0000886346-23-000019 | 10-K | XBRL Viewer

Short- and Long-Term Obligations

12 Months Ended

Dec. 31, 2022

Short- and long-term obligations are as follows:


(In thousands)	December 31, 2022		January 1, 2022
Revolving Credit Facility, due 2027	$	186,131	$	250,267
Senior Promissory Notes, due 2023 to 2028	10,000		10,000
Finance Leases, due 2023 to 2026	1,940		1,610
Other Borrowings, due 2023 to 2028	3,090		7,637
Total	201,161		269,514
Less: Short-Term Obligations and Current Maturities of Long-Term Obligations	(3,821)		(5,356)
Long-Term Obligations	$	197,340	$	264,158

See Note 11 for the fair value information related to the Company's long-term obligations.

Revolving Credit Facility

On November 30, 2022, the Company entered into a sixth amendment to its unsecured multi-currency revolving credit facility, originally entered into on March 1, 2017 (as amended and restated to date, the Credit Agreement). Among other things, this amendment extended the maturity date to November 30, 2027, and increased the uncommitted, unsecured incremental borrowing facility from $150,000,000 to $200,000,000. Pursuant to the Credit Agreement, the Company has a borrowing capacity of $400,000,000 and 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, Term SOFR (plus a 10 basis point credit spread adjustment), CDOR Rate, and RFR, as applicable and defined, plus a margin of 1.0% to 2.25%. The margin is determined based upon the ratio of the Company's total debt, net of unrestricted cash up to $50,000,000, to earnings before interest, taxes, depreciation, and amortization as defined in the Credit Agreement. Additionally, the Credit Agreement requires the payment of a commitment fee payable in arrears on the available borrowing capacity under the Credit Agreement, which ranges from 0.125% to 0.350%.

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, 4.25 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.

At year-end 2022, the outstanding balance under the Credit Agreement was $186,131,000, which included $73,131,000 of euro-denominated borrowings primarily used to fund the Company's acquisitions in 2021. The Company had $214,061,000 of borrowing capacity available at year-end 2022, which was calculated by translating its foreign-denominated borrowings using the administrative agent's borrowing date foreign exchange rates, in addition to the $200,000,000 uncommitted, unsecured incremental borrowing facility.

The weighted average interest rate for the outstanding balance under the Credit Agreement was 4.33% as of year-end 2022 and 1.50% as of year-end 2021.

See Note 10, Derivatives, under the heading Interest Rate Swap Agreement, 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. At year-end 2022, $1,670,000 was included in current maturities of long-term obligations in the accompanying consolidated balance sheet related to this obligation. 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 2022, 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

Prior to August 2022, other borrowings included a sale-leaseback financing arrangement for a manufacturing facility in Germany. This arrangement provided for a fixed price purchase option of the facility from the landlord at the end of the lease term in August 2022. The Company exercised this option and acquired the facility from the landlord for 2,722,000 euros, or approximately $2,730,000. The Company applied its outstanding loan receivable due from the landlord of 1,393,000 euros, or approximately $1,397,000, towards the purchase of the facility.

At year-end 2022, other borrowings included $665,000 of short-term obligations and $1,920,000 of long-term debt obligations outstanding assumed in the acquisition of Clouth, which have maturity dates ranging from 2023 to 2028 and interest rates up to 1.70%.

Annual Repayment Requirements

The following schedule presents the annual repayment requirements for the Company’s short-and long-term obligations, excluding finance leases, as of year-end 2022.


(In thousands)
2023	$	2,840
2024	2,205
2025	2,210
2026	2,104
2027	188,136
2028	1,726
	$	199,221

- 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.

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+ Details

Nature of Operations and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Principles of consolidation	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	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 years ended December 31, 2022 (fiscal 2022 or 2022) and January 1, 2022 (fiscal 2021 or 2021) contained 52 weeks and its fiscal year ended January 2, 2021 (fiscal 2020 or 2020) contained 53 weeks. Each quarter of fiscal 2022, 2021 and 2020 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.
Use of estimates and critical accounting policies	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.
Revenue recognition	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 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.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.
Accounts receivable and allowance for credit losses	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.
Banker's acceptance drafts included in accounts receivable	Banker's Acceptance Drafts Included in Accounts ReceivableThe Company's Chinese subsidiaries may receive banker's acceptance drafts from customers as payment for their trade accounts receivable. The drafts are 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.
Warranty obligations	Warranty Obligations The Company's contracts covering the sale of its products include warranty provisions that provide assurance to its customers that the products will comply with agreed-upon specifications during a defined period of time. The Company provides for the estimated cost of product warranties at the time of sale based on 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.
Leases	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 2022, 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.
Income taxes	Income Taxes In accordance with ASC 740, Income Taxes (ASC 740), the Company recognizes deferred income taxes based on the expected future tax consequences of differences between the financial statement basis and the tax basis of assets and liabilities, calculated using enacted tax rates in effect for the year in which these differences are expected to reverse. A tax valuation allowance is established, as needed, to reduce deferred tax assets to the amount expected to be realized. In the period in which it becomes more likely than not that some or all of the deferred tax assets will be realized, the valuation allowance will be adjusted. It is the Company's policy to provide for uncertain tax positions and the related interest and penalties based upon management's assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. At December 31, 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. 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. 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. 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.
Earnings per share	Earnings per Share Basic earnings per share (EPS) is computed by dividing net income attributable to Kadant by the weighted average number of shares outstanding during the year. Diluted EPS is computed using the treasury stock method assuming the effect of all potentially dilutive securities, including stock options, restricted stock units (RSUs) and employee stock purchase plan shares.
Cash and cash equivalents	Cash, Cash Equivalents, and Restricted Cash At year-end 2022 and 2021, 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.
Restricted cash	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.
Inventories	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.
Property, plant, and equipment	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.
Intangible assets	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. Intangible assets acquired related to the Company's acquisition in 2022 were $2,183,000, which primarily consisted of customer relationships, and have a weighted-average amortization period of 14 years (see Note 2, Acquisitions). Definite-lived intangible assets as of year-end 2022 have a weighted average amortization period of 13 years.
Goodwill	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.
Impairment of long-lived assets	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 2022 and 2021, in connection with its annual impairment analysis, the Company performed a qualitative goodwill impairment assessment (Step 0) for each of its reporting units, 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.
Business combinations	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.
Foreign currency translation and transactions	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	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. 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 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 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.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. 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.
Derivatives	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. 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.
Recently adopted accounting pronouncements	Recently Adopted Accounting Pronouncements Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. The Company adopted this ASU during the fourth quarter of 2022 and its adoption did not have a material impact on the 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 No. 2021-08 which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU No.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 impact of the adoption of this ASU on the Company's consolidated financial statements will be dependent on the contract assets and liabilities acquired in future business combinations.
Employee stock purchase plan	Employee Stock Purchase PlanThe 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.
401(k) savings and other defined contribution plans	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.
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, 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
Commitments and contingencies	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. 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.
Fair value measurement	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 Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during 2022. 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.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.

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

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


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Domestic	$	46,558	$	26,599	$	14,132
Foreign	119,078		85,453		59,555
	$	165,636	$	112,052	$	73,687

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


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Current Provision:
Federal	$	8,738	$	2,173	$	339
Foreign	26,032		25,512		16,800
State	1,977		870		667
	36,747		28,555		17,806
Deferred Provision (Benefit):
Federal	1,970		1,823		2,146
Foreign	4,233		(3,430)		(2,361)
State	956		223		357
	7,159		(1,384)		142
	$	43,906	$	27,171	$	17,948

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 $501,000 in 2022, $1,808,000 in 2021 and $758,000 in 2020 in the accompanying consolidated statement of income.

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 of 21% to income before provision for income taxes due to the following:


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Provision for Income Taxes at Statutory Rate	$	34,784	$	23,531	$	15,474
Increases (Decreases) Resulting From:
Foreign tax rate differential	5,770		2,819		1,891
Nondeductible expenses	2,683		1,673		2,117
State income taxes, net of federal income tax	2,316		863		807
Reversal of tax benefit reserves, net	(1,368)		(444)		(730)
U.S. tax cost of foreign earnings	932		481		599
Research and development tax credits	(425)		(454)		(465)
Excess tax benefit related to stock-based compensation	(377)		(1,525)		(661)
Change in valuation allowance	318		(31)		(469)
Other	(727)		258		(615)
	$	43,906	$	27,171	$	17,948

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


(In thousands)	December 31, 2022		January 1, 2022
Deferred Tax Asset:
Net operating loss carryforwards	$	13,057	$	14,162
Lease liabilities	6,031		6,393
Inventory basis difference	4,118		4,600
Employee compensation	3,697		4,368
Capitalized research expenses	3,398		2,349
Reserves and accruals	1,949		3,167
Allowance for credit losses	673		420
Foreign, state, and alternative minimum tax credit carryforwards	490		508
Other	122		48
Deferred tax asset, gross	33,535		36,015
Less: valuation allowance	(8,983)		(9,212)
Deferred tax asset, net	24,552		26,803
Deferred Tax Liability:
Goodwill and intangible assets	(41,129)		(43,780)
Fixed asset basis difference	(11,438)		(6,009)
ROU assets	(5,145)		(5,431)
Provision for unremitted foreign earnings	(783)		(559)
Other	(1,976)		(1,819)
Deferred tax liability	(60,471)		(57,598)
Net deferred tax liability	$	(35,919)	$	(30,795)

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 2022 was $8,983,000, consisting of $160,000 in the United States and $8,823,000 in foreign jurisdictions. The decrease in the valuation allowance in 2022 of $229,000 is related primarily to fluctuations in foreign currency exchange rates and utilization of net operating losses, partially offset by an increase in valuation allowance associated with restructuring 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 2022, 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 2022, the Company maintained valuation allowances in certain foreign jurisdictions because of the uncertainty of future profitability within those foreign jurisdictions.

At year-end 2022, the Company had U.S. federal and state net operating loss carryforwards of $1,002,000 and $22,587,000, respectively, and foreign net operating loss carryforwards of $51,804,000. 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, $1,451,000 will expire in the years 2025 through 2042, and the remainder do not expire. As of year-end 2022, the Company also had state disallowed business interest expense carryforwards of $71,000 and foreign tax credits of $368,000, of which $120,000 came from the acquisition of Syntron Material Handling Group, LLC and certain of its affiliates (SMH) in 2019. 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 2022, the Company had approximately $248,103,000 of unremitted foreign earnings. During 2022, the Company repatriated $39,081,000 of previously taxed foreign earnings to the United States and recognized a foreign exchange loss of $2,673,000 associated with these earnings. The Company intends to repatriate the distributable reserves of select foreign subsidiaries back to the United States and has recognized $764,000 of net tax expense on the estimated repatriation amount during 2022. Except for these select foreign subsidiaries, the Company intends to indefinitely reinvest $228,972,000 of 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 $4,095,000.

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 2022, the Company had a liability of $10,354,000 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)	December 31, 2022		January 1, 2022
Unrecognized Tax Benefits, Beginning of Year	$	9,731	$	8,337
Gross Increases—Tax Positions in Prior Periods	2,116		2,409
Gross Decreases—Tax Positions in Prior Periods	(138)		(2,182)
Gross Increases—Current-period Tax Positions	1,260		1,920
Lapses of Statutes of Limitations	(2,251)		(649)
Currency Translation	(364)		(104)
Unrecognized Tax Benefits, End of Year	$	10,354	$	9,731

A portion of the unrecognized tax benefits generated in 2022 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 $1,806,000 at year-end 2022 and $1,704,000 at year-end 2021 for the potential payment of interest and penalties. The interest and penalties included in the accompanying consolidated statement of income was a benefit of $333,000 in 2022 and $129,000 in 2021.

