0000886346-22-000018 | 10-K | XBRL Viewer

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Consolidated Statement of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Operating Activities
Net income attributable to Kadant	$ 84,043	$ 55,196	$ 52,068
Net income attributable to noncontrolling interest	838	543	496
Net income	84,881	55,739	52,564
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	34,302	31,334	32,390
Stock-based compensation expense	8,527	6,776	6,815
Provision for losses on accounts receivable	5	356	114
Gain on sale of property, plant, and equipment	(375)	(8)	(79)
U.S. pension benefit plan settlement loss	0	0	5,887
Impairment charges (Notes 1 and 8)	804	1,861	2,336
Deferred income tax (benefit) provision	(1,384)	142	(2,491)
Other items, net	6,333	4,720	5,390
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(16,737)	7,116	6,553
Contract assets	(1,222)	6,073	2,559
Inventories	(11,173)	(89)	(3,076)
Other assets	(15,033)	(833)	(7,559)
Accounts payable	26,346	(15,620)	7,358
Customer deposits	27,693	3,903	(5,686)
Other liabilities	19,453	(8,586)	(5,662)
Net cash provided by operating activities	162,420	92,884	97,413
Investing Activities
Acquisitions, net of cash acquired (Note 2)	(143,981)	(7,095)	(177,798)
Purchases of property, plant, and equipment	(12,771)	(7,595)	(9,957)
Proceeds from sale of property, plant, and equipment	1,740	145	398
Other investing activities	537	0	0
Net cash used in investing activities	(154,475)	(14,545)	(187,357)
Financing Activities
Proceeds from issuance of long-term obligations	151,944	26,000	247,196
Repayment of short- and long-term obligations	(115,576)	(99,547)	(126,315)
Dividends paid	(11,460)	(10,903)	(10,196)
Proceeds from issuance of Company common stock	1,892	3,207	5,176
Tax withholding payments related to stock-based compensation	(3,432)	(2,599)	(2,691)
Dividend paid to noncontrolling interest	(560)	(525)	(664)
Other financing activities	0	(189)	(56)
Net cash provided by (used in) financing activities	22,808	(84,556)	112,450
Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash	(3,232)	4,584	(350)
Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash	27,521	(1,633)	22,156
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year	66,640	68,273	46,117
Cash, Cash Equivalents, and Restricted Cash at End of Year	$ 94,161	$ 66,640	$ 68,273

Income Taxes - Net Deferred Tax Liability (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Deferred Tax Asset:
Net operating loss carryforwards	$ 14,162	$ 13,719
Lease liabilities	6,393	6,855
Inventory basis difference	4,600	4,576
Employee compensation	4,368	3,189
Reserves and accruals	3,167	3,565
Capitalized research expenses	2,349	2,668
Foreign, state, and alternative minimum tax credit carryforwards	508	472
Allowance for credit losses	420	397
Other	48	213
Deferred tax asset, gross	36,015	35,654
Less: valuation allowance	(9,212)	(9,609)
Deferred tax asset, net	26,803	26,045
Deferred Tax Liability:
Goodwill and intangible assets	(43,780)	(30,166)
Fixed asset basis difference	(6,009)	(4,964)
ROU assets	(5,431)	(5,812)
Provision for unremitted foreign earnings	(559)	(1,233)
Other	(1,819)	(1,574)
Deferred tax liability	(57,598)	(43,749)
Net deferred tax liability	$ (30,795)	$ (17,704)

Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$ 12,474	$ 5,782	$ 5,636
Operating cash flows from finance leases	46	74	93
Financing cash flows from finance leases	1,044	1,139	1,144
Right of Use Assets Obtained in Exchange for Lease Obligations
Right-of-use asset obtained in exchange for operating lease liability	7,247	2,560	28,484
Right-of-use asset obtained in exchange for finance lease liability	$ 1,147	$ 622	$ 3,847

Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Other Comprehensive Items:
Pension and other post-retirement liability adjustments, net	$ (1)	$ 78	$ (137)
Effect of pension plan settlement	0	0	(653)
Deferred gain (loss) on cash flow hedges	$ 118	$ (57)	$ (143)

Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Operating Leases:
ROU assets, current	$ 2,341	$ 0
ROU assets, noncurrent	24,998	25,460
Total operating lease assets	27,339	25,460
Short-term liabilities	4,596	4,396
Long-term liabilities	19,959	22,198
Total operating lease liabilities	24,555	26,594
Finance Leases:
ROU assets, at cost	4,076	3,707
ROU assets accumulated amortization	$ (2,489)	$ (2,108)
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, Plant, and Equipment, Net	Property, Plant, and Equipment, Net
ROU assets, net	$ 1,587	$ 1,599
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Short-term obligations and current maturities of long-term obligations (Note 6)	Short-term obligations and current maturities of long-term obligations (Note 6)
Short-term obligations	$ 862	$ 915
Long-term obligations	748	716
Total finance lease liabilities	$ 1,610	$ 1,631
Weighted Average Remaining Lease Term (in years):
Operating lease, weighted average remaining lease term (years)	8 years 8 months 12 days	9 years 4 months 24 days
Finance lease, weighted average remaining lease term (years)	2 years 1 month 6 days	2 years
Weighted Average Discount Rate:
Operating lease, weighted average discount rate (percent)	3.82%	3.88%
Finance lease, weighted average discount rate (percent)	2.55%	3.52%
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other current assets, Other Assets, Noncurrent	Other current assets, Other Assets, Noncurrent
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Long-Term Liabilities	Other Long-Term Liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-Term Obligations (Note 6)	Long-Term Obligations (Note 6)

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

12 Months Ended

Jan. 01, 2022

Accounting Policies [Abstract]

Revenue recognition method and disaggregation of revenue by product type and geography

The following table presents revenue by revenue recognition method:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Point in Time	$	705,709	$	557,702	$	611,528
Over Time	80,870		77,326		93,116
	$	786,579	$	635,028	$	704,644

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


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Revenue by Product Type:
Parts and Consumables	$	511,766	$	417,545	$	440,699
Capital	274,813		217,483		263,945
	$	786,579	$	635,028	$	704,644
Revenue by Geography (based on customer location):
North America	$	420,382	$	360,061	$	386,952
Europe	220,578		161,527		180,888
Asia	103,810		72,268		84,705
Rest of World	41,809		41,172		52,099
	$	786,579	$	635,028	$	704,644

Contract balances from contracts with customers

The following table presents contract balances from contracts with customers:


(In thousands)	January 1, 2022		January 2, 2021
Contract Assets	$	8,626	$	7,576
Contract Liabilities	$	77,004	$	39,269

Changes in allowance for credit losses

The changes in the allowance for credit losses are as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Balance at Beginning of Year	$	2,977	$	2,698	$	2,897
Provision charged to expense	5		356		114
Accounts written off	(178)		(266)		(263)
Currency translation	(69)		189		(50)
Balance at End of Year	$	2,735	$	2,977	$	2,698

Changes in carrying amount of product warranty obligations

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


(In thousands)	January 1, 2022		January 2, 2021
Balance at Beginning of Year	$	7,064	$	6,467
Provision charged to expense	4,366		5,555
Usage	(4,268)		(5,439)
Acquisitions	429		—
Currency translation	(293)		481
Balance at End of Year	$	7,298	$	7,064

Reconciliation of cash and cash equivalents

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


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Cash and cash equivalents	$	91,186	$	65,682	$	66,786
Restricted cash	2,975		958		1,487
Total Cash, Cash Equivalents, and Restricted Cash	$	94,161	$	66,640	$	68,273

Reconciliation of restricted cash


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Cash and cash equivalents	$	91,186	$	65,682	$	66,786
Restricted cash	2,975		958		1,487
Total Cash, Cash Equivalents, and Restricted Cash	$	94,161	$	66,640	$	68,273

Supplemental cash flow information

Supplemental Cash Flow Information


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Cash Paid for Interest	$	4,441	$	6,899	$	12,344
Cash Paid for Income Taxes, Net of Refunds	$	24,174	$	17,506	$	24,533

Non-Cash Investing Activities:
Fair value of assets acquired	$	190,977	$	9,295	$	207,223
Cash paid for acquired businesses	(152,661)		(7,565)		(179,693)
Liabilities Assumed of Acquired Businesses	$	38,316	$	1,730	$	27,530

Non-cash additions to property, plant, and equipment	$	363	$	1,060	$	626

Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of RSUs	$	4,108	$	4,781	$	4,100
Dividends declared but unpaid	$	2,905	$	2,770	$	2,628

Components of inventory

The components of inventories are as follows:


(In thousands)	January 1, 2022		January 2, 2021
Raw Materials	$	59,177	$	46,413
Work in Process	29,448		17,692
Finished Goods (includes $1,163 and $427 at customer locations)	45,731		42,709
	$	134,356	$	106,814

Property, plant and equipment

Property, plant, and equipment consist of the following:


(In thousands)	January 1, 2022		January 2, 2021
Land	$	11,011	$	7,676
Buildings	67,787		60,702
Machinery, Equipment, and Leasehold Improvements	136,656		120,804
Construction in Progress	6,567		3,292
	222,021		192,474
Less: Accumulated Depreciation and Amortization	114,032		107,832
	$	107,989	$	84,642

Acquired intangible assets by major asset class

Acquired intangible assets by major asset class are as follows:


(In thousands)	Gross		Accumulated Amortization		Currency Translation		Net
January 1, 2022
Definite-Lived
Customer relationships	$	217,021	$	(79,839)	$	(3,455)	$	133,727
Product technology	67,230		(35,833)		(1,752)		29,645
Tradenames	7,427		(3,405)		(373)		3,649
Other	20,210		(16,250)		(561)		3,399
	311,888		(135,327)		(6,141)		170,420
Indefinite-Lived
Tradenames	29,059		—		(136)		28,923
Acquired Intangible Assets	$	340,947	$	(135,327)	$	(6,277)	$	199,343


(In thousands)	Gross		Accumulated Amortization		Currency Translation		Net
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 by segment

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


(In thousands)	Flow Control		Industrial Processing		Material Handling		Total
Balance as of December 28, 2019
Gross balance	$	97,680	$	207,536	$	116,325	$	421,541
Accumulated impairment losses	—		(85,509)		—		(85,509)
Net balance	97,680		122,027		116,325		336,032
2020 Activity
Acquisition (Note 2)	—		3,953		—		3,953
Currency translation	3,757		4,392		3,619		11,768
Total 2020 activity	3,757		8,345		3,619		15,721
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 Activity
Acquisitions (Note 2)	25,805		1,116		26,836		53,757
Currency translation	(3,653)		(2,015)		(2,955)		(8,623)
Total 2021 activity	22,152		(899)		23,881		45,134
Balance at January 1, 2022
Gross balance	123,589		214,982		143,825		482,396
Accumulated impairment losses	—		(85,509)		—		(85,509)
Net balance	$	123,589	$	129,473	$	143,825	$	396,887

Goodwill by reporting unit

Goodwill by reporting unit is as follows:


(In thousands)	January 1, 2022		January 2, 2021
Fluid-Handling	$	64,003	$	65,755
Doctoring, Cleaning, & Filtration	59,586		35,682
Stock-Preparation	20,819		19,685
Wood Processing	108,654		110,687
Material Handling	143,825		119,944
	$	396,887	$	351,753

Acquisitions - 2021 Acquisition Additional Information (Details)		3 Months Ended		4 Months Ended	6 Months Ended	12 Months Ended
	Aug. 23, 2021 USD ($)	Jan. 01, 2022 USD ($)	Oct. 02, 2021 USD ($) facility	Jan. 01, 2022 USD ($)	Jan. 01, 2022 USD ($)	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)	Dec. 28, 2019 USD ($)
Business Acquisition [Line Items]
Goodwill		$ 396,887,000		$ 396,887,000	$ 396,887,000	$ 396,887,000	$ 351,753,000	$ 336,032,000
Acquisition related costs						3,655,000	485,000	843,000
Payments to acquire businesses, net of cash acquired						143,981,000	$ 7,095,000	$ 177,798,000
Clouth
Business Acquisition [Line Items]
Consideration transferred			$ 92,864,000
Goodwill			25,806,000
Goodwill, expected tax deductible amount			6,836,000
Intangible assets other than goodwill acquired			34,467,000
Intangible assets other than goodwill, expected tax deductible amount			$ 5,326,000
Revenue from the date of acquisition					23,221,000
Operating income (loss) from date of acquisition					(4,068,000)
Amortization expense					3,481,000
Acquisition related costs					2,710,000
Clouth \| Germany
Business Acquisition [Line Items]
Number of manufacturing facilities \| facility			3
Clouth \| Poland
Business Acquisition [Line Items]
Number of manufacturing facilities \| facility			1
Balemaster
Business Acquisition [Line Items]
Goodwill	$ 26,836,000
Goodwill, expected tax deductible amount	0
Intangible assets other than goodwill acquired	28,060,000
Intangible assets other than goodwill, expected tax deductible amount	0
Revenue from the date of acquisition				9,038,000
Operating income (loss) from date of acquisition				(641,000)
Amortization expense				2,042,000
Acquisition related costs				782,000
Payments to acquire businesses, net of cash acquired	$ 53,747,000
Other
Business Acquisition [Line Items]
Goodwill		27,951,000		$ 27,951,000	$ 27,951,000	$ 27,951,000
Other \| Industrial Processing \| India
Business Acquisition [Line Items]
Consideration transferred		$ 2,882,000

Short- and Long-Term Obligations - Short- and Long-term Obligations (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Debt Instrument [Line Items]
Long-term debt	$ 264,607
Finance Leases, due 2022 to 2026	1,610	$ 1,631
Total	269,514	233,474
Less: Short-Term Obligations and Current Maturities of Long-Term Obligations	(5,356)	(1,474)
Long-Term Obligations	264,158	232,000
Revolving Credit Facility, due 2023
Debt Instrument [Line Items]
Long-term debt	250,267	217,963
Senior Promissory Notes, due 2023 to 2028
Debt Instrument [Line Items]
Long-term debt	10,000	10,000
Other Borrowings, due 2022 to 2028
Debt Instrument [Line Items]
Other Borrowings, due 2022 to 2028	$ 7,637	$ 3,880

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Operating
2022	$ 5,379
2023	4,316
2024	3,292
2025	2,727
2026	2,179
2027 and Thereafter	11,343
Total Future Lease Payments	29,236
Less: Imputed Interest	(4,681)
Present Value of Lease Payments	24,555	$ 26,594
Finance
2022	889
2023	561
2024	178
2025	17
2026	3
2027 and Thereafter	0
Total Future Lease Payments	1,648
Less: Imputed Interest	(38)
Total finance lease liabilities	$ 1,610	$ 1,631

Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Components of income from continuing operations before income taxes

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


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Domestic	$	26,599	$	14,132	$	93
Foreign	85,453		59,555		68,829
	$	112,052	$	73,687	$	68,922

Components of the provision for income taxes from continuing operations

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


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Current Provision (Benefit):
Federal	$	2,173	$	339	$	(264)
Foreign	25,512		16,800		18,778
State	870		667		335
	28,555		17,806		18,849
Deferred Provision (Benefit):
Federal	1,823		2,146		(453)
Foreign	(3,430)		(2,361)		(1,253)
State	223		357		(785)
	(1,384)		142		(2,491)
	$	27,171	$	17,948	$	16,358

Income tax reconciliation

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


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Provision for Income Taxes at Statutory Rate	$	23,531	$	15,474	$	14,474
Increases (Decreases) Resulting From:
Foreign tax rate differential	2,819		1,891		2,584
Nondeductible expenses	1,673		2,117		2,407
Excess tax benefit related to stock-based compensation	(1,525)		(661)		(3,305)
State income taxes, net of federal income tax	863		807		(355)
U.S. tax cost of foreign earnings	481		599		146
Reversal of tax benefit reserves, net	(444)		(730)		(286)
Research and development tax credits	(454)		(465)		(381)
Change in valuation allowance	(31)		(469)		81
Other	258		(615)		993
	$	27,171	$	17,948	$	16,358

Net deferred tax (liability) asset

The Company's net deferred tax liability consists of the following:


(In thousands)	January 1, 2022		January 2, 2021
Deferred Tax Asset:
Net operating loss carryforwards	$	14,162	$	13,719
Lease liabilities	6,393		6,855
Inventory basis difference	4,600		4,576
Employee compensation	4,368		3,189
Reserves and accruals	3,167		3,565
Capitalized research expenses	2,349		2,668
Foreign, state, and alternative minimum tax credit carryforwards	508		472
Allowance for credit losses	420		397
Other	48		213
Deferred tax asset, gross	36,015		35,654
Less: valuation allowance	(9,212)		(9,609)
Deferred tax asset, net	26,803		26,045
Deferred Tax Liability:
Goodwill and intangible assets	(43,780)		(30,166)
Fixed asset basis difference	(6,009)		(4,964)
ROU assets	(5,431)		(5,812)
Provision for unremitted foreign earnings	(559)		(1,233)
Other	(1,819)		(1,574)
Deferred tax liability	(57,598)		(43,749)
Net deferred tax liability	$	(30,795)	$	(17,704)

Unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


(In thousands)	January 1, 2022		January 2, 2021
Unrecognized Tax Benefits, Beginning of Year	$	8,337	$	8,331
Gross Increases—Tax Positions in Prior Periods	2,409		4
Gross Decreases—Tax Positions in Prior Periods	(2,182)		(21)
Gross Increases—Current-period Tax Positions	1,920		1,468
Lapses of Statutes of Limitations	(649)		(1,488)
Currency Translation	(104)		43
Unrecognized Tax Benefits, End of Year	$	9,731	$	8,337

Nature of Operations and Summary of Significant Accounting Policies - Revenue from Contract with Customers (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Accounting Policies [Abstract]
Contract Assets	$ 8,626	$ 7,576
Contract Liabilities	$ 77,004	$ 39,269

Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Tax Disclosure [Abstract]
Provision for Income Taxes at Statutory Rate	$ 23,531	$ 15,474	$ 14,474
Increases (Decreases) Resulting From:
Foreign tax rate differential	2,819	1,891	2,584
Nondeductible expenses	1,673	2,117	2,407
Excess tax benefit related to stock-based compensation	(1,525)	(661)	(3,305)
State income taxes, net of federal income tax	863	807	(355)
U.S. tax cost of foreign earnings	481	599	146
Reversal of tax benefit reserves, net	(444)	(730)	(286)
Research and development tax credits	(454)	(465)	(381)
Change in valuation allowance	(31)	(469)	81
Other	258	(615)	993
Total income tax provision	$ 27,171	$ 17,948	$ 16,358

Leases - Additional Information (Details)	12 Months Ended
Leases - Additional Information (Details)	Jan. 01, 2022
Lessee, Lease, Description [Line Items]
Lease, remaining term	13 years
Lease, option to extend, term	5 years
China and Canada
Lessee, Lease, Description [Line Items]
Lease, option to extend, term	10 years

Accumulated Other Comprehensive Items - Components of AOCI on the Balance Sheet (Details) $ in Thousands	12 Months Ended
	Jan. 01, 2022 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 496,905
Ending balance	565,616
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(19,492)
Other comprehensive items before reclassifications	(11,127)
Reclassifications from AOCI	269
Net current period other comprehensive items	(10,858)
Ending balance	(30,350)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(17,894)
Other comprehensive items before reclassifications	(11,202)
Reclassifications from AOCI	0
Net current period other comprehensive items	(11,202)
Ending balance	(29,096)
Pension and Other Post-Retirement Benefit Liability Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(770)
Other comprehensive items before reclassifications	(67)
Reclassifications from AOCI	45
Net current period other comprehensive items	(22)
Ending balance	(792)
Deferred Loss on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(828)
Other comprehensive items before reclassifications	142
Reclassifications from AOCI	224
Net current period other comprehensive items	366
Ending balance	$ (462)

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (a)(3)(iii)(03)

+ Details

Subsequent Event	12 Months Ended
Subsequent Event	Jan. 01, 2022
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventThe Company's largest subsidiary in China, which manufactures stock-preparation equipment, is located in an area that has become primarily residential. As a result, the Company entered into several agreements with the local government to sell its existing manufacturing building and land use rights for approximately $25,140,000 and build a new facility in another location. These agreements will become effective when the Company receives the required down payment and secures a land use right in a new location. As of year-end 2021, the Company has received a 25% down payment on the agreed upon sale price with an additional required down payment of 6% expected in the first quarter of 2022. Once the agreements are effective, which is expected in the first quarter of 2022, the Company will recognize a gain on sale and a receivable for the remaining amount of the sale proceeds. The remaining amount of the sale proceeds is due the earlier of when the government sells the property or within two years from the effective date of the agreements. The Company's subsidiary will continue to occupy its current facility until construction on its new facility is complete. As of year-end 2021, the carrying value of the existing building and land use right totaling $5,264,000 is included in other current assets in the accompanying consolidated balance sheet. In addition, in the fourth quarter of 2021, the Company entered into an agreement for a new land use right valued at $3,719,000, which is included in other assets in the accompanying consolidated balance sheet.

Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended		12 Months Ended
	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)	Jan. 01, 2022 USD ($) segment	Jan. 02, 2021 USD ($)	Dec. 28, 2019 USD ($)
Nature of Operations [Line Items]
Number of reportable segments \| segment			3
Revenue recognized from contract liabilities			$ 33,128,000	$ 30,426,000
Revenue, remaining performance obligation, amount	$ 37,905,000		$ 37,905,000
Maturity period for bank acceptance			6 months
Due from bankers acceptances drafts	8,049,000	$ 9,445,000	$ 8,049,000	9,445,000
Finite and indefinite lived intangible assets acquired			63,228,000
Impairment of intangible assets, finite-and definite lived		1,861,000	804,000	1,861,000	$ 2,336,000
Definite-lived intangible assets	170,420,000	136,538,000	$ 170,420,000	136,538,000
Weighted average useful life of acquired intangible assets			13 years
Amortization expense of acquired intangible assets			$ 20,869,000	19,125,000	20,154,000
Estimated Future Amortization Expense [Abstract]
2022	20,994,000		20,994,000
2023	18,725,000		18,725,000
2024	17,830,000		17,830,000
2025	15,754,000		15,754,000
2026	15,119,000		15,119,000
Thereafter	$ 81,998,000		81,998,000
Goodwill impairment loss			0	0
Acquisition related costs			$ 3,655,000	485,000	843,000
Joint Venture with an Italian Company
Nature of Operations [Line Items]
Remaining ownership interest with an option to purchase	50.00%		50.00%
Italian Company \| Joint Venture with an Italian Company
Nature of Operations [Line Items]
Ownership interest	50.00%		50.00%
Tradenames
Nature of Operations [Line Items]
Indefinite-lived intangible assets	$ 28,923,000	24,427,000	$ 28,923,000	24,427,000
Product technology
Nature of Operations [Line Items]
Impairment of intangible assets, finite-and definite lived	499,000		499,000
Definite-lived intangible assets	29,645,000	23,451,000	29,645,000	23,451,000
Tradenames
Nature of Operations [Line Items]
Definite-lived intangible assets	3,649,000	2,799,000	3,649,000	2,799,000
Wood Processing
Nature of Operations [Line Items]
Impairment of intangible assets, finite-and definite lived				1,861,000	$ 2,336,000
Definite-lived intangible assets	$ 443,000		$ 443,000
Scenario, Adjustment \| Madill \| Tradenames
Nature of Operations [Line Items]
Indefinite-lived intangible assets		(1,300,000)		(1,300,000)
Scenario, Adjustment \| Tradenames \| Madill
Nature of Operations [Line Items]
Definite-lived intangible assets		$ 1,300,000		$ 1,300,000

Business Segment and Geographical Information (Tables)

12 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

Business segment information

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


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Revenue
Flow Control (a)	$	288,788	$	225,444	$	250,339
Industrial Processing	328,762		261,577		301,948
Material Handling (b)	169,029		148,007		152,357
	$	786,579	$	635,028	$	704,644
Income Before Provision for Income Taxes
Flow Control (a,c)	$	65,509	$	51,530	$	55,343
Industrial Processing (d)	66,569		42,971		49,599
Material Handling (b,e)	17,543		14,375		11,600
Corporate (f)	(32,911)		(27,752)		(28,719)
Total operating income	116,710		81,124		87,823
Interest expense, net (g)	(4,554)		(7,242)		(12,542)
Other expense, net (g,h)	(104)		(195)		(6,359)
	$	112,052	$	73,687	$	68,922
Total Assets
Flow Control (a)	$	382,379	$	263,141	$	262,320
Industrial Processing	405,575		379,965		375,194
Material Handling (b)	334,785		273,909		281,057
Corporate (i)	9,473		10,556		20,816
	$	1,132,212	$	927,571	$	939,387


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Depreciation and Amortization
Flow Control (a)	$	8,366	$	6,333	$	6,603
Industrial Processing	13,467		13,163		13,012
Material Handling (b)	12,341		11,628		12,528
Corporate	128		210		247
	$	34,302	$	31,334	$	32,390
Capital Expenditures
Flow Control (a)	$	4,128	$	2,808	$	2,639
Industrial Processing	6,412		3,123		5,113
Material Handling (b)	2,211		1,539		2,144
Corporate	20		125		61
	$	12,771	$	7,595	$	9,957
Geographical Information
Revenue (j):
United States (b)	$	328,456	$	286,015	$	309,957
China	82,121		51,003		66,480
Canada	79,426		62,059		64,010
Germany (a)	37,178		23,292		29,076
France	28,258		19,725		21,054
Other	231,140		192,934		214,067
	$	786,579	$	635,028	$	704,644
Long-lived Assets (k):
United States (b)	$	43,418	$	40,293	$	42,094
Germany (a)	25,188		6,051		5,925
Canada	8,460		7,221		7,948
Finland	7,347		8,013		6,960
China	6,613		9,844		10,319
Other	16,963		13,220		12,786
	$	107,989	$	84,642	$	86,032

(a)Includes the Clouth business in 2021, which was acquired between July 19, 2021 and August 10, 2021 (see Note 2, Acquisitions).

(b)Includes the Balemaster business in 2021, which was acquired on August 23, 2021 (see Note 2, Acquisitions).

(c)Includes acquisition-related expenses of $6,191,000 and impairment and restructuring charges of $980,000 in 2021. Acquisition-related expenses include amortization expense associated with acquired profit in inventory and backlog, and acquisition costs.

(d)Includes $1,861,000 of impairment charges in 2020 and $2,336,000 in 2019.

(e)Includes acquisition-related expenses of $2,851,000 in 2021, $350,000 in 2020 and $5,715,000 in 2019. Acquisition-related expenses include amortization expense associated with acquired profit in inventory and backlog, and acquisition costs.

(f)Represents general and administrative expenses.

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

(h)Includes a pension plan settlement loss of $5,887,000 in 2019.

(i)Primarily includes cash and cash equivalents, tax assets, ROU assets, and property, plant, and equipment, net.

(j)Revenue is attributed to countries based on customer location.

(k)Represents property, plant, and equipment, net.

Leases - Supplemental Cash Flow Information Related to Leases Footnote (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Lessee, Lease, Description [Line Items]
Right-of-use asset obtained in exchange for operating lease liability	$ 7,247	$ 2,560	$ 28,484
Right-of-use asset obtained in exchange for finance lease liability	$ 1,147	$ 622	3,847
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Right-of-use asset obtained in exchange for operating lease liability			13,167
Right-of-use asset obtained in exchange for finance lease liability			2,496
Syntron Material Handling Group, LLC \| Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Right-of-use asset obtained in exchange for operating lease liability			10,994
Right-of-use asset obtained in exchange for finance lease liability			$ 528

Nature of Operations and Summary of Significant Accounting Policies

12 Months Ended

Jan. 01, 2022

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 technologies and engineered systems that drive Sustainable Industrial Processing. Its products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries while helping customers advance their sustainability initiatives with products that reduce waste or generate more yield with fewer inputs, particularly fiber, energy, and water. Producing more while consuming less is a core aspect of Sustainable Industrial Processing and a major element of the strategic focus of the Company's three reportable operating segments: Flow Control, Industrial Processing, and Material Handling.

Noncontrolling Interest

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

Principles of Consolidation

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

Fiscal Year

Typically, the Company's fiscal quarters and fiscal year consist of 13 and 52 weeks, respectively, ending on the Saturday closest to the end of the corresponding calendar quarter for its fiscal quarters and on the Saturday closest to December 31 for its fourth fiscal quarter and fiscal year. As a result of the difference between the fiscal and calendar periods, a 53rd week is added to the Company's fiscal year every five or six years. In a 53-week fiscal year, the Company's fourth fiscal quarter contains 14 weeks. The Company's fiscal year ended January 1, 2022 (fiscal 2021 or 2021) contained 52 weeks, its fiscal year ended January 2, 2021 (fiscal 2020 or 2020) contained 53 weeks, and its fiscal year ended December 28, 2019 (fiscal 2019 or 2019) contained 52 weeks. Each quarter of fiscal 2021, 2020 and 2019 contained 13 weeks, except the fourth quarter of 2020, which contained 14 weeks. The impact of the additional week in 2020 was not material to the Company's financial results.

Financial Statement Presentation

Certain reclassifications have been made to prior periods to conform with the current period presentation. On the consolidated statement of cash flows, the Company reclassified the change in customer deposits within operating activities from other current liabilities to a separate line item and the changes in long-term assets and liabilities from other items, net to other assets and other liabilities, respectively.

Use of Estimates and Critical Accounting Policies

The preparation of consolidated 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 consolidated 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 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 consolidated financial statements.

Critical accounting policies are defined as those that entail significant judgments and estimates, and could potentially result in materially different results under different assumptions and conditions. The Company believes that the most critical accounting policies upon which its financial position depends, and which involve the most complex or subjective decisions or assessments, concern income taxes, revenue recognition, the valuation of goodwill and intangible assets, and inventories. A discussion of the application of these and other accounting policies is included within this note.

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers (ASC 606). Most of the Company’s revenue is recognized at a point in time for each performance obligation under the contract when the customer obtains control of the goods or service. Most of the Company’s parts and consumables products and its capital products with minimal customization are accounted for at a point in time. The Company has made a policy election to not treat the obligation to ship as a separate performance obligation under the contract and, as a result, the associated shipping costs are reflected in the cost of revenue when revenue is recognized.

The remaining portion of the Company's revenue is recognized over time based on an input method that compares the costs incurred to date to the total expected costs required to satisfy the performance obligation. Contracts are accounted for on an over time basis when they include products which have no alternative use and an enforceable right to payment over time. Most of the contracts recognized on an over time basis are for large capital projects. These projects are highly customized for the customer and, as a result, would include a significant cost to rework in the event of cancellation.

The following table presents revenue by revenue recognition method:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Point in Time	$	705,709	$	557,702	$	611,528
Over Time	80,870		77,326		93,116
	$	786,579	$	635,028	$	704,644

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

The Company disaggregates its revenue from contracts with customers by 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:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Revenue by Product Type:
Parts and Consumables	$	511,766	$	417,545	$	440,699
Capital	274,813		217,483		263,945
	$	786,579	$	635,028	$	704,644
Revenue by Geography (based on customer location):
North America	$	420,382	$	360,061	$	386,952
Europe	220,578		161,527		180,888
Asia	103,810		72,268		84,705
Rest of World	41,809		41,172		52,099
	$	786,579	$	635,028	$	704,644

See Note 12, Business Segment and Geographical Information, for information on the disaggregation of revenue by reportable operating segment.

The following table presents contract balances from contracts with customers:


(In thousands)	January 1, 2022		January 2, 2021
Contract Assets	$	8,626	$	7,576
Contract Liabilities	$	77,004	$	39,269

Contract assets in the accompanying consolidated balance sheet represent unbilled revenue associated with revenue recognized on contracts accounted for on an over time basis, which will be billed in future periods based on the contract terms. Contract liabilities consist of short- and long-term customer deposits, advanced billings, and deferred revenue. Deferred revenue is included in other current liabilities and long-term customer deposits are included in other

long-term liabilities in the accompanying 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. Contract liabilities increased at year end 2021 principally due to capital equipment orders in the Industrial Processing segment's wood processing business, which the Company expects to recognize as revenue through 2023.

The Company recognized revenue of $33,128,000 in 2021 and $30,426,000 in 2020 that was included in the contract liabilities balance at the beginning of 2021 and 2020, respectively. The majority of the Company's contracts for capital equipment have an original expected duration of one year or less. Certain capital contracts require longer 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 year-end 2021 was $37,905,000. The Company will recognize revenue for these performance obligations as they are satisfied, approximately 50% of which is expected to occur within the next twelve months and the remaining 50% after December 31, 2022.

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

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

Accounts Receivable and Allowance for Credit Losses

Accounts receivable arise from sales on credit to customers, are recorded at the invoiced amount, and do not bear interest. The Company establishes an allowance for credit losses to reduce accounts receivable to the net amount expected to be collected. The Company exercises judgment in determining its allowance for credit losses, which is based on its historical collection and write-off experience, adjusted for current macroeconomic trends and conditions, credit policies, specific customer collection issues, and accounts receivable aging. The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and each customer's current creditworthiness. The Company continuously monitors collections and payments from its customers. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. In some instances, the Company utilizes letters of credit to mitigate its credit exposure.

The changes in the allowance for credit losses are as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Balance at Beginning of Year	$	2,977	$	2,698	$	2,897
Provision charged to expense	5		356		114
Accounts written off	(178)		(266)		(263)
Currency translation	(69)		189		(50)
Balance at End of Year	$	2,735	$	2,977	$	2,698

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 non-interest bearing obligations of the issuing bank and generally mature within six months of the origination date. The Company's Chinese subsidiaries may sell the drafts at a discount to a third-party financial institution or transfer the drafts to vendors in settlement of current accounts payable prior to the scheduled maturity date. These drafts, which totaled $8,049,000 at year-end 2021 and $9,445,000 at year-end 2020, are included in accounts receivable in the accompanying consolidated balance sheet until the subsidiary sells the drafts to a bank and receives a discounted amount, transfers the banker's acceptance drafts in settlement of current accounts payable prior to maturity, or obtains cash payment on the scheduled maturity date.

Warranty Obligations

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

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


(In thousands)	January 1, 2022		January 2, 2021
Balance at Beginning of Year	$	7,064	$	6,467
Provision charged to expense	4,366		5,555
Usage	(4,268)		(5,439)
Acquisitions	429		—
Currency translation	(293)		481
Balance at End of Year	$	7,298	$	7,064

Leases

In accordance with ASC 842, Leases (ASC 842), the Company determines whether an arrangement is, or contains, a lease at inception. Operating lease liabilities are included in other current liabilities and other long-term liabilities and the corresponding right-of use (ROU) assets are included in other assets in the accompanying consolidated balance sheet. Classification of operating lease liabilities as either current or noncurrent is based on the expected timing of payments due under the Company’s lease obligations.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities with original contract terms greater than 12 months are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Operating leases with an original term of 12 months or less are not recorded in the accompanying consolidated balance sheet.

In determining the present value of future lease payments, the Company utilizes either the rate implicit in the lease if that rate is readily determinable or its incremental secured borrowing rate commensurate with the term of the underlying lease. Lease terms may include the effect of options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company recognizes operating lease expense for lease payments on a straight-line basis over the lease term. Variable lease costs are not included in fixed lease payments and, as a result, are excluded from the measurement of the ROU assets and lease liabilities. The Company expenses all variable lease costs as incurred, which were not material in 2021 and 2020.

As a lessee, the Company accounts for the lease and non-lease components of its real estate and equipment leases as a single lease component. For vehicle leases, the Company does not combine lease and non-lease components.

See Note 9, Leases, for additional information about the Company's lease obligations.

Income Taxes

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

It is the Company's policy to provide for uncertain tax positions and the related interest and penalties based upon management's assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. At January 1, 2022, the Company believes that it has appropriately accounted for any liability for

unrecognized tax benefits. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established, the statute of limitations expires for a tax jurisdiction year, or the Company is required to pay amounts in excess of the liability, its effective tax rate in a given financial statement period may be affected.

Earnings per Share

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

Cash, Cash Equivalents, and Restricted Cash

At year-end 2021 and year-end 2020, cash equivalents included investments in money market funds and highly liquid short-term investments, which had maturities of three months or less at the date of purchase. The carrying amounts of cash equivalents approximate their fair values due to the short-term nature of these instruments.

The Company's restricted cash generally 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 these restrictions will expire over the next twelve months.


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Cash and cash equivalents	$	91,186	$	65,682	$	66,786
Restricted cash	2,975		958		1,487
Total Cash, Cash Equivalents, and Restricted Cash	$	94,161	$	66,640	$	68,273

Supplemental Cash Flow Information


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Cash Paid for Interest	$	4,441	$	6,899	$	12,344
Cash Paid for Income Taxes, Net of Refunds	$	24,174	$	17,506	$	24,533

Non-Cash Investing Activities:
Fair value of assets acquired	$	190,977	$	9,295	$	207,223
Cash paid for acquired businesses	(152,661)		(7,565)		(179,693)
Liabilities Assumed of Acquired Businesses	$	38,316	$	1,730	$	27,530

Non-cash additions to property, plant, and equipment	$	363	$	1,060	$	626

Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of RSUs	$	4,108	$	4,781	$	4,100
Dividends declared but unpaid	$	2,905	$	2,770	$	2,628

Inventories

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

The components of inventories are as follows:


(In thousands)	January 1, 2022		January 2, 2021
Raw Materials	$	59,177	$	46,413
Work in Process	29,448		17,692
Finished Goods (includes $1,163 and $427 at customer locations)	45,731		42,709
	$	134,356	$	106,814

Property, Plant, and Equipment

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

Property, plant, and equipment consist of the following:


(In thousands)	January 1, 2022		January 2, 2021
Land	$	11,011	$	7,676
Buildings	67,787		60,702
Machinery, Equipment, and Leasehold Improvements	136,656		120,804
Construction in Progress	6,567		3,292
	222,021		192,474
Less: Accumulated Depreciation and Amortization	114,032		107,832
	$	107,989	$	84,642

Depreciation and amortization expense was $13,433,000 in 2021, $12,209,000 in 2020, and $12,236,000 in 2019. See Note 9, Leases, for further details relating to assets under financing leases included in property, plant and equipment in the accompanying consolidated balance sheet.

Intangible Assets, Net

Acquired intangible assets by major asset class are as follows:


(In thousands)	Gross		Accumulated Amortization		Currency Translation		Net
January 1, 2022
Definite-Lived
Customer relationships	$	217,021	$	(79,839)	$	(3,455)	$	133,727
Product technology	67,230		(35,833)		(1,752)		29,645
Tradenames	7,427		(3,405)		(373)		3,649
Other	20,210		(16,250)		(561)		3,399
	311,888		(135,327)		(6,141)		170,420
Indefinite-Lived
Tradenames	29,059		—		(136)		28,923
Acquired Intangible Assets	$	340,947	$	(135,327)	$	(6,277)	$	199,343


(In thousands)	Gross		Accumulated Amortization		Currency Translation		Net
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

Gross intangible assets include $63,228,000 for acquired intangible assets from acquisitions that occurred in 2021. See Note 2, Acquisitions, for further details.

