
Total assets acquired		2,500
Accounts Payable		0
Customer Deposits		0
Long-Term Deferred Income Taxes		0
Other Liabilities		0
Total Liabilities Assumed		0
Net assets acquired		2,500
Purchase Price:
Cash		0
Cash Paid to Seller Borrowed Under the Revolving Credit Facility		2,500					$ 2,500
Total purchase price		2,500
Other \| Tradenames
Net Assets Acquired:
Indefinite-Lived Intangible Assets		0
Other \| Customer relationships
Net Assets Acquired:
Definite-Lived Intangible Assets		$ 1,500
Purchase Price:
Weighted average useful life of acquired intangible assets		11 years
Other \| Product technology
Net Assets Acquired:
Definite-Lived Intangible Assets		$ 0
Other \| Other
Net Assets Acquired:
Definite-Lived Intangible Assets		$ 0

Acquisitions - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenues											$ 565,710
Net Income Attributable to Kadant											$ 44,159
Earnings per Share Attributable to Kadant:
Basic (in dollars per share)											$ 4.02
Diluted (in dollars per share)											$ 3.90
Net Income Attributable to Kadant	$ 8,749	$ 16,115	$ 16,304	$ 10,900	$ 18,422	$ 18,784	$ 12,349	$ 10,858	$ 52,068	$ 60,413	$ 31,092
Syntron Material Handling Group, LLC
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenues									704,644	719,142
Net Income Attributable to Kadant									$ 56,409	$ 56,511
Earnings per Share Attributable to Kadant:
Basic (in dollars per share)									$ 5.02	$ 5.10
Diluted (in dollars per share)									$ 4.92	$ 4.96
Syntron Material Handling Group, LLC \| Acquisition-related transaction costs
Earnings per Share Attributable to Kadant:
Net Income Attributable to Kadant									$ 843	$ (843)
Syntron Material Handling Group, LLC \| Inventory revalued
Earnings per Share Attributable to Kadant:
Net Income Attributable to Kadant									3,549	(3,549)
Syntron Material Handling Group, LLC \| Intangible amortization related to acquired backlog
Earnings per Share Attributable to Kadant:
Net Income Attributable to Kadant									$ 1,323	$ (1,323)
NII FPG And Unaflex, LLC Acquisitions \| Acquisition-related transaction costs
Earnings per Share Attributable to Kadant:
Net Income Attributable to Kadant											5,360
NII FPG And Unaflex, LLC Acquisitions \| Inventory revalued
Earnings per Share Attributable to Kadant:
Net Income Attributable to Kadant											5,137
NII FPG And Unaflex, LLC Acquisitions \| Intangible amortization related to acquired backlog
Earnings per Share Attributable to Kadant:
Net Income Attributable to Kadant											1,438
NII FPG And Unaflex, LLC Acquisitions \| Income related to gain on sale of building
Earnings per Share Attributable to Kadant:
Net Income Attributable to Kadant											$ 852

Employee Benefit Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		2 Months Ended	3 Months Ended		12 Months Ended
	Sep. 20, 2017	Feb. 25, 2020	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of shares available for grant (in shares)			409,295		409,295
Closing share price (in dollars per share)			$ 105.76		$ 105.76
Cost recognized, defined contribution plan					$ 4,412	$ 3,705	$ 3,327
Settlement and curtailment gain (loss)					3,826	$ 1,078	$ 0
Defined benefit plan, loss due to settlement			$ 5,887
Defined benefit plan, to be paid for settlement			3,839
Vice president, general counsel and secretary
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Compensation expense for arrangement with former vice president, general counsel and secretary					$ 374
Restricted stock units for non employee directors (RSUs)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Granted (in shares)					1,858	2,700	3,000
Performance-based restricted stock units
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares received upon vesting (in shares)					1
Compensation cost not yet recognized			1,688		$ 1,688
Compensation cost not yet recognized, recognition period					1 year 3 months 18 days
Award vesting period					3 years
Time-based restricted stock units
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares received upon vesting (in shares)					1
Compensation cost not yet recognized			$ 3,170		$ 3,170
Compensation cost not yet recognized, recognition period					1 year 8 months 12 days
Restricted stock unit awards
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Granted (in shares)					75,000
Weighted average grant date fair value, granted (in dollars per share)					$ 86.50	$ 98.12	$ 59.30
Fair value of awards vested in period					$ 5,452	$ 11,932	$ 6,719
Weighted-average grant date fair value (in dollars per share)			$ 86.11	$ 68.57	$ 86.11	$ 68.57
Restricted stock unit awards \| Vice president, general counsel and secretary
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Granted (in shares)	4,254
Weighted-average grant date fair value (in dollars per share)	$ 93.82
Compensation and options expense for arrangement with former vice president, general counsel and secretary	$ 332
Stock option awards
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Award vesting period					3 years
Award expiration period					10 years
Options exercised during the period (in shares)					225,000		0
Employee Stock Purchase Plan Awards
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Discount to market under the ESOP					15.00%
Maximum period of restriction on resale under ESOP					1 year
Maximum participation based on compensation percentage under ESOP			10.00%		10.00%
Stock issued during period under ESOP (in shares)					13,195	10,439	13,156
Other long-term liabilities
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Settlement and curtailment gain (loss)				$ 4,862
Other expense, net
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Settlement and curtailment gain (loss)					$ (5,887)	$ (1,425)
United States \| Pension benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined benefit plan, loss due to settlement					5,887	0	$ 0
Defined benefit plan, to be paid for settlement					33,922	0
Expected future employer contribution, next year			$ 0		0
Estimated future employer contribution, next year					3,839	0
Actuarial gain (loss)					$ (4,039)	$ 2,674
Subsequent event \| Restoration Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Estimated future employer contribution, next year		$ 2,427

Employee Benefit Plans - Components Stock-Based Compensation Expense (Details) - Selling, general and administrative expenses - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 6,815	$ 7,027	$ 5,803
RSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	6,616	6,838	5,621
Employee Stock Purchase Plan Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 199	$ 189	$ 182