The Company is currently under audit in four 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 $122,000 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 2022, and to non-U.S. income tax examinations for the tax years 2015 through 2022. In addition, the Company remains subject to state and local income tax examinations in the United States for the tax years 2003 through 2022.

- 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
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-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Section S99
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-Subparagraph (SAB Topic 11.C)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Accumulated Other Comprehensive Items - Components of AOCI on the Balance Sheet (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 565,616
Ending balance	655,571
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(30,350)
Other comprehensive items before reclassifications	(24,420)
Reclassifications from AOCI	192
Net current period other comprehensive items	(24,228)
Ending balance	(54,578)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(29,096)
Other comprehensive items before reclassifications	(25,392)
Reclassifications from AOCI	0
Net current period other comprehensive items	(25,392)
Ending balance	(54,488)
Pension and Other Post-Retirement Benefit Liability Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(792)
Other comprehensive items before reclassifications	610
Reclassifications from AOCI	34
Net current period other comprehensive items	644
Ending balance	(148)
Deferred (Loss) Gain on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(462)
Other comprehensive items before reclassifications	362
Reclassifications from AOCI	158
Net current period other comprehensive items	520
Ending balance	$ 58

- 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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+ Details

Nature of Operations and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 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 years ended December 31, 2022 (fiscal 2022 or 2022) and January 1, 2022 (fiscal 2021 or 2021) contained 52 weeks and its fiscal year ended January 2, 2021 (fiscal 2020 or 2020) contained 53 weeks. Each quarter of fiscal 2022, 2021 and 2020 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.

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)	December 31, 2022		January 1, 2022		January 2, 2021
Point in Time	$	807,966	$	705,709	$	557,702
Over Time	96,773		80,870		77,326
	$	904,739	$	786,579	$	635,028

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)	December 31, 2022		January 1, 2022		January 2, 2021
Revenue by Product Type:
Parts and Consumables	$	572,988	$	511,766	$	417,545
Capital	331,751		274,813		217,483
	$	904,739	$	786,579	$	635,028
Revenue by Geography (based on customer location):
North America	$	508,899	$	420,382	$	360,061
Europe	233,790		220,578		161,527
Asia	113,932		103,810		72,268
Rest of World	48,118		41,809		41,172
	$	904,739	$	786,579	$	635,028

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)	December 31, 2022		January 1, 2022
Contract Assets	$	14,898	$	8,626
Contract Liabilities	$	82,413	$	77,004

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.

The Company recognized revenue of $61,804,000 in 2022 and $33,128,000 in 2021 that was included in the contract liabilities balance at the beginning of 2022 and 2021, 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 2022 was $49,866,000. The Company will recognize revenue for these performance obligations as they are satisfied, approximately 66% of which is expected to occur within the next twelve months and the remaining 34% after December 31, 2023.

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)	December 31, 2022		January 1, 2022		January 2, 2021
Balance at Beginning of Year	$	2,735	$	2,977	$	2,698
Provision charged to expense	1,165		5		356
Accounts written off	(129)		(178)		(266)
Currency translation	(176)		(69)		189
Balance at End of Year	$	3,595	$	2,735	$	2,977

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 $5,729,000 at year-end 2022 and $8,049,000 at year-end 2021, 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)	December 31, 2022		January 1, 2022
Balance at Beginning of Year	$	7,298	$	7,064
Provision charged to expense	4,955		4,366
Usage	(4,587)		(4,268)
Acquisitions	—		429
Currency translation	(383)		(293)
Balance at End of Year	$	7,283	$	7,298

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 2022, 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 December 31, 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 2022 and 2021, 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.

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)	December 31, 2022		January 1, 2022		January 2, 2021
Cash and cash equivalents	$	76,371	$	91,186	$	65,682
Restricted cash	3,354		2,975		958
Total Cash, Cash Equivalents, and Restricted Cash	$	79,725	$	94,161	$	66,640

Supplemental Cash Flow Information


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Cash Paid for Interest	$	6,053	$	4,441	$	6,899
Cash Paid for Income Taxes, Net of Refunds	$	36,971	$	24,174	$	17,506

Non-Cash Investing Activities:
Fair value of assets acquired	$	2,785	$	190,977	$	9,295
Cash paid for acquired businesses	(3,597)		(152,661)		(7,565)
Liabilities (adjusted) assumed of acquired businesses	$	(812)	$	38,316	$	1,730

Purchase of property with outstanding loan receivable	$	1,397	$	—	$	—

Purchases of property, plant and equipment in accounts payable	$	1,040	$	363	$	1,060

Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of RSUs	$	5,555	$	4,108	$	4,781
Dividends declared but unpaid	$	3,036	$	2,905	$	2,770

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)	December 31, 2022		January 1, 2022
Raw Materials	$	71,040	$	59,177
Work in Process	38,612		29,448
Finished Goods (includes $658 and $1,163 at customer locations)	54,020		45,731
	$	163,672	$	134,356

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)	December 31, 2022		January 1, 2022
Land	$	10,729	$	11,011
Buildings	68,915		67,787
Machinery, Equipment, and Leasehold Improvements	143,642		136,656
Construction in Progress	17,011		6,567
	240,297		222,021
Less: Accumulated Depreciation and Amortization	121,442		114,032
	$	118,855	$	107,989

Depreciation and amortization expense was $14,429,000 in 2022, $13,433,000 in 2021, and $12,209,000 in 2020. See Note 9, Leases, for further details relating to assets under financing leases included in property, plant and equipment in the accompanying consolidated balance sheet.

Intangible Assets, Net

Acquired intangible assets by major asset class are as follows:


(In thousands)	Gross		Accumulated Amortization		Currency Translation		Net
December 31, 2022
Definite-Lived
Customer relationships	$	218,782	$	(94,653)	$	(7,045)	$	117,084
Product technology	67,548		(39,940)		(2,754)		24,854
Tradenames	7,427		(3,903)		(420)		3,104
Other	20,314		(17,338)		(623)		2,353
	314,071		(155,834)		(10,842)		147,395
Indefinite-Lived
Tradenames	29,059		—		(809)		28,250
Acquired Intangible Assets	$	343,130	$	(155,834)	$	(11,651)	$	175,645


(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 connection with its impairment analysis, the Company reduced its definite-lived intangible assets by $499,000 in 2021. 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.

Intangible assets acquired related to the Company's acquisition in 2022 were $2,183,000, which primarily consisted of customer relationships, and have a weighted-average amortization period of 14 years (see Note 2, Acquisitions). Definite-lived intangible assets as of year-end 2022 have a weighted average amortization period of 13 years. Amortization of definite-lived intangible assets was $20,507,000 in 2022, $20,869,000 in 2021, and $19,125,000 in 2020 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 $18,380,000 in 2023; $17,407,000 in 2024; $15,474,000 in 2025; $14,979,000 in 2026; $14,078,000 in 2027; and $67,077,000 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 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


(In thousands)	Flow Control		Industrial Processing		Material Handling		Total
2022 Activity
Acquisition (a) (Note 2)	(33)		—		1,231		1,198
Impairment loss	—		(29)		—		(29)
Currency translation	(5,247)		(5,063)		(2,291)		(12,601)
Total 2022 activity	(5,280)		(5,092)		(1,060)		(11,432)
Balance at December 31, 2022
Gross balance	118,309		209,919		142,765		470,993
Accumulated impairment losses	—		(85,538)		—		(85,538)
Net balance	$	118,309	$	124,381	$	142,765	$	385,455

(a) Includes $1,733,000 for an acquisition completed in 2022 and adjustments to the purchase price allocations for acquisitions completed in 2021, principally related to inventory, machinery and equipment, and deferred taxes.

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 2022 and 2021, in connection with its annual impairment analysis, the Company performed a qualitative goodwill impairment assessment (Step 0) for each of its reporting units, 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.

Goodwill by reporting unit is as follows:


(In thousands)	December 31, 2022		January 1, 2022
Fluid-Handling	$	62,426	$	64,003
Doctoring, Cleaning, & Filtration	55,883		59,586
Stock-Preparation	20,311		20,819
Wood Processing	104,070		108,654
Material Handling	142,765		143,825
	$	385,455	$	396,887

Intangible Assets

At year-end 2022 and 2021, 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 2022 or 2021 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. 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 (Clouth) in the third quarter of 2021. 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, which is included in gain on sale and other costs, net in the accompanying consolidated statement of income. The Company ceased production at this business during the last quarter of 2022.

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 $668,000 in 2022, $3,655,000 in 2021, and $485,000 in 2020.

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.

Recently Adopted Accounting Pronouncements

Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. The Company adopted this ASU during the fourth quarter of 2022 and its adoption did not have a material impact on the 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 No. 2021-08 which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASU No.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 impact of the adoption of this ASU on the Company's consolidated financial statements will be dependent on the contract assets and liabilities acquired in future business combinations.

Income Taxes - Net Deferred Tax Liability (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Deferred Tax Asset:
Net operating loss carryforwards	$ 13,057	$ 14,162
Lease liabilities	6,031	6,393
Inventory basis difference	4,118	4,600
Employee compensation	3,697	4,368
Capitalized research expenses	3,398	2,349
Reserves and accruals	1,949	3,167
Allowance for credit losses	673	420
Foreign, state, and alternative minimum tax credit carryforwards	490	508
Other	122	48
Deferred tax asset, gross	33,535	36,015
Less: valuation allowance	(8,983)	(9,212)
Deferred tax asset, net	24,552	26,803
Deferred Tax Liability:
Goodwill and intangible assets	(41,129)	(43,780)
Fixed asset basis difference	(11,438)	(6,009)
ROU assets	(5,145)	(5,431)
Provision for unremitted foreign earnings	(783)	(559)
Other	(1,976)	(1,819)
Deferred tax liability	(60,471)	(57,598)
Net deferred tax liability	$ (35,919)	$ (30,795)

Earnings per Share - Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Earnings Per Share [Abstract]
Net Income Attributable to Kadant	$ 120,928	$ 84,043	$ 55,196
Basic Weighted Average Shares	11,654	11,579	11,482
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	34	76	82
Diluted Weighted Average Shares	11,688	11,655	11,564
Basic (in dollars per share)	$ 10.38	$ 7.26	$ 4.81
Diluted (in dollars per share)	$ 10.35	$ 7.21	$ 4.77

- 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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+ Details

Employee Benefit Plans

12 Months Ended

Dec. 31, 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 313,104 shares available for grant under these stock-based compensation plans at year-end 2022. 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)	December 31, 2022		January 1, 2022		January 2, 2021
RSU Awards	$	8,222	$	8,224	$	6,453
Employee Stock Purchase Plan Awards	354		303		323
Total	$	8,576	$	8,527	$	6,776

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 941 RSUs in 2022, 1,009 RSUs in 2021 and 2,085 RSUs in 2020 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 470 RSUs in May 2022, which vested ratably on the last day of the third and fourth fiscal quarters of 2022 and 1,042 RSUs in July 2020, which vested ratably on the last day of the third and fourth fiscal quarters of 2020 to its then new non-employee director. 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 $2,563,000 at year-end 2022, and will be recognized over a weighted average period of 1.3 years.

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

Time-Based Restricted Stock Units

The Company grants time-based RSUs to its officers and other employees of the Company. Each time-based RSU represents the right to receive one share of the Company's common stock upon vesting. The Company recognizes compensation expense associated with these time-based RSUs ratably over the requisite service period for the entire award based on the grant date fair value, and net of actual forfeitures recorded when they occur. The time-based RSU agreement provides for forfeiture in certain events, such as voluntary or involuntary termination of employment, and for acceleration of vesting in certain events, such as death, disability, or a change in control of the Company. Unrecognized compensation expense related to the time-based RSUs totaled $3,841,000 at year-end 2022, 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 2022 is as follows:


(In thousands, except per share amounts)	Units	Weighted Average Grant- Date Fair Value
Unvested RSUs at January 1, 2022	107	$	127.70
Granted	50	$	170.76
Vested	(67)	$	123.93
Forfeited	(5)	$	168.18
Unvested RSUs at December 31, 2022	85	$	153.98

The weighted average grant date fair value of RSUs granted was $170.76 in 2022, $174.52 in 2021, and $88.22 in 2020. The total fair value of shares vested was $8,337,000 in 2022, $5,892,000 in 2021, and $7,343,000 in 2020.

