0000886346-21-000067 | 10-Q | XBRL Viewer

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Cover - shares	3 Months Ended
Cover - shares	Apr. 03, 2021	Apr. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 03, 2021
Document Transition Report	false
Entity File Number	001-11406
Entity Registrant Name	KADANT INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-1762325
Entity Address, Address Line One	One Technology Park Drive
Entity Address, City or Town	Westford
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01886
City Area Code	978
Local Phone Number	776-2000
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	KAI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,577,780
Entity Central Index Key	0000886346
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Current Assets:
Cash and cash equivalents	$ 65,982	$ 65,682
Restricted cash	726	958
Accounts receivable, net of allowances of $2,797 and $2,977	104,378	91,540
Inventories	112,590	106,814
Unbilled revenue	6,204	7,576
Other current assets	19,874	17,250
Total Current Assets	309,754	289,820
Property, Plant, and Equipment, net of accumulated depreciation of $109,426 and $107,832	82,204	84,642
Other Assets	39,669	40,391
Intangible Assets, Net	155,534	160,965
Goodwill	348,504	351,753
Total Assets	935,665	927,571
Current Liabilities:
Current maturities of long-term obligations (Note 4)	1,417	1,474
Accounts payable	38,988	32,264
Accrued payroll and employee benefits	25,525	31,168
Customer deposits	37,434	29,433
Advanced billings	9,801	8,513
Other current liabilities	33,429	31,836
Total Current Liabilities	146,594	134,688
Long-Term Obligations (Note 4)	221,067	232,000
Other Long-Term Liabilities	63,696	63,978
Commitments and Contingencies (Note 10)
Stockholders' Equity:
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued	0	0
Common stock, $.01 par value, 150,000,000 shares authorized; 14,624,159 shares issued	146	146
Capital in excess of par value	108,064	110,824
Retained earnings	493,067	479,400
Treasury stock at cost, 3,046,379 and 3,081,919 shares	(74,649)	(75,519)
Accumulated other comprehensive items (Note 6)	(24,040)	(19,492)
Total Kadant Stockholders' Equity	502,588	495,359
Noncontrolling interest	1,720	1,546
Total Stockholders' Equity	504,308	496,905
Total Liabilities and Stockholders' Equity	$ 935,665	$ 927,571

Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Stockholders' Equity:
Allowance for credit losses	$ 2,797	$ 2,977
Accumulated depreciation	$ 109,426	$ 107,832
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	14,624,159	14,624,159
Treasury stock (in shares)	3,046,379	3,081,919

Condensed Consolidated Statement of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Income Statement [Abstract]
Revenue (Notes 1 and 9)	$ 172,463	$ 159,127
Costs and Operating Expenses:
Cost of revenue	96,748	90,804
Selling, general, and administrative expenses	49,431	45,592
Research and development expenses	2,857	3,076
Total Costs and Operating Expenses	149,036	139,472
Operating Income	23,427	19,655
Interest Income	65	51
Interest Expense	(1,111)	(2,459)
Other Expense, Net	(24)	(32)
Income Before Provision for Income Taxes	22,357	17,215
Provision for Income Taxes (Note 3)	5,561	4,559
Net Income	16,796	12,656
Net Income Attributable to Noncontrolling Interest	(235)	(125)
Net Income Attributable to Kadant	$ 16,561	$ 12,531
Earnings per Share Attributable to Kadant (Note 2)
Basic (in dollars per share)	$ 1.43	$ 1.10
Diluted (in dollars per share)	$ 1.43	$ 1.09
Weighted Average Shares (Note 2)
Basic (in shares)	11,553	11,432
Diluted (in shares)	11,612	11,508

Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Statement of Comprehensive Income [Abstract]
Net Income	$ 16,796	$ 12,656
Other Comprehensive Items:
Foreign currency translation adjustment	(4,750)	(12,574)
Post-retirement liability adjustments, net (net of tax of $10 and $20)	28	50
Effect of post-retirement plan settlement	0	(119)
Deferred gain (loss) on cash flow hedges (net of tax of $19 and $(119))	113	(302)
Other comprehensive items	(4,609)	(12,945)
Comprehensive Income (Loss)	12,187	(289)
Comprehensive Income Attributable to Noncontrolling Interest	(174)	(114)
Comprehensive Income (Loss) Attributable to Kadant	$ 12,013	$ (403)

Condensed Consolidated Statement of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Other Comprehensive Items:
Post-retirement liability adjustments, net, tax	$ 10	$ 20
Deferred gain (loss) on cash flow hedges, tax	$ 19	$ (119)

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Operating Activities
Net Income Attributable to Kadant	$ 16,561	$ 12,531
Net income attributable to noncontrolling interest	235	125
Net income	16,796	12,656
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,686	7,598
Stock-based compensation expense	1,499	1,639
(Benefit) provision for losses on accounts receivable	(129)	103
Loss (gain) on sale of property, plant, and equipment	48	(10)
Other items, net	(430)	(877)
Changes in current assets and liabilities, net of effects of an acquisition:
Accounts receivable	(13,955)	1,929
Unbilled revenue	1,231	844
Inventories	(6,612)	(3,735)
Other current assets	(2,690)	(1,107)
Accounts payable	8,031	(3,440)
Other current liabilities	7,617	(9,431)
Net cash provided by operating activities	19,092	6,169
Investing Activities
Acquisition	(125)	0
Purchases of property, plant, and equipment	(2,259)	(2,686)
Proceeds from sale of property, plant, and equipment	32	14
Net cash used in investing activities	(2,352)	(2,672)
Financing Activities
Repayment of long-term obligations	(19,563)	(2,969)
Proceeds from issuance of long-term obligations	10,139	0
Tax withholding payments related to stock-based compensation	(3,388)	(2,318)
Dividends paid	(2,770)	(2,628)
Proceeds from issuance of Company common stock	0	913
Net cash used in financing activities	(15,582)	(7,002)
Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash	(1,090)	(2,693)
Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash	68	(6,198)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	66,640	68,273
Cash, Cash Equivalents, and Restricted Cash at End of Period	$ 66,708	$ 62,075

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Items	Noncontrolling Interest
Beginning balance (in shares) at Dec. 28, 2019		14,624,159			3,214,888
Beginning balance at Dec. 28, 2019	$ 427,079	$ 146	$ 106,698	$ 435,249	$ (78,778)	$ (37,620)	$ 1,384
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	12,656			12,531			125
Dividend declared – Common Stock	(2,753)			(2,753)
Activity under stock plans	235		(1,241)		$ 1,476
Activity under stock plans (in shares)					(60,244)
Other comprehensive items	(12,945)					(12,934)	(11)
Ending balance (in shares) at Mar. 28, 2020		14,624,159			3,154,644
Ending balance at Mar. 28, 2020	424,272	$ 146	105,457	445,027	$ (77,302)	(50,554)	1,498
Beginning balance (in shares) at Jan. 02, 2021		14,624,159			3,081,919
Beginning balance at Jan. 02, 2021	496,905	$ 146	110,824	479,400	$ (75,519)	(19,492)	1,546
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	16,796			16,561			235
Dividend declared – Common Stock	(2,894)			(2,894)
Activity under stock plans	(1,890)		(2,760)		$ 870
Activity under stock plans (in shares)					(35,540)
Other comprehensive items	(4,609)					(4,548)	(61)
Ending balance (in shares) at Apr. 03, 2021		14,624,159			3,046,379
Ending balance at Apr. 03, 2021	$ 504,308	$ 146	$ 108,064	$ 493,067	$ (74,649)	$ (24,040)	$ 1,720

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - Parenthetical - $ / shares	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Statement of Stockholders' Equity [Abstract]
Dividend declared – Common Stock (in dollars per share)	$ 0.25	$ 0.24

Nature of Operations and Summary of Significant Accounting Policies

3 Months Ended

Apr. 03, 2021

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. Its products, technologies, and services play an integral role in enhancing process efficiency, optimizing energy utilization, and maximizing productivity in resource-intensive industries.

Interim Financial Statements

The interim condensed consolidated financial statements and related notes presented have been prepared by the Company, are unaudited, and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair statement of the Company's financial position at April 3, 2021, its results of operations, comprehensive income (loss), cash flows, and stockholders' equity for the three-month periods ended April 3, 2021 and March 28, 2020. Interim results are not necessarily indicative of results for a full year or for any other interim period.

The condensed consolidated balance sheet presented as of January 2, 2021 has been derived from the consolidated financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2021. The condensed consolidated financial statements and related notes are presented as permitted by the rules and regulations of the Securities and Exchange Commission (SEC) for Form 10-Q and do not contain certain information included in the annual consolidated financial statements and related notes of the Company. The condensed consolidated financial statements and notes included herein should be read in conjunction with the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2021, filed with the SEC.