Employee Benefit Plans - Activity of the Unvested RSUs (Details) - RSU Awards - $ / shares shares in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Units
Unvested RSUs at beginning of year (in shares)	156
Granted (in shares)	75
Vested (in shares)	(94)
Forfeited (in shares)	(2)
Unvested RSU's at end of year (in shares)	135	156
Weighted Average Grant- Date Fair Value
Weighted average grant date fair value, balance at beginning of year (in dollars per share)	$ 68.57
Weighted average grant date fair value, granted (in dollars per share)	86.50	$ 98.12	$ 59.30
Weighted average grant date fair value, vested (in dollars per share)	57.81
Weighted average grant date fair value, forfeited (in dollars per share)	65.02
Weighted average grant date fair value, balance at end of year (in dollars per share)	$ 86.11	$ 68.57

Employee Benefit Plans - Stock Option Activity (Details) - Stock Option Awards - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 30, 2017
Number of Shares
Options Outstanding, Beginning Balance (in shares)	299,000
Exercised (in shares)	(225,000)	0
Options Outstanding, Ending Balance (in shares)	74,000
Vested and Exercisable at end of year (in shares)	74,000
Weighted Average Exercise Price
Options Outstanding, Beginning Balance (in dollars per share)	$ 20.86
Exercised (in dollars per share)	19.75
Options Outstanding, Ending Balance (in dollars per share)	24.28
Vested and Exercisable at end of year (in dollars per share)	$ 24.28
Additional Information:
Weighted average remaining contractual life, options outstanding at end of year	2 years 3 months 18 days
Weighted average remaining contractual life, vested and exercisable at end of year	2 years 3 months 18 days
Aggregate intrinsic value, options outstanding at end of year	$ 6,002
Aggregate intrinsic value, vested and exercisable at end of year	$ 6,002

Employee Benefit Plans - Stock Option Exercises (Details) - Stock Option Awards - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Intrinsic Value of Options Exercised	$ 16,796	$ 515
Cash Received from Options Exercised	$ 4,454	$ 127

Employee Benefit Plans - Changes in Plans and AOCI Impacts (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 28, 2019	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Change in Projected Benefit Obligation:
Settlement payment	$ (3,839)
Pension benefits \| United States
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year		$ 29,715	$ 34,757
Service cost		0	699	$ 685
Interest cost		1,134	1,193	1,231
Actuarial loss (gain)		4,039	(2,674)
Benefits paid		(966)	(1,589)
Plan amendment		0	1,116
Effect of curtailment		0	(3,787)
Settlement payment		(33,922)	0
Currency translation		0	0
Projected benefit obligation at end of year	0	0	29,715	34,757
Change in Plan Assets:
Fair value of plan assets at beginning of year		28,729	31,754
Actual return on plan assets		2,320	(1,436)
Employer contributions		3,839	0
Benefits paid		(966)	(1,589)
Settlement payment		(33,922)	0
Currency translation		0	0
Fair value of plan assets at end of year	0	0	28,729	31,754
Unfunded Status	0	0	(986)
Accumulated Benefit Obligation at End of Year	0	0	29,715
Current liability	0	0	(986)
Non-current liability	0	0	0
Unrecognized net actuarial loss	0	0	(3,205)
Unrecognized prior service cost	0	0	0
Total	0	0	(3,205)
Net actuarial (loss) gain		(2,714)	(48)
Amortization of net actuarial loss		32	541
Amortization of prior service cost		0	0
Plan amendment		0	(1,116)
Effect of curtailment		0	3,787
Settlement loss		5,887	0
Curtailment loss		0	1,116
Currency translation		0	0
Total		3,205	4,280
Pension benefits \| Foreign Plan
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year		3,671	4,270
Service cost		205	173	148
Interest cost		121	126	114
Actuarial loss (gain)		393	(368)
Benefits paid		(184)	(394)
Plan amendment		0	0
Effect of curtailment		0	0
Settlement payment		0	0
Currency translation		(38)	(136)
Projected benefit obligation at end of year	4,168	4,168	3,671	4,270
Change in Plan Assets:
Fair value of plan assets at beginning of year		726	557
Actual return on plan assets		58	38
Employer contributions		340	528
Benefits paid		(184)	(394)
Settlement payment		0	0
Currency translation		33	(3)
Fair value of plan assets at end of year	973	973	726	557
Unfunded Status	(3,195)	(3,195)	(2,945)
Accumulated Benefit Obligation at End of Year	3,046	3,046	2,604
Current liability	(189)	(189)	(58)
Non-current liability	(3,006)	(3,006)	(2,887)
Unrecognized net actuarial loss	(1,034)	(1,034)	(674)
Unrecognized prior service cost	(38)	(38)	(45)
Total	(1,072)	(1,072)	(719)
Net actuarial (loss) gain		(402)	368
Amortization of net actuarial loss		25	63
Amortization of prior service cost		6	6
Plan amendment		0	0
Effect of curtailment		0	0
Settlement loss		0	0
Curtailment loss		0	0
Currency translation		18	(19)
Total		(353)	418
Other Post-Retirement
Change in Projected Benefit Obligation:
Projected benefit obligation at beginning of year		3,672	4,704
Service cost		4	213	175
Interest cost		149	172	170
Actuarial loss (gain)		144	(508)
Benefits paid		(232)	(157)
Plan amendment		0	322
Effect of curtailment		0	(1,075)
Settlement payment		0	0
Currency translation		5	1
Projected benefit obligation at end of year	3,742	3,742	3,672	4,704
Change in Plan Assets:
Fair value of plan assets at beginning of year		44	35
Actual return on plan assets		4	2
Employer contributions		246	164
Benefits paid		(232)	(157)
Settlement payment		0	0
Currency translation		2	0
Fair value of plan assets at end of year	64	64	44	$ 35
Unfunded Status	(3,678)	(3,678)	(3,628)
Accumulated Benefit Obligation at End of Year	0	0	0
Current liability	(2,569)	(2,569)	(144)
Non-current liability	(1,109)	(1,109)	(3,484)
Unrecognized net actuarial loss	(144)	(144)	(69)
Unrecognized prior service cost	0	0	0
Total	$ (144)	(144)	(69)
Net actuarial (loss) gain		(88)	508
Amortization of net actuarial loss		13	136
Amortization of prior service cost		0	86
Plan amendment		0	(322)
Effect of curtailment		0	1,075
Settlement loss		0	0
Curtailment loss		0	309
Currency translation		0	2
Total		$ (75)	$ 1,794