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 2022 and 2021 as all remaining stock options were exercised prior to the end of 2021.

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


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Total Intrinsic Value of Options Exercised	$	—	$	4,986	$	4,071
Cash Received from Options Exercised	$	—	$	665	$	1,123

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 9,111 shares in 2022, 10,230 shares in 2021, and 13,062 shares in 2020 of its common stock under this plan. The Company had 82,532 shares available for grant under the employee stock purchase plan at year-end 2022.

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 $5,151,000 in 2022, $4,706,000 in 2021, and $4,501,000 in 2020.

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, 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. The disclosure requirements related to the Company’s defined benefit plans are not material for the fiscal years presented.

Employee Benefit Plans - Activity of the Unvested RSUs (Details) - RSU Awards - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Units
Unvested RSUs at beginning of year (in shares)	107
Granted (in shares)	50
Vested (in shares)	(67)
Forfeited (in shares)	(5)
Unvested RSU's at end of year (in shares)	85	107
Weighted Average Grant- Date Fair Value
Weighted average grant date fair value, balance at beginning of year (in dollars per share)	$ 127.70
Weighted average grant date fair value, granted (in dollars per share)	170.76	$ 174.52	$ 88.22
Weighted average grant date fair value, vested (in dollars per share)	123.93
Weighted average grant date fair value, forfeited (in dollars per share)	168.18
Weighted average grant date fair value, balance at end of year (in dollars per share)	$ 153.98	$ 127.70

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

12 Months Ended

Dec. 31, 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)	December 31, 2022		January 1, 2022		January 2, 2021
Point in Time	$	807,966	$	705,709	$	557,702
Over Time	96,773		80,870		77,326
	$	904,739	$	786,579	$	635,028

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


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Revenue by Product Type:
Parts and Consumables	$	572,988	$	511,766	$	417,545
Capital	331,751		274,813		217,483
	$	904,739	$	786,579	$	635,028
Revenue by Geography (based on customer location):
North America	$	508,899	$	420,382	$	360,061
Europe	233,790		220,578		161,527
Asia	113,932		103,810		72,268
Rest of World	48,118		41,809		41,172
	$	904,739	$	786,579	$	635,028

Contract balances from contracts with customers

The following table presents contract balances from contracts with customers:


(In thousands)	December 31, 2022		January 1, 2022
Contract Assets	$	14,898	$	8,626
Contract Liabilities	$	82,413	$	77,004

Changes in allowance for credit losses

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


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Balance at Beginning of Year	$	2,735	$	2,977	$	2,698
Provision charged to expense	1,165		5		356
Accounts written off	(129)		(178)		(266)
Currency translation	(176)		(69)		189
Balance at End of Year	$	3,595	$	2,735	$	2,977

Changes in carrying amount of product warranty obligations

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


(In thousands)	December 31, 2022		January 1, 2022
Balance at Beginning of Year	$	7,298	$	7,064
Provision charged to expense	4,955		4,366
Usage	(4,587)		(4,268)
Acquisitions	—		429
Currency translation	(383)		(293)
Balance at End of Year	$	7,283	$	7,298

Reconciliation of cash and cash equivalents


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Cash and cash equivalents	$	76,371	$	91,186	$	65,682
Restricted cash	3,354		2,975		958
Total Cash, Cash Equivalents, and Restricted Cash	$	79,725	$	94,161	$	66,640

Reconciliation of restricted cash


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Cash and cash equivalents	$	76,371	$	91,186	$	65,682
Restricted cash	3,354		2,975		958
Total Cash, Cash Equivalents, and Restricted Cash	$	79,725	$	94,161	$	66,640

Supplemental cash flow information

Supplemental Cash Flow Information


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Cash Paid for Interest	$	6,053	$	4,441	$	6,899
Cash Paid for Income Taxes, Net of Refunds	$	36,971	$	24,174	$	17,506

Non-Cash Investing Activities:
Fair value of assets acquired	$	2,785	$	190,977	$	9,295
Cash paid for acquired businesses	(3,597)		(152,661)		(7,565)
Liabilities (adjusted) assumed of acquired businesses	$	(812)	$	38,316	$	1,730

Purchase of property with outstanding loan receivable	$	1,397	$	—	$	—

Purchases of property, plant and equipment in accounts payable	$	1,040	$	363	$	1,060

Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of RSUs	$	5,555	$	4,108	$	4,781
Dividends declared but unpaid	$	3,036	$	2,905	$	2,770

Components of inventory

The components of inventories are as follows:


(In thousands)	December 31, 2022		January 1, 2022
Raw Materials	$	71,040	$	59,177
Work in Process	38,612		29,448
Finished Goods (includes $658 and $1,163 at customer locations)	54,020		45,731
	$	163,672	$	134,356

Property, plant and equipment

Property, plant, and equipment consist of the following:


(In thousands)	December 31, 2022		January 1, 2022
Land	$	10,729	$	11,011
Buildings	68,915		67,787
Machinery, Equipment, and Leasehold Improvements	143,642		136,656
Construction in Progress	17,011		6,567
	240,297		222,021
Less: Accumulated Depreciation and Amortization	121,442		114,032
	$	118,855	$	107,989

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
December 31, 2022
Definite-Lived
Customer relationships	$	218,782	$	(94,653)	$	(7,045)	$	117,084
Product technology	67,548		(39,940)		(2,754)		24,854
Tradenames	7,427		(3,903)		(420)		3,104
Other	20,314		(17,338)		(623)		2,353
	314,071		(155,834)		(10,842)		147,395
Indefinite-Lived
Tradenames	29,059		—		(809)		28,250
Acquired Intangible Assets	$	343,130	$	(155,834)	$	(11,651)	$	175,645


(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

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 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


(In thousands)	Flow Control		Industrial Processing		Material Handling		Total
2022 Activity
Acquisition (a) (Note 2)	(33)		—		1,231		1,198
Impairment loss	—		(29)		—		(29)
Currency translation	(5,247)		(5,063)		(2,291)		(12,601)
Total 2022 activity	(5,280)		(5,092)		(1,060)		(11,432)
Balance at December 31, 2022
Gross balance	118,309		209,919		142,765		470,993
Accumulated impairment losses	—		(85,538)		—		(85,538)
Net balance	$	118,309	$	124,381	$	142,765	$	385,455

Goodwill by reporting unit

Goodwill by reporting unit is as follows:


(In thousands)	December 31, 2022		January 1, 2022
Fluid-Handling	$	62,426	$	64,003
Doctoring, Cleaning, & Filtration	55,883		59,586
Stock-Preparation	20,311		20,819
Wood Processing	104,070		108,654
Material Handling	142,765		143,825
	$	385,455	$	396,887

Nature of Operations and Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 240,297	$ 222,021
Less: Accumulated Depreciation and Amortization	121,442	114,032
Property, plant and equipment, at cost, net	118,855	107,989
Depreciation and amortization expense for property, plant and equipment and finance lease right-of-use asset	14,429	13,433	$ 12,209
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	10,729	11,011
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	68,915	67,787
Machinery, Equipment, and Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	143,642	136,656
Construction in Progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 17,011	$ 6,567
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

12 Months Ended

Dec. 31, 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 December 31, 2022
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	8,351	$	—	$	—	$	8,351
Banker's acceptance drafts (a)	$	—	$	5,729	$	—	$	5,729
2018 Swap Agreement	$	—	$	131	$	—	$	131
Forward currency-exchange contracts (b)	$	—	$	15	$	—	$	15
Liabilities:

Forward currency-exchange contract (c)	$	—	$	54	$	—	$	54


	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 (b)	$	—	$	14	$	—	$	14
Liabilities:
2018 Swap Agreement	$	—	$	550	$	—	$	550
Forward currency-exchange contracts (c)	$	—	$	44	$	—	$	44

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

(b)Represents derivative instruments not designated as hedging instruments.

(c)Represents derivative instruments designated as hedging instruments.

The Company uses the market approach technique to value its financial assets and liabilities, and there were no changes in valuation techniques during 2022. 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:


	December 31, 2022				January 1, 2022
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Debt Obligations:
Revolving credit facility	$	186,131	$	186,131	$	250,267	$	250,267
Senior promissory notes	10,000		9,773		10,000		10,947
Other	3,090		3,090		4,331		4,331
	$	199,221	$	198,994	$	264,598	$	265,545

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

Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 121,730	$ 84,881	$ 55,739
Other Comprehensive Items:
Foreign currency translation adjustment	(25,522)	(11,324)	18,395
Pension and other post-retirement liability adjustments, net (net of tax of $225, $(1), and $78)	644	(22)	180
Effect of pension plan settlement	0	0	(119)
Deferred gain (loss) on cash flow hedges (net of tax of $147, $118, and $(57))	520	366	(184)
Other Comprehensive Items	(24,358)	(10,980)	18,272
Comprehensive Income	97,372	73,901	74,011
Comprehensive Income Attributable to Noncontrolling Interest	(672)	(716)	(687)
Comprehensive Income Attributable to Kadant	$ 96,700	$ 73,185	$ 73,324

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Leases [Abstract]
Operating Lease Cost	$ 5,870	$ 5,895	$ 5,602
Short-Term Lease Cost	697	674	671
Finance Lease Cost:
ROU asset amortization	1,026	1,045	1,157
Interest on lease liabilities	52	46	74
Total Finance Lease Cost	1,078	1,091	1,231
Total Lease Costs	$ 7,645	$ 7,660	$ 7,504

Leases - Additional Information (Details)	12 Months Ended
Leases - Additional Information (Details)	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Lease, remaining term	12 years
Lease, option to extend, term	5 years
Canada
Lessee, Lease, Description [Line Items]
Lease, option to extend, term	10 years

Earnings per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Earnings per Share

Basic and diluted EPS were calculated as follows:


(In thousands, except per share amounts)	December 31, 2022		January 1, 2022		January 2, 2021
Net Income Attributable to Kadant	$	120,928	$	84,043	$	55,196

Basic Weighted Average Shares	11,654		11,579		11,482
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	34		76		82
Diluted Weighted Average Shares	11,688		11,655		11,564

Basic Earnings per Share	$	10.38	$	7.26	$	4.81
Diluted Earnings per Share	$	10.35	$	7.21	$	4.77

The effect of outstanding and unvested RSUs of the Company's common stock totaling 7,500 shares in 2022, 14,200 shares in 2021, and 22,900 shares in 2020 was not included in the computation of diluted EPS for the respective periods as the effect would have been antidilutive or, for unvested performance-based RSUs, the performance conditions had not been met as of the end of the reporting periods.