Use of Estimates and Critical Accounting Policies

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its condensed consolidated financial statements or in the application of accounting policies, if business conditions were different, or if the Company were to use different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's condensed consolidated financial statements.

Note 1 to the consolidated financial statements in the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2021 describes the significant accounting estimates and policies used in preparation of the consolidated financial statements. There have been no material changes in the Company’s significant accounting policies during the three months ended April 3, 2021.

Supplemental Cash Flow Information


	Three Months Ended
(In thousands)	April 3, 2021		March 28, 2020




Cash Paid for Interest	$	892	$	2,212
Cash Paid for Income Taxes, Net of Refunds	$	5,344	$	4,698

Non-Cash Investing Activities:
Non-cash additions to property, plant, and equipment	$	169	$	128

Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of restricted stock units	$	3,203	$	3,670
Dividends declared but unpaid	$	2,894	$	2,753

Restricted Cash

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

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


(In thousands)	April 3, 2021		March 28, 2020		January 2, 2021		December 28, 2019
Cash and cash equivalents	$	65,982	$	60,012	$	65,682	$	66,786
Restricted cash	726		2,063		958		1,487
Total Cash, Cash Equivalents, and Restricted Cash	$	66,708	$	62,075	$	66,640	$	68,273

Inventories

The components of inventories are as follows:


	April 3, 2021		January 2, 2021
(In thousands)
Raw Materials	$	45,697	$	46,413
Work in Process	23,789		17,692
Finished Goods	43,104		42,709
	$	112,590	$	106,814

Intangible Assets, Net

Acquired intangible assets by major asset class are as follows:


(In thousands)	Gross		Accumulated Amortization		Currency Translation		Net
April 3, 2021
Definite-Lived
Customer relationships	$	173,728	$	(68,910)	$	(1,760)	$	103,058
Product technology	56,111		(32,557)		(1,200)		22,354
Tradenames	6,027		(3,054)		(325)		2,648
Other	18,248		(14,569)		(541)		3,138
	254,114		(119,090)		(3,826)		131,198
Indefinite-Lived
Tradenames	24,100		—		236		24,336
Acquired Intangible Assets	$	278,214	$	(119,090)	$	(3,590)	$	155,534

January 2, 2021
Definite-Lived
Customer relationships	$	173,728	$	(65,488)	$	(1,316)	$	106,924
Product technology	56,111		(31,655)		(1,005)		23,451
Tradenames	6,027		(2,946)		(282)		2,799
Other	18,248		(14,369)		(515)		3,364
	254,114		(114,458)		(3,118)		136,538
Indefinite-Lived
Tradenames	24,100		—		327		24,427
Acquired Intangible Assets	$	278,214	$	(114,458)	$	(2,791)	$	160,965

Intangible assets are recorded at fair value at the date of acquisition. Subsequent impairment charges are reflected as a reduction in the gross balance, as applicable. Definite-lived intangible assets are stated net of accumulated amortization and currency translation in the accompanying condensed consolidated balance sheet. The Company amortizes definite-lived intangible assets over lives that have been determined based on the anticipated cash flow benefits of the intangible asset.

Goodwill

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


(In thousands)	Flow Control		Industrial Processing		Material Handling		Total
Balance at January 2, 2021
Gross balance	$	101,437	$	215,881	$	119,944	$	437,262
Accumulated impairment losses	—		(85,509)		—		(85,509)
Net balance	101,437		130,372		119,944		351,753
2021 Adjustment
Currency translation	(1,273)		(466)		(1,510)		(3,249)
Total 2021 adjustment	(1,273)		(466)		(1,510)		(3,249)
Balance at April 3, 2021
Gross balance	100,164		215,415		118,434		434,013
Accumulated impairment losses	—		(85,509)		—		(85,509)
Net balance	$	100,164	$	129,906	$	118,434	$	348,504

Warranty Obligations

The Company's contracts covering the sale of its products include warranty provisions that provide assurance to its customers that the products will comply with agreed-upon specifications during a defined period of time. The Company provides for the estimated cost of product warranties at the time of sale based on historical occurrence rates and repair costs, as well as knowledge of any specific warranty problems that indicate projected warranty costs may vary from historical patterns. The Company negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications.

The Company's liability for warranties is included in other current liabilities in the accompanying condensed consolidated balance sheet. The changes in the carrying amount of product warranty obligations are as follows:


	Three Months Ended
(In thousands)	April 3, 2021		March 28, 2020
Balance at Beginning of Year	$	7,064	$	6,467
Provision charged to expense	1,664		1,270
Usage	(1,361)		(1,365)

Currency translation	(133)		(162)
Balance at End of Period	$	7,234	$	6,210

Revenue Recognition

Most of the Company’s revenue relates to products and services that require minimal customization and is recognized at a point in time for each performance obligation under the contract when the customer obtains control of the goods or service. The remaining portion of the Company’s revenue is recognized 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. These projects are highly customized for the customer and, as a result, would include a significant cost to rework in the event of cancellation.

The following table presents revenue by revenue recognition method:


	Three Months Ended
	April 3,		March 28,
(In thousands)	2021		2020
Point in Time	$	154,417	$	136,092
Over Time	18,046		23,035
	$	172,463	$	159,127

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

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


	Three Months Ended
	April 3,		March 28,
(In thousands)	2021		2020
Revenue by Product Type:
Parts and Consumables	$	118,107	$	105,098
Capital	54,356		54,029
	$	172,463	$	159,127
Revenue by Geography (based on customer location):
North America	$	95,092	$	93,823
Europe	44,641		36,014
Asia	21,813		15,908
Rest of World	10,917		13,382
	$	172,463	$	159,127

See Note 9, Business Segment Information, for information on the disaggregation of revenue by reportable operating segment.

The following table presents contract balances from contracts with customers:


	April 3, 2021		January 2, 2021
(In thousands)
Accounts Receivable	$	104,378	$	91,540
Contract Assets	$	6,204	$	7,576
Contract Liabilities	$	48,286	$	39,269

Contract assets represent unbilled revenue associated with revenue recognized on contracts accounted for on an over time basis, which will be billed in future periods based on the contract terms. Contract liabilities consist of customer deposits, advanced billings, and deferred revenue. Deferred revenue is included in other current liabilities in the accompanying condensed consolidated balance sheet. Contract liabilities will be recognized as revenue in future periods once the revenue recognition criteria are met. The majority of the contract liabilities relate to advance payments on contracts accounted for at a point in time. These advance payments will be recognized as revenue when the Company's performance obligations have been satisfied, which typically occurs when the product has shipped and control of the asset has transferred to the customer.

The Company recognized revenue of $17,140,000 in the first three months of 2021 and $19,708,000 in the first three months of 2020 that was included in the contract liabilities balance at the beginning of 2021 and 2020. The majority of the Company's contracts for capital equipment have an original expected duration of one year or less. Certain capital contracts require long lead times and could take up to 24 months to complete. For contracts with an original expected duration of over one year, the aggregate amount of the transaction price allocated to the remaining unsatisfied or partially unsatisfied performance obligations as of April 3, 2021 was $16,990,000. The Company will recognize revenue for these performance obligations as they are satisfied, approximately 48% of which is expected to occur within the next twelve months and the remaining 52% within the following twelve months.

Banker's Acceptance Drafts Included in Accounts Receivable

The Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The 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 $10,347,000 at April 3, 2021 and $9,445,000 at January 2, 2021, are included in accounts receivable in the accompanying condensed consolidated balance sheet until the subsidiary sells the drafts to a bank and receives a discounted amount, transfers the banker's acceptance drafts in settlement of current accounts payable prior to maturity, or obtains cash payment on the scheduled maturity date.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 in fiscal 2021, and the transition requirements are primarily prospective. The Company adopted this ASU prospectively at the beginning of fiscal 2021 and its adoption did not have an impact on the condensed consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In March 2020, the FASB issued ASU No. 2020-04, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of reference rates, such as the London Interbank Offered Rate (LIBOR), if certain criteria are met. Generally, contract modifications related to reference rate reform may be considered an event that does not require remeasurement or reassessment of a previous accounting determination at the modification date. The guidance in this ASU is applicable to the Company's existing contracts and hedging relationships that reference LIBOR and may be adopted prospectively through December 31, 2022. The Company is currently evaluating the effects that the adoption of this ASU will have on its consolidated financial statements.

Earnings per Share

3 Months Ended

Apr. 03, 2021

Earnings Per Share [Abstract]

Earnings per Share

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


	Three Months Ended
	April 3, 2021		March 28, 2020
(In thousands, except per share amounts)

Net Income Attributable to Kadant	$	16,561	$	12,531

Basic Weighted Average Shares	11,553		11,432
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	59		76
Diluted Weighted Average Shares	11,612		11,508

Basic Earnings per Share	$	1.43	$	1.10

Diluted Earnings per Share	$	1.43	$	1.09

The effect of outstanding and unvested restricted stock units (RSUs) of the Company's common stock totaling 44,000 shares in the first quarter of 2021 and 43,000 shares in the first quarter of 2020 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.