Employee Benefit Plans - Weighted-Average Assumptions Used (Details)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Pension benefits \| United States
Weighted-average assumptions used to determine the benefit obligation
Discount rate	0.00%	4.10%
Rate of compensation increase	0.00%	0.00%
Weighted-average assumptions used to determine net periodic benefit cost
Discount Rate	4.10%	3.51%	4.03%
Expected Long-Term Return on Plan Assets	4.10%	4.50%	5.00%
Rate of Compensation Increase	0.00%	3.00%	3.00%
Pension benefits \| Foreign Plan
Weighted-average assumptions used to determine the benefit obligation
Discount rate	2.59%	3.56%
Rate of compensation increase	3.40%	3.24%
Weighted-average assumptions used to determine net periodic benefit cost
Discount Rate	2.58%	3.49%	3.45%
Expected Long-Term Return on Plan Assets	9.22%	7.43%	7.53%
Rate of Compensation Increase	2.81%	3.97%	3.65%
Other Post-Retirement
Weighted-average assumptions used to determine the benefit obligation
Discount rate	3.82%	4.32%
Rate of compensation increase	5.57%	5.57%
Weighted-average assumptions used to determine net periodic benefit cost
Discount Rate	4.33%	3.58%	4.10%
Expected Long-Term Return on Plan Assets	9.22%	7.43%	7.53%
Rate of Compensation Increase	5.57%	3.05%	3.08%

Employee Benefit Plans - Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - Pension benefits - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
United States
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Projected benefit obligation	$ 0	$ 29,715
Fair value of plan assets	0	28,729
Foreign Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Projected benefit obligation	4,168	3,671
Fair value of plan assets	$ 973	$ 726

Employee Benefit Plans - Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Details) - Pension benefits - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
United States
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Accumulated benefit obligation	$ 0	$ 29,715
Fair value of plan assets	0	28,729
Foreign Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Accumulated benefit obligation	2,408	2,307
Fair value of plan assets	$ 0	$ 0

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 28, 2019	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Settlement loss	$ 5,887
Other Post-Retirement
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost		$ 4	$ 213	$ 175
Interest cost		149	172	170
Expected return on plan assets		(4)	(3)	(2)
Amortization of net actuarial loss		13	136	83
Amortization of prior service cost		0	86	88
Settlement loss		57	0	0
Curtailment loss		0	309	0
Net Periodic Benefit Cost		219	913	514
United States \| Pension benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost		0	699	685
Interest cost		1,134	1,193	1,231
Expected return on plan assets		(995)	(1,286)	(1,326)
Amortization of net actuarial loss		32	541	442
Amortization of prior service cost		0	0	53
Settlement loss		5,887	0	0
Curtailment loss		0	1,116	0
Net Periodic Benefit Cost		6,058	2,263	1,085
Foreign Plan \| Pension benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost		205	173	148
Interest cost		121	126	114
Expected return on plan assets		(66)	(42)	(25)
Amortization of net actuarial loss		25	63	38
Amortization of prior service cost		6	6	6
Settlement loss		0	0	0
Curtailment loss		0	0	0
Net Periodic Benefit Cost		$ 291	$ 326	$ 281

Employee Benefit Plans - Fair Value of Plan Assets (Details) - Pension benefits - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
United States
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	$ 0	$ 28,729	$ 31,754
United States \| NAV
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value		4,296
United States \| Fixed income funds \| Level 1, 2 and 3
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value		12,852
United States \| Fixed income funds \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value		12,852
United States \| Fixed income funds \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value		0
United States \| Fixed income funds \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value		0
United States \| Equity funds \| Level 1, 2 and 3
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value		11,581
United States \| Equity funds \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value		11,581
United States \| Equity funds \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value		0
United States \| Equity funds \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value		0
Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	973	726	$ 557
Foreign Plan \| Mutual funds \| Level 1, 2 and 3
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	973	726
Foreign Plan \| Mutual funds \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	973	726
Foreign Plan \| Mutual funds \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	0	0
Foreign Plan \| Mutual funds \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	$ 0	$ 0

Employee Benefit Plans - Estimated Future Benefit Payments (Details) $ in Thousands	Dec. 28, 2019 USD ($)
Other Post-Retirement
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2020	$ 2,569
2021	132
2022	124
2023	121
2024	108
2025-2029	444
Foreign Plan \| Pension benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2020	189
2021	180
2022	143
2023	290
2024	393
2025-2029	$ 2,156

Stockholders' Equity - Additional Information (Details) - $ / shares	Dec. 28, 2019	Dec. 29, 2018
Preferred Stock [Abstract]
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Common Stock [Abstract]
Common stock reserved and unissued (in shares)	646,004

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Tax Cuts and Jobs Act of 2017 - provisional net income tax expense			$ 7,487
Tax Cuts and Jobs Act of 2017 - one-time transition tax			10,303
Tax Cuts and Jobs Act of 2017 - tax benefit from remeasurement of deferred tax liabilities and reduction to the provisional amount related to the one-time mandatory transition tax			2,816
Tax Cuts and Jobs Act of 2017, net reduction of		$ 138
Excess tax benefit related to share-based compensation	$ 3,807	1,097	608
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	8,531	9,946
Increase (decrease) of deferred tax asset valuation allowance	(1,415)
Interest carryforward	2,151
Foreign tax credits	687
Undistributed earnings of foreign subsidiaries	240,302
Foreign earnings repatriated	93,456
Tax cuts and jobs act, foreign earnings repatriated, income tax benefit	(1,186)
Loss before income taxes, foreign	68,829	79,925	$ 54,856
Provision for unremitted foreign earnings	783
Undistributed earnings of foreign subsidiaries excluding those repatriated back domestically	233,852
Estimated withholding liability related to undistributed earnings of foreign subsidiaries	5,790
Unrecognized tax benefits that would impact effective tax rate	8,331
Income tax penalties and accrued interest from unrecognized tax benefits	1,717	2,087
Income tax penalties and interest expense from unrecognized tax benefits	420	$ 544
Upper bound estimated range of change of significant decrease in unrecognized tax benefits	767
Internal revenue service (IRS)
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	285
Domestic tax authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	2,809
Operating loss carryforwards, subject to expiration	72
Foreign tax authority
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	8,246
Operating loss carryforwards	44,048
Operating loss carryforwards, subject to expiration	461
State and local jurisdiction
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	35,879
Syntron Material Handling Group, LLC
Operating Loss Carryforwards [Line Items]
Foreign tax credits	$ 120