Nature of Operations and Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Accounting Policies [Abstract]
Raw Materials	$ 71,040	$ 59,177
Work in Process	38,612	29,448
Finished Goods	54,020	45,731
Inventories	163,672	134,356
Finished goods, at customer locations	$ 658	$ 1,163

Short- and Long-Term Obligations - Future Repayments of Debt (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Debt Disclosure [Abstract]
2023	$ 2,840
2024	2,205
2025	2,210
2026	2,104
2027	188,136
2028	1,726
Long-term obligations excluding finance leases and sales-leaseback arrangement	$ 199,221

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Derivatives (Tables)

12 Months Ended

Dec. 31, 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:


		December 31, 2022				January 1, 2022
(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:
2018 Swap Agreement	Other Current Assets	$	131	$	15,000	$	—	$	—
Derivatives in a Liability Position:
2018 Swap Agreement	Other Long-Term Liabilities	$	—	$	—	$	(550)	$	15,000
Forward currency-exchange contract	Other Current Liabilities	$	(54)	$	430	$	(44)	$	842
Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	15	$	647	$	14	$	1,200

(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 2022 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 December 31, 2022:


(In thousands)	Interest Rate Swap Agreements		Forward Currency- Exchange Contracts		Total
Unrealized Loss, Net of Tax, at January 1, 2022	$	(429)	$	(33)	$	(462)
Loss reclassified to earnings (a)	158		—		158
Gain (loss) recognized in AOCI	370		(8)		362
Unrealized Gain (Loss), Net of Tax, at December 31, 2022	$	99	$	(41)	$	58

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

Accumulated Other Comprehensive Items (Tables)

12 Months Ended

Dec. 31, 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) Gain on Cash Flow Hedges		Total
Balance at January 1, 2022	$	(29,096)	$	(792)	$	(462)	$	(30,350)
Other comprehensive items before reclassifications	(25,392)		610		362		(24,420)
Reclassifications from AOCI	—		34		158		192
Net current period other comprehensive items	(25,392)		644		520		(24,228)
Balance at December 31, 2022	$	(54,488)	$	(148)	$	58	$	(54,578)

Reclassification out of accumulated other comprehensive items

Amounts reclassified out of AOCI are as follows:


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021		Statement of Income Line Item
Retirement Benefit Plans
Recognized net actuarial loss	$	(36)	$	(50)	$	(66)	Other expense, net
Amortization of prior service cost	(10)		(12)		(55)		Other expense, net

Total expense before income taxes	(46)		(62)		(121)
Income tax benefit	12		17		153		Provision for income taxes
	(34)		(45)		32
Cash Flow Hedges (a)
Interest rate swap agreements	(208)		(451)		(333)		Interest expense
Forward currency-exchange contracts	—		—		28		Cost of revenue
Forward currency-exchange contracts	—		157		—		SG&A expense
Total expense before income taxes	(208)		(294)		(305)
Income tax benefit	50		70		73		Provision for income taxes
	(158)		(224)		(232)
Total Reclassifications	$	(192)	$	(269)	$	(200)

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

Business Segment and Geographical Information - Additional Information (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Apr. 02, 2022 USD ($)	Dec. 31, 2022 USD ($) segment	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)
Segment Reporting [Abstract]
Number of reportable segments \| segment		3
Segment Reporting Information [Line Items]
Acquisition related costs		$ 668	$ 3,655	$ 485
Gain on sale of building		20,190	515	0
Capital expenditures		28,199	12,771	7,595
CHINA \| Land and Building
Segment Reporting Information [Line Items]
Gain on sale of building	$ 20,190
Flow Control
Segment Reporting Information [Line Items]
Acquisition related costs		254	6,191
Write off of indemnification asset		741
Impairment and restructuring charges		568	980	659
Industrial Processing
Segment Reporting Information [Line Items]
Acquisition related costs			223	679
Write off of indemnification asset		575
Impairment and restructuring charges		766		2,138
Gain on sale of building		20,190
Pre-tax gain on sale of real estate			515
Industrial Processing \| CHINA \| Land and Building
Segment Reporting Information [Line Items]
Capital expenditures		10,379
Material Handling
Segment Reporting Information [Line Items]
Acquisition related costs		$ 899	$ 2,851	$ 350

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
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 904,739	$ 786,579	$ 635,028
North America
Disaggregation of Revenue [Line Items]
Revenue	508,899	420,382	360,061
Europe
Disaggregation of Revenue [Line Items]
Revenue	233,790	220,578	161,527
Asia
Disaggregation of Revenue [Line Items]
Revenue	113,932	103,810	72,268
Rest of World
Disaggregation of Revenue [Line Items]
Revenue	48,118	41,809	41,172
Parts and Consumables
Disaggregation of Revenue [Line Items]
Revenue	572,988	511,766	417,545
Capital
Disaggregation of Revenue [Line Items]
Revenue	331,751	274,813	217,483
Point in Time
Disaggregation of Revenue [Line Items]
Revenue	807,966	705,709	557,702
Over Time
Disaggregation of Revenue [Line Items]
Revenue	$ 96,773	$ 80,870	$ 77,326

Gain on Sale and Other Costs, Net

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Gain on Sale and Other Costs, Net

A summary of the items included in gain on sale and other costs, net is as follows:


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Gain on Sale of Assets	$	(20,190)	$	(515)	$	—
Impairment Costs	731		804		1,861
Restructuring Costs	603		176		1,118
	$	(18,856)	$	465	$	2,979

Gain on Sale of Assets

The Company entered into several agreements with the local government in China to sell the existing manufacturing building and land use rights at one of its subsidiaries in China for $25,159,000 and relocate to a new facility (China Transaction). The agreements became effective in the first quarter of 2022 after a 31% down payment was received, including 25% in 2021 and 6% in the first quarter of 2022, and a land use right in a new location was secured. As a result, the Company recognized a gain on the China Transaction of $20,190,000, or $15,143,000, net of deferred taxes of $5,047,000, in the first quarter of 2022. A receivable of $16,082,000 was recognized for the present value of the remaining amount of the sale proceeds, which is due the earlier of when the government sells the property or within two years from the effective date of the agreements. The receivable outstanding at December 31, 2022 was $15,181,000 and is included in other long-term assets in the consolidated balance sheet. The subsidiary, which is part of the Industrial Processing segment, will continue to occupy its current facility until construction of its new facility is complete, which is expected in 2023.

A summary of the change in the outstanding receivable on the China Transaction is as follows:


(In thousands)	December 31, 2022
Balance at Inception	$	17,294
Present value discount	(1,212)
Receivable recorded, net	16,082
Accretion of interest income	422
Currency translation	(1,323)
Balance at End of Year	$	15,181

In 2021, gain on sale of assets included $515,000 related to a gain on 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.

Impairment and Restructuring Costs

During 2022, the Company recorded impairment costs of $731,000 and restructuring costs of $35,000 within its Industrial Processing segment. The impairment costs included $549,000 primarily related to the write-down of inventory at the Company's business in Russia and $182,000 related to the write-down of certain fixed assets that will not be moved to the new manufacturing facility in China.

During the fourth quarter of 2021, the Company initiated a restructuring plan within its Flow Control segment to eliminate a redundant ceramic blade manufacturing operation that resulted from its acquisition of Clouth. The plan consisted of severance costs related to the termination of five employees, and facility and other closure costs. Severance costs totaled $381,000, of which $205,000 were recorded in 2022 and $176,000 in 2021, and facility and other closure costs totaled $363,000, all of which were recorded in 2022. During 2021, the Company also recorded asset impairment charges related this restructuring plan of $499,000 for the write-down of an intangible asset, $226,000 for the write-down of certain machinery and equipment, and $79,000 for the write-down of a ROU asset. The Company does not expect to incur additional restructuring charges related to this restructuring plan.

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.

A summary of the changes in accrued restructuring costs included in other current liabilities in the accompanying consolidated balance sheet, which are expected to be paid in 2023, are as follows:


(In thousands)	Severance Costs		Facility and Other Closure Costs		Total
2021 Restructuring Plan
Provision	$	176	$	—	$	176
Usage	(19)		—		(19)
Currency translation	(1)		—		(1)
Balance at January 1, 2022	156		—		156
Provision	205		398		603
Usage	(159)		(231)		(390)
Currency translation	(13)		33		20
Balance at December 31, 2022	$	189	$	200	$	389

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

During the fourth quarter of 2020, due to the continued and anticipated decline in demand for the Company's timber-harvesting business' products, 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 2020 following $2,336,000 of impairment charges recognized in 2019.

Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared - common stock (in dollars per share)	$ 1.04	$ 1.00	$ 0.96

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 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 $32,533,000 at year-end 2022. 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 $11,238,000 at year-end 2022 and $9,593,000 at year-end 2021 of banker's acceptance drafts subject to recourse, which were transferred to vendors and had not reached their scheduled maturity dates. Historically, the banker's acceptance drafts have settled upon maturity without any claim of recourse against the Company. 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.

Income Taxes - Components of Income Before Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income Tax Disclosure [Abstract]
Domestic	$ 46,558	$ 26,599	$ 14,132
Foreign	119,078	85,453	59,555
Income Before Provision for Income Taxes	$ 165,636	$ 112,052	$ 73,687

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Section 25
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-URI https://asc.fasb.org/extlink&oid=126941158&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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-Subparagraph (SX 210.7-04(8))
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-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
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Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

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-Name Accounting Standards Codification
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-Paragraph 1
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-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

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

12 Months Ended

Dec. 31, 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 December 31, 2022
(In thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds and time deposits	$	8,351	$	—	$	—	$	8,351
Banker's acceptance drafts (a)	$	—	$	5,729	$	—	$	5,729
2018 Swap Agreement	$	—	$	131	$	—	$	131
Forward currency-exchange contracts (b)	$	—	$	15	$	—	$	15
Liabilities:

Forward currency-exchange contract (c)	$	—	$	54	$	—	$	54


	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 (b)	$	—	$	14	$	—	$	14
Liabilities:
2018 Swap Agreement	$	—	$	550	$	—	$	550
Forward currency-exchange contracts (c)	$	—	$	44	$	—	$	44

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

(b)Represents derivative instruments not designated as hedging instruments.

(c)Represents derivative instruments designated as hedging instruments.

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:


	December 31, 2022				January 1, 2022
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Debt Obligations:
Revolving credit facility	$	186,131	$	186,131	$	250,267	$	250,267
Senior promissory notes	10,000		9,773		10,000		10,947
Other	3,090		3,090		4,331		4,331
	$	199,221	$	198,994	$	264,598	$	265,545

Derivatives - Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Derivatives, Fair Value [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other current assets	Other current assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other current liabilities, Other Long-Term Liabilities	Other current liabilities, Other Long-Term Liabilities
Derivatives Designated as Hedging Instruments \| 2018 Swap Agreement \| Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	$ 131	$ 0
Derivative asset, notional amount	15,000	0
Derivatives Designated as Hedging Instruments \| 2018 Swap Agreement \| Other Long-Term Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability	0	(550)
Derivative liability, notional amount	0	15,000
Derivatives Designated as Hedging Instruments \| Forward currency-exchange contract \| Other Current Liabilities
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability	(54)	(44)
Derivative liability, notional amount	430	842
Derivatives Not Designated as Hedging Instruments \| Forward currency-exchange contract \| Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	15	14
Derivative asset, notional amount	$ 647	$ 1,200

Fair Value Measurements and Fair Value of Financial Instruments - Debt Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	$ 199,221	$ 264,598
Carrying Value \| Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	186,131	250,267
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	3,090	4,331
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	198,994	265,545
Fair Value \| Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	186,131	250,267
Fair Value \| Senior promissory notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	9,773	10,947
Fair Value \| Other
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt obligations	$ 3,090	$ 4,331

Fair Value Measurements and Fair Value of Financial Instruments - Assets and Liabilities, Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Assets:
Money market funds and time deposits	$ 8,351	$ 13,458
Banker's acceptance drafts	5,729	8,049
2018 Swap Agreement	131
Forward currency-exchange contracts	15	14
Liabilities:
2018 Swap Agreement		550
Forward currency-exchange contracts	54	44
Level 1
Assets:
Money market funds and time deposits	8,351	13,458
Banker's acceptance drafts	0	0
2018 Swap Agreement	0
Forward currency-exchange contracts	0	0
Liabilities:
2018 Swap Agreement		0
Forward currency-exchange contracts	0	0
Level 2
Assets:
Money market funds and time deposits	0	0
Banker's acceptance drafts	5,729	8,049
2018 Swap Agreement	131
Forward currency-exchange contracts	15	14
Liabilities:
2018 Swap Agreement		550
Forward currency-exchange contracts	54	44
Level 3
Assets:
Money market funds and time deposits	0	0
Banker's acceptance drafts	0	0
2018 Swap Agreement	0
Forward currency-exchange contracts	0	0
Liabilities:
2018 Swap Agreement		0
Forward currency-exchange contracts	$ 0	$ 0