Provision for Income Taxes	3 Months Ended
Provision for Income Taxes	Apr. 03, 2021
Income Tax Disclosure [Abstract]
Provision for Income Taxes	Provision for Income Taxes The provision for income taxes was $5,561,000 in the first three months of 2021 and $4,559,000 in the first three months of 2020. The effective tax rate of 25% in the first three months of 2021 was higher than the Company's statutory rate of 21% primarily due to nondeductible expenses, the distribution of the Company's worldwide earnings, state taxes, and tax expense associated with the Global Intangible Low-Taxed Income (GILTI) provisions. This incremental tax expense was offset in part by a decrease in tax related to the net excess income tax benefits from stock-based compensation arrangements. The effective tax rate of 26% in the first three months of 2020 was higher than the Company's statutory rate of 21% primarily due to nondeductible expenses, state taxes, the distribution of the Company’s worldwide earnings, and tax expense associated with GILTI. This incremental tax expense was offset in part by the reversal of tax reserves associated with uncertain tax positions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Long-Term Obligations

3 Months Ended

Apr. 03, 2021

Debt Disclosure [Abstract]

Long-Term Obligations

Long-term obligations are as follows:


	April 3, 2021		January 2, 2021
(In thousands)
Revolving Credit Facility, due 2023	$	207,257	$	217,963
Senior Promissory Notes, due 2023 to 2028	10,000		10,000
Finance Leases, due 2021 to 2025	1,570		1,631
Other Borrowings, due 2021 to 2023	3,657		3,880
Total	222,484		233,474
Less: Current Maturities of Long-Term Obligations	(1,417)		(1,474)
Long-Term Obligations	$	221,067	$	232,000

See Note 8, Fair Value Measurements and Fair Value of Financial Instruments, for the fair value information related to the Company's long-term obligations.

Revolving Credit Facility

The Company entered into an unsecured multi-currency revolving credit facility, dated as of March 1, 2017 (as amended and restated to date, the Credit Agreement). Pursuant to the Credit Agreement, the Company has a borrowing capacity of $400,000,000, with an uncommitted, unsecured incremental borrowing facility of $150,000,000, 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) 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 Bank) and (c) thirty-day U.S. dollar LIBOR (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 as defined in the Credit Agreement.

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

As of April 3, 2021, the outstanding balance under the Credit Agreement was $207,257,000, which included $48,257,000 of euro-denominated borrowings. As of April 3, 2021, the Company had $192,819,000 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 7, Derivatives, under the heading Interest Rate Swap Agreement, for information relating to the swap agreement used to hedge the Company’s exposure to movements in the three-month USD LIBOR on its U.S. dollar-denominated debt borrowed under the Credit Agreement.

The weighted average interest rate for the outstanding balance under the Credit Agreement was 1.56% as of April 3, 2021.

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.

Debt Compliance

As of April 3, 2021, 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 vehicles.

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 condensed consolidated balance sheet, was $1,266,000 at April 3, 2021. The lease arrangement provides for a fixed price purchase option, net of the projected loan receivable, of $1,566,000 at the end of the lease term in August 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 April 3, 2021, $3,615,000 was outstanding under this obligation.

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Apr. 03, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company recognized stock-based compensation expense of $1,499,000 in the first quarter of 2021 and $1,639,000 in the first quarter of 2020 within selling, general, and administrative (SG&A) expenses in the accompanying condensed consolidated statement of income. The Company recognizes compensation expense for all stock-based awards granted to employees and directors based on the grant date estimate of fair value for those awards. The fair value of RSUs is based on the grant date price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period. For time-based RSUs, compensation expense is recognized ratably over the requisite service period for the entire award based on the grant date fair value, and net of actual forfeitures recorded when they occur. For performance-based RSUs, compensation expense is recognized ratably over the requisite service period for each separately vesting portion of the award based on the grant date fair value, net of actual forfeitures recorded when they occur, and remeasured each reporting period until the total number of RSUs to be issued is known. Unrecognized compensation expense related to stock-based compensation totaled approximately $11,500,000 at April 3, 2021 and will be recognized over a weighted average period of 2.1 years. Performance-based RSUs On March 9, 2021, the Company granted performance-based RSUs to certain of its officers, which represented, in aggregate, the right to receive 22,613 shares (the target RSU amount), with an aggregate grant date fair value of $3,962,000. The RSUs are subject to adjustment based on the achievement of the performance measure selected for the 2021 fiscal year, which is a specified target for adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) generated from operations for the 2021 fiscal year. The RSUs are adjusted by comparing the actual adjusted EBITDA for the performance period to the target adjusted EBITDA. Actual adjusted EBITDA between 50% and 100% of the target adjusted EBITDA results in an adjustment of 50% to 100% of the RSU amount. Actual adjusted EBITDA between 100% and 115% of the target adjusted EBITDA results in an adjustment using a straight-line linear scale between 100% and 150% of the RSU amount. Actual adjusted EBITDA in excess of 115% results in an adjustment capped at 150% of the RSU amount. If actual adjusted EBITDA is below 50% of the target adjusted EBITDA for the 2021 fiscal year, these performance-based RSUs will be forfeited. The Company recognizes compensation expense based on the probable number of performance-based RSUs expected to vest. Following the adjustment, the performance-based RSUs will be subject to additional time-based vesting, and will vest in three equal annual installments on March 10 of 2022, 2023, and 2024, provided that the officer is employed by the Company on the applicable vesting dates. Time-based RSUs On March 9, 2021, the Company also granted time-based RSUs representing 21,559 shares to its officers and employees with an aggregate grant date fair value of $3,777,000. These time-based RSUs generally vest in three equal annual installments on March 10 of 2022, 2023, and 2024, provided that a recipient remains employed by the Company on the applicable vesting dates.

Accumulated Other Comprehensive Items

3 Months Ended

Apr. 03, 2021

Equity [Abstract]

Accumulated Other Comprehensive Items

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

Changes in each component of accumulated other comprehensive items (AOCI), net of tax, are as follows:


(In thousands)	Foreign Currency Translation Adjustment		Post-Retirement Benefit Liability Adjustments		Deferred Loss on Cash Flow Hedges		Total
Balance at January 2, 2021	$	(17,894)	$	(770)	$	(828)	$	(19,492)
Other comprehensive items before reclassifications	(4,689)		18		30		(4,641)
Reclassifications from AOCI	—		10		83		93
Net current period other comprehensive items	(4,689)		28		113		(4,548)
Balance at April 3, 2021	$	(22,583)	$	(742)	$	(715)	$	(24,040)

Amounts reclassified from AOCI are as follows:


	Three Months Ended
(In thousands)	April 3, 2021		March 28, 2020		Statement of Income Line Item
Post-retirement Benefit Plans
Recognized net actuarial loss	$	(11)	$	(15)	Other expense, net
Amortization of prior service cost	(3)		(2)		Other expense, net
Total expense before income taxes	(14)		(17)
Income tax benefit	4		124		Provision for income taxes
	(10)		107
Cash Flow Hedges (a)
Interest rate swap agreements	(109)		(34)		Interest expense
Forward currency-exchange contracts	—		(23)		Cost of revenue
Total expense before income taxes	(109)		(57)
Income tax benefit	26		14		Provision for income taxes
	(83)		(43)
Total Reclassifications	$	(93)	$	64

(a)See Note 7, Derivatives, for additional information.

Derivatives

3 Months Ended

Apr. 03, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Interest Rate Swap Agreement

In 2018, the Company entered into an interest rate swap agreement (2018 Swap Agreement) with Citizens Bank to hedge its exposure to movements in USD LIBOR on its U.S. dollar-denominated debt. The 2018 Swap Agreement has a $15,000,000 notional value and expires on June 30, 2023. On a quarterly basis, the Company receives three-month USD LIBOR, which is subject to a zero percent floor, and pays a fixed rate of interest of 3.15% plus an applicable margin as defined in the Credit Agreement.

The Company designated its 2018 Swap Agreement as a cash flow hedge and structured it to be 100% effective. Unrealized gains and losses related to the fair value of the 2018 Swap Agreement are recorded to AOCI, net of tax. In the event of early termination, the Company will receive from or pay to the counterparty the fair value of the 2018 Swap Agreement, and the unrealized gain or loss outstanding will be recognized in earnings.

The counterparty to the 2018 Swap Agreement could demand an early termination of that agreement if the Company were to be in default under the Credit Agreement, or any agreement that amends or replaces the Credit Agreement in which the counterparty is a member, and if it were to be unable to cure the default. See Note 4, Long-Term Obligations, for further details.