Income Taxes - Components of Income Before Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Domestic	$ 93	$ (397)	$ 2,797
Foreign	68,829	79,925	54,856
Total income from continuing operations before provision for income taxes	$ 68,922	$ 79,528	$ 57,653

Income Taxes - Components of Provision for Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Current (Benefit) Provision:
Federal	$ (264)	$ 724	$ 7,835
Foreign	18,778	21,829	17,372
State	335	169	285
Current provision	18,849	22,722	25,492
Deferred (Benefit) Provision:
Federal	(453)	(2,551)	4,682
Foreign	(1,253)	(1,761)	(3,563)
State	(785)	72	(541)
Deferred (benefit) provision	(2,491)	(4,240)	578
Total income tax provision	$ 16,358	$ 18,482	$ 26,070

Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Income Tax Disclosure [Abstract]
Provision for Income Taxes at Statutory Rate (21% in 2019 and 2018 and 35% in 2017)	$ 14,474	$ 16,701	$ 20,179
Increases (Decreases) Resulting From:
State income taxes, net of federal tax	(355)	164	151
U.S. tax cost of foreign earnings	146	1,215	761
Foreign tax rate differential	2,584	3,158	(3,747)
(Reversal of) provision for tax benefit reserves, net	(286)	(1,785)	1,517
Change in valuation allowance	81	141	(341)
Nondeductible expenses	2,454	781	1,177
Research and development tax credits	(381)	(445)	(297)
Excess tax benefit related to stock-based compensation	(3,352)	(967)	(581)
Impact of the U.S. Tax Cuts and Jobs Act	0	(106)	7,093
Other	993	(375)	158
Total income tax provision	$ 16,358	$ 18,482	$ 26,070

Income Taxes - Net Deferred Tax Liability (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Deferred Tax Asset:
Foreign, state, and alternative minimum tax credit carryforwards	$ 776	$ 184
Reserves and accruals	3,007	3,555
Net operating loss carryforwards	12,478	12,785
Inventory basis difference	4,107	3,692
Capitalized research expenses	2,813	0
Research and development	65	0
Employee compensation	3,630	4,382
Allowance for doubtful accounts	351	482
Lease liabilities	7,543
Other	478	294
Deferred tax asset, gross	35,248	25,374
Less: valuation allowance	(8,531)	(9,946)
Deferred tax asset, net	26,717	15,428
Deferred Tax Liability:
Goodwill and intangible assets	(30,003)	(28,060)
Fixed asset basis difference	(4,557)	(3,565)
Provision for unremitted foreign earnings	(809)	(1,124)
Research and development	0	(54)
ROU assets	(6,433)
Other	(943)	(619)
Deferred tax liability	(42,745)	(33,422)
Net deferred tax liability	$ (16,028)	$ (17,994)

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Unrecognized Tax Benefits, Beginning of Year	$ 12,364	$ 7,843
Gross Increases—Tax Positions in Prior Periods	615	1,019
Gross Decreases—Tax Positions in Prior Periods	(4,373)	(390)
Gross Increases—Current-period Tax Positions	804	7,344
Settlements	0	(131)
Lapses of Statutes of Limitations	(1,094)	(3,190)
Increase from Currency Translation	15
Decrease from Currency Translation		(131)
Unrecognized Tax Benefits, End of Year	$ 8,331	$ 12,364

Long-Term Obligations - Long-term Obligations (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Debt Instrument [Line Items]
Long-term debt	$ 295,116
Finance Leases, due 2020 to 2025	2,308
Unamortized Debt Issuance Expense	(127)	$ (148)
Total	301,025	175,821
Less: Current Maturities of Long-Term Obligations	(2,851)	(1,668)
Long-Term Obligations	298,174	174,153
Revolving credit facility, due 2023
Debt Instrument [Line Items]
Long-term debt	265,419	141,106
Commercial Real Estate Loan, due 2020 to 2028
Debt Instrument [Line Items]
Long-term debt	19,425	20,475
Senior Promissory Notes, due 2023 to 2028
Debt Instrument [Line Items]
Long-term debt	10,000	10,000
Other Borrowings, due 2019 to 2023
Debt Instrument [Line Items]
Other Borrowings, due 2020 to 2023	$ 4,000	$ 4,388

Long-Term Obligations - Additional Information (Details) - USD ($)		1 Months Ended	12 Months Ended
	Jul. 06, 2018	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Debt Instrument [Line Items]
Long-term debt			$ 295,116,000
Unamortized debt issuance costs		$ 148,000	127,000	$ 148,000
Loans receivable			$ 901,000
Commercial Real Estate Loan
Debt Instrument [Line Items]
Effective interest rate			4.60%
Sale Leaseback Arrangement
Debt Instrument [Line Items]
Sale leaseback transaction outstanding amount			$ 3,728,000
Revolving credit facility
Debt Instrument [Line Items]
Long-term debt		$ 141,106,000	265,419,000	141,106,000
Remaining borrowing capacity			$ 135,095,000
Weighted average interest rate for long-term obligations			2.97%
Revolving credit facility \| 2017 Credit Agreement
Debt Instrument [Line Items]
Term of debt agreement		5 years
Borrowing capacity available under committed portion		$ 400,000,000		400,000,000
Additional borrowing capacity		150,000,000		$ 150,000,000
Basis spread on variable rate floor (as a percentage)				0.00%
Maximum amount of unrestricted U.S. cash		30,000,000		$ 30,000,000
Maximum consolidated leverage ratio				3.75
Minimum consolidated interest coverage ratio				4.00
Long-term debt			$ 265,419,000
Unamortized debt issuance costs		1,735,000	1,407,000	$ 1,735,000
Revolving credit facility \| Euro-Denominated Borrowing
Debt Instrument [Line Items]
Long-term debt			62,423,000
Revolving credit facility \| Canadian Denominated Borrowing
Debt Instrument [Line Items]
Long-term debt			32,996,000
Revolving credit facility \| Base Rate \| Minimum \| 2017 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)				0.00%
Revolving credit facility \| Base Rate \| Maximum \| 2017 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)				1.25%
Revolving credit facility \| LIBOR \| 2017 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)				0.50%
Revolving credit facility \| LIBOR \| Minimum \| 2017 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)				1.00%
Revolving credit facility \| LIBOR \| Maximum \| 2017 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)				2.25%
Revolving credit facility \| Federal funds rate \| 2017 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)				0.50%
Secured Debt \| Commercial Real Estate Loan
Debt Instrument [Line Items]
Long-term debt	$ 10,500,000
Principal amount	21,000,000
Quarterly installment amount	$ 262,500
Fixed interest rate	4.45%
Senior Notes
Debt Instrument [Line Items]
Long-term debt		$ 10,000,000	10,000,000	$ 10,000,000
Senior Notes \| Note Purchase Agreement
Debt Instrument [Line Items]
Additional borrowing capacity			115,000,000
Principal amount			$ 10,000,000
Fixed interest rate			4.90%
Senior Notes \| Minimum \| Note Purchase Agreement
Debt Instrument [Line Items]
Debt prepayment cost			$ 1,000,000
Other Borrowings \| Sale Leaseback Arrangement
Debt Instrument [Line Items]
Effective interest rate			1.79%
Net purchase option			$ 1,483,000
Debt Covenant Period One \| Secured Debt \| Commercial Real Estate Loan
Debt Instrument [Line Items]
Prepayment fee	2.00%
Debt Covenant Period Two \| Secured Debt \| Commercial Real Estate Loan
Debt Instrument [Line Items]
Prepayment fee	1.00%