In connection with its impairment analysis, the Company reduced its definite-lived intangible assets by $499,000 in 2021 and definite and indefinite-lived intangible assets by $1,861,000 in 2020. Additionally, the Company reclassified $1,300,000 of an indefinite-lived tradename to definite-lived in 2020. See Impairment of Long-Lived Assets under the heading Intangible Assets within this note for further details.

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 consolidated balance sheet. The Company amortizes definite-lived intangible assets over lives that have been determined based on the anticipated cash flow benefits of the intangible asset. Definite-lived intangible assets as of year-end 2021 have a weighted average amortization period of 13 years. Amortization of definite-lived intangible assets was $20,869,000 in 2021, $19,125,000 in 2020, and $20,154,000 in 2019 and was included in selling, general, and administrative (SG&A) expenses in the accompanying consolidated statement of income. The estimated future amortization expense of definite-lived intangible assets is $20,994,000 in 2022; $18,725,000 in 2023; $17,830,000 in 2024; $15,754,000 in 2025; $15,119,000 in 2026; and $81,998,000 in the aggregate thereafter.

Goodwill

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

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


(In thousands)	Flow Control		Industrial Processing		Material Handling		Total
Balance as of December 28, 2019
Gross balance	$	97,680	$	207,536	$	116,325	$	421,541
Accumulated impairment losses	—		(85,509)		—		(85,509)
Net balance	97,680		122,027		116,325		336,032
2020 Activity
Acquisition (Note 2)	—		3,953		—		3,953
Currency translation	3,757		4,392		3,619		11,768
Total 2020 activity	3,757		8,345		3,619		15,721
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 Activity
Acquisitions (Note 2)	25,805		1,116		26,836		53,757
Currency translation	(3,653)		(2,015)		(2,955)		(8,623)
Total 2021 activity	22,152		(899)		23,881		45,134
Balance at January 1, 2022
Gross balance	123,589		214,982		143,825		482,396
Accumulated impairment losses	—		(85,509)		—		(85,509)
Net balance	$	123,589	$	129,473	$	143,825	$	396,887

Impairment of Long-Lived Assets

The Company evaluates the recoverability of goodwill and indefinite-lived intangible assets as of the end of each fiscal year, or more frequently if events or changes in circumstances indicate that it is more likely than not that the carrying value of an asset might be impaired. Potential impairment indicators include a significant decline in sales, earnings, or cash flows, material adverse changes in the business climate, and a significant decline in the market capitalization due to a sustained decrease in the Company's stock price.

The Company assesses its definite-lived intangible assets for impairment whenever facts and circumstances indicate that the carrying amounts may not be fully recoverable. To analyze recoverability, the Company projects undiscounted net future cash flows over the remaining lives of such assets or asset groups. If these projected cash flows were to be less than the carrying amounts, an impairment loss would be recognized, resulting in a write-down of the assets with a corresponding charge to earnings. The impairment loss would be measured based upon the difference between the carrying amounts of the assets and their fair values calculated using projected discounted cash flows.

Goodwill

At year-end 2021 and 2020, in connection with its annual impairment analysis, the Company performed a qualitative goodwill impairment assessment (Step 0) for each of its reporting units, except the material handling reporting unit in 2020 discussed below, which indicated that the fair value of each reporting unit exceeded its carrying value, and determined that the assets were not impaired. The impairment analysis included an assessment of certain qualitative factors including, but not limited to, the results of prior fair value calculations, the movement of the Company's share price and market capitalization, the reporting units' and the Company's overall financial performance, and macroeconomic and industry conditions. The Company considered the qualitative factors and weighed the evidence obtained and determined that it was not more likely than not that the fair value of any of the respective reporting unit's assets was less than its carrying amount. Although the Company believes the factors considered in the impairment analysis are reasonable, significant changes in any one of the assumptions used could have produced a different result.

In March 2020, the Company experienced a significant decrease in market capitalization due to a decline in the Company’s stock price. During that time, the U.S. stock market also declined significantly amid market volatility driven by the uncertainty surrounding the COVID-19 pandemic. Based on these occurrences, the Company concluded that a

triggering event had occurred related to the indefinite-lived assets within its material handling reporting unit. As a result, for each reporting period in 2020, the Company prepared a quantitative impairment analysis (Step 1) for its material handling reporting unit, which indicated that its fair value exceeded its carrying value and the indefinite-lived assets were not impaired.

Goodwill by reporting unit is as follows:


(In thousands)	January 1, 2022		January 2, 2021
Fluid-Handling	$	64,003	$	65,755
Doctoring, Cleaning, & Filtration	59,586		35,682
Stock-Preparation	20,819		19,685
Wood Processing	108,654		110,687
Material Handling	143,825		119,944
	$	396,887	$	351,753

Intangible Assets

At year-end 2021 and 2020, the Company performed a qualitative impairment analysis on its indefinite-lived intangible assets and determined that the assets were not impaired.

No triggering events or indicators of impairment were identified in 2021 or 2020 related to the Company's definite-lived intangible assets, except for the definite-lived intangible assets associated with its existing ceramic blade product line in France in 2021 and its timber-harvesting product line in 2020 both discussed below.

In the fourth quarter of 2021, the Company decided to exit its ceramic blade business in France, which became a redundant manufacturing operation as a result of its acquisition of The Clouth Group of Companies in the third quarter of 2021. The Company expects to cease production in June 2022 and exit the facility by the end of 2022. As a result of this decision, the Company recorded an impairment charge of $499,000 in the fourth quarter of 2021 related to its product technology intangible asset.

In the fourth quarter of 2020, due to the continued and anticipated decline in demand for the Company's timber-harvesting business' products, and following impairment charges totaling $2,336,000 in 2019 related to this business, the Company performed a quantitative analysis of the recoverability of the related intangible assets in which the income approach discounted cash flow methodology was used. As a result of this analysis, the Company determined that the fair values of the timber-harvesting product line's definite-lived intangible assets related to customer relationships, product technology and tradename were less than their carrying values, and therefore recorded additional impairment charges totaling $1,861,000 in the fourth quarter of 2020. The remaining intangible asset as of year-end 2021 for the timber-harvesting product line is $443,000.

Impairment charges for 2021, 2020 and 2019 are included in impairment and other costs, net in the accompanying consolidated statement of income.

Business Combinations

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

While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business acquisition date, the estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the purchase price allocation period, which is generally one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. For changes in the valuation of intangible assets between the preliminary and final purchase price allocation, the related amortization is adjusted in the period it occurs. Subsequent to the purchase price allocation period, any adjustment to assets acquired or liabilities assumed is included in operating results in the period in which the adjustment is determined. Acquisition transaction costs are recorded as incurred in SG&A expenses in the accompanying consolidated statement of income and were $3,655,000 in 2021, $485,000 in 2020, and $843,000 in 2019.

Foreign Currency Translation and Transactions

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

Stock-Based Compensation

The Company recognizes compensation expense for all stock-based awards granted to employees and directors based on the grant date estimate of fair value for those awards. The fair value of RSUs is based on the grant date price of the Company's common stock, reduced by the present value of estimated dividends foregone during the requisite service period. 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. Compensation expense related to any modified stock-based awards is based on the fair value for those awards as of the modification date with any remaining incremental compensation expense recognized ratably over the remaining requisite service period.

Derivatives

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

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

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 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.

Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. In October 2021, the FASB issued ASU 2021-08, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance in this ASU will generally result in the Company recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. This new guidance is effective on a prospective basis in fiscal 2023, with early adoption permitted. The Company is currently evaluating the effect that the adoption of this ASU will have on its consolidated financial statements, which will be dependent on the contract assets and liabilities acquired in future business combinations.

Fair Value Measurements and Fair Value of Financial Instruments - Debt Obligations (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	$ 264,598	$ 227,963
Carrying Value \| Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	250,267	217,963
Carrying Value \| Senior promissory notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	10,000	10,000
Carrying Value \| Other
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	4,331	0
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	265,545	229,120
Fair Value \| Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	250,267	217,963
Fair Value \| Senior promissory notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	10,947	11,157
Fair Value \| Other
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	$ 4,331	$ 0

Nature of Operations and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 222,021	$ 192,474
Less: Accumulated Depreciation and Amortization	114,032	107,832
Property, plant and equipment, at cost, net	107,989	84,642
Depreciation and amortization expense for property, plant and equipment and finance lease right-of-use asset	13,433	12,209	$ 12,236
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	11,011	7,676
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	67,787	60,702
Machinery, Equipment, and Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	136,656	120,804
Construction in Progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 6,567	$ 3,292
Minimum \| Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (years)	2 years
Minimum \| Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (years)	10 years
Maximum \| Machinery and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (years)	10 years
Maximum \| Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life (years)	40 years

Fair Value Measurements and Fair Value of Financial Instruments - Assets and Liabilities, Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Assets:
Money market funds and time deposits	$ 13,458	$ 8,054
Banker's acceptance drafts	8,049	9,445
Forward currency-exchange contracts	14	37
Liabilities:
2018 Swap Agreement	550	1,009
Forward currency-exchange contract	44	7
Level 1
Assets:
Money market funds and time deposits	13,458	8,054
Banker's acceptance drafts	0	0
Forward currency-exchange contracts	0	0
Liabilities:
2018 Swap Agreement	0	0
Forward currency-exchange contract	0	0
Level 2
Assets:
Money market funds and time deposits	0	0
Banker's acceptance drafts	8,049	9,445
Forward currency-exchange contracts	14	37
Liabilities:
2018 Swap Agreement	550	1,009
Forward currency-exchange contract	44	7
Level 3
Assets:
Money market funds and time deposits	0	0
Banker's acceptance drafts	0	0
Forward currency-exchange contracts	0	0
Liabilities:
2018 Swap Agreement	0	0
Forward currency-exchange contract	$ 0	$ 0

Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 84,881	$ 55,739	$ 52,564
Other Comprehensive Items:
Foreign currency translation adjustment	(11,324)	18,395	(1,392)
Pension and other post-retirement liability adjustments, net (net of tax of $(1), $78, and $(137))	(22)	180	(282)
Effect of pension plan settlement (net of tax of $0, $0, and $(653))	0	(119)	3,826
Deferred gain (loss) on cash flow hedges (net of tax of $118, $(57), and $(143))	366	(184)	(447)
Other Comprehensive Items	(10,980)	18,272	1,705
Comprehensive Income	73,901	74,011	54,269
Comprehensive Income Attributable to Noncontrolling Interest	(716)	(687)	(445)
Comprehensive Income Attributable to Kadant	$ 73,185	$ 73,324	$ 53,824

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

12 Months Ended

Jan. 01, 2022

Fair Value Disclosures [Abstract]

Fair value hierarchy 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 January 1, 2022
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	13,458	$	—	$	—	$	13,458
Banker's acceptance drafts (a)	$	—	$	8,049	$	—	$	8,049
Forward currency-exchange contracts	$	—	$	14	$	—	$	14
Liabilities:
2018 Swap Agreement	$	—	$	550	$	—	$	550
Forward currency-exchange contract	$	—	$	44	$	—	$	44


	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	$	—	$	1,009	$	—	$	1,009
Forward currency-exchange contracts	$	—	$	7	$	—	$	7

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

Carrying value and fair value of debt obligations, excluding lease obligations

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


	January 1, 2022				January 2, 2021
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Debt Obligations:
Revolving credit facility	$	250,267	$	250,267	$	217,963	$	217,963
Senior promissory notes	10,000		10,947		10,000		11,157
Other	4,331		4,331		—		—
	$	264,598	$	265,545	$	227,963	$	229,120

Acquisitions - 2019 and 2020 Acquisition Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Earnings per Share Attributable to Kadant
Selling, general, and administrative expenses	$ 208,787	$ 181,905	$ 192,525
Cost of revenue	$ 449,214	$ 357,722	410,884
Syntron Material Handling Group, LLC
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenue			704,644
Net Income Attributable to Kadant			$ 56,409
Earnings per Share Attributable to Kadant
Basic (in dollars per share)			$ 5.02
Diluted (in dollars per share)			$ 4.92
Syntron Material Handling Group, LLC \| Acquisition-related Costs
Earnings per Share Attributable to Kadant
Selling, general, and administrative expenses			$ 843
Syntron Material Handling Group, LLC \| Inventory revalued
Earnings per Share Attributable to Kadant
Cost of revenue			3,549
Syntron Material Handling Group, LLC \| Intangible amortization related to acquired backlog
Earnings per Share Attributable to Kadant
Amortization			$ 1,323

Acquisitions (Tables)

12 Months Ended

Jan. 01, 2022

Business Combination and Asset Acquisition [Abstract]

Summary of assets acquired and liabilities assumed

The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price for Clouth and the Company's other acquisitions in 2021. The final purchase accounting and purchase price allocations remain subject to change as the Company continues to refine its preliminary valuation of certain acquired assets

and liabilities assumed and the valuation of acquired intangibles, which may result in adjustments to the assets and liabilities, including goodwill. Measurement period adjustments in 2021 did not have a material effect on the Company's consolidated balance sheet or statement of income.


(In thousands)	Clouth		Other		Total
Net Assets Acquired:
Cash and Cash Equivalents	$	4,923	$	3,757	$	8,680
Accounts Receivable	6,808		1,641		8,449
Inventories	14,119		4,628		18,747
Property, Plant, and Equipment	24,498		5,143		29,641
Other Assets	5,309		3,167		8,476
Definite-Lived Intangible Assets
Customer relationships	20,192		23,100		43,292
Product technology	8,915		2,700		11,615
Tradenames	—		1,400		1,400
Other	401		1,560		1,961
Indefinite-Lived Intangible Assets			—
Tradenames	4,959		—		4,959
Goodwill	25,806		27,951		53,757
Total assets acquired	115,930		75,047		190,977

Short-term Obligations and Current Maturities of Long-term Obligations	1,393		—		1,393
Accounts Payable	1,287		797		2,084
Long-Term Deferred Income Taxes	9,465		6,698		16,163
Long-Term Obligations	4,244		—		4,244
Other Liabilities	7,391		7,166		14,557
Total liabilities assumed	23,780		14,661		38,441
Net assets acquired	$	92,150	$	60,386	$	152,536

Purchase Price:
Cash Paid	$	92,150	$	60,386	$	152,536

The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price for SMH.


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

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

Purchase Price:
Cash Paid	$	179,286

Unaudited supplemental pro forma information

The following unaudited pro forma information provides the effect of the Company's 2021 acquisition of Clouth as if it had occurred at the beginning of 2020:


(In thousands, except per share amounts)	January 1, 2022		January 2, 2021
Revenue	$	812,016	$	682,248
Net Income Attributable to Kadant	$	90,184	$	55,760
Earnings per Share Attributable to Kadant
Basic	$	7.79	$	4.86
Diluted	$	7.74	$	4.82

The following unaudited pro forma information provides the effect of the Company's 2019 acquisition of SMH as if it had occurred at the beginning of 2018:


(In thousands, except per share amounts)	December 28, 2019
Revenue	$	704,644
Net Income Attributable to Kadant	$	56,409
Earnings per Share Attributable to Kadant
Basic	$	5.02
Diluted	$	4.92

Accumulated Other Comprehensive Items

12 Months Ended

Jan. 01, 2022

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

Accumulated Other Comprehensive Items

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

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


(In thousands)	Foreign Currency Translation Adjustment		Pension and Other Post-Retirement Benefit Liability Adjustments		Deferred Loss on Cash Flow Hedges		Total
Balance at January 2, 2021	$	(17,894)	$	(770)	$	(828)	$	(19,492)
Other comprehensive items before reclassifications	(11,202)		(67)		142		(11,127)
Reclassifications from AOCI	—		45		224		269
Net current period other comprehensive items	(11,202)		(22)		366		(10,858)
Balance at January 1, 2022	$	(29,096)	$	(792)	$	(462)	$	(30,350)

Amounts reclassified out of AOCI are as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019		Statement of Income Line Item
Retirement Benefit Plans
Recognized net actuarial loss	$	(50)	$	(66)	$	(70)	Other expense, net
Amortization of prior service cost	(12)		(55)		(6)		Other expense, net
Pension plan settlement loss	—		—		(5,887)		Other expense, net
Total expense before income taxes	(62)		(121)		(5,963)
Income tax benefit (provision)	17		153		(641)		Provision for income taxes
	(45)		32		(6,604)
Cash Flow Hedges (a)
Interest rate swap agreements	(451)		(333)		(8)		Interest expense
Forward currency-exchange contracts	—		28		(169)		Cost of revenue
Forward currency-exchange contracts	157		—		—		SG&A expense
Total expense before income taxes	(294)		(305)		(177)
Income tax benefit	70		73		54		Provision for income taxes
	(224)		(232)		(123)
Total Reclassifications	$	(269)	$	(200)	$	(6,727)

(a)See Note 10, Derivatives, for additional information.

Derivatives - AOCI Activity (Details) $ in Thousands	12 Months Ended
Derivatives - AOCI Activity (Details) $ in Thousands	Jan. 01, 2022 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 496,905
Ending balance	565,616
Deferred Loss on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(828)
Loss (gain) reclassified to earnings	224
Gain recognized in AOCI	142
Ending balance	(462)
Deferred Loss on Cash Flow Hedges \| Interest Rate Swap Agreements
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(846)
Loss (gain) reclassified to earnings	343
Gain recognized in AOCI	74
Ending balance	(429)
Deferred Loss on Cash Flow Hedges \| Forward Currency- Exchange Contracts
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	18
Loss (gain) reclassified to earnings	(119)
Gain recognized in AOCI	68
Ending balance	$ (33)

- Definition

+ References

+ Details

Nature of Operations and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Accounting Policies [Abstract]
Cash and cash equivalents	$ 91,186	$ 65,682	$ 66,786
Restricted cash	2,975	958	1,487
Total Cash, Cash Equivalents, and Restricted Cash	$ 94,161	$ 66,640	$ 68,273	$ 46,117

Accumulated Other Comprehensive Items (Tables)

12 Months Ended

Jan. 01, 2022

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

Components of accumulated other comprehensive items in the balance sheet

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


(In thousands)	Foreign Currency Translation Adjustment		Pension and Other Post-Retirement Benefit Liability Adjustments		Deferred Loss on Cash Flow Hedges		Total
Balance at January 2, 2021	$	(17,894)	$	(770)	$	(828)	$	(19,492)
Other comprehensive items before reclassifications	(11,202)		(67)		142		(11,127)
Reclassifications from AOCI	—		45		224		269
Net current period other comprehensive items	(11,202)		(22)		366		(10,858)
Balance at January 1, 2022	$	(29,096)	$	(792)	$	(462)	$	(30,350)

Reclassification out of accumulated other comprehensive items

Amounts reclassified out of AOCI are as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019		Statement of Income Line Item
Retirement Benefit Plans
Recognized net actuarial loss	$	(50)	$	(66)	$	(70)	Other expense, net
Amortization of prior service cost	(12)		(55)		(6)		Other expense, net
Pension plan settlement loss	—		—		(5,887)		Other expense, net
Total expense before income taxes	(62)		(121)		(5,963)
Income tax benefit (provision)	17		153		(641)		Provision for income taxes
	(45)		32		(6,604)
Cash Flow Hedges (a)
Interest rate swap agreements	(451)		(333)		(8)		Interest expense
Forward currency-exchange contracts	—		28		(169)		Cost of revenue
Forward currency-exchange contracts	157		—		—		SG&A expense
Total expense before income taxes	(294)		(305)		(177)
Income tax benefit	70		73		54		Provision for income taxes
	(224)		(232)		(123)
Total Reclassifications	$	(269)	$	(200)	$	(6,727)

(a)See Note 10, Derivatives, for additional information.