Forward Currency-Exchange Contracts

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

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 losses of $3,000 in the first quarter of 2021 and $34,000 in the first quarter of 2020 within SG&A expenses in the accompanying condensed consolidated statement of income associated with forward currency-exchange contracts that were not designated as hedges.

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


		April 3, 2021				January 2, 2021
	Balance Sheet Location	Asset (Liability) (a)		Notional Amount (b)		Asset (Liability) (a)		Notional Amount
(In thousands)
Derivatives Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contract	Other Current Assets	$	—	$	—	$	25	$	842
Derivatives in a Liability Position:
Forward currency-exchange contract	Other Current Liabilities	$	(9)	$	842	$	—	$	—
2018 Swap Agreement	Other Long-Term Liabilities	$	(933)	$	15,000	$	(1,099)	$	15,000

Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	—	$	—	$	12	$	582
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(3)	$	266	$	(7)	$	825

(a) See Note 8, Fair Value Measurements and Fair Value of Financial Instruments, for the fair value measurements relating to these financial instruments.

(b) The 2021 notional amounts are indicative of the level of the Company's recurring derivative activity.

The following table summarizes the activity in AOCI associated with the Company's derivative instruments designated as cash flow hedges as of and for the three months ended April 3, 2021:


(In thousands)	Interest Rate Swap Agreement		Forward Currency- Exchange Contracts		Total
Unrealized (Loss) Gain, Net of Tax, at January 2, 2021	$	(846)	$	18	$	(828)
Loss reclassified to earnings (a)	83		—		83
Gain (loss) recognized in AOCI	55		(25)		30
Unrealized Loss, Net of Tax, at April 3, 2021	$	(708)	$	(7)	$	(715)

(a) See Note 6, Accumulated Other Comprehensive Items, for the income statement classification.

As of April 3, 2021, the Company expects to reclassify losses of $346,000 from AOCI to earnings over the next twelve months based on the estimated cash flows of the 2018 Swap Agreement and the maturity date of the forward currency-exchange contract.

Fair Value Measurements and Fair Value of Financial Instruments

3 Months Ended

Apr. 03, 2021

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 April 3, 2021
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	10,637	$	—	$	—	$	10,637

Banker's acceptance drafts (a)	$	—	$	10,347	$	—	$	10,347

Liabilities:
2018 Swap Agreement	$	—	$	933	$	—	$	933
Forward currency-exchange contracts	$	—	$	12	$	—	$	12


	Fair Value as of January 2, 2021
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	8,054	$	—	$	—	$	8,054
Banker's acceptance drafts (a)	$	—	$	9,445	$	—	$	9,445
Forward currency-exchange contracts	$	—	$	37	$	—	$	37
Liabilities:
2018 Swap Agreement	$	—	$	1,099	$	—	$	1,099
Forward currency-exchange contracts	$	—	$	7	$	—	$	7

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

The Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during the first three months of 2021. Banker's acceptance drafts are carried at face value. which approximates their fair value due to the short-term nature of the negotiable instrument. The fair values of the forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date. The fair value of the 2018 Swap Agreement is based on USD LIBOR yield curves at the reporting date. The forward currency-exchange contracts and the 2018 Swap Agreement are hedges of either recorded assets or liabilities or anticipated transactions and represent the estimated amount the Company would receive or pay upon liquidation of the contracts. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above.

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


	April 3, 2021				January 2, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
(In thousands)
Debt Obligations:
Revolving credit facility	$	207,257	$	207,257	$	217,963	$	217,963
Senior promissory notes	10,000		11,130		10,000		11,157
	$	217,257	$	218,387	$	227,963	$	229,120

The carrying value of the Company's revolving credit facility approximates the fair value as the obligation bears variable rates of interest, which adjust frequently, based on prevailing market rates. The fair value of the senior promissory notes is primarily calculated based on quoted market rates plus an applicable margin available to the Company at the respective period 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 Information

3 Months Ended

Apr. 03, 2021

Segment Reporting [Abstract]

Business Segment Information

The Company has combined its operating entities into three reportable operating segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment consists of the fluid-handling and doctoring, cleaning, & filtration product lines; the Industrial Processing segment consists of the wood processing and stock-preparation product lines; and the Material Handling segment consists of the conveying and screening, baling, and fiber-based product lines. A description of each segment follows.

•Flow Control – Custom-engineered products, systems, and technologies that control the flow of fluids used in industrial and commercial applications to keep critical processes running efficiently in the packaging, tissue, food, metals, and other industrial sectors. The Company's primary products include rotary sealing devices, steam systems, expansion joints, doctor systems, roll and fabric cleaning devices, and filtration and fiber recovery systems.

•Industrial Processing – Equipment, machinery, and technologies used to recycle paper and paperboard and process timber for use in the packaging, tissue, wood products and alternative fuel industries, among others. The Company's primary products include stock-preparation systems and recycling equipment, chemical pulping equipment, debarkers, stranders, chippers, and logging machinery. In addition, the Company provides industrial automation and digitization solutions to process industries.

•Material Handling – Products and engineered systems used to handle bulk and discrete materials for secondary processing or transport in the aggregates, mining, food, and waste management industries, among others. The Company's primary products include conveying and vibratory equipment and balers. In addition, the Company manufactures and sells biodegradable, absorbent granules used as carriers in agricultural applications and for oil and grease absorption.

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


	Three Months Ended
	April 3,		March 28,
(In thousands)	2021		2020
Revenue
Flow Control	$	63,754	$	57,149
Industrial Processing	69,154		64,709
Material Handling	39,555		37,269
	$	172,463	$	159,127

Income Before Provision for Income Taxes
Flow Control	$	16,443	$	13,330
Industrial Processing	11,133		9,436
Material Handling	4,443		4,134
Corporate (a)	(8,592)		(7,245)
Total operating income	23,427		19,655
Interest expense, net (b)	(1,046)		(2,408)
Other expense, net (b)	(24)		(32)
	$	22,357	$	17,215

Capital Expenditures
Flow Control	$	334	$	821
Industrial Processing	1,804		1,464
Material Handling	121		398
Corporate	—		3
	$	2,259	$	2,686

(a) Represents general and administrative expenses.

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

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Subparagraph (a)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 32
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Subparagraph (e)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Apr. 03, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Right of Recourse In the ordinary course of business, the Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The drafts are noninterest-bearing obligations of the issuing bank and mature within six months of the origination date. The Company's Chinese subsidiaries may use these banker's acceptance drafts prior to the scheduled maturity date to settle outstanding accounts payable with vendors. Banker's acceptance drafts transferred to vendors are subject to customary right of recourse provisions prior to their scheduled maturity dates. The Company had $6,476,000 at April 3, 2021 and $7,568,000 at January 2, 2021 of banker's acceptance drafts subject to recourse, which were transferred to vendors and had not reached their scheduled maturity dates. Historically, the banker's acceptance drafts have settled upon maturity without any claim of recourse against the Company. Litigation From time to time, the Company is subject to various claims and legal proceedings covering a range of matters that arise in the ordinary course of business. Such litigation may include, but is not limited to, claims and counterclaims by and against the Company for breach of contract or warranty, canceled contracts, product liability, or bankruptcy-related claims. For legal proceedings in which a loss is probable and estimable, the Company accrues a loss based on the low end of the range of estimated loss when there is no better estimate within the range. If the Company were found to be liable for any of the claims or counterclaims against it, the Company would incur a charge against earnings for amounts in excess of legal accruals.