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 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)	December 31, 2022		January 1, 2022		January 2, 2021
Net Income Attributable to Kadant	$	120,928	$	84,043	$	55,196

Basic Weighted Average Shares	11,654		11,579		11,482
Effect of Stock Options, Restricted Stock Units and Employee Stock Purchase Plan Shares	34		76		82
Diluted Weighted Average Shares	11,688		11,655		11,564

Basic Earnings per Share	$	10.38	$	7.26	$	4.81
Diluted Earnings per Share	$	10.35	$	7.21	$	4.77

Gain on Sale and Other Costs, Net - Additional Information (Details) $ in Thousands	3 Months Ended		12 Months Ended				15 Months Ended
	Apr. 02, 2022 USD ($)	Jan. 01, 2022 USD ($) employee	Dec. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($) employee	Dec. 28, 2019 USD ($)	Dec. 31, 2022 USD ($)	Apr. 02, 2022 USD ($)
Restructuring Cost and Reserve [Line Items]
Proceeds from sale of property, plant, and equipment			$ 2,111	$ 1,740	$ 145
Gain on sale of building			20,190	515	0
Deferred income tax provision (benefit)			7,159	(1,384)	142
Impairment charges			731	804	1,861	$ 2,336
Severance costs			603	176	1,118
Impairment of intangible asset			731	$ 804	1,861
China \| Land and Building
Restructuring Cost and Reserve [Line Items]
Proceeds from sale of property, plant, and equipment			25,159
Down payment (percentage)	6.00%			25.00%				31.00%
Gain on sale of building	$ 20,190
Net gain on sale of assets	15,143
Deferred income tax provision (benefit)	5,047
Receivable recorded, net	$ 16,082							$ 16,082
Period of recognition of gain on sale and a receivable for remaining amount of sales proceeds (in years)	2 years
Receivable outstanding			15,181				$ 15,181
2021 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Severance costs			603	$ 176
2021 Restructuring Plan \| Employee severance
Restructuring Cost and Reserve [Line Items]
Severance costs			205	176
2021 Restructuring Plan \| Facility and Other Closure Costs
Restructuring Cost and Reserve [Line Items]
Severance costs			398	0
2020 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Severance costs					1,118
2020 Restructuring Plan \| Employee severance
Restructuring Cost and Reserve [Line Items]
Severance costs					1,118
2020 Restructuring Plan \| Facility and Other Closure Costs
Restructuring Cost and Reserve [Line Items]
Severance costs					$ 0
Industrial Processing
Restructuring Cost and Reserve [Line Items]
Gain on sale of building			20,190
Pre-tax gain on sale of real estate				515
Cash proceeds from sale of real estate				1,634
Industrial Processing \| 2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Impairment charges			731
Severance costs			35
Write down of assets			549
Industrial Processing \| 2022 Restructuring Plan \| Fixed Assets
Restructuring Cost and Reserve [Line Items]
Impairment charges			182
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
Flow Control \| 2021 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated related to restructuring \| employee		5
Impairment of intangible asset				499
Impairment charges of ROU asset				79
Flow Control \| 2021 Restructuring Plan \| Machinery and Equipment
Restructuring Cost and Reserve [Line Items]
Impairment charges				$ 226
Flow Control \| 2021 Restructuring Plan \| Employee severance
Restructuring Cost and Reserve [Line Items]
Severance costs		$ 176	205				$ 381
Flow Control \| 2021 Restructuring Plan \| Facility and Other Closure Costs
Restructuring Cost and Reserve [Line Items]
Severance costs			$ 363
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
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

Gain on Sale and Other Costs, Net - Changes In Nontrade Receivables (Details) - CHINA - Land and Building - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2022	Apr. 02, 2022
Restructuring Cost and Reserve [Line Items]
Balance at Inception		$ 17,294
Present value discount		(1,212)
Receivable recorded, net		$ 16,082
Accretion of interest income	$ 422
Currency translation	(1,323)
Balance at End of Year	$ 15,181

Short- and Long-Term Obligations (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Short- and long-term obligations

Short- and long-term obligations are as follows:


(In thousands)	December 31, 2022		January 1, 2022
Revolving Credit Facility, due 2027	$	186,131	$	250,267
Senior Promissory Notes, due 2023 to 2028	10,000		10,000
Finance Leases, due 2023 to 2026	1,940		1,610
Other Borrowings, due 2023 to 2028	3,090		7,637
Total	201,161		269,514
Less: Short-Term Obligations and Current Maturities of Long-Term Obligations	(3,821)		(5,356)
Long-Term Obligations	$	197,340	$	264,158

Schedule of repayments of short-and long-term debt

The following schedule presents the annual repayment requirements for the Company’s short-and long-term obligations, excluding finance leases, as of year-end 2022.


(In thousands)
2023	$	2,840
2024	2,205
2025	2,210
2026	2,104
2027	188,136
2028	1,726
	$	199,221

Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Operating Leases:
ROU assets, current	$ 0	$ 2,341
ROU assets, noncurrent	22,642	24,998
Total operating lease assets	22,642	27,339
Short-term liabilities	4,458	4,596
Long-term liabilities	17,817	19,959
Total operating lease liabilities	22,275	24,555
Finance Leases:
ROU assets, at cost	3,901	4,076
ROU assets accumulated amortization	$ (1,994)	$ (2,489)
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	$ 1,907	$ 1,587
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	$ 981	$ 862
Long-term obligations	959	748
Total finance lease liabilities	$ 1,940	$ 1,610
Weighted Average Remaining Lease Term (in years):
Operating lease, weighted average remaining lease term (years)	8 years	8 years 8 months 12 days
Finance lease, weighted average remaining lease term (years)	2 years 2 months 12 days	2 years 1 month 6 days
Weighted Average Discount Rate:
Operating lease, weighted average discount rate (percent)	3.88%	3.82%
Finance lease, weighted average discount rate (percent)	3.79%	2.55%
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)

Acquisitions - 2020 Acquisition Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended			12 Months Ended
	Jun. 01, 2020	May 28, 2020	Apr. 02, 2022	Apr. 03, 2021	Jun. 27, 2020	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired						$ 3,474	$ 143,981	$ 7,095
Finite-lived intangible assets acquired						$ 2,183
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			$ 62	$ 125	$ 229
Consideration transferred		$ 416

Acquisitions

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

2022

On November 14, 2022, the Company acquired a business in Canada, which is included in the Company's Material Handling segment, for approximately $3,612,000, net of cash acquired.

2021

In the third quarter of 2021, the Company acquired all partnership interests and shares in 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 $25,773,000, of which $7,367,000 is expected to be deductible for tax purposes over 15 years. In addition, intangible assets acquired were $34,467,000, of which $6,444,000 is expected to be deductible for tax purposes over the respective useful lives. For 2021, 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 $53,547,000, 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 $26,334,000, 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. For 2021, 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.

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. Measurement period adjustments in 2022 were not material to the Company's results of operations.


(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	14,255		5,000		19,255
Property, Plant, and Equipment	24,045		5,143		29,188
Other Assets	6,056		2,922		8,978
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	25,773		27,449		53,222
Total assets acquired	116,327		74,672		190,999

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	9,013		6,760		15,773
Long-Term Obligations	4,244		—		4,244
Other Liabilities	8,240		6,929		15,169
Total liabilities assumed	24,177		14,486		38,663
Net assets acquired	$	92,150	$	60,186	$	152,336

Purchase Price:
Cash Paid	$	92,150	$	60,186	$	152,336

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 2021 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, $125,000 in the first quarter of 2021, and $62,000 in the first quarter of 2022. Intangible assets acquired represent product technology with a fair value of $557,000 at acquisition date.

Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Other Comprehensive Items:
Pension and other post-retirement liability adjustments, net	$ 225	$ (1)	$ 78
Deferred gain (loss) on cash flow hedges	$ 147	$ 118	$ (57)

Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended	12 Months Ended
	Jan. 01, 2022 USD ($)	Dec. 31, 2022 USD ($) segment	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)
Nature of Operations [Line Items]
Number of reportable segments \| segment		3
Revenue recognized from contract liabilities		$ 61,804,000	$ 33,128,000
Revenue, remaining performance obligation, amount		$ 49,866,000
Maturity period for bank acceptance		6 months
Due from bankers acceptances drafts	$ 8,049,000	$ 5,729,000	8,049,000
Impairment of intangible assets, finite-and definite lived		731,000	804,000	$ 1,861,000
Finite-lived intangible assets acquired		$ 2,183,000
Weighted average useful life of acquired intangible assets		13 years
Amortization expense of acquired intangible assets		$ 20,507,000	20,869,000	19,125,000
Estimated Future Amortization Expense [Abstract]
2023		18,380,000
2024		17,407,000
2025		15,474,000
2026		14,979,000
2027		14,078,000
Thereafter		67,077,000
Goodwill impairment loss		29,000	0	0
Acquisition related costs		$ 668,000	3,655,000	$ 485,000
Joint Venture with an Italian Company
Nature of Operations [Line Items]
Remaining ownership interest with an option to purchase		50.00%
Italian Company \| Joint Venture with an Italian Company
Nature of Operations [Line Items]
Ownership interest		50.00%
Product technology
Nature of Operations [Line Items]
Impairment of intangible assets, finite-and definite lived	$ 499,000		$ 499,000
Customer relationships
Nature of Operations [Line Items]
Weighted average useful life of acquired intangible assets		14 years

Consolidated Balance Sheet - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Current Assets:
Cash and cash equivalents	$ 76,371	$ 91,186
Restricted cash	3,354	2,975
Accounts receivable, net of allowances of $3,595 and $2,735	130,297	117,209
Inventories	163,672	134,356
Contract assets	14,898	8,626
Other current assets	26,818	29,530
Total Current Assets	415,410	383,882
Property, Plant, and Equipment, Net	118,855	107,989
Other Assets	54,516	44,111
Intangible Assets, Net (Notes 1 and 2)	175,645	199,343
Goodwill (Notes 1 and 2)	385,455	396,887
Total Assets	1,149,881	1,132,212
Current Liabilities:
Short-term obligations and current maturities of long-term obligations (Note 6)	3,821	5,356
Accounts payable	58,060	59,250
Accrued payroll and employee benefits	35,672	37,203
Customer deposits	64,361	59,262
Advanced billings	7,966	11,894
Other current liabilities	43,581	48,532
Total Current Liabilities	213,461	221,497
Long-Term Obligations (Note 6)	197,340	264,158
Long-Term Deferred Income Taxes (Note 5)	38,745	34,944
Other Long-Term Liabilities	44,764	45,997
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	119,924	115,888
Retained earnings	660,644	551,848
Treasury stock at cost, 2,949,997 and 3,003,419 shares	(72,287)	(73,596)
Accumulated other comprehensive items (Note 14)	(54,578)	(30,350)
Total Kadant Stockholders' Equity	653,849	563,936
Noncontrolling interest	1,722	1,680
Total Stockholders' Equity	655,571	565,616
Total Liabilities and Stockholders' Equity	$ 1,149,881	$ 1,132,212