Business Segment and Geographical Information - Additional Information (Details) $ in Thousands	12 Months Ended
	Jan. 01, 2022 USD ($) segment	Jan. 02, 2021 USD ($)	Dec. 28, 2019 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment	3
Segment Reporting Information [Line Items]
Acquisition related costs	$ 3,655	$ 485	$ 843
Settlement and curtailment losses	0	119	(3,826)
Flow Control
Segment Reporting Information [Line Items]
Acquisition related costs	6,191
Impairment and restructuring charges	980
Industrial Processing
Segment Reporting Information [Line Items]
Impairment charges		1,861	2,336
Material Handling
Segment Reporting Information [Line Items]
Acquisition related costs	$ 2,851	$ 350	5,715
Other expense, net
Segment Reporting Information [Line Items]
Settlement and curtailment losses			$ 5,887

Derivatives

12 Months Ended

Jan. 01, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Interest Rate Swap Agreements

In 2018, the Company entered into an interest rate swap agreement (2018 Swap Agreement) with Citizens 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 6, Short- and Long-Term Obligations, for further details.

Forward Currency-Exchange Contracts

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

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

Gains and losses reported within SG&A expenses in the accompanying consolidated statement of income associated with the Company's forward currency-exchange contracts that were not designated as hedges were not material in 2021, 2020, and 2019.

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


		January 1, 2022				January 2, 2021
(In thousands)	Balance Sheet Location	Asset (Liability) (a)		Notional Amount (b)		Asset (Liability) (a)		Notional Amount
Derivatives Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contract	Other Current Assets	$	—	$	—	$	25	$	842
Derivatives in a Liability Position:
Forward currency-exchange contract	Other Current Liabilities	$	(44)	$	842	$	—	$	—
2018 Swap Agreement	Other Long-Term Liabilities	$	(550)	$	15,000	$	(1,099)	$	15,000
Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	14	$	1,200	$	12	$	582
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	—	$	—	$	(7)	$	825

(a)See Note 11, Fair Value Measurements and Fair Value of Financial Instruments, for the fair value measurements relating to these financial instruments.

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

The following table summarizes the activity in AOCI associated with the Company's derivative instruments designated as cash flow hedges as of and for the year ended January 1, 2022:


(In thousands)	Interest Rate Swap Agreements		Forward Currency- Exchange Contracts		Total
Unrealized (Loss) Gain, Net of Tax, at January 2, 2021	$	(846)	$	18	$	(828)
Loss (gain) reclassified to earnings (a)	343		(119)		224
Gain recognized in AOCI	74		68		142
Unrealized Loss, Net of Tax, at January 1, 2022	$	(429)	$	(33)	$	(462)

(a)See Note 14, Accumulated Other Comprehensive Items, for the income statement classification.

At year-end 2021, the Company expects to reclassify losses of $337,000 from AOCI to earnings over the next twelve months based on the estimated cash flows of the interest rate swap agreement and the maturity date of the forward currency-exchange contract.

Employee Benefit Plans - Stock Option Activity (Details) - Stock Option Awards	12 Months Ended
	Jan. 01, 2022 $ / shares shares
Number of Shares
Options outstanding, beginning balance (in shares) \| shares	27,000
Exercised (in shares) \| shares	(27,000)
Options outstanding, ending balance (in shares) \| shares	0
Weighted Average Exercise Price
Options outstanding, beginning balance (in dollars per share) \| $ / shares	$ 24.44
Exercised (in dollars per share) \| $ / shares	24.44
Options outstanding, ending balance (in dollars per share) \| $ / shares	$ 0

Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared - common stock (in dollars per share)	$ 1.00	$ 0.96	$ 0.92

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

12 Months Ended

Jan. 01, 2022

Accounting Policies [Abstract]

Principles of consolidation

Principles of Consolidation

Fiscal year

Fiscal Year

Use of estimates and critical accounting policies

Use of Estimates and Critical Accounting Policies

Revenue recognition

Revenue Recognition

The following table presents revenue by revenue recognition method:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Point in Time	$	705,709	$	557,702	$	611,528
Over Time	80,870		77,326		93,116
	$	786,579	$	635,028	$	704,644

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:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Revenue by Product Type:
Parts and Consumables	$	511,766	$	417,545	$	440,699
Capital	274,813		217,483		263,945
	$	786,579	$	635,028	$	704,644
Revenue by Geography (based on customer location):
North America	$	420,382	$	360,061	$	386,952
Europe	220,578		161,527		180,888
Asia	103,810		72,268		84,705
Rest of World	41,809		41,172		52,099
	$	786,579	$	635,028	$	704,644

See Note 12, Business Segment and Geographical Information, for information on the disaggregation of revenue by reportable operating segment.

The following table presents contract balances from contracts with customers:


(In thousands)	January 1, 2022		January 2, 2021
Contract Assets	$	8,626	$	7,576
Contract Liabilities	$	77,004	$	39,269

Accounts receivable and allowance for credit losses

Accounts Receivable and Allowance for Credit Losses

The changes in the allowance for credit losses are as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Balance at Beginning of Year	$	2,977	$	2,698	$	2,897
Provision charged to expense	5		356		114
Accounts written off	(178)		(266)		(263)
Currency translation	(69)		189		(50)
Balance at End of Year	$	2,735	$	2,977	$	2,698

Banker's Acceptance Drafts Included in Accounts Receivable

Warranty Obligations

Income Taxes

Earnings per Share

Cash and cash equivalents

Cash, Cash Equivalents, and Restricted Cash

Restricted cash

Inventories

Property, plant, and equipment

Property, Plant, and Equipment

Intangible assets

Goodwill

Impairment of long-lived assets

Impairment of Long-Lived Assets

Goodwill

Business combinations

Business Combinations

Foreign currency translation and transactions

Foreign Currency Translation and Transactions

Stock-based compensation

Stock-Based CompensationThe 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. Compensation expense related to any modified stock-based awards is based on the fair value for those awards as of the modification date with any remaining incremental compensation expense recognized ratably over the remaining requisite service period.

Derivatives

Recent accounting pronouncements

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

Pension and other post-retirement benefits plans

Pension and Other Post-Retirement Defined Benefits Plans

The Company sponsors pension and other post-retirement defined benefit plans covering employees at certain U.S. and foreign subsidiaries.

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

The Company records the non-service component of net periodic pension cost in other expense, net in the accompanying consolidated statement of income.

Acquisitions - 2019 and 2020 Acquisition Additional Information (Details) - USD ($) $ in Thousands					3 Months Ended		12 Months Ended
	Jun. 01, 2020	May 28, 2020	Sep. 03, 2019	Jan. 02, 2019	Apr. 03, 2021	Jun. 27, 2020	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired							$ 143,981	$ 7,095	$ 177,798
Goodwill							396,887	351,753	336,032
Acquisition related costs							3,655	485	843
Flow Control
Business Acquisition [Line Items]
Payments to acquire productive assets			$ 407
Acquisition related costs							6,191
Material Handling
Business Acquisition [Line Items]
Acquisition related costs							$ 2,851	$ 350	5,715
Cogent Industrial Technologies \| Customer relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 3,350
Cogent Industrial Technologies \| Industrial Processing
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired	$ 6,866
Company in Austria \| Product technology
Business Acquisition [Line Items]
Finite-lived intangible assets acquired		$ 557
Company in Austria \| Industrial Processing \| Product technology
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired					$ 125	$ 229
Consideration transferred		$ 416
Syntron Material Handling Group, LLC
Business Acquisition [Line Items]
Goodwill				$ 78,592
Goodwill, expected tax deductible amount				$ 59,195
Deductible for tax purposes, period				15 years
Intangible assets other than goodwill acquired				$ 83,020
Intangible assets other than goodwill, expected tax deductible amount				$ 69,969
Acquired intangible assets other than goodwill income tax deductibility, period (years)				15 years
Revenue from the date of acquisition									83,364
Operating income (loss) from date of acquisition									3,132
Amortization expense									4,872
Acquisition related costs									$ 843
Syntron Material Handling Group, LLC \| Material Handling
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired				$ 176,855

Other Costs, Net (Tables)

12 Months Ended

Jan. 01, 2022

Restructuring and Related Activities [Abstract]

Summary of changes in accrued restructuring costs

A summary of the changes in accrued restructuring costs included in other accrued expenses in the accompanying consolidated balance sheet, which are expected to be paid in 2022, are as follows:


(In thousands)	Severance
2021 Restructuring Plan
Provision	$	176
Usage	(19)
Currency translation	(1)
Balance at January 1, 2022	$	156

2020 Restructuring Plan
Provision	$	1,118
Usage	(1,052)
Currency translation	(5)
Balance at January 2, 2021	61
Usage	(61)
Balance at January 1, 2022	$	—

2019 Restructuring Plan
Provision	$	192
Usage	(109)
Currency translation	1
Balance at December 28, 2019	84
Usage	(90)
Currency translation	6
Balance at January 2, 2021	$	—

Nature of Operations and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Goodwill [Roll Forward]
Gross balance, beginning balance	$ 437,262	$ 421,541
Accumulated impairment losses	(85,509)	(85,509)
Net balance, beginning balance	351,753	336,032
Increase due to acquisition	53,757	3,953
Currency translation	(8,623)	11,768
Goodwill period activity	45,134	15,721
Gross balance, ending balance	482,396	437,262
Accumulated impairment losses	(85,509)	(85,509)
Net balance, ending balance	396,887	351,753
Fluid-Handling
Goodwill [Roll Forward]
Net balance, beginning balance	65,755
Net balance, ending balance	64,003	65,755
Doctoring, Cleaning, & Filtration
Goodwill [Roll Forward]
Net balance, beginning balance	35,682
Net balance, ending balance	59,586	35,682
Stock-Preparation
Goodwill [Roll Forward]
Net balance, beginning balance	19,685
Net balance, ending balance	20,819	19,685
Wood Processing
Goodwill [Roll Forward]
Net balance, beginning balance	110,687
Net balance, ending balance	108,654	110,687
Material Handling
Goodwill [Roll Forward]
Net balance, beginning balance	119,944
Net balance, ending balance	143,825	119,944
Operating Segments \| Flow Control
Goodwill [Roll Forward]
Gross balance, beginning balance	101,437	97,680
Accumulated impairment losses	0	0
Net balance, beginning balance	101,437	97,680
Increase due to acquisition	25,805	0
Currency translation	(3,653)	3,757
Goodwill period activity	22,152	3,757
Gross balance, ending balance	123,589	101,437
Accumulated impairment losses	0	0
Net balance, ending balance	123,589	101,437
Operating Segments \| Industrial Processing
Goodwill [Roll Forward]
Gross balance, beginning balance	215,881	207,536
Accumulated impairment losses	(85,509)	(85,509)
Net balance, beginning balance	130,372	122,027
Increase due to acquisition	1,116	3,953
Currency translation	(2,015)	4,392
Goodwill period activity	(899)	8,345
Gross balance, ending balance	214,982	215,881
Accumulated impairment losses	(85,509)	(85,509)
Net balance, ending balance	129,473	130,372
Operating Segments \| Material Handling
Goodwill [Roll Forward]
Gross balance, beginning balance	119,944	116,325
Accumulated impairment losses	0	0
Net balance, beginning balance	119,944	116,325
Increase due to acquisition	26,836	0
Currency translation	(2,955)	3,619
Goodwill period activity	23,881	3,619
Gross balance, ending balance	143,825	119,944
Accumulated impairment losses	0	0
Net balance, ending balance	$ 143,825	$ 119,944

Earnings per Share - Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Earnings Per Share [Abstract]
Net Income Attributable to Kadant	$ 84,043	$ 55,196	$ 52,068
Basic Weighted Average Shares	11,579	11,482	11,235
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	76	82	222
Diluted Weighted Average Shares	11,655	11,564	11,457
Basic (in dollars per share)	$ 7.26	$ 4.81	$ 4.63
Diluted (in dollars per share)	$ 7.21	$ 4.77	$ 4.54

- 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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Income Taxes

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Income Taxes

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


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Domestic	$	26,599	$	14,132	$	93
Foreign	85,453		59,555		68,829
	$	112,052	$	73,687	$	68,922

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


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Current Provision (Benefit):
Federal	$	2,173	$	339	$	(264)
Foreign	25,512		16,800		18,778
State	870		667		335
	28,555		17,806		18,849
Deferred Provision (Benefit):
Federal	1,823		2,146		(453)
Foreign	(3,430)		(2,361)		(1,253)
State	223		357		(785)
	(1,384)		142		(2,491)
	$	27,171	$	17,948	$	16,358

The Company receives a tax deduction upon the exercise of nonqualified stock options and the vesting of RSUs. The Company recognizes excess income tax benefits and tax deficiencies related to stock-based compensation arrangements as discrete items within the provision for income taxes in the reporting period in which they occur. The Company recognized an income tax benefit of $1,808,000 in 2021, $758,000 in 2020 and $3,754,000 in 2019 in the accompanying consolidated statement of income.


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Provision for Income Taxes at Statutory Rate	$	23,531	$	15,474	$	14,474
Increases (Decreases) Resulting From:
Foreign tax rate differential	2,819		1,891		2,584
Nondeductible expenses	1,673		2,117		2,407
Excess tax benefit related to stock-based compensation	(1,525)		(661)		(3,305)
State income taxes, net of federal income tax	863		807		(355)
U.S. tax cost of foreign earnings	481		599		146
Reversal of tax benefit reserves, net	(444)		(730)		(286)
Research and development tax credits	(454)		(465)		(381)
Change in valuation allowance	(31)		(469)		81
Other	258		(615)		993
	$	27,171	$	17,948	$	16,358

The Company's net deferred tax liability consists of the following:


(In thousands)	January 1, 2022		January 2, 2021
Deferred Tax Asset:
Net operating loss carryforwards	$	14,162	$	13,719
Lease liabilities	6,393		6,855
Inventory basis difference	4,600		4,576
Employee compensation	4,368		3,189
Reserves and accruals	3,167		3,565
Capitalized research expenses	2,349		2,668
Foreign, state, and alternative minimum tax credit carryforwards	508		472
Allowance for credit losses	420		397
Other	48		213
Deferred tax asset, gross	36,015		35,654
Less: valuation allowance	(9,212)		(9,609)
Deferred tax asset, net	26,803		26,045
Deferred Tax Liability:
Goodwill and intangible assets	(43,780)		(30,166)
Fixed asset basis difference	(6,009)		(4,964)
ROU assets	(5,431)		(5,812)
Provision for unremitted foreign earnings	(559)		(1,233)
Other	(1,819)		(1,574)
Deferred tax liability	(57,598)		(43,749)
Net deferred tax liability	$	(30,795)	$	(17,704)

Deferred tax assets and liabilities are presented in the accompanying consolidated balance sheet within other assets and long-term deferred income taxes on a net basis by tax jurisdiction. The Company has established valuation allowances related to certain domestic and foreign deferred tax assets on deductible temporary differences, tax losses, and tax credit carryforwards. The valuation allowance at year-end 2021 was $9,212,000, consisting of $190,000 in the United States and $9,022,000 in foreign jurisdictions. The decrease in the valuation allowance in 2021 of $397,000 is related primarily to fluctuations in foreign currency exchange rates and utilization of foreign net operating losses, partially offset by an increase in valuation allowance associated with acquired net operating losses. Compliance with ASC 740 requires the Company to periodically evaluate the necessity of establishing or adjusting a valuation allowance for deferred tax assets depending on whether it is more likely than not that a related tax benefit will be realized in future periods. When assessing the need for a valuation allowance in a tax jurisdiction, the Company evaluates the weight of all available evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. As part of this evaluation, the Company considers its cumulative three-year history of earnings before income taxes, taxable income in prior carryback years, future reversals of existing taxable temporary differences, prudent and feasible tax planning strategies, and expected future results of operations. As of year-end 2021, the Company continued to maintain a valuation allowance in the United States against a portion of its state net operating loss carryforwards due to the uncertainty of future profitability in certain state jurisdictions. As of year-end 2021, the Company maintained valuation allowances in certain foreign jurisdictions because of the uncertainty of future profitability within those foreign jurisdictions.

At year-end 2021, the Company had U.S. federal and state net operating loss carryforwards of $2,304,000 and $30,830,000, respectively, and foreign net operating loss carryforwards of $56,537,000. The U.S. federal net operating loss carryforward does not expire. The state net operating loss carryforwards begin to expire in 2024 and a portion does not expire. Of the foreign net operating loss carryforwards, $1,499,000 will expire in the years 2024 through 2041, and the remainder do not expire. As of year-end 2021, the Company also had state disallowed business interest expense carryforwards of $67,000 and foreign tax credits of $368,000, of which $120,000 came from the acquisition of SMH. The disallowed business interest expense carryforward does not expire, and the foreign tax credit carryforward begins to expire in 2024. The utilization of these tax attributes is limited to the Company’s future taxable income, and certain of these tax attributes are subject to an annual limitation as a result of the acquisition of SMH, which constitutes a change of ownership as defined under Internal Revenue Code Section 382.

At year-end 2021, the Company had approximately $245,079,000 of unremitted foreign earnings. During 2021, the Company repatriated $116,853,000 of previously taxed foreign earnings to the United States and recognized a foreign exchange

gain of $517,000 associated with these earnings. Of the earnings repatriated in 2021, $100,765,000 related to a distribution of shares of a foreign subsidiary. The Company intends to repatriate the distributable reserves of select foreign subsidiaries back to the United States and has recognized $570,000 of net tax expense on the estimated repatriation amount during 2021. Except for these select foreign subsidiaries, the Company intends to indefinitely reinvest $223,035,000 of these earnings of its foreign subsidiaries in order to support the current and future capital needs of their operations, including the repayment of the Company’s foreign debt. The related foreign withholding taxes, which would be required if the Company were to remit these foreign earnings to the United States, would be approximately $4,116,000.

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

As of year-end 2021, the Company had a liability of $9,731,000 for unrecognized tax benefits which, if recognized, would reduce the effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


(In thousands)	January 1, 2022		January 2, 2021
Unrecognized Tax Benefits, Beginning of Year	$	8,337	$	8,331
Gross Increases—Tax Positions in Prior Periods	2,409		4
Gross Decreases—Tax Positions in Prior Periods	(2,182)		(21)
Gross Increases—Current-period Tax Positions	1,920		1,468
Lapses of Statutes of Limitations	(649)		(1,488)
Currency Translation	(104)		43
Unrecognized Tax Benefits, End of Year	$	9,731	$	8,337

A portion of the unrecognized tax benefits generated in 2021 is offset by deferred tax assets in the accompanying consolidated balance sheet. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. The Company has accrued $1,704,000 at year-end 2021 and $1,600,000 at year-end 2020 for the potential payment of interest and penalties. The interest and penalties included in the accompanying consolidated statement of income was a benefit of $129,000 in 2021 and $145,000 in 2020.

The Company is currently under audit in one of its foreign tax jurisdictions. During 2021, the Company finalized its examination with the Internal Revenue Service for the tax years 2017 and 2018 with no material adjustments. It is reasonably possible that over the next fiscal year the amount of liability for unrecognized tax benefits may be reduced by up to $1,367,000 primarily from the expiration of tax statutes of limitations.