Long-Term Obligations - Future Repayments of Debt (Details) $ in Thousands	Dec. 28, 2019 USD ($)
Debt Disclosure [Abstract]
2020	$ 1,253
2021	1,117
2022	1,050
2023	268,136
2024	2,717
2025 and Thereafter	20,843
Long-term obligations excluding finance leases and sales-leaseback arrangement	$ 295,116

Long-Term Obligations - Future Minimum Payments for Sales-Leaseback Financing Arrangement (Details) $ in Thousands	Dec. 28, 2019 USD ($)
Debt Disclosure [Abstract]
2020	$ 528
2021	528
2022	1,297
Total minimum lease payments	2,353
Less: Imputed Interest	(108)
Present Value of Minimum Lease Payments	$ 2,245

Commitments and Contingencies - Letters of Credit and Bank Guarantees (Details) $ in Thousands	Dec. 28, 2019 USD ($)
Performance Obligations and Customer Deposit Guarantees
Line of Credit Facility [Line Items]
Outstanding letters of credit and bank guarantees	$ 19,647

Commitments and Contingencies - Right of Recourse (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Commitments and Contingencies Disclosure [Abstract]
Banker's Acceptances Drafts	$ 7,003	$ 12,406

Restructuring Costs - Additional Information (Details) ft² in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 28, 2019 USD ($) Employee	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($) ft² Employee
Restructuring Plan 2019
Restructuring Cost and Reserve [Line Items]
Restructuring provision (reversal)		$ 192
Restructuring Plan 2019 \| Canada
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated related to restructuring \| Employee	6
Restructuring Plan 2019 \| Employee severance
Restructuring Cost and Reserve [Line Items]
Restructuring provision (reversal)	$ 192	$ 192
Restructuring Plan 2017
Restructuring Cost and Reserve [Line Items]
Restructuring provision (reversal)			$ 1,717	$ 203
Manufacturing facility square footage (in sqft) \| ft²				160
Restructuring Plan 2017 \| United States
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated related to restructuring \| Employee				4
Restructuring Plan 2017 \| Sweden
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated related to restructuring \| Employee				6
Restructuring Plan 2017 \| Employee severance
Restructuring Cost and Reserve [Line Items]
Restructuring provision (reversal)			(55)	$ 203
Restructuring Plan 2017 \| Facility-related closing costs
Restructuring Cost and Reserve [Line Items]
Expected total costs				$ 1,920
Restructuring Plan 2017 \| Relocation Of Machinery And Equipment And Administrative Offices
Restructuring Cost and Reserve [Line Items]
Restructuring provision (reversal)			1,318
Restructuring Plan 2017 \| Employee Retention, Facility Closing, And Other Closure Costs
Restructuring Cost and Reserve [Line Items]
Restructuring provision (reversal)			$ 454

Restructuring Costs - Changes in Accrued Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 28, 2019	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Restructuring Plan 2019
Restructuring Reserve [Roll Forward]
(Reversal) Provision		$ 192
Usage		(109)
Currency translation		1
Balance at end of period	$ 84	84
Restructuring Plan 2017
Restructuring Reserve [Roll Forward]
Balance at beginning of period		63	$ 203
(Reversal) Provision			1,717	$ 203
Usage		0	(1,840)
Currency translation			(17)
Balance at end of period	63	63	63	203
Severance \| Restructuring Plan 2019
Restructuring Reserve [Roll Forward]
(Reversal) Provision	192	192
Usage		(109)
Currency translation		1
Balance at end of period	84	84
Severance \| Restructuring Plan 2017
Restructuring Reserve [Roll Forward]
Balance at beginning of period		63	203
(Reversal) Provision			(55)	203
Usage		0	(77)
Currency translation			(8)
Balance at end of period	63	63	63	203
Relocation \| Restructuring Plan 2019
Restructuring Reserve [Roll Forward]
(Reversal) Provision		0
Usage		0
Currency translation		0
Balance at end of period	0	0
Relocation \| Restructuring Plan 2017
Restructuring Reserve [Roll Forward]
Balance at beginning of period		0	0
(Reversal) Provision			1,318	0
Usage		0	(1,315)
Currency translation			(3)
Balance at end of period	0	0	0	0
Other \| Restructuring Plan 2019
Restructuring Reserve [Roll Forward]
(Reversal) Provision		0
Usage		0
Currency translation		0
Balance at end of period	0	0
Other \| Restructuring Plan 2017
Restructuring Reserve [Roll Forward]
Balance at beginning of period		0	0
(Reversal) Provision			454	0
Usage		0	(448)
Currency translation			(6)
Balance at end of period	$ 0	$ 0	$ 0	$ 0