Nature of Operations and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Apr. 03, 2021
Accounting Policies [Abstract]
Use of Estimates and Critical Accounting Policies	Use of Estimates and Critical Accounting Policies The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Although the Company makes every effort to ensure the accuracy of the estimates and assumptions used in the preparation of its condensed consolidated financial statements or in the application of accounting policies, if business conditions were different, or if the Company were to use different estimates and assumptions, it is possible that materially different amounts could be reported in the Company's condensed consolidated financial statements.
Restricted Cash	The Company's restricted cash serves as collateral for certain banker's acceptance drafts issued to vendors and for bank guarantees associated with providing assurance to customers that the Company will fulfill certain customer obligations entered into in the normal course of business. The majority of the bank guarantees will expire over the next twelve months.
Intangible Assets, Net	Intangible assets are recorded at fair value at the date of acquisition. Subsequent impairment charges are reflected as a reduction in the gross balance, as applicable. Definite-lived intangible assets are stated net of accumulated amortization and currency translation in the accompanying condensed consolidated balance sheet. The Company amortizes definite-lived intangible assets over lives that have been determined based on the anticipated cash flow benefits of the intangible asset.
Warranty Obligations	Warranty Obligations The Company's contracts covering the sale of its products include warranty provisions that provide assurance to its customers that the products will comply with agreed-upon specifications during a defined period of time. The Company provides for the estimated cost of product warranties at the time of sale based on historical occurrence rates and repair costs, as well as knowledge of any specific warranty problems that indicate projected warranty costs may vary from historical patterns. The Company negotiates the terms regarding warranty coverage and length of warranty depending on the products and applications. The Company's liability for warranties is included in other current liabilities in the accompanying condensed consolidated balance sheet.
Revenue Recognition	Revenue Recognition Most of the Company’s revenue relates to products and services that require minimal customization and is recognized at a point in time for each performance obligation under the contract when the customer obtains control of the goods or service. The remaining portion of the Company’s revenue is recognized 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. These projects are highly customized for the customer and, as a result, would include a significant cost to rework in the event of cancellation. The Company disaggregates its revenue from contracts with customers by reportable operating segment, product type and geography as this best depicts how its revenue is affected by economic factors. Contract assets represent unbilled revenue associated with revenue recognized on contracts accounted for on an over time basis, which will be billed in future periods based on the contract terms. Contract liabilities consist of customer deposits, advanced billings, and deferred revenue. Deferred revenue is included in other current liabilities in the accompanying condensed consolidated balance sheet. Contract liabilities will be recognized as revenue in future periods once the revenue recognition criteria are met. The majority of the contract liabilities relate to advance payments on contracts accounted for at a point in time. These advance payments will be recognized as revenue when the Company's performance obligations have been satisfied, which typically occurs when the product has shipped and control of the asset has transferred to the customer. The Company recognized revenue of $17,140,000 in the first three months of 2021 and $19,708,000 in the first three months of 2020 that was included in the contract liabilities balance at the beginning of 2021 and 2020. The majority of the Company's contracts for capital equipment have an original expected duration of one year or less. Certain capital contracts require long lead times and could take up to 24 months to complete. For contracts with an original expected duration of over one year, the aggregate amount of the transaction price allocated to the remaining unsatisfied or partially unsatisfied performance obligations as of April 3, 2021 was $16,990,000. The Company will recognize revenue for these performance obligations as they are satisfied, approximately 48% of which is expected to occur within the next twelve months and the remaining 52% within the following twelve months.
Banker's Acceptance Drafts Included in Accounts Receivable	Banker's Acceptance Drafts Included in Accounts ReceivableThe Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The drafts are 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 $10,347,000 at April 3, 2021 and $9,445,000 at January 2, 2021, are included in accounts receivable in the accompanying condensed consolidated balance sheet until the subsidiary sells the drafts to a bank and receives a discounted amount, transfers the banker's acceptance drafts in settlement of current accounts payable prior to maturity, or obtains cash payment on the scheduled maturity date.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 in fiscal 2021, and the transition requirements are primarily prospective. The Company adopted this ASU prospectively at the beginning of fiscal 2021 and its adoption did not have an impact on the condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In March 2020, the FASB issued ASU No. 2020-04, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of reference rates, such as the London Interbank Offered Rate (LIBOR), if certain criteria are met. Generally, contract modifications related to reference rate reform may be considered an event that does not require remeasurement or reassessment of a previous accounting determination at the modification date. The guidance in this ASU is applicable to the Company's existing contracts and hedging relationships that reference LIBOR and may be adopted prospectively through December 31, 2022. The Company is currently evaluating the effects that the adoption of this ASU will have on its consolidated financial statements.
Derivatives	The Company uses forward currency-exchange contracts that generally have maturities of twelve months or less to hedge exposures resulting from fluctuations in currency exchange rates. Such exposures result from assets and liabilities that are denominated in currencies other than the functional currencies. 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.
Fair Value Measurement	The Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during the first three months of 2021. Banker's acceptance drafts are carried at face value. which approximates their fair value due to the short-term nature of the negotiable instrument. The fair values of the forward currency-exchange contracts are based on quoted forward foreign exchange rates at the reporting date. The fair value of the 2018 Swap Agreement is based on USD LIBOR yield curves at the reporting date. The forward currency-exchange contracts and the 2018 Swap Agreement are hedges of either recorded assets or liabilities or anticipated transactions and represent the estimated amount the Company would receive or pay upon liquidation of the contracts. Changes in values of the underlying hedged assets and liabilities or anticipated transactions are not reflected in the table above.The carrying value of the Company's revolving credit facility approximates the fair value as the obligation bears variable rates of interest, which adjust frequently, based on prevailing market rates. The fair value of the senior promissory notes is primarily calculated based on quoted market rates plus an applicable margin available to the Company at the respective period ends, which represent Level 2 measurements.

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

3 Months Ended

Apr. 03, 2021

Accounting Policies [Abstract]

Supplemental Cash Flow Information


	Three Months Ended
(In thousands)	April 3, 2021		March 28, 2020




Cash Paid for Interest	$	892	$	2,212
Cash Paid for Income Taxes, Net of Refunds	$	5,344	$	4,698

Non-Cash Investing Activities:
Non-cash additions to property, plant, and equipment	$	169	$	128

Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of restricted stock units	$	3,203	$	3,670
Dividends declared but unpaid	$	2,894	$	2,753

Cash and Cash Equivalents


(In thousands)	April 3, 2021		March 28, 2020		January 2, 2021		December 28, 2019
Cash and cash equivalents	$	65,982	$	60,012	$	65,682	$	66,786
Restricted cash	726		2,063		958		1,487
Total Cash, Cash Equivalents, and Restricted Cash	$	66,708	$	62,075	$	66,640	$	68,273

Restricted Cash


(In thousands)	April 3, 2021		March 28, 2020		January 2, 2021		December 28, 2019
Cash and cash equivalents	$	65,982	$	60,012	$	65,682	$	66,786
Restricted cash	726		2,063		958		1,487
Total Cash, Cash Equivalents, and Restricted Cash	$	66,708	$	62,075	$	66,640	$	68,273

Inventories

The components of inventories are as follows:


	April 3, 2021		January 2, 2021
(In thousands)
Raw Materials	$	45,697	$	46,413
Work in Process	23,789		17,692
Finished Goods	43,104		42,709
	$	112,590	$	106,814

Acquired Intangible Assets

Acquired intangible assets by major asset class are as follows:


(In thousands)	Gross		Accumulated Amortization		Currency Translation		Net
April 3, 2021
Definite-Lived
Customer relationships	$	173,728	$	(68,910)	$	(1,760)	$	103,058
Product technology	56,111		(32,557)		(1,200)		22,354
Tradenames	6,027		(3,054)		(325)		2,648
Other	18,248		(14,569)		(541)		3,138
	254,114		(119,090)		(3,826)		131,198
Indefinite-Lived
Tradenames	24,100		—		236		24,336
Acquired Intangible Assets	$	278,214	$	(119,090)	$	(3,590)	$	155,534

January 2, 2021
Definite-Lived
Customer relationships	$	173,728	$	(65,488)	$	(1,316)	$	106,924
Product technology	56,111		(31,655)		(1,005)		23,451
Tradenames	6,027		(2,946)		(282)		2,799
Other	18,248		(14,369)		(515)		3,364
	254,114		(114,458)		(3,118)		136,538
Indefinite-Lived
Tradenames	24,100		—		327		24,427
Acquired Intangible Assets	$	278,214	$	(114,458)	$	(2,791)	$	160,965

Changes in the Carrying Amount of Goodwill

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


(In thousands)	Flow Control		Industrial Processing		Material Handling		Total
Balance at January 2, 2021
Gross balance	$	101,437	$	215,881	$	119,944	$	437,262
Accumulated impairment losses	—		(85,509)		—		(85,509)
Net balance	101,437		130,372		119,944		351,753
2021 Adjustment
Currency translation	(1,273)		(466)		(1,510)		(3,249)
Total 2021 adjustment	(1,273)		(466)		(1,510)		(3,249)
Balance at April 3, 2021
Gross balance	100,164		215,415		118,434		434,013
Accumulated impairment losses	—		(85,509)		—		(85,509)
Net balance	$	100,164	$	129,906	$	118,434	$	348,504

Warranty Obligations

The changes in the carrying amount of product warranty obligations are as follows:


	Three Months Ended
(In thousands)	April 3, 2021		March 28, 2020
Balance at Beginning of Year	$	7,064	$	6,467
Provision charged to expense	1,664		1,270
Usage	(1,361)		(1,365)

Currency translation	(133)		(162)
Balance at End of Period	$	7,234	$	6,210

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

The following table presents revenue by revenue recognition method:


	Three Months Ended
	April 3,		March 28,
(In thousands)	2021		2020
Point in Time	$	154,417	$	136,092
Over Time	18,046		23,035
	$	172,463	$	159,127