The Company remains subject to U.S. federal income tax examinations for the tax years 2019 through 2021, and to non-U.S. income tax examinations for the tax years 2008 through 2021. In addition, the Company remains subject to state and local income tax examinations in the United States for the tax years 2003 through 2021.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Other Costs, Net

12 Months Ended

Jan. 01, 2022

Restructuring and Related Activities [Abstract]

Other Costs, Net

Restructuring Costs

During 2021, the Company recorded restructuring costs totaling $481,000 within its Flow Control segment, including charges for the write-down of certain machinery and equipment of $226,000 and an ROU asset of $79,000, and severance costs of $176,000 related to the reduction of three employees. These actions were taken to eliminate a redundant ceramic blade manufacturing operation in France that resulted from the Company's acquisition of Clouth in the third quarter of 2021.

During 2020, the Company recorded restructuring costs totaling $1,118,000, representing severance costs of $659,000 for 34 employees within its Flow Control segment, $277,000 for 26 employees in its Industrial Processing segment, and $182,000 for four employees in its Material Handling segment. The Company also reduced its workforce by 21 employees in its Industrial Processing segment with no associated severance costs. The Company took these cost-containment actions to reduce payroll-related overhead and operating costs in response to the slowdown in the global economy, largely driven by the COVID-19 pandemic.

During 2019, the Company experienced a significant decrease in revenue and operating results in its timber-harvesting product line included within its Industrial Processing segment. Given the decline in this business, the Company undertook a restructuring plan in the fourth quarter of 2019 and incurred $192,000 of severance costs associated with the reduction of six employees in Canada.

The Company expects to incur additional restructuring charges in 2022 primarily for severance and facility closure costs related to its 2021 restructuring plan, which are not expected to be significant. The Company does not expect to incur additional charges related to the 2020 and 2019 restructuring plans. Restructuring costs are included in impairment and other costs, net in the accompanying consolidated statement of income.

A summary of the changes in accrued restructuring costs included in other accrued expenses in the accompanying consolidated balance sheet, which are expected to be paid in 2022, are as follows:


(In thousands)	Severance
2021 Restructuring Plan
Provision	$	176
Usage	(19)
Currency translation	(1)
Balance at January 1, 2022	$	156

2020 Restructuring Plan
Provision	$	1,118
Usage	(1,052)
Currency translation	(5)
Balance at January 2, 2021	61
Usage	(61)
Balance at January 1, 2022	$	—

2019 Restructuring Plan
Provision	$	192
Usage	(109)
Currency translation	1
Balance at December 28, 2019	84
Usage	(90)
Currency translation	6
Balance at January 2, 2021	$	—

Other Income

Other income consisted of a gain of $515,000 in 2021 related to the sale of a building in Theodore, Alabama, within the Company's Industrial Processing segment for net cash proceeds of $1,634,000. The building was vacated as part of the Company's 2017 restructuring plan to consolidate three of its stock-preparation operations into a single new facility, which was completed in 2018.

Employee Benefit Plans (Tables)

12 Months Ended

Jan. 01, 2022

Share-based Payment Arrangement [Abstract]

Components of pre-tax stock-based compensation expense

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


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
RSU Awards	$	8,224	$	6,453	$	6,616
Employee Stock Purchase Plan Awards	303		323		199
Total	$	8,527	$	6,776	$	6,815

Summary of activity of the unvested restricted stock units

A summary of the activity of the Company's unvested RSUs in 2021 is as follows:


(In thousands, except per share amounts)	Units	Weighted Average Grant- Date Fair Value
Unvested RSUs at January 2, 2021	120	$	92.42
Granted	49	$	174.52
Vested	(61)	$	96.96
Forfeited	(1)	$	91.71
Unvested RSUs at January 1, 2022	107	$	127.70

Stock option activity

A summary of the Company's stock option activity in 2021 is as follows:


(In thousands, except per share amounts)	Number of Shares	Weighted Average Exercise Price
Options Outstanding at January 2, 2021	27	$	24.44
Exercised	(27)	$	24.44
Options Outstanding at January 1, 2022	—	$	—

Summary of stock option exercises

A summary of the Company's stock option exercises are as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Total Intrinsic Value of Options Exercised	$	4,986	$	4,071	$	16,796
Cash Received from Options Exercised	$	665	$	1,123	$	4,454

Employee Benefit Plans

12 Months Ended

Jan. 01, 2022

Share-based Payment Arrangement [Abstract]

Employee Benefit Plans

Stock-Based Compensation Plans

The Company maintains stock-based compensation plans primarily for its key employees and directors, although the plans permit awards to others expected to make significant contributions to the future of the Company. The plans authorize the compensation committee of the Company's board of directors (the board committee) to award a variety of stock and stock-based incentives, such as restricted stock, RSUs, nonqualified and incentive stock options, stock bonus shares, or performance-based shares. The award recipients and the terms of awards granted under these plans are determined by the board committee. Upon a change of control, as defined in the plans, all options or other awards become fully vested and all restrictions lapse. The Company had 336,157 shares available for grant under these stock-based compensation plans at year-end 2021. The Company generally issues its common stock out of treasury stock, to the extent available, for share issuances related to its stock-based compensation plans.

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

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


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
RSU Awards	$	8,224	$	6,453	$	6,616
Employee Stock Purchase Plan Awards	303		323		199
Total	$	8,527	$	6,776	$	6,815

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

Non-Employee Director Restricted Stock Units

The Company granted RSU awards consisting of 1,009 RSUs in 2021, 2,085 RSUs in 2020 and 1,858 RSUs in 2019 to each of its incumbent non-employee directors. Half of the RSUs vested on June 1 of each year and the remaining RSUs vested ratably on the last day of the third and fourth fiscal quarters of each year. In addition, the Company granted RSU awards consisting of 1,042 RSUs in July 2020 to its then new non-employee director (former executive director), which vested ratably on the last day of the third and fourth fiscal quarters of 2020. Each RSU issued to the directors represents the right to receive one share of the Company's common stock upon vesting.

Performance-Based Restricted Stock Units

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

The Company recognizes compensation expense associated with performance-based RSUs ratably over the requisite service period for each separately vesting portion of the award based on the grant date fair value, net of actual forfeitures recorded when they occur, and remeasured each reporting period until the total number of RSUs to be issued is

known. Unrecognized compensation expense related to the unvested performance-based RSUs totaled $3,231,000 at year-end 2021, and will be recognized over a weighted average period of 1.4 years.

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

Time-Based Restricted Stock Units

The Company grants time-based RSUs to its officers and other employees of the Company. Each time-based RSU represents the right to receive one share of the Company's common stock upon vesting. The Company recognizes compensation expense associated with these time-based RSUs ratably over the requisite service period for the entire award based on the grant date fair value, and net of actual forfeitures recorded when they occur. The time-based RSU agreement provides for forfeiture in certain events, such as voluntary or involuntary termination of employment, and for acceleration of vesting in certain events, such as death, disability, or a change in control of the Company. Unrecognized compensation expense related to the time-based RSUs totaled $3,932,000 at year-end 2021, and will be recognized over a weighted average period of 1.8 years.

Vesting of Restricted Stock Units

A summary of the activity of the Company's unvested RSUs in 2021 is as follows:


(In thousands, except per share amounts)	Units	Weighted Average Grant- Date Fair Value
Unvested RSUs at January 2, 2021	120	$	92.42
Granted	49	$	174.52
Vested	(61)	$	96.96
Forfeited	(1)	$	91.71
Unvested RSUs at January 1, 2022	107	$	127.70

The weighted average grant date fair value of RSUs granted was $174.52 in 2021, $88.22 in 2020, and $86.50 in 2019. The total fair value of shares vested was $5,892,000 in 2021, $7,343,000 in 2020, and $5,452,000 in 2019.

Stock Options

The Company has not granted stock options since 2013. Prior to 2014, the Company granted nonqualified stock options to its executive officers that vested over three years and were not exercisable until vested. All options awarded in prior periods were granted at an exercise price equal to the fair market value of the Company's common stock on the date of grant. There were no stock options outstanding at year-end 2021 as all remaining stock options were exercised during the year.

A summary of the Company's stock option activity in 2021 is as follows:


(In thousands, except per share amounts)	Number of Shares	Weighted Average Exercise Price
Options Outstanding at January 2, 2021	27	$	24.44
Exercised	(27)	$	24.44
Options Outstanding at January 1, 2022	—	$	—

A summary of the Company's stock option exercises are as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Total Intrinsic Value of Options Exercised	$	4,986	$	4,071	$	16,796
Cash Received from Options Exercised	$	665	$	1,123	$	4,454

Employee Stock Purchase Plan

The Company's eligible U.S. employees may elect to participate in its employee stock purchase plan. Under the plan, shares of the Company's common stock may be purchased at a 15% discount from the fair market value at the beginning or end of the purchase period, whichever is lower. Shares purchased under the plan are subject to a one-year resale restriction and are purchased through payroll deductions of up to 10% of each participating employee's gross wages. The Company issued 10,230 shares in 2021, 13,062 shares in 2020, and 13,195 shares for 2019 (issued in 2020) of its common stock under this plan. The Company had 91,643 shares available for grant under the employee stock purchase plan at year-end 2021.

401(k) Savings and Other Defined Contribution Plans

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

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

For these plans, the Company contributed and charged to expense $4,706,000 in 2021, $4,501,000 in 2020, and $4,412,000 in 2019.

Pension and Other Post-Retirement Defined Benefits Plans

The Company sponsors pension and other post-retirement defined benefit plans covering employees at certain U.S. and foreign subsidiaries.

The Company records the non-service component of net periodic pension cost in other expense, net in the accompanying consolidated statement of income. Other expense, net in 2019 included a loss of $5,887,000 related to the settlement of the Company’s noncontributory defined benefit pension plan for eligible employees at one of its U.S. divisions and its corporate office (Retirement Plan). The Retirement Plan was terminated in December 2018. Other expense, net in 2019 also included activity related to the Retirement Plan prior to its settlement, including interest costs of $1,334,000, net of an expected return on plan assets of $995,000. The weighted average assumptions used to determine net periodic benefit costs in 2019 for the Retirement Plan was 4.10% for both the discount rate and expected return on plan assets, which were valued using the FTSE Pension Discount Curve. In 2020, the Company made a settlement payment of $2,427,000 related to a restoration plan, also terminated in 2018, which fully supplemented benefits lost for certain executive officers under the Retirement Plan. The remaining disclosure requirements related to the Company’s defined benefit plans are not material for the fiscal years presented.

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Jan. 01, 2022
Equity [Abstract]
Stockholder's Equity	Stockholders' Equity Preferred Stock The Company's Certificate of Incorporation authorizes up to 5,000,000 shares of preferred stock, $.01 par value per share, for issuance by the Company's board of directors without further shareholder approval. Common Stock At year-end 2021, the Company had reserved 534,535 unissued shares of its common stock for possible issuance under its stock-based compensation plans.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496171-112644

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496189-112644

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 16
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Other Costs, Net - Additional Information (Details) $ in Thousands	12 Months Ended
	Jan. 01, 2022 USD ($) employee	Jan. 02, 2021 USD ($) employee	Dec. 28, 2019 USD ($) employee
2021 Restructuring Plan \| Employee severance
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 176
2020 Restructuring Plan \| Employee severance
Restructuring Cost and Reserve [Line Items]
Severance costs		$ 1,118
2019 Restructuring Plan \| Canada
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated related to restructuring \| employee			6
2019 Restructuring Plan \| Employee severance
Restructuring Cost and Reserve [Line Items]
Severance costs			$ 192
Flow Control
Restructuring Cost and Reserve [Line Items]
Total restructuring cost	980
Flow Control \| 2021 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Total restructuring cost	481
Impairment charges of ROU asset	79
Severance costs	$ 176
Number of positions eliminated related to restructuring \| employee	3
Flow Control \| 2021 Restructuring Plan \| Machinery and Equipment
Restructuring Cost and Reserve [Line Items]
Impairment charge of machinery and equipment	$ 226
Flow Control \| 2020 Restructuring Plan \| Employee severance
Restructuring Cost and Reserve [Line Items]
Severance costs		$ 659
Number of positions eliminated related to restructuring \| employee		34
Industrial Processing
Restructuring Cost and Reserve [Line Items]
Impairment charge of machinery and equipment		$ 1,861	$ 2,336
Pre-tax gain on sale of real estate	515
Cash proceeds from sale of real estate	$ 1,634
Industrial Processing \| 2020 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated related to restructuring \| employee		21
Industrial Processing \| 2020 Restructuring Plan \| Employee severance
Restructuring Cost and Reserve [Line Items]
Severance costs		$ 277
Number of positions eliminated related to restructuring \| employee		26
Material Handling \| 2020 Restructuring Plan \| Employee severance
Restructuring Cost and Reserve [Line Items]
Severance costs		$ 182
Number of positions eliminated related to restructuring \| employee		4

Consolidated Balance Sheet - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Current Assets:
Cash and cash equivalents	$ 91,186	$ 65,682
Restricted cash	2,975	958
Accounts receivable, net of allowances of $2,735 and $2,977	117,209	91,540
Inventories	134,356	106,814
Contract assets	8,626	7,576
Other current assets	29,530	17,250
Total Current Assets	383,882	289,820
Property, Plant, and Equipment, Net	107,989	84,642
Other Assets	44,111	40,391
Intangible Assets, Net (Notes 1 and 2)	199,343	160,965
Goodwill (Notes 1 and 2)	396,887	351,753
Total Assets	1,132,212	927,571
Current Liabilities:
Short-term obligations and current maturities of long-term obligations (Note 6)	5,356	1,474
Accounts payable	59,250	32,264
Accrued payroll and employee benefits	37,203	31,168
Customer deposits	59,262	29,433
Advanced billings	11,894	8,513
Other current liabilities	48,532	31,836
Total Current Liabilities	221,497	134,688
Long-Term Obligations (Note 6)	264,158	232,000
Long-Term Deferred Income Taxes (Note 5)	34,944	21,669
Other Long-Term Liabilities	45,997	42,309
Commitments and Contingencies (Note 7)
Stockholders' Equity (Notes 3 and 4):
Preferred stock, $.01 par value, 5,000,000 shares authorized; none issued	0	0
Common stock, $.01 par value, 150,000,000 shares authorized; 14,624,159 shares issued	146	146
Capital in excess of par value	115,888	110,824
Retained earnings	551,848	479,400
Treasury stock at cost, 3,003,419 and 3,081,919 shares	(73,596)	(75,519)
Accumulated other comprehensive items (Note 14)	(30,350)	(19,492)
Total Kadant Stockholders' Equity	563,936	495,359
Noncontrolling interest	1,680	1,546
Total Stockholders' Equity	565,616	496,905
Total Liabilities and Stockholders' Equity	$ 1,132,212	$ 927,571

Other Costs, Net - Changes in Accrued Restructuring (Details) - Severance - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
2021 Restructuring Plan
Restructuring Reserve [Roll Forward]
Provision	$ 176
Usage	(19)
Currency translation	(1)
Balance at end of period	156
2020 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance at beginning of period	61
Provision		$ 1,118
Usage	(61)	(1,052)
Currency translation		(5)
Balance at end of period	0	61
2019 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 0	84
Provision			$ 192
Usage		(90)	(109)
Currency translation		6	1
Balance at end of period		$ 0	$ 84

Acquisitions - 2021 Acquisition Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Earnings per Share Attributable to Kadant
Cost of revenue	$ 449,214	$ 357,722	$ 410,884
Selling, general, and administrative expenses	208,787	181,905	$ 192,525
Clouth
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenue	812,016	682,248
Net Income Attributable to Kadant	$ 90,184	$ 55,760
Earnings per Share Attributable to Kadant
Basic (in dollars per share)	$ 7.79	$ 4.86
Diluted (in dollars per share)	$ 7.74	$ 4.82
Clouth \| Inventory revalued
Earnings per Share Attributable to Kadant
Cost of revenue	$ 3,082	$ 3,082
Clouth \| Acquisition-related Costs
Earnings per Share Attributable to Kadant
Selling, general, and administrative expenses	2,710	3,109
Amortization	$ 399
Clouth \| Forgiveness Of Shareholder Loan
Earnings per Share Attributable to Kadant
Pre-tax gain from loan forgiveness		$ 4,409

Acquisitions - 2019 and 2020 Acquisition Purchase Price Allocation (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 02, 2019	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Net Assets Acquired:
Goodwill		$ 396,887	$ 351,753	$ 336,032
Purchase Price:
Weighted average useful life of acquired intangible assets		13 years
Syntron Material Handling Group, LLC
Net Assets Acquired:
Cash, cash equivalents and restricted cash	$ 2,431
Accounts Receivable	10,275
Inventories	13,061
Property, Plant, and Equipment	7,383
Other Assets	12,054
Goodwill	78,592
Total assets acquired	206,816
Accounts Payable	3,380
Other Current Liabilities	7,954
Long-Term Lease Liabilities	15,244
Long-Term Deferred Income Taxes	952
Total liabilities assumed	27,530
Net assets acquired	179,286
Purchase Price:
Cash Paid	$ 179,286
Weighted average useful life of acquired intangible assets	14 years
Syntron Material Handling Group, LLC \| Tradenames
Net Assets Acquired:
Indefinite-Lived Intangible Assets	$ 9,500
Syntron Material Handling Group, LLC \| Customer relationships
Net Assets Acquired:
Definite-Lived Intangible Assets	$ 58,300
Purchase Price:
Weighted average useful life of acquired intangible assets	15 years
Syntron Material Handling Group, LLC \| Product technology
Net Assets Acquired:
Definite-Lived Intangible Assets	$ 11,000
Purchase Price:
Weighted average useful life of acquired intangible assets	14 years
Syntron Material Handling Group, LLC \| Other
Net Assets Acquired:
Definite-Lived Intangible Assets	$ 4,220
Purchase Price:
Weighted average useful life of acquired intangible assets	8 years

Employee Benefit Plans - Stock Option Exercises (Details) - Stock Option Awards - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Intrinsic Value of Options Exercised	$ 4,986	$ 4,071	$ 16,796
Cash Received from Options Exercised	$ 665	$ 1,123	$ 4,454

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Tax Disclosure [Abstract]
Excess tax benefit related to share-based compensation	$ 1,808	$ 758	$ 3,754
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	9,212	9,609
Increase (decrease) of deferred tax asset valuation allowance	397
Foreign tax credits	368
Undistributed earnings of foreign subsidiaries	245,079
Foreign earnings repatriated	116,853
Foreign currency transaction gain	517
Portion of foreign earnings repatriated for distribution of shares of foreign subsidiary	100,765
Provision for unremitted foreign earnings	570
Undistributed earnings of foreign subsidiaries excluding those repatriated back domestically	223,035
Estimated withholding liability related to undistributed earnings of foreign subsidiaries	4,116
Unrecognized tax benefits that would impact effective tax rate	9,731
Income tax penalties and accrued interest from unrecognized tax benefits	1,704	1,600
Income tax penalties and interest expense from unrecognized tax benefits	129	$ 145
Estimated amount of liability for unrecognized tax benefit to be reduced next year	1,367
Internal revenue service (IRS)
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	190
Domestic tax authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	2,304
Interest carryforward	67
Foreign tax authority
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	9,022
Operating loss carryforwards	56,537
Operating loss carryforwards, subject to expiration	1,499
State and local jurisdiction
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	30,830
Syntron Material Handling Group, LLC
Operating Loss Carryforwards [Line Items]
Foreign tax credits	$ 120

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 2,735	$ 2,977
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	14,624,159	14,624,159
Treasury stock (in shares)	3,003,419	3,081,919

Commitments and Contingencies - Letters of Credit and Bank Guarantees (Details) $ in Thousands	Jan. 01, 2022 USD ($)
Performance Obligations and Customer Deposit Guarantees
Line of Credit Facility [Line Items]
Outstanding letters of credit and bank guarantees	$ 23,464

Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Statement [Abstract]
Revenue (Notes 1 and 12)	$ 786,579	$ 635,028	$ 704,644
Costs and Operating Expenses:
Cost of revenue	449,214	357,722	410,884
Selling, general, and administrative expenses	208,787	181,905	192,525
Research and development expenses	11,403	11,298	10,884
Impairments and other costs, net (Notes 1 and 8)	465	2,979	2,528
Total Costs and Operating Expenses	669,869	553,904	616,821
Operating Income	116,710	81,124	87,823
Interest Income	267	181	213
Interest Expense	(4,821)	(7,423)	(12,755)
Other Expense, Net (Note 3)	(104)	(195)	(6,359)
Income Before Provision for Income Taxes	112,052	73,687	68,922
Provision for Income Taxes (Note 5)	27,171	17,948	16,358
Net Income	84,881	55,739	52,564
Net Income Attributable to Noncontrolling Interest	(838)	(543)	(496)
Net income attributable to Kadant	$ 84,043	$ 55,196	$ 52,068
Earnings per Share Attributable to Kadant (Note 13)
Basic (in dollars per share)	$ 7.26	$ 4.81	$ 4.63
Diluted (in dollars per share)	$ 7.21	$ 4.77	$ 4.54
Weighted Average Shares (Note 13)
Basic (in shares)	11,579	11,482	11,235
Diluted (in shares)	11,655	11,564	11,457

Leases

12 Months Ended

Jan. 01, 2022

Leases [Abstract]

Leases

The Company enters into operating and finance lease commitments primarily for its manufacturing and office space, vehicles, and equipment leases that expire on various dates over the next 13 years, some of which include one or more options to extend the lease for up to 5 years. In addition, the Company leases land associated with certain of its buildings in Canada and China under long-term leases expiring on various dates ranging from 2032 to 2071, one of which includes an assumed option to extend the lease for up to 10 years.