Business Segment and Geographical Information

12 Months Ended

Dec. 31, 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)	December 31, 2022		January 1, 2022		January 2, 2021
Revenue
Flow Control (a)	$	349,107	$	288,788	$	225,444
Industrial Processing	353,698		328,762		261,577
Material Handling (b)	201,934		169,029		148,007
	$	904,739	$	786,579	$	635,028
Income Before Provision for Income Taxes
Flow Control (a,c)	$	89,942	$	65,509	$	51,530
Industrial Processing (d)	89,754		66,569		42,971
Material Handling (b,e)	27,644		17,543		14,375
Corporate (f)	(36,058)		(32,911)		(27,752)
Total operating income	171,282		116,710		81,124
Interest expense, net (g)	(5,574)		(4,554)		(7,242)
Other expense, net (g)	(72)		(104)		(195)
	$	165,636	$	112,052	$	73,687
Total Assets (h)
Flow Control (a)	$	386,804	$	382,379	$	263,141
Industrial Processing	419,095		405,575		379,965
Material Handling (b)	336,492		334,785		273,909
Corporate (i)	7,490		9,473		10,556
	$	1,149,881	$	1,132,212	$	927,571
Depreciation and Amortization
Flow Control (a)	$	9,179	$	8,366	$	6,333
Industrial Processing	12,575		13,467		13,163
Material Handling (b)	13,085		12,341		11,628
Corporate	97		128		210
	$	34,936	$	34,302	$	31,334


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Capital Expenditures
Flow Control (a)	$	4,425	$	4,128	$	2,808
Industrial Processing (j)	20,137		6,412		3,123
Material Handling (b)	3,575		2,211		1,539
Corporate	62		20		125
	$	28,199	$	12,771	$	7,595
Geographical Information
Revenue (k):
United States (b)	$	404,835	$	328,456	$	286,015
Canada	87,951		79,426		62,059
China	85,500		82,121		51,003
Germany (a)	45,994		37,178		23,292

Other	280,459		259,398		212,659
	$	904,739	$	786,579	$	635,028
Long-lived Assets (l):
United States (b)	$	47,483	$	43,418	$	40,293
Canada	8,344		8,460		7,221

China (j)	15,834		6,613		9,844
Germany (a)	22,437		25,188		6,051
Other	24,757		24,310		21,233
	$	118,855	$	107,989	$	84,642

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

(b)Includes results from Balemaster, which was acquired on August 23, 2021 (see Note 2, Acquisitions).

(c)Includes acquisition-related expenses of $254,000 and $6,191,000 in 2022 and 2021, respectively. Acquisition-related expenses include acquisition costs and amortization expense associated with acquired profit in inventory and backlog. Includes non-cash charges for the write-off of indemnification assets of $741,000 in 2022. Includes impairment and restructuring costs of $568,000, $980,000 and $659,000 in 2022, 2021 and 2020, respectively.

(d)Includes a gain on the sale of a facility of $20,190,000 (see Note 8, Gain on Sale and Other Costs, Net), non-cash charges for the write-off of an indemnification asset of $575,000 and impairment and restructuring costs of $766,000 in 2022. Includes a gain on the sale of a building of $515,000 and acquisition-related expenses of $223,000 in 2021. Includes acquisition-related expenses of $679,000 and impairment and restructuring costs of $2,138,000 in 2020.

(e)Includes acquisition-related expenses of $899,000, $2,851,000, and $350,000 in 2022, 2021 and 2020, respectively.

(f)Represents general and administrative expenses.

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

(h)Excludes all intercompany receivables or payables and investment in subsidiary balances.

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

(j)Includes capital expenditures of $10,379,000 in 2022 associated with the construction of a manufacturing facility in China. See Note 8, Gain on Sale and Other Costs, Net.

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

(l)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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 32
-Subparagraph (f)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (e)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Nature of Operations and Summary of Significant Accounting Policies - Changes in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Year	$ 2,735	$ 2,977	$ 2,698
Provision charged to expense	1,165	5	356
Accounts written off	(129)	(178)	(266)
Currency translation	(176)	(69)	189
Balance at End of Year	$ 3,595	$ 2,735	$ 2,977

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Items	Noncontrolling Interest
Beginning balance, common (in shares) at Dec. 28, 2019		14,624,159
Beginning balance, treasury (in shares) at Dec. 28, 2019					3,214,888
Beginning balance at Dec. 28, 2019	$ 427,079	$ 146	$ 106,698	$ 435,249	$ (78,778)	$ (37,620)	$ 1,384
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	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, common (in shares) at Jan. 02, 2021		14,624,159
Ending balance, treasury (in shares) at Jan. 02, 2021					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)
Noncontrolling interest acquired (Note 2)	367						367
Purchase of shares of noncontrolling interest (Note 2)	(389)						(389)
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)
Ending balance, common (in shares) at Jan. 01, 2022		14,624,159
Ending balance, treasury (in shares) at Jan. 01, 2022	3,003,419				3,003,419
Ending balance at Jan. 01, 2022	$ 565,616	$ 146	115,888	551,848	$ (73,596)	(30,350)	1,680
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	121,730			120,928			802
Dividends declared - common stock	(12,132)			(12,132)
Dividend paid to noncontrolling interest	(630)						(630)
Activity under stock plans (in shares)					(53,422)
Activity under stock plans	5,345		4,036		$ 1,309
Other comprehensive items	$ (24,358)					(24,228)	(130)
Ending balance, common (in shares) at Dec. 31, 2022		14,624,159
Ending balance, treasury (in shares) at Dec. 31, 2022	2,949,997				2,949,997
Ending balance at Dec. 31, 2022	$ 655,571	$ 146	$ 119,924	$ 660,644	$ (72,287)	$ (54,578)	$ 1,722

Acquisitions - 2021 Acquisition Additional Information (Details)		3 Months Ended		4 Months Ended	5 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 ($)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)
Business Acquisition [Line Items]
Goodwill		$ 396,887,000		$ 396,887,000	$ 396,887,000	$ 385,455,000	$ 396,887,000	$ 351,753,000
Acquisition related costs						668,000	3,655,000	485,000
Payments to acquire businesses, net of cash acquired						$ 3,474,000	143,981,000	7,095,000
Industrial Processing
Business Acquisition [Line Items]
Acquisition related costs							223,000	$ 679,000
Clouth
Business Acquisition [Line Items]
Consideration transferred			$ 92,864,000
Goodwill			25,773,000
Goodwill, expected tax deductible amount			7,367,000
Intangible assets other than goodwill acquired			34,467,000
Intangible assets other than goodwill, expected tax deductible amount			$ 6,444,000
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	$ 26,334,000
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	$ 53,547,000
Other
Business Acquisition [Line Items]
Goodwill		27,449,000		$ 27,449,000	$ 27,449,000		$ 27,449,000
Other \| Industrial Processing \| India
Business Acquisition [Line Items]
Consideration transferred		$ 2,882,000

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
Document and Entity Information - USD ($) $ in Thousands	Dec. 31, 2022	Feb. 17, 2023	Jul. 02, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-11406
Entity Registrant Name	KADANT INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-1762325
Entity Address, Address Line One	One Technology Park Drive
Entity Address, City or Town	Westford
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01886
City Area Code	978
Local Phone Number	776-2000
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	KAI
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 2,138,187
Entity Common Stock, Shares Outstanding		11,674,218
Documents Incorporated by Reference	Portions of the Registrant's definitive Proxy Statement pursuant to Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended, to be used in connection with the Registrant's 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K.
Entity Central Index Key	0000886346
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false

Employee Benefit Plans - Components Stock-Based Compensation Expense (Details) - Selling, general and administrative expenses - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 8,576	$ 8,527	$ 6,776
RSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	8,222	8,224	6,453
Employee Stock Purchase Plan Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 354	$ 303	$ 323

Consolidated Statement of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income Statement [Abstract]
Revenue (Notes 1 and 12)	$ 904,739	$ 786,579	$ 635,028
Costs and Operating Expenses:
Cost of revenue	515,184	449,214	357,722
Selling, general, and administrative expenses	224,405	208,787	181,905
Research and development expenses	12,724	11,403	11,298
Gain on sale and other costs, net (Note 8)	(18,856)	465	2,979
Total Costs and Operating Expenses	733,457	669,869	553,904
Operating Income	171,282	116,710	81,124
Interest Income	904	267	181
Interest Expense	(6,478)	(4,821)	(7,423)
Other Expense, Net	(72)	(104)	(195)
Income Before Provision for Income Taxes	165,636	112,052	73,687
Provision for Income Taxes (Note 5)	43,906	27,171	17,948
Net Income	121,730	84,881	55,739
Net Income Attributable to Noncontrolling Interest	(802)	(838)	(543)
Net income attributable to Kadant	$ 120,928	$ 84,043	$ 55,196
Earnings per Share Attributable to Kadant (Note 13)
Basic (in dollars per share)	$ 10.38	$ 7.26	$ 4.81
Diluted (in dollars per share)	$ 10.35	$ 7.21	$ 4.77
Weighted Average Shares (Note 13)
Basic (in shares)	11,654	11,579	11,482
Diluted (in shares)	11,688	11,655	11,564

Nature of Operations and Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Accounting Policies [Abstract]
Cash Paid for Interest	$ 6,053	$ 4,441	$ 6,899
Cash Paid for Income Taxes, Net of Refunds	36,971	24,174	17,506
Non-Cash Investing Activities:
Fair value of assets acquired	2,785	190,977	9,295
Cash paid for acquired businesses	(3,597)	(152,661)	(7,565)
Liabilities (adjusted) assumed of acquired businesses	(812)	38,316	1,730
Purchase of property with outstanding loan receivable	1,397	0	0
Purchases of property, plant and equipment in accounts payable	1,040	363	1,060
Non-Cash Financing Activities:
Issuance of Company common stock upon vesting of RSUs	5,555	4,108	4,781
Dividends declared but unpaid	$ 3,036	$ 2,905	$ 2,770

Accumulated Other Comprehensive Items

12 Months Ended

Dec. 31, 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) Gain on Cash Flow Hedges		Total
Balance at January 1, 2022	$	(29,096)	$	(792)	$	(462)	$	(30,350)
Other comprehensive items before reclassifications	(25,392)		610		362		(24,420)
Reclassifications from AOCI	—		34		158		192
Net current period other comprehensive items	(25,392)		644		520		(24,228)
Balance at December 31, 2022	$	(54,488)	$	(148)	$	58	$	(54,578)

Amounts reclassified out of AOCI are as follows:


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021		Statement of Income Line Item
Retirement Benefit Plans
Recognized net actuarial loss	$	(36)	$	(50)	$	(66)	Other expense, net
Amortization of prior service cost	(10)		(12)		(55)		Other expense, net

Total expense before income taxes	(46)		(62)		(121)
Income tax benefit	12		17		153		Provision for income taxes
	(34)		(45)		32
Cash Flow Hedges (a)
Interest rate swap agreements	(208)		(451)		(333)		Interest expense
Forward currency-exchange contracts	—		—		28		Cost of revenue
Forward currency-exchange contracts	—		157		—		SG&A expense
Total expense before income taxes	(208)		(294)		(305)
Income tax benefit	50		70		73		Provision for income taxes
	(158)		(224)		(232)
Total Reclassifications	$	(192)	$	(269)	$	(200)

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

Employee Benefit Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	May 31, 2022	Jul. 31, 2020	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of shares available for grant (in shares)			313,104
Cost recognized, defined contribution plan			$ 5,151	$ 4,706	$ 4,501
Restricted stock units for non employee directors (RSUs)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Granted (in shares)	470	1,042	941	1,009	2,085
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			$ 2,563
Compensation cost not yet recognized, recognition period			1 year 3 months 18 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			$ 3,841
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)			50,000
Weighted average grant date fair value, granted (in dollars per share)			$ 170.76	$ 174.52	$ 88.22
Fair value of awards vested in period			$ 8,337	$ 5,892	$ 7,343
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	0
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)			82,532
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)			9,111	10,230	13,062
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