Leases - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Lessee, Lease, Description [Line Items]
Lease, remaining term	15 years
Lease, option to extend, term	5 years
Expenses from operating leases		$ 5,575	$ 4,955
China and Canada
Lessee, Lease, Description [Line Items]
Lease, option to extend, term	10 years

Leases - Components of Lease Expense (Details) $ in Thousands	12 Months Ended
	Dec. 28, 2019 USD ($)
Leases [Abstract]
Operating Lease Cost	$ 5,534
Short-Term Lease Cost	715
Finance Lease Cost:
ROU asset amortization	1,213
Interest on lease liabilities	94
Total Finance Lease Cost	1,307
Total Lease Costs	$ 7,556

Leases - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands	12 Months Ended
	Dec. 28, 2019 USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 5,636
Operating cash flows from finance leases	93
Financing cash flows from finance leases	1,144
Right-of-use asset obtained in exchange for operating lease liability	28,484
Right-of-use asset obtained in exchange for finance lease liability	$ 3,847

Leases - Supplemental Cash Flow Information Related to Leases Footnote (Details) $ in Thousands	12 Months Ended
	Dec. 28, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Right-of-use asset obtained in exchange for operating lease liability	$ 28,484
Right-of-use asset obtained in exchange for finance lease liability	3,847
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Right-of-use asset obtained in exchange for operating lease liability	13,167
Right-of-use asset obtained in exchange for finance lease liability	2,496
Syntron Material Handling Group, LLC \| Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Right-of-use asset obtained in exchange for operating lease liability	10,994
Right-of-use asset obtained in exchange for finance lease liability	$ 528

Leases - Supplemental Balance Sheet Information Related to Leases (Details) $ in Thousands	Dec. 28, 2019 USD ($)
Operating Leases:
ROU assets	$ 27,139
Short-term liabilities	4,184
Long-term liabilities	24,411
Total operating lease liabilities	28,595
Finance Leases:
ROU assets, at cost	3,775
ROU assets accumulated amortization	(1,475)
ROU assets, net	2,300
Short-term obligations	1,116
Long-term obligations	1,192
Total finance lease liabilities	$ 2,308
Weighted Average Remaining Lease Term [Abstract]
Operating lease, weighted average remaining lease term (years)	10 years 2 months 12 days
Finance lease, weighted average remaining lease term (years)	2 years 3 months 18 days
Weighted Average Discount Rate [Abstract]
Operating lease, weighted average discount rate (percent)	3.96%
Finance lease, weighted average discount rate (percent)	4.10%

Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Dec. 28, 2019 USD ($)
Operating Lease [Abstract]
2020	$ 5,221
2021	4,406
2022	3,687
2023	3,108
2024	2,703
Thereafter	15,998
Total Future Lease Payments	35,123
Less: Imputed Interest	(6,528)
Present Value of Lease Payments	28,595
Finance Lease, Liability, Payment, Due [Abstract]
2020	1,186
2021	815
2022	319
2023	85
2024	7
Thereafter	5
Total Future Lease Payments	2,417
Less: Imputed Interest	(109)
Total finance lease liabilities	$ 2,308

Leases - Future Minimum Lease Payments for Noncancelable Operating Leases (Details) $ in Thousands	Dec. 29, 2018 USD ($)
Leases [Abstract]
2019	$ 4,507
2020	3,275
2021	2,230
2022	1,579
2023	987
Thereafter	1,713
Total Future Minimum Lease Payments	$ 14,291

Derivatives - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017	Jan. 03, 2015
Derivatives, Fair Value [Line Items]
Losses to be reclassified into earnings	$ 209,000
Swap Agreement 2018
Derivatives, Fair Value [Line Items]
Derivative, floor interest rate	0.00%
Forward Currency-Exchange Contracts \| Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Loss on foreign currency derivative instruments, not designated as hedging	$ 46,000	$ 27,000	$ 1,367,000
Cash Flow Hedging \| Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Rate of effectiveness of derivative agreement	100.00%
Cash Flow Hedging \| Swap Agreement 2018 \| Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Notional amount		$ 15,000,000
Derivative, fixed interest rate		3.15%
Cash Flow Hedging \| Swap Agreement 2015 \| Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Notional amount				$ 10,000,000
Cash Flow Hedging \| Swap Agreement 2015 \| Derivatives Designated as Hedging Instruments \| LIBOR
Derivatives, Fair Value [Line Items]
Derivative, fixed interest rate				1.50%
Cash Flow Hedging \| Forward Currency-Exchange Contracts \| Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Period over which entity manages its level of exposure of risk	12 months

Derivatives - Fair Value (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Derivatives Designated as Hedging Instruments \| Swap Agreement 2015 \| Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 11	$ 0
Derivative Asset, Notional Amount	10,000	0
Derivatives Designated as Hedging Instruments \| Swap Agreement 2015 \| Other Long-Term Assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	0	148
Derivative Asset, Notional Amount	0	10,000
Derivatives Designated as Hedging Instruments \| Forward Currency-Exchange Contracts \| Other Long-Term Assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	0	11
Derivative Asset, Notional Amount	0	842
Derivatives Designated as Hedging Instruments \| Forward Currency-Exchange Contracts \| Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	(75)	(50)
Derivative Liability, Notional Amount	4,825	2,946
Derivatives Designated as Hedging Instruments \| Swap Agreement 2018 \| Other Long-Term Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	(770)	(352)
Derivative Liability, Notional Amount	15,000	15,000
Derivatives Not Designated as Hedging Instruments \| Forward Currency-Exchange Contracts \| Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	3	9
Derivative Asset, Notional Amount	387	1,192
Derivatives Not Designated as Hedging Instruments \| Forward Currency-Exchange Contracts \| Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative Liability, Fair Value, Gross Liability	(43)	(31)
Derivative Liability, Notional Amount	$ 2,545	$ 1,384