The components of lease expense are as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Operating Lease Cost	$	5,895	$	5,602	$	5,534

Short-Term Lease Cost	674		671		715

Finance Lease Cost:
ROU asset amortization	1,045		1,157		1,213
Interest on lease liabilities	46		74		94
Total Finance Lease Cost	1,091		1,231		1,307

Total Lease Costs	$	7,660	$	7,504	$	7,556

Supplemental cash flow information related to leases is as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$	12,474	$	5,782	$	5,636
Operating cash flows from finance leases	$	46	$	74	$	93
Financing cash flows from finance leases	$	1,044	$	1,139	$	1,144

ROU Assets Obtained in Exchange for Lease Obligations (a):
Operating leases	$	7,247	$	2,560	$	28,484
Finance leases	$	1,147	$	622	$	3,847

(a)Included in 2019 were additions related to the transition adjustment for the adoption of ASC 842. The post-adoption additions of operating leases were $13,167,000, of which $10,994,000 related to ROU assets obtained as part of the acquisition of SMH in 2019. The post-adoption additions of finance leases were $2,496,000, of which $528,000 related to ROU assets obtained as part of the acquisition of SMH.

Supplemental balance sheet information related to leases is as follows:


(In thousands)	Balance Sheet Line Item	January 1, 2022		January 2, 2021
Operating Leases:
ROU assets (a)	Other current assets	$	2,341	$	—
ROU assets	Other assets	24,998		25,460
Total operating lease assets		$	27,339	$	25,460

Short-term liabilities	Other current liabilities	$	4,596	$	4,396
Long-term liabilities	Other long-term liabilities	19,959		22,198
Total operating lease liabilities		$	24,555	$	26,594


(In thousands)	Balance Sheet Line Item	January 1, 2022		January 2, 2021
Finance Leases:
ROU assets, at cost	Property, plant, and equipment, at cost	$	4,076	$	3,707
ROU assets accumulated amortization	Accumulated depreciation and amortization	(2,489)		(2,108)
ROU assets, net	Property, plant, and equipment, net	$	1,587	$	1,599

Short-term obligations	Short-term obligations and current maturities of long-term obligations	$	862	$	915
Long-term obligations	Long-term obligations	748		716
Total finance lease liabilities		$	1,610	$	1,631

(a) See Note 15, Subsequent Event, for further details.


	January 1, 2022		January 2, 2021
Weighted Average Remaining Lease Term (in years):
Operating leases	8.7		9.4
Finance leases	2.1		2.0

Weighted Average Discount Rate:
Operating leases	3.82	%	3.88	%
Finance leases	2.55	%	3.52	%

As of January 1, 2022, future lease payments for lease liabilities are as follows:


	Operating		Finance
(In thousands)	Leases		Leases
2022	$	5,379	$	889
2023	4,316		561
2024	3,292		178
2025	2,727		17
2026	2,179		3
2027 and Thereafter	11,343		—
Total Future Lease Payments	29,236		1,648
Less: Imputed Interest	(4,681)		(38)
Present Value of Lease Payments	$	24,555	$	1,610

As of January 1, 2022, the Company had no significant operating and finance leases that had not yet commenced.

Leases

The components of lease expense are as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Operating Lease Cost	$	5,895	$	5,602	$	5,534

Short-Term Lease Cost	674		671		715

Finance Lease Cost:
ROU asset amortization	1,045		1,157		1,213
Interest on lease liabilities	46		74		94
Total Finance Lease Cost	1,091		1,231		1,307

Total Lease Costs	$	7,660	$	7,504	$	7,556

Supplemental cash flow information related to leases is as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$	12,474	$	5,782	$	5,636
Operating cash flows from finance leases	$	46	$	74	$	93
Financing cash flows from finance leases	$	1,044	$	1,139	$	1,144

ROU Assets Obtained in Exchange for Lease Obligations (a):
Operating leases	$	7,247	$	2,560	$	28,484
Finance leases	$	1,147	$	622	$	3,847

Supplemental balance sheet information related to leases is as follows:


(In thousands)	Balance Sheet Line Item	January 1, 2022		January 2, 2021
Operating Leases:
ROU assets (a)	Other current assets	$	2,341	$	—
ROU assets	Other assets	24,998		25,460
Total operating lease assets		$	27,339	$	25,460

Short-term liabilities	Other current liabilities	$	4,596	$	4,396
Long-term liabilities	Other long-term liabilities	19,959		22,198
Total operating lease liabilities		$	24,555	$	26,594


(In thousands)	Balance Sheet Line Item	January 1, 2022		January 2, 2021
Finance Leases:
ROU assets, at cost	Property, plant, and equipment, at cost	$	4,076	$	3,707
ROU assets accumulated amortization	Accumulated depreciation and amortization	(2,489)		(2,108)
ROU assets, net	Property, plant, and equipment, net	$	1,587	$	1,599

Short-term obligations	Short-term obligations and current maturities of long-term obligations	$	862	$	915
Long-term obligations	Long-term obligations	748		716
Total finance lease liabilities		$	1,610	$	1,631

(a) See Note 15, Subsequent Event, for further details.


	January 1, 2022		January 2, 2021
Weighted Average Remaining Lease Term (in years):
Operating leases	8.7		9.4
Finance leases	2.1		2.0

Weighted Average Discount Rate:
Operating leases	3.82	%	3.88	%
Finance leases	2.55	%	3.52	%

As of January 1, 2022, future lease payments for lease liabilities are as follows:


	Operating		Finance
(In thousands)	Leases		Leases
2022	$	5,379	$	889
2023	4,316		561
2024	3,292		178
2025	2,727		17
2026	2,179		3
2027 and Thereafter	11,343		—
Total Future Lease Payments	29,236		1,648
Less: Imputed Interest	(4,681)		(38)
Present Value of Lease Payments	$	24,555	$	1,610

As of January 1, 2022, the Company had no significant operating and finance leases that had not yet commenced.

Nature of Operations and Summary of Significant Accounting Policies - Changes in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Year	$ 2,977	$ 2,698	$ 2,897
Provision charged to expense	5	356	114
Accounts written off	(178)	(266)	(263)
Currency translation	(69)	189	(50)
Balance at End of Year	$ 2,735	$ 2,977	$ 2,698

Fair Value Measurements and Fair Value of Financial Instruments

12 Months Ended

Jan. 01, 2022

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 January 1, 2022
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	13,458	$	—	$	—	$	13,458
Banker's acceptance drafts (a)	$	—	$	8,049	$	—	$	8,049
Forward currency-exchange contracts	$	—	$	14	$	—	$	14
Liabilities:
2018 Swap Agreement	$	—	$	550	$	—	$	550
Forward currency-exchange contract	$	—	$	44	$	—	$	44


	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	$	—	$	1,009	$	—	$	1,009
Forward currency-exchange contracts	$	—	$	7	$	—	$	7

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

The Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during 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 the Company's debt obligations, excluding lease obligations, are as follows:


	January 1, 2022				January 2, 2021
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Debt Obligations:
Revolving credit facility	$	250,267	$	250,267	$	217,963	$	217,963
Senior promissory notes	10,000		10,947		10,000		11,157
Other	4,331		4,331		—		—
	$	264,598	$	265,545	$	227,963	$	229,120

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

- Definition

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

+ References + Details

Derivatives (Tables)

12 Months Ended

Jan. 01, 2022

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 consolidated balance sheet:


		January 1, 2022				January 2, 2021
(In thousands)	Balance Sheet Location	Asset (Liability) (a)		Notional Amount (b)		Asset (Liability) (a)		Notional Amount
Derivatives Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contract	Other Current Assets	$	—	$	—	$	25	$	842
Derivatives in a Liability Position:
Forward currency-exchange contract	Other Current Liabilities	$	(44)	$	842	$	—	$	—
2018 Swap Agreement	Other Long-Term Liabilities	$	(550)	$	15,000	$	(1,099)	$	15,000
Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	14	$	1,200	$	12	$	582
Derivatives in a Liability Position:
Forward currency-exchange contracts	Other Current Liabilities	$	—	$	—	$	(7)	$	825

(a)See Note 11, Fair Value Measurements and Fair Value of Financial Instruments, for the fair value measurements relating to these financial instruments.

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

Activity in accumulated other comprehensive items (AOCI)

The following table summarizes the activity in AOCI associated with the Company's derivative instruments designated as cash flow hedges as of and for the year ended January 1, 2022:


(In thousands)	Interest Rate Swap Agreements		Forward Currency- Exchange Contracts		Total
Unrealized (Loss) Gain, Net of Tax, at January 2, 2021	$	(846)	$	18	$	(828)
Loss (gain) reclassified to earnings (a)	343		(119)		224
Gain recognized in AOCI	74		68		142
Unrealized Loss, Net of Tax, at January 1, 2022	$	(429)	$	(33)	$	(462)

(a)See Note 14, Accumulated Other Comprehensive Items, for the income statement classification.

Nature of Operations and Summary of Significant Accounting Policies - Revenue Recognition by Product Type, Geography and Revenue Recognition Method (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 786,579	$ 635,028	$ 704,644
North America
Disaggregation of Revenue [Line Items]
Revenue	420,382	360,061	386,952
Europe
Disaggregation of Revenue [Line Items]
Revenue	220,578	161,527	180,888
Asia
Disaggregation of Revenue [Line Items]
Revenue	103,810	72,268	84,705
Rest of World
Disaggregation of Revenue [Line Items]
Revenue	41,809	41,172	52,099
Parts and Consumables
Disaggregation of Revenue [Line Items]
Revenue	511,766	417,545	440,699
Capital
Disaggregation of Revenue [Line Items]
Revenue	274,813	217,483	263,945
Point in Time
Disaggregation of Revenue [Line Items]
Revenue	705,709	557,702	611,528
Over Time
Disaggregation of Revenue [Line Items]
Revenue	$ 80,870	$ 77,326	$ 93,116

Short- and Long-Term Obligations - Future Repayments of Debt (Details) $ in Thousands	Jan. 01, 2022 USD ($)
Debt Disclosure [Abstract]
2022	$ 1,197
2023	252,855
2024	2,319
2025	2,322
2026	2,150
2027 and Thereafter	3,764
Long-term obligations excluding finance leases and sales-leaseback arrangement	$ 264,607

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Leases [Abstract]
Operating Lease Cost	$ 5,895	$ 5,602	$ 5,534
Short-Term Lease Cost	674	671	715
Finance Lease Cost:
ROU asset amortization	1,045	1,157	1,213
Interest on lease liabilities	46	74	94
Total Finance Lease Cost	1,091	1,231	1,307
Total Lease Costs	$ 7,660	$ 7,504	$ 7,556

Nature of Operations and Summary of Significant Accounting Policies - Product Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Changes in the carrying amount of accrued warranty costs [Roll Forward]
Balance at Beginning of Year	$ 7,064	$ 6,467
Provision charged to expense	4,366	5,555
Usage	(4,268)	(5,439)
Acquisitions	429	0
Currency translation	(293)	481
Balance at End of Year	$ 7,298	$ 7,064

Commitments and Contingencies - Right of Recourse (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Commitments and Contingencies Disclosure [Abstract]
Maturity period for bank acceptance (in months)	6 months
Banker's acceptances drafts	$ 9,593	$ 7,568

Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 311,888	$ 254,114
Accumulated Amortization	(135,327)	(114,458)
Currency Translation	(6,141)	(3,118)
Net	170,420	136,538
Acquired Intangible Assets
Gross	340,947	278,214
Accumulated Amortization	(135,327)	(114,458)
Currency Translation	(6,277)	(2,791)
Net	199,343	160,965
Tradenames
Indefinite-Lived
Gross	29,059	24,100
Currency Translation	(136)	327
Net	28,923	24,427
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	217,021	173,728
Accumulated Amortization	(79,839)	(65,488)
Currency Translation	(3,455)	(1,316)
Net	133,727	106,924
Acquired Intangible Assets
Accumulated Amortization	(79,839)	(65,488)
Product technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	67,230	56,111
Accumulated Amortization	(35,833)	(31,655)
Currency Translation	(1,752)	(1,005)
Net	29,645	23,451
Acquired Intangible Assets
Accumulated Amortization	(35,833)	(31,655)
Tradenames
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	7,427	6,027
Accumulated Amortization	(3,405)	(2,946)
Currency Translation	(373)	(282)
Net	3,649	2,799
Acquired Intangible Assets
Accumulated Amortization	(3,405)	(2,946)
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	20,210	18,248
Accumulated Amortization	(16,250)	(14,369)
Currency Translation	(561)	(515)
Net	3,399	3,364
Acquired Intangible Assets
Accumulated Amortization	$ (16,250)	$ (14,369)

Business Segment and Geographical Information

12 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

Business Segment and Geographical 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 vibratory, baling, and fiber-based product lines. A description of each segment follows.

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

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

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

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


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Revenue
Flow Control (a)	$	288,788	$	225,444	$	250,339
Industrial Processing	328,762		261,577		301,948
Material Handling (b)	169,029		148,007		152,357
	$	786,579	$	635,028	$	704,644
Income Before Provision for Income Taxes
Flow Control (a,c)	$	65,509	$	51,530	$	55,343
Industrial Processing (d)	66,569		42,971		49,599
Material Handling (b,e)	17,543		14,375		11,600
Corporate (f)	(32,911)		(27,752)		(28,719)
Total operating income	116,710		81,124		87,823
Interest expense, net (g)	(4,554)		(7,242)		(12,542)
Other expense, net (g,h)	(104)		(195)		(6,359)
	$	112,052	$	73,687	$	68,922
Total Assets
Flow Control (a)	$	382,379	$	263,141	$	262,320
Industrial Processing	405,575		379,965		375,194
Material Handling (b)	334,785		273,909		281,057
Corporate (i)	9,473		10,556		20,816
	$	1,132,212	$	927,571	$	939,387


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Depreciation and Amortization
Flow Control (a)	$	8,366	$	6,333	$	6,603
Industrial Processing	13,467		13,163		13,012
Material Handling (b)	12,341		11,628		12,528
Corporate	128		210		247
	$	34,302	$	31,334	$	32,390
Capital Expenditures
Flow Control (a)	$	4,128	$	2,808	$	2,639
Industrial Processing	6,412		3,123		5,113
Material Handling (b)	2,211		1,539		2,144
Corporate	20		125		61
	$	12,771	$	7,595	$	9,957
Geographical Information
Revenue (j):
United States (b)	$	328,456	$	286,015	$	309,957
China	82,121		51,003		66,480
Canada	79,426		62,059		64,010
Germany (a)	37,178		23,292		29,076
France	28,258		19,725		21,054
Other	231,140		192,934		214,067
	$	786,579	$	635,028	$	704,644
Long-lived Assets (k):
United States (b)	$	43,418	$	40,293	$	42,094
Germany (a)	25,188		6,051		5,925
Canada	8,460		7,221		7,948
Finland	7,347		8,013		6,960
China	6,613		9,844		10,319
Other	16,963		13,220		12,786
	$	107,989	$	84,642	$	86,032

(a)Includes the Clouth business in 2021, which was acquired between July 19, 2021 and August 10, 2021 (see Note 2, Acquisitions).

(b)Includes the Balemaster business in 2021, which was acquired on August 23, 2021 (see Note 2, Acquisitions).

(d)Includes $1,861,000 of impairment charges in 2020 and $2,336,000 in 2019.

(f)Represents general and administrative expenses.

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

(h)Includes a pension plan settlement loss of $5,887,000 in 2019.

(i)Primarily includes cash and cash equivalents, tax assets, ROU assets, and property, plant, and equipment, net.

(j)Revenue is attributed to countries based on customer location.

(k)Represents property, plant, and equipment, net.

- 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

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+ Details

Employee Benefit Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 31, 2020	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of shares available for grant (in shares)		336,157
Cost recognized, defined contribution plan		$ 4,706	$ 4,501	$ 4,412
Defined benefit plan, loss due to settlement				5,887
Defined benefit plan, interest costs				1,334
Defined benefit plan, expected return on plan assets				$ 995
Defined benefit plan, discount rate (percent)				4.10%
Defined benefit plan, expected return on plan assets (percent)				4.10%
Restricted stock units for non employee directors (RSUs)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Granted (in shares)	1,042	1,009	2,085	1,858
Performance-based restricted stock units
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares received upon vesting (in shares)		1
Vesting period (years)		3 years
Compensation cost not yet recognized		$ 3,231
Compensation cost not yet recognized, recognition period		1 year 4 months 24 days
Time-based restricted stock units
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares received upon vesting (in shares)		1
Compensation cost not yet recognized		$ 3,932
Compensation cost not yet recognized, recognition period		1 year 9 months 18 days
Restricted stock unit awards
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Granted (in shares)		49,000
Weighted average grant date fair value, granted (in dollars per share)		$ 174.52	$ 88.22	$ 86.50
Fair value of awards vested in period		$ 5,892	$ 7,343	$ 5,452
Stock option awards
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Vesting period (years)		3 years
Options outstanding (in shares)		0	27,000
Employee stock purchase plan awards
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of shares available for grant (in shares)		91,643
Discount to market under the ESOP		15.00%
Maximum period of restriction on resale under ESOP		1 year
Maximum participation based on compensation percentage under ESOP		10.00%
Stock issued during period under ESOP (in shares)		10,230	13,062	13,195
Restoration Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Settlement payment			$ 2,427
Director \| Restricted stock units for non employee directors (RSUs)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Shares received upon vesting (in shares)		1

Earnings per Share

12 Months Ended

Jan. 01, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per Share

Basic and diluted EPS were calculated as follows:


(In thousands, except per share amounts)	January 1, 2022		January 2, 2021		December 28, 2019
Net Income Attributable to Kadant	$	84,043	$	55,196	$	52,068

Basic Weighted Average Shares	11,579		11,482		11,235
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	76		82		222
Diluted Weighted Average Shares	11,655		11,564		11,457

Basic Earnings per Share	$	7.26	$	4.81	$	4.63
Diluted Earnings per Share	$	7.21	$	4.77	$	4.54

The effect of outstanding and unvested RSUs of the Company's common stock totaling 14,200 shares in 2021, 22,900 shares in 2020, and 24,000 shares in 2019 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.