Commitments and Contingencies - Letters of Credit and Bank Guarantees (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Performance Obligations and Customer Deposit Guarantees
Line of Credit Facility [Line Items]
Outstanding letters of credit and bank guarantees	$ 32,533

Stockholders' Equity - Additional Information (Details) - $ / shares	Dec. 31, 2022	Jan. 01, 2022
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)	481,113

Accumulated Other Comprehensive Items - Reclassification Out of AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	$ (72)	$ (104)	$ (195)
Total expense before income taxes	165,636	112,052	73,687
Income tax benefit	(43,906)	(27,171)	(17,948)
Interest expense	(6,478)	(4,821)	(7,423)
Cost of revenue	(515,184)	(449,214)	(357,722)
SG&A expense	(224,405)	(208,787)	(181,905)
Net Income	121,730	84,881	55,739
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Net Income	(192)	(269)	(200)
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	(46)	(62)	(121)
Income tax benefit	12	17	153
Net Income	(34)	(45)	32
Reclassification out of Accumulated Other Comprehensive Income \| Recognized net actuarial loss
Reclassification Adjustment Out Of Accumulated Other Comprehensive Items [Line Items]
Other expense, net	(36)	(50)	(66)
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	(10)	(12)	(55)
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	(208)	(294)	(305)
Income tax benefit	50	70	73
Net Income	(158)	(224)	(232)
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	(208)	(451)	(333)
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	0	28
SG&A expense	$ 0	$ 157	$ 0

Derivatives - Additional Information (Details)	12 Months Ended
Derivatives - Additional Information (Details)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)
Derivatives, Fair Value [Line Items]
Gain from AOCI to earnings	$ 655,571,000	$ 565,616,000	$ 496,905,000	$ 427,079,000
Deferred (Loss) Gain on Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Gain from AOCI to earnings	58,000	(462,000)
Forward Currency- Exchange Contracts \| Deferred (Loss) Gain on Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Gain from AOCI to earnings	$ (41,000)	$ (33,000)
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

Income Taxes - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) foreignTaxJurisdiction	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)
Income Tax Disclosure [Abstract]
Excess tax benefit related to share-based compensation	$ 501	$ 1,808	$ 758
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	8,983	9,212
Decrease of deferred tax asset valuation allowance	229
Foreign tax credits	368
Undistributed earnings of foreign subsidiaries	248,103
Foreign earnings repatriated	39,081
Foreign currency transaction loss	2,673
Provision for unremitted foreign earnings	764
Undistributed earnings of foreign subsidiaries excluding those repatriated back domestically	228,972
Estimated withholding liability related to undistributed earnings of foreign subsidiaries	4,095
Unrecognized tax benefits that would impact effective tax rate	10,354
Income tax penalties and accrued interest from unrecognized tax benefits	1,806	1,704
Income tax penalties and interest benefit from unrecognized tax benefits	$ 333	$ 129
Number of foreign tax jurisdictions \| foreignTaxJurisdiction	4
Estimated amount of liability for unrecognized tax benefit to be reduced next year	$ 122
Internal revenue service (IRS)
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	160
Domestic tax authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	1,002
Interest carryforward	71
Foreign tax authority
Operating Loss Carryforwards [Line Items]
Deferred tax assets, valuation allowance	8,823
Operating loss carryforwards	51,804
Operating loss carryforwards, subject to expiration	1,451
State and local jurisdiction
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	22,587
Syntron Material Handling Group, LLC
Operating Loss Carryforwards [Line Items]
Foreign tax credits	$ 120

Employee Benefit Plans - Stock Option Exercises (Details) - Stock Option Awards - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total Intrinsic Value of Options Exercised	$ 0	$ 4,986	$ 4,071
Cash Received from Options Exercised	$ 0	$ 665	$ 1,123

Nature of Operations and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 76,371	$ 91,186	$ 65,682
Restricted cash	3,354	2,975	958
Total Cash, Cash Equivalents, and Restricted Cash	$ 79,725	$ 94,161	$ 66,640	$ 68,273

Business Segment and Geographical Information (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Business segment information

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


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Revenue
Flow Control (a)	$	349,107	$	288,788	$	225,444
Industrial Processing	353,698		328,762		261,577
Material Handling (b)	201,934		169,029		148,007
	$	904,739	$	786,579	$	635,028
Income Before Provision for Income Taxes
Flow Control (a,c)	$	89,942	$	65,509	$	51,530
Industrial Processing (d)	89,754		66,569		42,971
Material Handling (b,e)	27,644		17,543		14,375
Corporate (f)	(36,058)		(32,911)		(27,752)
Total operating income	171,282		116,710		81,124
Interest expense, net (g)	(5,574)		(4,554)		(7,242)
Other expense, net (g)	(72)		(104)		(195)
	$	165,636	$	112,052	$	73,687
Total Assets (h)
Flow Control (a)	$	386,804	$	382,379	$	263,141
Industrial Processing	419,095		405,575		379,965
Material Handling (b)	336,492		334,785		273,909
Corporate (i)	7,490		9,473		10,556
	$	1,149,881	$	1,132,212	$	927,571
Depreciation and Amortization
Flow Control (a)	$	9,179	$	8,366	$	6,333
Industrial Processing	12,575		13,467		13,163
Material Handling (b)	13,085		12,341		11,628
Corporate	97		128		210
	$	34,936	$	34,302	$	31,334


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Capital Expenditures
Flow Control (a)	$	4,425	$	4,128	$	2,808
Industrial Processing (j)	20,137		6,412		3,123
Material Handling (b)	3,575		2,211		1,539
Corporate	62		20		125
	$	28,199	$	12,771	$	7,595
Geographical Information
Revenue (k):
United States (b)	$	404,835	$	328,456	$	286,015
Canada	87,951		79,426		62,059
China	85,500		82,121		51,003
Germany (a)	45,994		37,178		23,292

Other	280,459		259,398		212,659
	$	904,739	$	786,579	$	635,028
Long-lived Assets (l):
United States (b)	$	47,483	$	43,418	$	40,293
Canada	8,344		8,460		7,221

China (j)	15,834		6,613		9,844
Germany (a)	22,437		25,188		6,051
Other	24,757		24,310		21,233
	$	118,855	$	107,989	$	84,642

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

(b)Includes results from Balemaster, which was acquired on August 23, 2021 (see Note 2, Acquisitions).

(e)Includes acquisition-related expenses of $899,000, $2,851,000, and $350,000 in 2022, 2021 and 2020, respectively.

(f)Represents general and administrative expenses.

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

(h)Excludes all intercompany receivables or payables and investment in subsidiary balances.

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

(j)Includes capital expenditures of $10,379,000 in 2022 associated with the construction of a manufacturing facility in China. See Note 8, Gain on Sale and Other Costs, Net.

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

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

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 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 2022, the Company had reserved 481,113 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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 14
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=126973232&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 https://asc.fasb.org/extlink&oid=126973232&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 https://asc.fasb.org/extlink&oid=126973232&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 https://asc.fasb.org/extlink&oid=126973232&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 https://asc.fasb.org/extlink&oid=126973232&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 https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 50
-Paragraph 6
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008

+ Details

Income Taxes - Components of Provision for Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Current Provision:
Federal	$ 8,738	$ 2,173	$ 339
Foreign	26,032	25,512	16,800
State	1,977	870	667
Current provision	36,747	28,555	17,806
Deferred Provision (Benefit):
Federal	1,970	1,823	2,146
Foreign	4,233	(3,430)	(2,361)
State	956	223	357
Deferred (benefit) provision	7,159	(1,384)	142
Total income tax provision	$ 43,906	$ 27,171	$ 17,948

Derivatives - AOCI Activity (Details) $ in Thousands	12 Months Ended
Derivatives - AOCI Activity (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 565,616
Ending balance	655,571
Deferred (Loss) Gain on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(462)
Loss reclassified to earnings	158
Gain (loss) recognized in AOCI	362
Ending balance	58
Deferred (Loss) Gain on Cash Flow Hedges \| Interest Rate Swap Agreements
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(429)
Loss reclassified to earnings	158
Gain (loss) recognized in AOCI	370
Ending balance	99
Deferred (Loss) Gain on Cash Flow Hedges \| Forward Currency- Exchange Contracts
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(33)
Loss reclassified to earnings	0
Gain (loss) recognized in AOCI	(8)
Ending balance	$ (41)

- Definition

+ References

+ Details

Gain on Sale and Other Costs, Net - Summary of Items Included In Gain On Sale And Other Costs, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Restructuring and Related Activities [Abstract]
Gain on Sale of Assets	$ (20,190)	$ (515)	$ 0
Impairment Costs	731	804	1,861	$ 2,336
Restructuring Costs	603	176	1,118
Total gain on sale and other costs, net	$ (18,856)	$ 465	$ 2,979

Business Segment and Geographical Information - Revenues and Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Revenue
Revenue	$ 904,739	$ 786,579	$ 635,028
Income Before Provision for Income Taxes
Total operating income	171,282	116,710	81,124
Interest expense, net	(5,574)	(4,554)	(7,242)
Other expense, net	(72)	(104)	(195)
Income Before Provision for Income Taxes	165,636	112,052	73,687
Total Assets
Total assets	1,149,881	1,132,212	927,571
Depreciation and Amortization
Depreciation and amortization	34,936	34,302	31,334
Capital Expenditures
Capital expenditures	28,199	12,771	7,595
Geographical Information
Long-lived assets	118,855	107,989	84,642
United States
Revenue
Revenue	404,835	328,456	286,015
Geographical Information
Long-lived assets	47,483	43,418	40,293
Canada
Revenue
Revenue	87,951	79,426	62,059
Geographical Information
Long-lived assets	8,344	8,460	7,221
China
Revenue
Revenue	85,500	82,121	51,003
Geographical Information
Long-lived assets	15,834	6,613	9,844
Germany
Revenue
Revenue	45,994	37,178	23,292
Geographical Information
Long-lived assets	22,437	25,188	6,051
Other
Revenue
Revenue	280,459	259,398	212,659
Geographical Information
Long-lived assets	24,757	24,310	21,233
Operating Segments \| Flow Control
Revenue
Revenue	349,107	288,788	225,444
Income Before Provision for Income Taxes
Total operating income	89,942	65,509	51,530
Total Assets
Total assets	386,804	382,379	263,141
Depreciation and Amortization
Depreciation and amortization	9,179	8,366	6,333
Capital Expenditures
Capital expenditures	4,425	4,128	2,808
Operating Segments \| Industrial Processing
Revenue
Revenue	353,698	328,762	261,577
Income Before Provision for Income Taxes
Total operating income	89,754	66,569	42,971
Total Assets
Total assets	419,095	405,575	379,965
Depreciation and Amortization
Depreciation and amortization	12,575	13,467	13,163
Capital Expenditures
Capital expenditures	20,137	6,412	3,123
Operating Segments \| Material Handling
Revenue
Revenue	201,934	169,029	148,007
Income Before Provision for Income Taxes
Total operating income	27,644	17,543	14,375
Total Assets
Total assets	336,492	334,785	273,909
Depreciation and Amortization
Depreciation and amortization	13,085	12,341	11,628
Capital Expenditures
Capital expenditures	3,575	2,211	1,539
Corporate
Income Before Provision for Income Taxes
Total operating income	(36,058)	(32,911)	(27,752)
Total Assets
Total assets	7,490	9,473	10,556
Depreciation and Amortization
Depreciation and amortization	97	128	210
Capital Expenditures
Capital expenditures	$ 62	$ 20	$ 125

Income Taxes (Tables)

12 Months Ended

Dec. 31, 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)	December 31, 2022		January 1, 2022		January 2, 2021
Domestic	$	46,558	$	26,599	$	14,132
Foreign	119,078		85,453		59,555
	$	165,636	$	112,052	$	73,687