Derivatives - AOCI Activity (Details) $ in Thousands	12 Months Ended
Derivatives - AOCI Activity (Details) $ in Thousands	Dec. 28, 2019 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 374,571
Loss reclassified to earnings	6,727
Loss recognized in AOCI	(4,971)
Ending balance	427,079
Deferred Loss on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(197)
Loss reclassified to earnings	123
Loss recognized in AOCI	(570)
Ending balance	(644)
Deferred Loss on Cash Flow Hedges \| Interest rate swap agreements
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(170)
Loss reclassified to earnings	6
Loss recognized in AOCI	(425)
Ending balance	(589)
Deferred Loss on Cash Flow Hedges \| Forward Currency-Exchange Contracts
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(27)
Loss reclassified to earnings	117
Loss recognized in AOCI	(145)
Ending balance	$ (55)

Fair Value Measurements and Fair Value of Financial Instruments - Assets and Liabilities, Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Assets:
Money market funds and time deposits	$ 9,920	$ 6,902
Banker's acceptance drafts	5,230	7,976
2015 Swap Agreement	11	148
Forward currency-exchange contracts	3	20
Liabilities:
2018 Swap Agreement	770	352
Forward currency-exchange contracts	118	81
Level 1
Assets:
Money market funds and time deposits	9,920	6,902
Banker's acceptance drafts	0	0
2015 Swap Agreement	0	0
Forward currency-exchange contracts	0	0
Liabilities:
2018 Swap Agreement	0	0
Forward currency-exchange contracts	0	0
Level 2
Assets:
Money market funds and time deposits	0	0
Banker's acceptance drafts	5,230	7,976
2015 Swap Agreement	11	148
Forward currency-exchange contracts	3	20
Liabilities:
2018 Swap Agreement	770	352
Forward currency-exchange contracts	118	81
Level 3
Assets:
Money market funds and time deposits	0	0
Banker's acceptance drafts	0	0
2015 Swap Agreement	0	0
Forward currency-exchange contracts	0	0
Liabilities:
2018 Swap Agreement	0	0
Forward currency-exchange contracts	$ 0	$ 0

Fair Value Measurements and Fair Value of Financial Instruments - Debt Obligations (Details) - USD ($) $ in Thousands	Dec. 28, 2019	Dec. 29, 2018
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Revolving credit facility	$ 265,419	$ 141,106
Commercial real estate loan	19,425	20,475
Senior promissory notes	10,000	10,000
Debt obligations	294,844	171,581
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Revolving credit facility	265,419	141,106
Commercial real estate loan	20,541	20,575
Senior promissory notes	10,803	10,120
Debt obligations	$ 296,763	$ 171,801

Business Segment and Geographical Information - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 28, 2019 USD ($) Segment	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| Segment	3
Segment Reporting Information [Line Items]
Acquisition transaction costs	$ 843	$ 1,321	$ 5,375
Impairment charges	2,336	0	0
Settlement and curtailment gain (loss)	3,826	1,078	0
Operating Segments \| Papermaking Systems
Segment Reporting Information [Line Items]
Acquisition transaction costs			787
Restructuring costs		1,717	203
Operating Segments \| Wood Processing Systems
Segment Reporting Information [Line Items]
Acquisition transaction costs		252	$ 11,163
Impairment charges	2,336
Restructuring provision (reversal)	192
Operating Segments \| Material Handling System
Segment Reporting Information [Line Items]
Acquisition transaction costs	5,715
General and Administrative Expense
Segment Reporting Information [Line Items]
Acquisition transaction costs		1,321
Other expense, net
Segment Reporting Information [Line Items]
Settlement and curtailment gain (loss)	$ (5,887)	$ (1,425)

Business Segment and Geographical Information - Revenues and Assets (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Revenues by Product Line:
Revenues	$ 182,659	$ 173,504	$ 177,165	$ 171,316	$ 163,935	$ 165,745	$ 154,913	$ 149,193	$ 704,644	$ 633,786	$ 515,033
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income									87,823	88,598	61,625
Interest expense, net									(12,542)	(6,653)	(3,100)
Other expense, net									(6,359)	(2,417)	(872)
Income Before Provision for Income Taxes									68,922	79,528	57,653
Total Assets:
Total Assets	939,387				725,749				939,387	725,749	761,094
Depreciation and Amortization:
Depreciation and amortization									32,390	23,568	19,375
Capital Expenditures:
Capital expenditures									9,957	16,559	17,281
Long-lived assets	86,032				80,157				86,032	80,157	79,723
United States
Revenues by Product Line:
Revenues									309,957	234,487	182,788
Capital Expenditures:
Long-lived assets	42,094				35,446				42,094	35,446	32,852
China
Revenues by Product Line:
Revenues									66,480	89,645	63,910
Capital Expenditures:
Long-lived assets	10,319				11,069				10,319	11,069	11,685
Canada
Revenues by Product Line:
Revenues									64,010	61,096	47,611
Capital Expenditures:
Long-lived assets	7,948				8,193				7,948	8,193	9,449
Germany
Revenues by Product Line:
Revenues									29,076	26,577	32,026
Capital Expenditures:
Long-lived assets	5,925				6,223				5,925	6,223	6,452
Finland
Revenues by Product Line:
Revenues									11,113	10,934	8,607
Capital Expenditures:
Long-lived assets	6,960				6,998				6,960	6,998	5,841
Other
Revenues by Product Line:
Revenues									224,008	211,047	180,091
Capital Expenditures:
Long-lived assets	12,786				12,228				12,786	12,228	13,444
Operating Segments \| Papermaking Systems Segment
Revenues by Product Line:
Revenues									465,430	469,899	407,605
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income									81,232	83,454	73,069
Total Assets:
Total Assets	464,069				462,297				464,069	462,297	494,919
Depreciation and Amortization:
Depreciation and amortization									13,010	12,561	11,239
Capital Expenditures:
Capital expenditures									6,127	12,717	14,359
Operating Segments \| Papermaking Systems Segment \| Stock-Preparation
Revenues by Product Line:
Revenues									215,091	221,933	193,838
Operating Segments \| Papermaking Systems Segment \| Fluid-Handling
Revenues by Product Line:
Revenues									132,501	131,830	104,136
Operating Segments \| Papermaking Systems Segment \| Doctoring, Cleaning, & Filtration
Revenues by Product Line:
Revenues									117,838	116,136	109,631
Operating Segments \| Wood Processing Systems
Revenues by Product Line:
Revenues									143,187	151,366	95,053
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income									28,166	31,237	10,005
Total Assets:
Total Assets	249,689				247,553				249,689	247,553	257,467
Depreciation and Amortization:
Depreciation and amortization									9,571	10,317	7,515
Capital Expenditures:
Capital expenditures									2,133	3,272	2,333
Operating Segments \| Material Handling System
Revenues by Product Line:
Revenues									83,364	0	0
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income									3,132	0	0
Total Assets:
Total Assets	196,884				0				196,884	0	0
Depreciation and Amortization:
Depreciation and amortization									9,018	0	0
Capital Expenditures:
Capital expenditures									1,195	0	0
Corporate and Fiber-based Products
Income from Continuing Operations Before Provision for Income Taxes:
Total operating income									(24,707)	(26,093)	(21,449)
Total Assets:
Total Assets	$ 28,745				$ 15,899				28,745	15,899	8,708
Depreciation and Amortization:
Depreciation and amortization									791	690	621
Capital Expenditures:
Capital expenditures									502	570	589
Corporate and Fiber-based Products \| Fiber-based Products
Revenues by Product Line:
Revenues									$ 12,663	$ 12,521	$ 12,375