Nature of Operations and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accounting Policies [Abstract]
Cash Paid for Interest	$ 4,441	$ 6,899	$ 12,344
Cash Paid for Income Taxes, Net of Refunds	24,174	17,506	24,533
Non-Cash Investing Activities:
Fair value of assets acquired	190,977	9,295	207,223
Cash paid for acquired businesses	(152,661)	(7,565)	(179,693)
Liabilities Assumed of Acquired Businesses	38,316	1,730	27,530
Non-cash additions to property, plant, and equipment	363	1,060	626
Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of RSUs	4,108	4,781	4,100
Dividends declared but unpaid	$ 2,905	$ 2,770	$ 2,628

Short- and Long-Term Obligations

12 Months Ended

Jan. 01, 2022

Debt Disclosure [Abstract]

Short- and Long-Term Obligations

Short- and long-term obligations are as follows:


(In thousands)	January 1, 2022		January 2, 2021
Revolving Credit Facility, due 2023	$	250,267	$	217,963
Senior Promissory Notes, due 2023 to 2028	10,000		10,000
Finance Leases, due 2022 to 2026	1,610		1,631
Other Borrowings, due 2022 to 2028	7,637		3,880
Total	269,514		233,474
Less: Short-Term Obligations and Current Maturities of Long-Term Obligations	(5,356)		(1,474)
Long-Term Obligations	$	264,158	$	232,000

See Note 10, Derivatives, 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, as defined, plus a margin of 0% to 1.25%, or (ii) Eurocurrency Rate, CDOR Rate, and RFR, (with a zero percent floor), as applicable and defined, plus a margin of 1% to 2.25%. The 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.

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.

The Company borrowed an aggregate $151,944,000 under the Credit Agreement in fiscal 2021, including $89,944,000 of euro-denominated borrowings, which were primarily used to fund the Company's acquisitions during the year. At year-end 2021, the outstanding balance under the Credit Agreement included $78,267,000 of euro-denominated borrowings. The Company had $149,920,000 of borrowing capacity available at year-end 2021, which was calculated by translating its foreign-denominated borrowings using the borrowing date foreign exchange rate.

The weighted average interest rate for the outstanding balance under the Credit Agreement was 1.50% as of year-end 2021.

See Note 10, Derivatives, under the heading Interest Rate Swap Agreements, for information relating to the Company's swap agreement.

Senior Promissory Notes

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

The Initial Notes are pari passu with the Company’s indebtedness under the Credit Agreement, and any other senior debt, 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 Initial Notes are guaranteed by certain of the Company’s domestic subsidiaries.

Debt Compliance

At year-end 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. See Note 9, Leases, for further information relating to the Company's finance leases.

Other Borrowings

Other borrowings include a sale-leaseback financing arrangement for a manufacturing facility in Germany. Under this arrangement, the quarterly lease payment includes principal, interest, and a payment to the landlord toward a loan receivable. The interest rate on the outstanding obligation is 1.79%. The secured loan receivable, which was included in other current assets in the accompanying consolidated balance sheet, was $1,408,000 at year-end 2021. The lease arrangement provides for a fixed price purchase option, net of the projected loan receivable, of $1,508,000 at the end of the lease term in August 2022. If the

Company does not exercise the purchase option for the facility, it will receive cash from the landlord to settle the loan receivable. As of year-end 2021, $3,297,000 was outstanding under this obligation.

Other borrowings also include $4,331,000 of debt obligations outstanding at year-end 2021 assumed in the acquisition of Clouth, which has maturity dates ranging from 2022 to 2028 and interest rates up to 1.95%.

Annual Repayment Requirements

The following schedule presents the annual repayment requirements for the Company’s short-and long-term obligations, excluding finance leases and the sale-leaseback financing arrangement, as of year-end 2021.


(In thousands)
2022	$	1,197
2023	252,855
2024	2,319
2025	2,322
2026	2,150
2027 and Thereafter	3,764
	$	264,607

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
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-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-SubTopic 20
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-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Nature of Operations and Summary of Significant Accounting Policies - Performance Obligations Narrative (Details)	Jan. 01, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percent	50.00%
Revenue, remaining performance obligation, expected timing of satisfaction after the twelve month period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percent	50.00%
Revenue, remaining performance obligation, expected timing of satisfaction after the twelve month period

Short- and Long-Term Obligations (Tables)

12 Months Ended

Jan. 01, 2022

Debt Disclosure [Abstract]

Short- and long-term obligations

Short- and long-term obligations are as follows:


(In thousands)	January 1, 2022		January 2, 2021
Revolving Credit Facility, due 2023	$	250,267	$	217,963
Senior Promissory Notes, due 2023 to 2028	10,000		10,000
Finance Leases, due 2022 to 2026	1,610		1,631
Other Borrowings, due 2022 to 2028	7,637		3,880
Total	269,514		233,474
Less: Short-Term Obligations and Current Maturities of Long-Term Obligations	(5,356)		(1,474)
Long-Term Obligations	$	264,158	$	232,000

Schedule of repayments of long-term debt


(In thousands)
2022	$	1,197
2023	252,855
2024	2,319
2025	2,322
2026	2,150
2027 and Thereafter	3,764
	$	264,607

Stockholders' Equity - Additional Information (Details) - $ / shares	Jan. 01, 2022	Jan. 02, 2021
Preferred Stock [Abstract]
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Common Stock [Abstract]
Common stock reserved and unissued (in shares)	534,535

Earnings per Share (Tables)

12 Months Ended

Jan. 01, 2022

Earnings Per Share [Abstract]

Basic and diluted earnings per share

Basic and diluted EPS were calculated as follows:


(In thousands, except per share amounts)	January 1, 2022		January 2, 2021		December 28, 2019
Net Income Attributable to Kadant	$	84,043	$	55,196	$	52,068

Basic Weighted Average Shares	11,579		11,482		11,235
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	76		82		222
Diluted Weighted Average Shares	11,655		11,564		11,457

Basic Earnings per Share	$	7.26	$	4.81	$	4.63
Diluted Earnings per Share	$	7.21	$	4.77	$	4.54

Income Taxes - Components of Provision for Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Current Provision (Benefit):
Federal	$ 2,173	$ 339	$ (264)
Foreign	25,512	16,800	18,778
State	870	667	335
Current provision	28,555	17,806	18,849
Deferred Provision (Benefit):
Federal	1,823	2,146	(453)
Foreign	(3,430)	(2,361)	(1,253)
State	223	357	(785)
Deferred (benefit) provision	(1,384)	142	(2,491)
Total income tax provision	$ 27,171	$ 17,948	$ 16,358

Acquisitions

12 Months Ended

Jan. 01, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

2021

In the third quarter of 2021, the Company acquired all partnership interests and shares in The Clouth Group of Companies (Clouth), for $92,864,000, net of cash acquired plus debt assumed. The majority of the Clouth companies were acquired on July 19, 2021 and the acquisition of the last legal entity occurred on August 10, 2021, which the Company accounted for as a noncontrolling interest during the period from July 19, 2021 to August 10, 2021. The Company funded the purchase price with euro-denominated borrowings under its revolving credit facility and existing cash. Clouth, which is included in the Company's Flow Control segment, is a leading manufacturer of doctor blades and related equipment used in the production of paper, packaging, and tissue. The Company expects several synergies in connection with this acquisition, including deepening its presence in the growing ceramic blade market and expansion of sales at its existing businesses by leveraging Clouth's complementary global geographic footprint. Clouth has three manufacturing facilities in Germany and one in Poland. Goodwill from the Clouth acquisition was $25,806,000, of which $6,836,000 is expected to be deductible for tax purposes over 15 years. In addition, intangible assets acquired were $34,467,000, of which $5,326,000 is expected to be deductible for tax purposes over 15 years. The Company recorded revenue of $23,221,000 and an operating loss of $4,068,000 for Clouth from the date of acquisition, including amortization expense of $3,481,000 associated with acquired profit in inventory and backlog and $2,710,000 of acquisition transaction costs.

On August 23, 2021, the Company acquired all the outstanding equity securities in East Chicago Machine Tool Corporation (Balemaster) and certain assets of affiliated companies for $53,747,000, net of cash acquired. Balemaster, which is included in the Company's Material Handling segment, is a leading U.S. manufacturer of horizontal balers and related equipment used primarily for recycling packaging waste at corrugated box plants and large retail and distribution centers. The Company funded the purchase price with borrowings under its revolving credit facility. The Company expects several synergies in connection with the acquisition, including expansion of its presence in the secondary material processing market and creation of new opportunities for leveraging its high-performance balers produced in Europe. Goodwill from the Balemaster acquisition was $26,836,000, none of which is deductible for tax purposes. In addition, intangible assets acquired were $28,060,000, none of which is deductible for tax purposes. The Company recorded revenue of $9,038,000 and operating loss of $641,000 for Balemaster from the date of acquisition, including amortization expense of $2,042,000 associated with acquired profit in inventory and backlog and $782,000 of acquisition transaction costs.

In the fourth quarter of 2021, the Company acquired the assets of a business in India, which is included in its Industrial Processing segment, for approximately $2,882,000.


(In thousands)	Clouth		Other		Total
Net Assets Acquired:
Cash and Cash Equivalents	$	4,923	$	3,757	$	8,680
Accounts Receivable	6,808		1,641		8,449
Inventories	14,119		4,628		18,747
Property, Plant, and Equipment	24,498		5,143		29,641
Other Assets	5,309		3,167		8,476
Definite-Lived Intangible Assets
Customer relationships	20,192		23,100		43,292
Product technology	8,915		2,700		11,615
Tradenames	—		1,400		1,400
Other	401		1,560		1,961
Indefinite-Lived Intangible Assets			—
Tradenames	4,959		—		4,959
Goodwill	25,806		27,951		53,757
Total assets acquired	115,930		75,047		190,977

Short-term Obligations and Current Maturities of Long-term Obligations	1,393		—		1,393
Accounts Payable	1,287		797		2,084
Long-Term Deferred Income Taxes	9,465		6,698		16,163
Long-Term Obligations	4,244		—		4,244
Other Liabilities	7,391		7,166		14,557
Total liabilities assumed	23,780		14,661		38,441
Net assets acquired	$	92,150	$	60,386	$	152,536

Purchase Price:
Cash Paid	$	92,150	$	60,386	$	152,536

The weighted-average amortization period for Clouth's definite-lived intangible assets is 19 years, including weighted-average amortization periods of 24 years for customer relationships and 10 years for product technology. The weighted-average amortization period for the Company's other acquisitions' definite-lived intangible assets is 16 years, including weighted-average amortization periods of 17 years for customer relationships, 13 years for product technology, and 16 years for tradenames.

Unaudited Supplemental Pro Forma Information

The following unaudited pro forma information provides the effect of the Company's 2021 acquisition of Clouth as if it had occurred at the beginning of 2020:


(In thousands, except per share amounts)	January 1, 2022		January 2, 2021
Revenue	$	812,016	$	682,248
Net Income Attributable to Kadant	$	90,184	$	55,760
Earnings per Share Attributable to Kadant
Basic	$	7.79	$	4.86
Diluted	$	7.74	$	4.82

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

Pro forma results include the following non-recurring pro forma adjustments:

•Pre-tax charge to cost of revenue of $3,082,000 in 2020 and reversal of $3,082,000 in 2021, for the sale of inventory revalued at the date of acquisition.

•Pre-tax charge to SG&A expenses of $3,109,000 in 2020 and reversal of $2,710,000 in 2021 and $399,000 in 2021, for acquisition costs and intangible asset amortization related to acquired backlog, respectively.

•Estimated tax effects related to the pro forma adjustments.

Pro forma results in 2020 include a pre-tax gain of $4,409,000 from the forgiveness of a shareholder loan at Clouth.

These pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that would have resulted had the acquisition of Clouth occurred as of the beginning of 2020, or that may result in the future.

The Company's pro forma results exclude the Company's other acquisitions in 2021 as the inclusion of those results would not have been materially different from the pro forma results presented above had the acquisitions occurred at the beginning of 2020.

2020

On June 1, 2020, the Company acquired Cogent Industrial Technologies Ltd. (Cogent), which is included in its Industrial Processing segment, for approximately $6,866,000, net of cash acquired. The Company funded the acquisition through borrowings under its revolving credit facility. Intangible assets acquired primarily relate to customer relationships with a fair value of $3,350,000. Cogent, based in British Columbia, Canada, is an industrial automation and controls solution provider that offers expertise in process technology integration, industrial automation and controls, industrial safety, project management, and operational performance management systems.

On May 28, 2020, the Company also acquired certain intellectual property from a company in Austria, which is included in its Industrial Processing segment, for $416,000, of which $229,000 was paid in the second quarter of 2020 and $125,000 in the first quarter of 2021. The Company expects to pay the remaining amount no later than the first quarter of 2022. Intangible assets acquired represent product technology with a fair value of $557,000 at acquisition date.

2019

On September 3, 2019, the Company acquired certain assets of a business in Brazil, which is included in its Flow Control segment, for approximately $407,000 in cash.

On January 2, 2019, the Company acquired, directly and indirectly, all the outstanding equity interests of Syntron Material Handling Group, LLC and certain of its affiliates (SMH) pursuant to an equity purchase agreement, dated December 9, 2018, for $176,855,000, net of cash acquired. The Company funded the acquisition through borrowings under its revolving credit facility.

SMH, which is included in the Company's Material Handling segment, has manufacturing operations in Mississippi, United States, and China, and is a leading provider of material handling equipment and systems to various process industries, including mining, aggregates, food processing, packaging, and pulp and paper. Goodwill from the SMH acquisition was $78,592,000, of which $59,195,000 is expected to be deductible for tax purposes over 15 years. In addition, intangible assets acquired were $83,020,000, of which $69,969,000 is expected to be deductible for tax purposes over 15 years. For 2019, the Company recorded revenue of $83,364,000 and operating income of $3,132,000 for SMH from the date of acquisition, including amortization expense of $4,872,000 associated with acquired profit in inventory and backlog and $843,000 of acquisition transaction costs.

The following table summarizes the estimated fair values of assets acquired and liabilities assumed and the purchase price for SMH.


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

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

Purchase Price:
Cash Paid	$	179,286

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

Unaudited Supplemental Pro Forma Information

The following unaudited pro forma information provides the effect of the Company's 2019 acquisition of SMH as if it had occurred at the beginning of 2018:


(In thousands, except per share amounts)	December 28, 2019
Revenue	$	704,644
Net Income Attributable to Kadant	$	56,409
Earnings per Share Attributable to Kadant
Basic	$	5.02
Diluted	$	4.92

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

Pro forma results include the following non-recurring pro forma adjustments, which have been included in the determination of pro forma net income for the year ended December 29, 2018 (not presented), as follows:

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

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

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

•Tax effects related to pro forma adjustments.

These pro forma results of operations have been prepared for comparative purposes only, and they do not purport to be indicative of the results of operations that would have resulted had the acquisition of SMH occurred as of the beginning of 2018, or that may result in the future.

Short- and Long-Term Obligations - Additional Information (Details) - USD ($)	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Debt Instrument [Line Items]
Proceeds from issuance of long-term obligations	$ 151,944,000	$ 26,000,000	$ 247,196,000
Short-and long-term debt, excluding finance leases	264,607,000
Loans receivable	1,408,000
Clouth
Debt Instrument [Line Items]
Short-and long-term debt, excluding finance leases	4,331,000
Sale Leaseback Arrangement
Debt Instrument [Line Items]
Sale leaseback transaction outstanding amount	$ 3,297,000
Maximum \| Clouth
Debt Instrument [Line Items]
Effective interest rate	1.95%
Revolving credit facility
Debt Instrument [Line Items]
Short-and long-term debt, excluding finance leases	$ 250,267,000	217,963,000
Remaining borrowing capacity	$ 149,920,000
Weighted average interest rate for long-term obligations	1.50%
Revolving credit facility \| 2017 Credit Agreement
Debt Instrument [Line Items]
Borrowing capacity available under committed portion	$ 400,000,000
Uncommitted unsecured additional borrowing capacity	150,000,000
Maximum amount of unrestricted U.S. cash	$ 30,000,000
Maximum consolidated leverage ratio	3.75
Minimum consolidated interest coverage ratio	4.00
Proceeds from issuance of long-term obligations	$ 151,944,000
Revolving credit facility \| Euro-Denominated Borrowing
Debt Instrument [Line Items]
Proceeds from issuance of long-term obligations	89,944,000
Short-and long-term debt, excluding finance leases	$ 78,267,000
Revolving credit facility \| Base Rate \| Minimum \| 2017 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	0.00%
Revolving credit facility \| Base Rate \| Maximum \| 2017 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	1.25%
Revolving credit facility \| Eurocurrency Rate, CDOR Rate and RFR \| 2017 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate floor (as a percentage)	0.00%
Revolving credit facility \| Eurocurrency Rate, CDOR Rate and RFR \| Minimum \| 2017 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	1.00%
Revolving credit facility \| Eurocurrency Rate, CDOR Rate and RFR \| Maximum \| 2017 Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	2.25%
Senior promissory notes
Debt Instrument [Line Items]
Short-and long-term debt, excluding finance leases	$ 10,000,000	$ 10,000,000
Senior promissory notes \| Note Purchase Agreement
Debt Instrument [Line Items]
Principal amount	$ 10,000,000
Fixed interest rate	4.90%
Other \| Sale Leaseback Arrangement
Debt Instrument [Line Items]
Effective interest rate	1.79%
Net purchase option	$ 1,508,000

Leases (Tables)

12 Months Ended

Jan. 01, 2022

Leases [Abstract]

Components of lease expense

The components of lease expense are as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Operating Lease Cost	$	5,895	$	5,602	$	5,534

Short-Term Lease Cost	674		671		715

Finance Lease Cost:
ROU asset amortization	1,045		1,157		1,213
Interest on lease liabilities	46		74		94
Total Finance Lease Cost	1,091		1,231		1,307

Total Lease Costs	$	7,660	$	7,504	$	7,556

Supplemental cash flow information related to leases is as follows:


(In thousands)	January 1, 2022		January 2, 2021		December 28, 2019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$	12,474	$	5,782	$	5,636
Operating cash flows from finance leases	$	46	$	74	$	93
Financing cash flows from finance leases	$	1,044	$	1,139	$	1,144

ROU Assets Obtained in Exchange for Lease Obligations (a):
Operating leases	$	7,247	$	2,560	$	28,484
Finance leases	$	1,147	$	622	$	3,847

Supplemental balance sheet information

Supplemental balance sheet information related to leases is as follows:


(In thousands)	Balance Sheet Line Item	January 1, 2022		January 2, 2021
Operating Leases:
ROU assets (a)	Other current assets	$	2,341	$	—
ROU assets	Other assets	24,998		25,460
Total operating lease assets		$	27,339	$	25,460

Short-term liabilities	Other current liabilities	$	4,596	$	4,396
Long-term liabilities	Other long-term liabilities	19,959		22,198
Total operating lease liabilities		$	24,555	$	26,594


(In thousands)	Balance Sheet Line Item	January 1, 2022		January 2, 2021
Finance Leases:
ROU assets, at cost	Property, plant, and equipment, at cost	$	4,076	$	3,707
ROU assets accumulated amortization	Accumulated depreciation and amortization	(2,489)		(2,108)
ROU assets, net	Property, plant, and equipment, net	$	1,587	$	1,599

Short-term obligations	Short-term obligations and current maturities of long-term obligations	$	862	$	915
Long-term obligations	Long-term obligations	748		716
Total finance lease liabilities		$	1,610	$	1,631

(a) See Note 15, Subsequent Event, for further details.