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


	Three Months Ended
	April 3,		March 28,
(In thousands)	2021		2020
Revenue by Product Type:
Parts and Consumables	$	118,107	$	105,098
Capital	54,356		54,029
	$	172,463	$	159,127
Revenue by Geography (based on customer location):
North America	$	95,092	$	93,823
Europe	44,641		36,014
Asia	21,813		15,908
Rest of World	10,917		13,382
	$	172,463	$	159,127

Balances from Contracts with Customers

The following table presents contract balances from contracts with customers:


	April 3, 2021		January 2, 2021
(In thousands)
Accounts Receivable	$	104,378	$	91,540
Contract Assets	$	6,204	$	7,576
Contract Liabilities	$	48,286	$	39,269

Earnings per Share (Tables)

3 Months Ended

Apr. 03, 2021

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share

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


	Three Months Ended
	April 3, 2021		March 28, 2020
(In thousands, except per share amounts)

Net Income Attributable to Kadant	$	16,561	$	12,531

Basic Weighted Average Shares	11,553		11,432
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	59		76
Diluted Weighted Average Shares	11,612		11,508

Basic Earnings per Share	$	1.43	$	1.10

Diluted Earnings per Share	$	1.43	$	1.09

Long-Term Obligations (Tables)

3 Months Ended

Apr. 03, 2021

Debt Disclosure [Abstract]

Schedule of Long-Term Obligations

Long-term obligations are as follows:


	April 3, 2021		January 2, 2021
(In thousands)
Revolving Credit Facility, due 2023	$	207,257	$	217,963
Senior Promissory Notes, due 2023 to 2028	10,000		10,000
Finance Leases, due 2021 to 2025	1,570		1,631
Other Borrowings, due 2021 to 2023	3,657		3,880
Total	222,484		233,474
Less: Current Maturities of Long-Term Obligations	(1,417)		(1,474)
Long-Term Obligations	$	221,067	$	232,000

Accumulated Other Comprehensive Items (Tables)

3 Months Ended

Apr. 03, 2021

Equity [Abstract]

Components of Accumulated Other Comprehensive Items

Changes in each component of accumulated other comprehensive items (AOCI), net of tax, are as follows:


(In thousands)	Foreign Currency Translation Adjustment		Post-Retirement Benefit Liability Adjustments		Deferred Loss on Cash Flow Hedges		Total
Balance at January 2, 2021	$	(17,894)	$	(770)	$	(828)	$	(19,492)
Other comprehensive items before reclassifications	(4,689)		18		30		(4,641)
Reclassifications from AOCI	—		10		83		93
Net current period other comprehensive items	(4,689)		28		113		(4,548)
Balance at April 3, 2021	$	(22,583)	$	(742)	$	(715)	$	(24,040)

Reclassification Out of Accumulated Other Comprehensive Items

Amounts reclassified from AOCI are as follows:


	Three Months Ended
(In thousands)	April 3, 2021		March 28, 2020		Statement of Income Line Item
Post-retirement Benefit Plans
Recognized net actuarial loss	$	(11)	$	(15)	Other expense, net
Amortization of prior service cost	(3)		(2)		Other expense, net
Total expense before income taxes	(14)		(17)
Income tax benefit	4		124		Provision for income taxes
	(10)		107
Cash Flow Hedges (a)
Interest rate swap agreements	(109)		(34)		Interest expense
Forward currency-exchange contracts	—		(23)		Cost of revenue
Total expense before income taxes	(109)		(57)
Income tax benefit	26		14		Provision for income taxes
	(83)		(43)
Total Reclassifications	$	(93)	$	64

(a)See Note 7, Derivatives, for additional information.

Derivatives (Tables)

3 Months Ended

Apr. 03, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments

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


		April 3, 2021				January 2, 2021
	Balance Sheet Location	Asset (Liability) (a)		Notional Amount (b)		Asset (Liability) (a)		Notional Amount
(In thousands)
Derivatives Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contract	Other Current Assets	$	—	$	—	$	25	$	842
Derivatives in a Liability Position:
Forward currency-exchange contract	Other Current Liabilities	$	(9)	$	842	$	—	$	—
2018 Swap Agreement	Other Long-Term Liabilities	$	(933)	$	15,000	$	(1,099)	$	15,000

Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	—	$	—	$	12	$	582
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	(3)	$	266	$	(7)	$	825

(a) See Note 8, Fair Value Measurements and Fair Value of Financial Instruments, for the fair value measurements relating to these financial instruments.

(b) The 2021 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 three months ended April 3, 2021:


(In thousands)	Interest Rate Swap Agreement		Forward Currency- Exchange Contracts		Total
Unrealized (Loss) Gain, Net of Tax, at January 2, 2021	$	(846)	$	18	$	(828)
Loss reclassified to earnings (a)	83		—		83
Gain (loss) recognized in AOCI	55		(25)		30
Unrealized Loss, Net of Tax, at April 3, 2021	$	(708)	$	(7)	$	(715)

(a) See Note 6, Accumulated Other Comprehensive Items, for the income statement classification.

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

3 Months Ended

Apr. 03, 2021

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities Measured on a Recurring Basis

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


	Fair Value as of April 3, 2021
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	10,637	$	—	$	—	$	10,637

Banker's acceptance drafts (a)	$	—	$	10,347	$	—	$	10,347

Liabilities:
2018 Swap Agreement	$	—	$	933	$	—	$	933
Forward currency-exchange contracts	$	—	$	12	$	—	$	12


	Fair Value as of January 2, 2021
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	8,054	$	—	$	—	$	8,054
Banker's acceptance drafts (a)	$	—	$	9,445	$	—	$	9,445
Forward currency-exchange contracts	$	—	$	37	$	—	$	37
Liabilities:
2018 Swap Agreement	$	—	$	1,099	$	—	$	1,099
Forward currency-exchange contracts	$	—	$	7	$	—	$	7

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

Carrying Value and Fair Value of Debt Obligations

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


	April 3, 2021				January 2, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
(In thousands)
Debt Obligations:
Revolving credit facility	$	207,257	$	207,257	$	217,963	$	217,963
Senior promissory notes	10,000		11,130		10,000		11,157
	$	217,257	$	218,387	$	227,963	$	229,120

Business Segment Information (Tables)

3 Months Ended

Apr. 03, 2021

Segment Reporting [Abstract]

Business Segment Reporting Information

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


	Three Months Ended
	April 3,		March 28,
(In thousands)	2021		2020
Revenue
Flow Control	$	63,754	$	57,149
Industrial Processing	69,154		64,709
Material Handling	39,555		37,269
	$	172,463	$	159,127

Income Before Provision for Income Taxes
Flow Control	$	16,443	$	13,330
Industrial Processing	11,133		9,436
Material Handling	4,443		4,134
Corporate (a)	(8,592)		(7,245)
Total operating income	23,427		19,655
Interest expense, net (b)	(1,046)		(2,408)
Other expense, net (b)	(24)		(32)
	$	22,357	$	17,215

Capital Expenditures
Flow Control	$	334	$	821
Industrial Processing	1,804		1,464
Material Handling	121		398
Corporate	—		3
	$	2,259	$	2,686

(a) Represents general and administrative expenses.

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

Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021
Accounting Policies [Abstract]
Bank guarantees, expiration period	12 months
Revenue recognized	$ 17,140	$ 19,708
Revenue, remaining performance obligation, amount	$ 16,990
Banker's acceptance drafts, maturity period	6 months
Banker's acceptance drafts	$ 10,347		$ 9,445

Nature of Operations and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Accounting Policies [Abstract]
Cash Paid for Interest	$ 892	$ 2,212
Cash Paid for Income Taxes, Net of Refunds	5,344	4,698
Non-Cash Investing Activities:
Non-cash additions to property, plant, and equipment	169	128
Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of restricted stock units	3,203	3,670
Dividends declared but unpaid	$ 2,894	$ 2,753

Nature of Operations and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020	Dec. 28, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 65,982	$ 65,682	$ 60,012	$ 66,786
Restricted cash	726	958	2,063	1,487
Total Cash, Cash Equivalents, and Restricted Cash	$ 66,708	$ 66,640	$ 62,075	$ 68,273

Nature of Operations and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Accounting Policies [Abstract]
Raw Materials	$ 45,697	$ 46,413
Work in Process	23,789	17,692
Finished Goods	43,104	42,709
Total Inventories	$ 112,590	$ 106,814

Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets By Major Asset Class (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 03, 2021	Jan. 02, 2021
Acquired Definite-Lived Intangible Assets [Line Items]
Gross	$ 254,114	$ 254,114
Accumulated Amortization	(119,090)	(114,458)
Currency Translation	(3,826)	(3,118)
Net	131,198	136,538
Acquired Intangible Assets [Abstract]
Gross	278,214	278,214
Currency Translation	(3,590)	(2,791)
Net	155,534	160,965
Tradenames
Acquired Indefinite-Lived Intangible Assets [Line Items]
Gross	24,100	24,100
Currency Translation	236	327
Net	24,336	24,427
Customer relationships
Acquired Definite-Lived Intangible Assets [Line Items]
Gross	173,728	173,728
Accumulated Amortization	(68,910)	(65,488)
Currency Translation	(1,760)	(1,316)
Net	103,058	106,924
Product technology
Acquired Definite-Lived Intangible Assets [Line Items]
Gross	56,111	56,111
Accumulated Amortization	(32,557)	(31,655)
Currency Translation	(1,200)	(1,005)
Net	22,354	23,451
Tradenames
Acquired Definite-Lived Intangible Assets [Line Items]
Gross	6,027	6,027
Accumulated Amortization	(3,054)	(2,946)
Currency Translation	(325)	(282)
Net	2,648	2,799
Other
Acquired Definite-Lived Intangible Assets [Line Items]
Gross	18,248	18,248
Accumulated Amortization	(14,569)	(14,369)
Currency Translation	(541)	(515)
Net	$ 3,138	$ 3,364

Nature of Operations and Summary of Significant Accounting Policies - Goodwill (Details) $ in Thousands	3 Months Ended
	Apr. 03, 2021 USD ($)
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	$ 437,262
Accumulated impairment losses	(85,509)
Net Balance, Beginning Balance	351,753
Currency translation	(3,249)
Total 2021 adjustment	(3,249)
Gross Balance, Ending Balance	434,013
Accumulated impairment losses	(85,509)
Net Balance, Ending Balance	348,504
Operating Segment \| Flow Control
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	101,437
Accumulated impairment losses	0
Net Balance, Beginning Balance	101,437
Currency translation	(1,273)
Total 2021 adjustment	(1,273)
Gross Balance, Ending Balance	100,164
Accumulated impairment losses	0
Net Balance, Ending Balance	100,164
Operating Segment \| Industrial Processing
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	215,881
Accumulated impairment losses	(85,509)
Net Balance, Beginning Balance	130,372
Currency translation	(466)
Total 2021 adjustment	(466)
Gross Balance, Ending Balance	215,415
Accumulated impairment losses	(85,509)
Net Balance, Ending Balance	129,906
Operating Segment \| Material Handling
Goodwill [Roll Forward]
Gross Balance, Beginning Balance	119,944
Accumulated impairment losses	0
Net Balance, Beginning Balance	119,944
Currency translation	(1,510)
Total 2021 adjustment	(1,510)
Gross Balance, Ending Balance	118,434
Accumulated impairment losses	0
Net Balance, Ending Balance	$ 118,434

Nature of Operations and Summary of Significant Accounting Policies - Warranty Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Changes in the carrying amount of accrued warranty costs [Roll Forward]
Balance at Beginning of Year	$ 7,064	$ 6,467
Provision charged to expense	1,664	1,270
Usage	(1,361)	(1,365)
Currency translation	(133)	(162)
Balance at End of Period	$ 7,234	$ 6,210

Nature of Operations and Summary of Significant Accounting Policies - Revenue Recognition by Product Line, Product Type, Geography and Revenue Recognition Method (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 172,463	$ 159,127
Parts and Consumables
Disaggregation of Revenue [Line Items]
Revenues	118,107	105,098
Capital
Disaggregation of Revenue [Line Items]
Revenues	54,356	54,029
Point in Time
Disaggregation of Revenue [Line Items]
Revenues	154,417	136,092
Over Time
Disaggregation of Revenue [Line Items]
Revenues	18,046	23,035
North America
Disaggregation of Revenue [Line Items]
Revenues	95,092	93,823
Europe
Disaggregation of Revenue [Line Items]
Revenues	44,641	36,014
Asia
Disaggregation of Revenue [Line Items]
Revenues	21,813	15,908
Rest of World
Disaggregation of Revenue [Line Items]
Revenues	$ 10,917	$ 13,382

Nature of Operations and Summary of Significant Accounting Policies - Revenue from Contract with Customers (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Accounting Policies [Abstract]
Accounts Receivable	$ 104,378	$ 91,540
Contract Assets	6,204	7,576
Contract Liabilities	$ 48,286	$ 39,269

Nature of Operations and Summary of Significant Accounting Policies - Performance Obligations Narrative (Details)	Apr. 03, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percent	48.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percent	52.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months

Earnings per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Income Amounts Attributable to Parent, Disclosures [Abstract]
Net Income Attributable to Kadant	$ 16,561	$ 12,531
Basic Weighted Average Shares (in shares)	11,553	11,432
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares (in shares)	59	76
Diluted Weighted Average Shares (in shares)	11,612	11,508
Basic Earnings per Share (in dollars per share)	$ 1.43	$ 1.10
Diluted Earnings per Share (in dollars per share)	$ 1.43	$ 1.09

- Definition

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

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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.

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+ Details

Earnings per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Amount of antidilutive securities excluded from computation of EPS (in shares)	44	43

Provision for Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 5,561	$ 4,559
Effective tax rate	25.00%	26.00%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Long-Term Obligations - Schedule of Long-Term Obligations (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Debt Instrument [Line Items]
Finance Leases, due 2021 to 2025	$ 1,570	$ 1,631
Total	222,484	233,474
Less: Current Maturities of Long-Term Obligations	(1,417)	(1,474)
Long-Term Obligations	221,067	232,000
Revolving Credit Facility, due 2023
Debt Instrument [Line Items]
Long-term debt	207,257	217,963
Senior Promissory Notes, due 2023 to 2028
Debt Instrument [Line Items]
Long-term debt	10,000	10,000
Other Borrowings, due 2021 to 2023
Debt Instrument [Line Items]
Other Borrowings, due 2021 to 2023	$ 3,657	$ 3,880

Long-Term Obligations - Narrative (Details) - USD ($)	3 Months Ended
Long-Term Obligations - Narrative (Details) - USD ($)	Apr. 03, 2021	Jan. 02, 2021
Debt Instrument [Line Items]
Weighted average interest rate for revolving credit facility (in hundredths)	1.56%
Loan receivable	$ 1,266,000
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt	207,257,000	$ 217,963,000
Remaining borrowing capacity	192,819,000
Revolving Credit Facility \| Credit Agreement
Debt Instrument [Line Items]
Borrowing capacity available under committed portion	400,000,000
Additional borrowing capacity under uncommitted portion	$ 150,000,000
Basis spread on variable rate floor (as a percentage)	0.00%
Maximum amount of unrestricted U.S. cash	$ 30,000,000
Revolving Credit Facility \| Credit Agreement \| Base Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	0.00%
Revolving Credit Facility \| Credit Agreement \| Base Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	1.25%
Revolving Credit Facility \| Credit Agreement \| LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	1.00%
Revolving Credit Facility \| Credit Agreement \| LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	2.25%
Revolving Credit Facility \| Credit Agreement \| Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	0.50%
Revolving Credit Facility \| Credit Agreement \| Thirty-Day LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	0.50%
Revolving Credit Facility \| Euro-Denominated Borrowing
Debt Instrument [Line Items]
Long-term debt	$ 48,257,000
Senior Promissory Notes, due 2023 to 2028
Debt Instrument [Line Items]
Long-term debt	10,000,000	$ 10,000,000
Senior Promissory Notes, due 2023 to 2028 \| Note Purchase Agreement
Debt Instrument [Line Items]
Additional borrowing capacity under uncommitted portion	115,000,000
Principal amount	$ 10,000,000
Fixed interest rate	4.90%
Senior Promissory Notes, due 2023 to 2028 \| Note Purchase Agreement \| Minimum
Debt Instrument [Line Items]
Prepayment penalty	$ 1,000,000
Capital Lease Obligations \| Sale Leaseback Arrangement
Debt Instrument [Line Items]
Effective interest rate	1.79%
Net purchase option	$ 1,566,000
Outstanding balance	$ 3,615,000
Debt Covenant Period One \| Revolving Credit Facility \| Credit Agreement
Debt Instrument [Line Items]
Maximum consolidated leverage ratio after acquisition	3.75
Debt Covenant Period Two \| Revolving Credit Facility \| Credit Agreement
Debt Instrument [Line Items]
Maximum consolidated leverage ratio after acquisition	4.00