Earnings per Share - Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Earnings Per Share [Abstract]
Net Income Attributable to Kadant	$ 8,749	$ 16,115	$ 16,304	$ 10,900	$ 18,422	$ 18,784	$ 12,349	$ 10,858	$ 52,068	$ 60,413	$ 31,092
Basic Weighted Average Shares									11,235	11,086	10,991
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares									222	314	321
Diluted Weighted Average Shares									11,457	11,400	11,312
Basic (in dollars per share)	$ 0.77	$ 1.43	$ 1.46	$ 0.98	$ 1.66	$ 1.69	$ 1.11	$ 0.98	$ 4.63	$ 5.45	$ 2.83
Diluted (in dollars per share)	$ 0.76	$ 1.41	$ 1.42	$ 0.96	$ 1.61	$ 1.64	$ 1.08	$ 0.96	$ 4.54	$ 5.30	$ 2.75

- 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
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
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Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 52
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-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=117326831&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

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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 - Additional Information (Details) - shares	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Restricted stock unit awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Amount of antidilutive securities excluded from computation of EPS	24,000	18,700	15,600

Accumulated Other Comprehensive Items - Components of AOCI on the Balance Sheet (Details) $ in Thousands	12 Months Ended
	Dec. 28, 2019 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 374,571
Other comprehensive loss before reclassifications	(4,971)
Reclassifications from AOCI	6,727
Net current period other comprehensive items	1,756
Ending balance	427,079
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(34,804)
Other comprehensive loss before reclassifications	(1,341)
Reclassifications from AOCI	0
Net current period other comprehensive items	(1,341)
Ending balance	(36,145)
Pension and Other Post-Retirement Benefit Liability Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(4,375)
Other comprehensive loss before reclassifications	(3,060)
Reclassifications from AOCI	6,604
Net current period other comprehensive items	3,544
Ending balance	(831)
Deferred Loss on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(197)
Other comprehensive loss before reclassifications	(570)
Reclassifications from AOCI	123
Net current period other comprehensive items	(447)
Ending balance	(644)
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(39,376)
Ending balance	$ (37,620)

Accumulated Other Comprehensive Items - Reclassification Out of AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	$ (6,359)	$ (2,417)	$ (872)
Interest expense	(12,755)	(7,032)	(3,547)
Cost of revenues	(410,884)	(355,505)	(283,886)
Total (expense) income before income taxes	68,922	79,528	57,653
Income tax benefit (provision)	(16,358)	(18,482)	(26,070)
Net Income	52,564	61,046	31,583
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Net Income	(6,727)	(1,700)	(548)
Reclassification out of Accumulated Other Comprehensive Income \| Retirement Benefit Plans
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Total (expense) income before income taxes	(5,963)	(2,257)	(710)
Income tax benefit (provision)	(641)	549	246
Net Income	(6,604)	(1,708)	(464)
Reclassification out of Accumulated Other Comprehensive Income \| Amortization of net actuarial loss
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(70)	(740)	(563)
Reclassification out of Accumulated Other Comprehensive Income \| Amortization of prior service costs
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(6)	(92)	(147)
Reclassification out of Accumulated Other Comprehensive Income \| Settlement and curtailment losses
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(5,887)	(1,425)	0
Reclassification out of Accumulated Other Comprehensive Income \| Cash Flow Hedges
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Total (expense) income before income taxes	(177)	11	(127)
Income tax benefit (provision)	54	(3)	43
Net Income	(123)	8	(84)
Reclassification out of Accumulated Other Comprehensive Income \| Cash Flow Hedges \| Interest rate swap agreements
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Interest expense	(8)	(11)	(30)
Reclassification out of Accumulated Other Comprehensive Income \| Cash Flow Hedges \| Forward Currency-Exchange Contracts
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Cost of revenues	$ (169)	$ 22	$ (97)

Unaudited Quarterly Information - Summary of Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 28, 2019	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 182,659	$ 173,504	$ 177,165	$ 171,316	$ 163,935	$ 165,745	$ 154,913	$ 149,193	$ 704,644	$ 633,786	$ 515,033
Gross Profit	74,627	74,247	74,371	70,515	70,945	73,093	68,164	66,079
Amounts Attributable to Kadant:
Net Income Attributable to Kadant	$ 8,749	$ 16,115	$ 16,304	$ 10,900	$ 18,422	$ 18,784	$ 12,349	$ 10,858	$ 52,068	$ 60,413	$ 31,092
Earnings per Share Attributable to Kadant
Net Income Attributable to Kadant (in dollars per share)	$ 0.77	$ 1.43	$ 1.46	$ 0.98	$ 1.66	$ 1.69	$ 1.11	$ 0.98	$ 4.63	$ 5.45	$ 2.83
Net Income Attributable to Kadant (in dollars per share)	0.76	1.41	1.42	0.96	1.61	1.64	1.08	0.96	4.54	5.30	2.75
Cash Dividends Declared per Common Share (in dollars per share)	$ 0.23	$ 0.23	$ 0.23	$ 0.23	$ 0.22	$ 0.22	$ 0.22	$ 0.22	$ 0.92	$ 0.88	$ 0.84

- Definition

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

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

+ References + Details