	January 1, 2022		January 2, 2021
Weighted Average Remaining Lease Term (in years):
Operating leases	8.7		9.4
Finance leases	2.1		2.0

Weighted Average Discount Rate:
Operating leases	3.82	%	3.88	%
Finance leases	2.55	%	3.52	%

Future lease payments for operating lease liabilities

As of January 1, 2022, future lease payments for lease liabilities are as follows:


	Operating		Finance
(In thousands)	Leases		Leases
2022	$	5,379	$	889
2023	4,316		561
2024	3,292		178
2025	2,727		17
2026	2,179		3
2027 and Thereafter	11,343		—
Total Future Lease Payments	29,236		1,648
Less: Imputed Interest	(4,681)		(38)
Present Value of Lease Payments	$	24,555	$	1,610

Future lease payments for finance lease liabilities

As of January 1, 2022, future lease payments for lease liabilities are as follows:


	Operating		Finance
(In thousands)	Leases		Leases
2022	$	5,379	$	889
2023	4,316		561
2024	3,292		178
2025	2,727		17
2026	2,179		3
2027 and Thereafter	11,343		—
Total Future Lease Payments	29,236		1,648
Less: Imputed Interest	(4,681)		(38)
Present Value of Lease Payments	$	24,555	$	1,610

Nature of Operations and Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Accounting Policies [Abstract]
Raw Materials	$ 59,177	$ 46,413
Work in Process	29,448	17,692
Finished Goods	45,731	42,709
Inventories	134,356	106,814
Finished goods, at customer locations	$ 1,163	$ 427

Business Segment and Geographical Information - Revenues and Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Revenue
Revenue	$ 786,579	$ 635,028	$ 704,644
Income Before Provision for Income Taxes
Total operating income	116,710	81,124	87,823
Interest expense, net	(4,554)	(7,242)	(12,542)
Other expense, net	(104)	(195)	(6,359)
Income Before Provision for Income Taxes	112,052	73,687	68,922
Total Assets
Total assets	1,132,212	927,571	939,387
Depreciation and Amortization
Depreciation and amortization	34,302	31,334	32,390
Capital Expenditures
Capital expenditures	12,771	7,595	9,957
Geographical Information
Long-lived assets	107,989	84,642	86,032
United States
Revenue
Revenue	328,456	286,015	309,957
Geographical Information
Long-lived assets	43,418	40,293	42,094
China
Revenue
Revenue	82,121	51,003	66,480
Geographical Information
Long-lived assets	6,613	9,844	10,319
Canada
Revenue
Revenue	79,426	62,059	64,010
Geographical Information
Long-lived assets	8,460	7,221	7,948
Germany
Revenue
Revenue	37,178	23,292	29,076
Geographical Information
Long-lived assets	25,188	6,051	5,925
France
Revenue
Revenue	28,258	19,725	21,054
Other
Revenue
Revenue	231,140	192,934	214,067
Geographical Information
Long-lived assets	16,963	13,220	12,786
Finland
Geographical Information
Long-lived assets	7,347	8,013	6,960
Operating Segments \| Flow Control
Revenue
Revenue	288,788	225,444	250,339
Income Before Provision for Income Taxes
Total operating income	65,509	51,530	55,343
Total Assets
Total assets	382,379	263,141	262,320
Depreciation and Amortization
Depreciation and amortization	8,366	6,333	6,603
Capital Expenditures
Capital expenditures	4,128	2,808	2,639
Operating Segments \| Industrial Processing
Revenue
Revenue	328,762	261,577	301,948
Income Before Provision for Income Taxes
Total operating income	66,569	42,971	49,599
Total Assets
Total assets	405,575	379,965	375,194
Depreciation and Amortization
Depreciation and amortization	13,467	13,163	13,012
Capital Expenditures
Capital expenditures	6,412	3,123	5,113
Operating Segments \| Material Handling
Revenue
Revenue	169,029	148,007	152,357
Income Before Provision for Income Taxes
Total operating income	17,543	14,375	11,600
Total Assets
Total assets	334,785	273,909	281,057
Depreciation and Amortization
Depreciation and amortization	12,341	11,628	12,528
Capital Expenditures
Capital expenditures	2,211	1,539	2,144
Corporate
Income Before Provision for Income Taxes
Total operating income	(32,911)	(27,752)	(28,719)
Total Assets
Total assets	9,473	10,556	20,816
Depreciation and Amortization
Depreciation and amortization	128	210	247
Capital Expenditures
Capital expenditures	$ 20	$ 125	$ 61

Acquisitions - 2021 Acquisition Purchase Price Allocation (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 02, 2021	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019	Aug. 23, 2021
Net Assets Acquired:
Goodwill		$ 396,887	$ 351,753	$ 336,032
Purchase Price:
Cash Paid		$ 152,661	$ 7,565	$ 179,693
Weighted average useful life of acquired intangible assets		13 years
2021 Acquisitions
Net Assets Acquired:
Cash and Cash Equivalents		$ 8,680
Accounts Receivable		8,449
Inventories		18,747
Property, Plant, and Equipment		29,641
Other Assets		8,476
Goodwill		53,757
Total assets acquired		190,977
Short-term Obligations and Current Maturities of Long-term Obligations		1,393
Accounts Payable		2,084
Long-Term Deferred Income Taxes		16,163
Long-Term Obligations		4,244
Other Liabilities		14,557
Total liabilities assumed		38,441
Net assets acquired		152,536
Purchase Price:
Cash Paid		152,536
2021 Acquisitions \| Tradenames
Net Assets Acquired:
Indefinite-Lived Intangible Assets		4,959
2021 Acquisitions \| Customer relationships
Net Assets Acquired:
Definite-Lived Intangible Assets		43,292
2021 Acquisitions \| Product technology
Net Assets Acquired:
Definite-Lived Intangible Assets		11,615
2021 Acquisitions \| Tradenames
Net Assets Acquired:
Definite-Lived Intangible Assets		1,400
2021 Acquisitions \| Other
Net Assets Acquired:
Definite-Lived Intangible Assets		$ 1,961
Clouth
Net Assets Acquired:
Cash and Cash Equivalents	$ 4,923
Accounts Receivable	6,808
Inventories	14,119
Property, Plant, and Equipment	24,498
Other Assets	5,309
Goodwill	25,806
Total assets acquired	115,930
Short-term Obligations and Current Maturities of Long-term Obligations	1,393
Accounts Payable	1,287
Long-Term Deferred Income Taxes	9,465
Long-Term Obligations	4,244
Other Liabilities	7,391
Total liabilities assumed	23,780
Net assets acquired	92,150
Purchase Price:
Cash Paid	92,150
Weighted average useful life of acquired intangible assets		19 years
Clouth \| Tradenames
Net Assets Acquired:
Indefinite-Lived Intangible Assets	4,959
Clouth \| Customer relationships
Net Assets Acquired:
Definite-Lived Intangible Assets	20,192
Purchase Price:
Weighted average useful life of acquired intangible assets		24 years
Clouth \| Product technology
Net Assets Acquired:
Definite-Lived Intangible Assets	8,915
Purchase Price:
Weighted average useful life of acquired intangible assets		10 years
Clouth \| Tradenames
Net Assets Acquired:
Definite-Lived Intangible Assets	0
Clouth \| Other
Net Assets Acquired:
Definite-Lived Intangible Assets	$ 401
Other
Net Assets Acquired:
Cash and Cash Equivalents		$ 3,757
Accounts Receivable		1,641
Inventories		4,628
Property, Plant, and Equipment		5,143
Other Assets		3,167
Goodwill		27,951
Total assets acquired		75,047
Short-term Obligations and Current Maturities of Long-term Obligations		0
Accounts Payable		797
Long-Term Deferred Income Taxes		6,698
Long-Term Obligations		0
Other Liabilities		7,166
Total liabilities assumed		14,661
Net assets acquired		60,386
Purchase Price:
Cash Paid		$ 60,386
Weighted average useful life of acquired intangible assets		16 years
Other \| Tradenames
Net Assets Acquired:
Indefinite-Lived Intangible Assets		$ 0
Other \| Customer relationships
Net Assets Acquired:
Definite-Lived Intangible Assets		$ 23,100
Purchase Price:
Weighted average useful life of acquired intangible assets		17 years
Other \| Product technology
Net Assets Acquired:
Definite-Lived Intangible Assets		$ 2,700
Purchase Price:
Weighted average useful life of acquired intangible assets		13 years
Other \| Tradenames
Net Assets Acquired:
Definite-Lived Intangible Assets		$ 1,400
Purchase Price:
Weighted average useful life of acquired intangible assets		16 years
Other \| Other
Net Assets Acquired:
Definite-Lived Intangible Assets		$ 1,560
Balemaster
Net Assets Acquired:
Goodwill					$ 26,836

Accumulated Other Comprehensive Items - Reclassification Out of AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	$ (104)	$ (195)	$ (6,359)
Total expense before income taxes	112,052	73,687	68,922
Income tax benefit (provision)	(27,171)	(17,948)	(16,358)
Interest expense	(4,821)	(7,423)	(12,755)
Cost of revenue	(449,214)	(357,722)	(410,884)
SG&A expense	(208,787)	(181,905)	(192,525)
Net Income	84,881	55,739	52,564
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Net Income	(269)	(200)	(6,727)
Reclassification out of Accumulated Other Comprehensive Income \| Retirement Benefit Plans
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Total expense before income taxes	(62)	(121)	(5,963)
Income tax benefit (provision)	17	153	(641)
Net Income	(45)	32	(6,604)
Reclassification out of Accumulated Other Comprehensive Income \| Recognized net actuarial loss
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(50)	(66)	(70)
Reclassification out of Accumulated Other Comprehensive Income \| Amortization of prior service cost
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(12)	(55)	(6)
Reclassification out of Accumulated Other Comprehensive Income \| Pension plan settlement loss
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	0	0	(5,887)
Reclassification out of Accumulated Other Comprehensive Income \| Cash Flow Hedges
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Total expense before income taxes	(294)	(305)	(177)
Income tax benefit (provision)	70	73	54
Net Income	(224)	(232)	(123)
Reclassification out of Accumulated Other Comprehensive Income \| Cash Flow Hedges \| Interest Rate Swap Agreements
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Interest expense	(451)	(333)	(8)
Reclassification out of Accumulated Other Comprehensive Income \| Cash Flow Hedges \| Forward Currency- Exchange Contracts
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Cost of revenue	0	28	(169)
SG&A expense	$ 157	$ 0	$ 0

Employee Benefit Plans - Components Stock-Based Compensation Expense (Details) - Selling, general and administrative expenses - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 8,527	$ 6,776	$ 6,815
RSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	8,224	6,453	6,616
Employee Stock Purchase Plan Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 303	$ 323	$ 199

Subsequent Event (Details) - CHINA - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Subsequent Event (Details) - CHINA - USD ($) $ in Thousands	Apr. 02, 2022	Jan. 01, 2022
Subsequent Event [Line Items]
Carrying value of facility and land use right		$ 5,264
Land and Building
Subsequent Event [Line Items]
Expected proceeds from sale of facility and land use rights		$ 25,140
Down payment (percentage)		25.00%
Period of recognition of gain on sale and a receivable for remaining amount of sales proceeds (in years)		2 years
Land
Subsequent Event [Line Items]
Expected payments for land use right		$ 3,719
Subsequent event \| Forecast \| Land and Building
Subsequent Event [Line Items]
Down payment (percentage)	6.00%

Derivatives - Fair Value (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Derivatives Designated as Hedging Instruments \| Forward Currency- Exchange Contracts \| Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	$ 0	$ 25
Derivative asset, notional amount	0	842
Derivatives Designated as Hedging Instruments \| Forward Currency- Exchange Contracts \| Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability	(44)	0
Derivative liability, notional amount	842	0
Derivatives Designated as Hedging Instruments \| 2018 Swap Agreement \| Other Long-Term Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability	(550)	(1,099)
Derivative liability, notional amount	15,000	15,000
Derivatives Not Designated as Hedging Instruments \| Forward Currency- Exchange Contracts \| Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	14	12
Derivative asset, notional amount	1,200	582
Derivatives Not Designated as Hedging Instruments \| Forward Currency- Exchange Contracts \| Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability	0	(7)
Derivative liability, notional amount	$ 0	$ 825

Income Taxes - Components of Income Before Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Tax Disclosure [Abstract]
Domestic	$ 26,599	$ 14,132	$ 93
Foreign	85,453	59,555	68,829
Income Before Provision for Income Taxes	$ 112,052	$ 73,687	$ 68,922

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

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+ Details

Employee Benefit Plans - Activity of the Unvested RSUs (Details) - RSU Awards - $ / shares shares in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Units
Unvested RSUs at beginning of year (in shares)	120
Granted (in shares)	49
Vested (in shares)	(61)
Forfeited (in shares)	(1)
Unvested RSU's at end of year (in shares)	107	120
Weighted Average Grant- Date Fair Value
Weighted average grant date fair value, balance at beginning of year (in dollars per share)	$ 92.42
Weighted average grant date fair value, granted (in dollars per share)	174.52	$ 88.22	$ 86.50
Weighted average grant date fair value, vested (in dollars per share)	96.96
Weighted average grant date fair value, forfeited (in dollars per share)	91.71
Weighted average grant date fair value, balance at end of year (in dollars per share)	$ 127.70	$ 92.42

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Capital in Excess of Par Value	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Treasury Stock	Accumulated Other Comprehensive Items	Noncontrolling Interest
Beginning balance (in shares) at Dec. 29, 2018			14,624,159				3,514,163
Beginning balance at Dec. 29, 2018	$ 374,571		$ 146	$ 104,731	$ 393,578		$ (86,111)	$ (39,376)	$ 1,603
Beginning balance (Accounting Standards Update 2016-02) at Dec. 29, 2018		$ (17)				$ (17)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	52,564				52,068				496
Dividends declared - common stock	(10,380)				(10,380)
Dividend paid to noncontrolling interest	(664)								(664)
Activity under stock plans (in shares)							(299,275)
Activity under stock plans	9,300			1,967			$ 7,333
Other comprehensive items	1,705							1,756	(51)
Ending balance (in shares) at Dec. 28, 2019			14,624,159				3,214,888
Ending balance at Dec. 28, 2019	427,079		$ 146	106,698	435,249		$ (78,778)	(37,620)	1,384
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	55,739				55,196				543
Dividends declared - common stock	(11,045)				(11,045)
Dividend paid to noncontrolling interest	(525)								(525)
Activity under stock plans (in shares)							(132,969)
Activity under stock plans	7,385			4,126			$ 3,259
Other comprehensive items	18,272							18,128	144
Ending balance (in shares) at Jan. 02, 2021			14,624,159				3,081,919
Ending 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	84,881				84,043				838
Dividends declared - common stock	(11,595)				(11,595)
Dividend paid to noncontrolling interest	(560)								(560)
Activity under stock plans (in shares)							(78,500)
Activity under stock plans	6,987			5,064			$ 1,923
Other comprehensive items	(10,980)							(10,858)	(122)
Noncontrolling interest acquired (Note 2)	367								367
Purchase of shares of noncontrolling interest (Note 2)	(389)								(389)
Ending balance (in shares) at Jan. 01, 2022			14,624,159				3,003,419
Ending balance at Jan. 01, 2022	$ 565,616		$ 146	$ 115,888	$ 551,848		$ (73,596)	$ (30,350)	$ 1,680

Label	Element	Value
Accounting Standards Update 2016-02 [Member]
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-02 [Member]

- Definition

Indicates amendment to accounting standards.

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+ Details

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Unrecognized Tax Benefits, Beginning of Year	$ 8,337	$ 8,331
Gross Increases—Tax Positions in Prior Periods	2,409	4
Gross Decreases—Tax Positions in Prior Periods	(2,182)	(21)
Gross Increases—Current-period Tax Positions	1,920	1,468
Lapses of Statutes of Limitations	(649)	(1,488)
Currency Translation	(104)
Currency Translation		43
Unrecognized Tax Benefits, End of Year	$ 9,731	$ 8,337

Earnings per Share - Additional Information (Details) - shares	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Restricted stock unit awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Amount of antidilutive securities excluded from computation of EPS	14,200	22,900	24,000

Derivatives - Additional Information (Details)	12 Months Ended
Derivatives - Additional Information (Details)	Jan. 01, 2022 USD ($)	Dec. 29, 2018 USD ($)
Derivatives, Fair Value [Line Items]
Cash flow hedge loss to be reclassified within twelve months	$ 337,000
Cash Flow Hedging \| Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Rate of effectiveness of derivative agreement	100.00%
Cash Flow Hedging \| 2018 Swap Agreement \| Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Notional amount		$ 15,000,000
Derivative, floor rate		0
Derivative, fixed interest rate		3.15%
Cash Flow Hedging \| Forward Currency- Exchange Contracts \| Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Period over which entity manages its level of exposure of risk	12 months

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Jan. 01, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Letters of Credit and Bank Guarantees Outstanding letters of credit and bank guarantees issued on behalf of the Company, principally relating to performance obligations and customer deposit guarantees, totaled $23,464,000 at year-end 2021. Certain of the Company's contracts require the Company to provide a standby letter of credit or bank guarantee to a customer as beneficiary, limited in amount to a negotiated percentage of the total contract value, in order to guarantee warranty and performance obligations of the Company under the contract. Typically, these standby letters of credit and bank guarantees expire without being drawn by the beneficiary. Right of Recourse In the ordinary course of business, the Company's 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 generally mature within six months of the origination date. The Company's Chinese subsidiaries may use these banker's acceptance drafts prior to the scheduled maturity date to settle outstanding accounts payable with vendors. Banker's acceptance drafts transferred to vendors are subject to customary right of recourse provisions prior to their scheduled maturity dates. The Company had $9,593,000 at year-end 2021 and $7,568,000 at year-end 2020 of banker's acceptance drafts subject to recourse, which were transferred to vendors and had not reached their scheduled maturity dates. Historically, the banker's acceptance drafts have settled upon maturity without any claim of recourse against the Company. Contingencies In the ordinary course of business, the Company is, at times, required to issue limited performance guarantees, some of which do not require the issuance of letters of credit to customers in support of these guarantees, relating to its equipment and systems. The Company generally limits its liability under these guarantees to amounts typically capped at 10% or less of the value of the contract. The Company believes that it has adequate reserves for any potential liability in connection with such guarantees. Litigation From time to time, the Company is subject to various claims and legal proceedings covering a range of matters that arise in the ordinary course of business. Such litigation may include, but is not limited to, claims and counterclaims by and against the Company for breach of contract or warranty, canceled contracts, product liability, or bankruptcy-related claims. For legal proceedings in which a loss is probable and estimable, the Company accrues a loss based on the low end of the range of estimated loss when there is no better estimate within the range. If the Company were found to be liable for any of the claims or counterclaims against it, the Company would incur a charge against earnings for amounts in excess of legal accruals.