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	Mar. 09, 2021	Apr. 03, 2021	Mar. 28, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 1,499	$ 1,639
Unrecognized compensation expense related to stock awards		$ 11,500
Recognition period		2 years 1 month 6 days
Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted (in shares)	22,613
Aggregate grant date fair value	$ 3,962
Performance Based Restricted Stock Units \| Performance Metric, Actual Adjusted EBITDA Between 50 Percent and 100 Percent \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of adjustment of award amount		50.00%
Performance Based Restricted Stock Units \| Performance Metric, Actual Adjusted EBITDA Between 50 Percent and 100 Percent \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of adjustment of award amount		100.00%
Performance Based Restricted Stock Units \| Performance Metric, Actual Adjusted EBITDA Between100 Percent and 115 Percent \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of adjustment of award amount		100.00%
Performance Based Restricted Stock Units \| Performance Metric, Actual Adjusted EBITDA Between100 Percent and 115 Percent \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of adjustment of award amount		150.00%
Performance Based Restricted Stock Units \| Performance Metric, Actual Adjusted EBITDA in Excess of 115 Percent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of adjustment of award amount		150.00%
Time Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of units granted (in shares)	21,559
Aggregate grant date fair value	$ 3,777

Accumulated Other Comprehensive Items - Components of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 496,905	$ 427,079
Other comprehensive items	(4,609)	(12,945)
Ending balance	504,308	424,272
Accumulated Other Comprehensive Items
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(19,492)	(37,620)
Other comprehensive items before reclassifications	(4,641)
Reclassifications from AOCI	93
Other comprehensive items	(4,548)	(12,934)
Ending balance	(24,040)	$ (50,554)
Foreign Currency Translation Adjustment
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(17,894)
Other comprehensive items before reclassifications	(4,689)
Reclassifications from AOCI	0
Other comprehensive items	(4,689)
Ending balance	(22,583)
Post-Retirement Benefit Liability Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(770)
Other comprehensive items before reclassifications	18
Reclassifications from AOCI	10
Other comprehensive items	28
Ending balance	(742)
Deferred Loss on Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(828)
Other comprehensive items before reclassifications	30
Reclassifications from AOCI	83
Other comprehensive items	113
Ending balance	$ (715)

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

Accumulated Other Comprehensive Items - Reclassification Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	$ (24)	$ (32)
Interest expense	(1,111)	(2,459)
Cost of revenues	(96,748)	(90,804)
Total expense before income taxes	22,357	17,215
Income tax benefit	(5,561)	(4,559)
Net Income	16,796	12,656
Reclassification out of Accumulated Other Comprehensive Items
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Net Income	(93)	64
Reclassification out of Accumulated Other Comprehensive Items \| Post-retirement Benefit Plans
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total expense before income taxes	(14)	(17)
Income tax benefit	4	124
Net Income	(10)	107
Reclassification out of Accumulated Other Comprehensive Items \| Recognized net actuarial loss
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(11)	(15)
Reclassification out of Accumulated Other Comprehensive Items \| Amortization of prior service cost
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(3)	(2)
Reclassification out of Accumulated Other Comprehensive Items \| Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Total expense before income taxes	(109)	(57)
Income tax benefit	26	14
Net Income	(83)	(43)
Reclassification out of Accumulated Other Comprehensive Items \| Cash Flow Hedges \| Interest rate swap agreements
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Interest expense	(109)	(34)
Reclassification out of Accumulated Other Comprehensive Items \| Cash Flow Hedges \| Forward currency-exchange contract
Reclassification Adjustment out of Accumulated Other Comprehensive Items [Line Items]
Cost of revenues	$ 0	$ (23)

Derivatives - Narrative (Details) - USD ($)	3 Months Ended
Derivatives - Narrative (Details) - USD ($)	Apr. 03, 2021	Mar. 28, 2020	Dec. 29, 2018
Derivatives, Fair Value [Line Items]
Loss on foreign currency derivative instruments, not designated as hedging	$ 3,000	$ 34,000
Net unrealized losses included in AOCI expected to be reclassified to earnings over the next 12 months	$ 346,000
Cash Flow Hedging \| Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Rate of effectiveness of derivative agreement	100.00%
Cash Flow Hedging \| Designated as Hedging Instrument \| 2018 Swap Agreement
Derivatives, Fair Value [Line Items]
Derivative, notional amount			$ 15,000,000
Fixed rate of interest			3.15%
Cash Flow Hedging \| Designated as Hedging Instrument \| Forward currency-exchange contract
Derivatives, Fair Value [Line Items]
Period over which entity manages its level of exposure of risk	12 months

Derivatives - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Designated as Hedging Instrument \| Forward currency-exchange contract \| Other Current Assets
Derivatives in an Asset Position:
Derivatives in an asset position	$ 0	$ 25
Notional amount, Derivative asset	0	842
Designated as Hedging Instrument \| Forward currency-exchange contract \| Other Current Liabilities
Derivatives in a Liability Position:
Derivatives in a liability position	(9)	0
Notional amount, Derivative liability	842	0
Designated as Hedging Instrument \| 2018 Swap Agreement \| Other Long-Term Liabilities
Derivatives in a Liability Position:
Derivatives in a liability position	(933)	(1,099)
Notional amount, Derivative liability	15,000	15,000
Not Designated as Hedging Instrument \| Forward currency-exchange contract \| Other Current Assets
Derivatives in an Asset Position:
Derivatives in an asset position	0	12
Notional amount, Derivative asset	0	582
Not Designated as Hedging Instrument \| Forward currency-exchange contract \| Other Current Liabilities
Derivatives in a Liability Position:
Derivatives in a liability position	(3)	(7)
Notional amount, Derivative liability	$ 266	$ 825

Derivatives - Activity in Accumulated Other Comprehensive Items (OCI) (Details) $ in Thousands	3 Months Ended
	Apr. 03, 2021 USD ($)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 496,905
Ending balance	504,308
Cash Flow Hedges
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(828)
Loss reclassified to earnings	83
Gain (loss) recognized in AOCI	30
Ending balance	(715)
Cash Flow Hedges \| Interest Rate Swap Agreement
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(846)
Loss reclassified to earnings	83
Gain (loss) recognized in AOCI	55
Ending balance	(708)
Cash Flow Hedges \| Forward currency-exchange contract
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	18
Loss reclassified to earnings	0
Gain (loss) recognized in AOCI	(25)
Ending balance	$ (7)

- Definition

+ References

+ Details

Fair Value Measurements and Fair Value of Financial Instruments - Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Assets:
Money market funds and time deposits	$ 10,637	$ 8,054
Banker's acceptance drafts	10,347	9,445
Forward currency-exchange contracts		37
Liabilities:
2018 Swap Agreement	933	1,099
Forward currency-exchange contracts	12	7
Level 1
Assets:
Money market funds and time deposits	10,637	8,054
Banker's acceptance drafts	0	0
Forward currency-exchange contracts		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	10,347	9,445
Forward currency-exchange contracts		37
Liabilities:
2018 Swap Agreement	933	1,099
Forward currency-exchange contracts	12	7
Level 3
Assets:
Money market funds and time deposits	0	0
Banker's acceptance drafts	0	0
Forward currency-exchange contracts		0
Liabilities:
2018 Swap Agreement	0	0
Forward currency-exchange contracts	$ 0	$ 0

Fair Value Measurements and Fair Value of Financial Instruments - Carrying Value and Fair Value of Debt Obligations (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Carrying Value
Debt Obligations:
Revolving credit facility	$ 207,257	$ 217,963
Senior promissory notes	10,000	10,000
Debt obligations	217,257	227,963
Fair Value
Debt Obligations:
Revolving credit facility	207,257	217,963
Senior promissory notes	11,130	11,157
Debt obligations	$ 218,387	$ 229,120

Business Segment Information - Summary of Segment Information (Details) $ in Thousands	3 Months Ended
	Apr. 03, 2021 USD ($) Segment	Mar. 28, 2020 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| Segment	3
Revenue
Revenues	$ 172,463	$ 159,127
Income Before Provision for Income Taxes
Total operating income	23,427	19,655
Interest expense, net	(1,046)	(2,408)
Other expense, net	(24)	(32)
Income Before Provision for Income Taxes	22,357	17,215
Capital Expenditures
Capital expenditures	2,259	2,686
Operating Segment \| Flow Control
Revenue
Revenues	63,754	57,149
Income Before Provision for Income Taxes
Total operating income	16,443	13,330
Capital Expenditures
Capital expenditures	334	821
Operating Segment \| Industrial Processing
Revenue
Revenues	69,154	64,709
Income Before Provision for Income Taxes
Total operating income	11,133	9,436
Capital Expenditures
Capital expenditures	1,804	1,464
Operating Segment \| Material Handling
Revenue
Revenues	39,555	37,269
Income Before Provision for Income Taxes
Total operating income	4,443	4,134
Capital Expenditures
Capital expenditures	121	398
Corporate
Income Before Provision for Income Taxes
Total operating income	(8,592)	(7,245)
Capital Expenditures
Capital expenditures	$ 0	$ 3

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Jan. 02, 2021
Commitments and Contingencies Disclosure [Abstract]
Banker's acceptance drafts, maturity period	6 months
Banker's acceptance drafts with recourse	$ 6,476	$ 7,568