Components of the provision for income taxes from continuing operations

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


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Current Provision:
Federal	$	8,738	$	2,173	$	339
Foreign	26,032		25,512		16,800
State	1,977		870		667
	36,747		28,555		17,806
Deferred Provision (Benefit):
Federal	1,970		1,823		2,146
Foreign	4,233		(3,430)		(2,361)
State	956		223		357
	7,159		(1,384)		142
	$	43,906	$	27,171	$	17,948

Income tax reconciliation


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Provision for Income Taxes at Statutory Rate	$	34,784	$	23,531	$	15,474
Increases (Decreases) Resulting From:
Foreign tax rate differential	5,770		2,819		1,891
Nondeductible expenses	2,683		1,673		2,117
State income taxes, net of federal income tax	2,316		863		807
Reversal of tax benefit reserves, net	(1,368)		(444)		(730)
U.S. tax cost of foreign earnings	932		481		599
Research and development tax credits	(425)		(454)		(465)
Excess tax benefit related to stock-based compensation	(377)		(1,525)		(661)
Change in valuation allowance	318		(31)		(469)
Other	(727)		258		(615)
	$	43,906	$	27,171	$	17,948

Net deferred tax (liability) asset

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


(In thousands)	December 31, 2022		January 1, 2022
Deferred Tax Asset:
Net operating loss carryforwards	$	13,057	$	14,162
Lease liabilities	6,031		6,393
Inventory basis difference	4,118		4,600
Employee compensation	3,697		4,368
Capitalized research expenses	3,398		2,349
Reserves and accruals	1,949		3,167
Allowance for credit losses	673		420
Foreign, state, and alternative minimum tax credit carryforwards	490		508
Other	122		48
Deferred tax asset, gross	33,535		36,015
Less: valuation allowance	(8,983)		(9,212)
Deferred tax asset, net	24,552		26,803
Deferred Tax Liability:
Goodwill and intangible assets	(41,129)		(43,780)
Fixed asset basis difference	(11,438)		(6,009)
ROU assets	(5,145)		(5,431)
Provision for unremitted foreign earnings	(783)		(559)
Other	(1,976)		(1,819)
Deferred tax liability	(60,471)		(57,598)
Net deferred tax liability	$	(35,919)	$	(30,795)

Unrecognized tax benefits

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


(In thousands)	December 31, 2022		January 1, 2022
Unrecognized Tax Benefits, Beginning of Year	$	9,731	$	8,337
Gross Increases—Tax Positions in Prior Periods	2,116		2,409
Gross Decreases—Tax Positions in Prior Periods	(138)		(2,182)
Gross Increases—Current-period Tax Positions	1,260		1,920
Lapses of Statutes of Limitations	(2,251)		(649)
Currency Translation	(364)		(104)
Unrecognized Tax Benefits, End of Year	$	10,354	$	9,731

Nature of Operations and Summary of Significant Accounting Policies - Revenue from Contract with Customers (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Accounting Policies [Abstract]
Contract Assets	$ 14,898	$ 8,626
Contract Liabilities	$ 82,413	$ 77,004

Acquisitions - 2021 Acquisition Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Earnings per Share Attributable to Kadant
Cost of revenue	$ 515,184	$ 449,214	$ 357,722
Selling, general, and administrative expenses	$ 224,405	208,787	181,905
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

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Operating Activities
Net income attributable to Kadant	$ 120,928	$ 84,043	$ 55,196
Net income attributable to noncontrolling interest	802	838	543
Net income	121,730	84,881	55,739
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	34,936	34,302	31,334
Stock-based compensation expense	8,576	8,527	6,776
Provision for losses on accounts receivable	1,165	5	356
Gain on sale of assets (Note 8)	(20,190)	(515)	0
Non-cash impairment costs (Note 8)	731	804	1,861
Deferred income tax provision (benefit)	7,159	(1,384)	142
Other items, net	6,658	6,473	4,712
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable	(18,515)	(16,737)	7,116
Contract assets	(6,715)	(1,222)	6,073
Inventories	(36,116)	(11,173)	(89)
Other assets	(5,566)	(15,033)	(833)
Accounts payable	1,362	26,346	(15,620)
Customer deposits	14,358	27,693	3,903
Other liabilities	(6,948)	19,453	(8,586)
Net cash provided by operating activities	102,625	162,420	92,884
Investing Activities
Acquisitions, net of cash acquired (Note 2)	(3,474)	(143,981)	(7,095)
Purchases of property, plant, and equipment	(28,199)	(12,771)	(7,595)
Proceeds from sale of property, plant, and equipment	2,111	1,740	145
Other investing activities	42	537	0
Net cash used in investing activities	(29,520)	(154,475)	(14,545)
Financing Activities
Proceeds from issuance of short-and long-term obligations	22,057	151,944	26,000
Repayment of short- and long-term obligations	(85,510)	(115,576)	(99,547)
Dividends paid	(12,001)	(11,460)	(10,903)
Proceeds from issuance of Company common stock	1,376	1,892	3,207
Tax withholding payments related to stock-based compensation	(4,607)	(3,432)	(2,599)
Dividend paid to noncontrolling interest	(630)	(560)	(525)
Other financing activities	(1,254)	0	(189)
Net cash (used in) provided by financing activities	(80,569)	22,808	(84,556)
Exchange Rate Effect on Cash, Cash Equivalents, and Restricted Cash	(6,972)	(3,232)	4,584
(Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash	(14,436)	27,521	(1,633)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Year	94,161	66,640	68,273
Cash, Cash Equivalents, and Restricted Cash at End of Year	$ 79,725	$ 94,161	$ 66,640

Earnings per Share - Additional Information (Details) - shares	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Restricted stock unit awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Amount of antidilutive securities excluded from computation of EPS	7,500	14,200	22,900

Commitments and Contingencies - Right of Recourse (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Commitments and Contingencies Disclosure [Abstract]
Maturity period for bank acceptance (in months)	6 months
Banker's acceptances drafts	$ 11,238	$ 9,593

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 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)	December 31, 2022		January 1, 2022		January 2, 2021
RSU Awards	$	8,222	$	8,224	$	6,453
Employee Stock Purchase Plan Awards	354		303		323
Total	$	8,576	$	8,527	$	6,776

Summary of activity of the unvested restricted stock units

A summary of the activity of the Company's unvested RSUs in 2022 is as follows:


(In thousands, except per share amounts)	Units	Weighted Average Grant- Date Fair Value
Unvested RSUs at January 1, 2022	107	$	127.70
Granted	50	$	170.76
Vested	(67)	$	123.93
Forfeited	(5)	$	168.18
Unvested RSUs at December 31, 2022	85	$	153.98

Summary of stock option exercises

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


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Total Intrinsic Value of Options Exercised	$	—	$	4,986	$	4,071
Cash Received from Options Exercised	$	—	$	665	$	1,123

Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$ 6,159	$ 12,474	$ 5,782
Operating cash flows from finance leases	51	46	74
Financing cash flows from finance leases	1,002	1,044	1,139
ROU Assets Obtained in Exchange for Lease Obligations:
Right-of-use asset obtained in exchange for operating lease liability	4,002	7,247	2,560
Right-of-use asset obtained in exchange for finance lease liability	$ 1,468	$ 1,147	$ 622

Nature of Operations and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Goodwill [Roll Forward]
Gross balance, beginning balance	$ 482,396,000	$ 437,262,000
Accumulated impairment losses	(85,509,000)	(85,509,000)
Net balance, beginning balance	396,887,000	351,753,000
Acquisitions (Note 2)	1,198,000	53,757,000
Impairment loss	(29,000)	0	$ 0
Currency translation	(12,601,000)	(8,623,000)
Goodwill period activity	(11,432,000)	45,134,000
Gross balance, ending balance	470,993,000	482,396,000	437,262,000
Accumulated impairment losses	(85,538,000)	(85,509,000)	(85,509,000)
Net balance, ending balance	385,455,000	396,887,000	351,753,000
2022 Business Acquisitions
Goodwill [Roll Forward]
Acquisitions (Note 2)	1,733,000
Fluid-Handling
Goodwill [Roll Forward]
Net balance, beginning balance	64,003,000
Net balance, ending balance	62,426,000	64,003,000
Doctoring, Cleaning, & Filtration
Goodwill [Roll Forward]
Net balance, beginning balance	59,586,000
Net balance, ending balance	55,883,000	59,586,000
Stock-Preparation
Goodwill [Roll Forward]
Net balance, beginning balance	20,819,000
Net balance, ending balance	20,311,000	20,819,000
Wood Processing
Goodwill [Roll Forward]
Net balance, beginning balance	108,654,000
Net balance, ending balance	104,070,000	108,654,000
Material Handling
Goodwill [Roll Forward]
Net balance, beginning balance	143,825,000
Net balance, ending balance	142,765,000	143,825,000
Operating Segments \| Flow Control
Goodwill [Roll Forward]
Gross balance, beginning balance	123,589,000	101,437,000
Accumulated impairment losses	0	0
Net balance, beginning balance	123,589,000	101,437,000
Acquisitions (Note 2)	(33,000)	25,805,000
Impairment loss	0
Currency translation	(5,247,000)	(3,653,000)
Goodwill period activity	(5,280,000)	22,152,000
Gross balance, ending balance	118,309,000	123,589,000	101,437,000
Accumulated impairment losses	0	0	0
Net balance, ending balance	118,309,000	123,589,000	101,437,000
Operating Segments \| Industrial Processing
Goodwill [Roll Forward]
Gross balance, beginning balance	214,982,000	215,881,000
Accumulated impairment losses	(85,509,000)	(85,509,000)
Net balance, beginning balance	129,473,000	130,372,000
Acquisitions (Note 2)	0	1,116,000
Impairment loss	(29,000)
Currency translation	(5,063,000)	(2,015,000)
Goodwill period activity	(5,092,000)	(899,000)
Gross balance, ending balance	209,919,000	214,982,000	215,881,000
Accumulated impairment losses	(85,538,000)	(85,509,000)	(85,509,000)
Net balance, ending balance	124,381,000	129,473,000	130,372,000
Operating Segments \| Material Handling
Goodwill [Roll Forward]
Gross balance, beginning balance	143,825,000	119,944,000
Accumulated impairment losses	0	0
Net balance, beginning balance	143,825,000	119,944,000
Acquisitions (Note 2)	1,231,000	26,836,000
Impairment loss	0
Currency translation	(2,291,000)	(2,955,000)
Goodwill period activity	(1,060,000)	23,881,000
Gross balance, ending balance	142,765,000	143,825,000	119,944,000
Accumulated impairment losses	0	0	0
Net balance, ending balance	$ 142,765,000	$ 143,825,000	$ 119,944,000

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Components of lease expense

The components of lease expense are as follows:


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Operating Lease Cost	$	5,870	$	5,895	$	5,602

Short-Term Lease Cost	697		674		671

Finance Lease Cost:
ROU asset amortization	1,026		1,045		1,157
Interest on lease liabilities	52		46		74
Total Finance Lease Cost	1,078		1,091		1,231

Total Lease Costs	$	7,645	$	7,660	$	7,504

Supplemental cash flow information related to leases is as follows:


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$	6,159	$	12,474	$	5,782
Operating cash flows from finance leases	$	51	$	46	$	74
Financing cash flows from finance leases	$	1,002	$	1,044	$	1,139

ROU Assets Obtained in Exchange for Lease Obligations:
Operating leases	$	4,002	$	7,247	$	2,560
Finance leases	$	1,468	$	1,147	$	622

Supplemental balance sheet information

Supplemental balance sheet information related to leases is as follows:


(In thousands)	Balance Sheet Line Item	December 31, 2022		January 1, 2022
Operating Leases:
ROU assets	Other current assets	$	—	$	2,341
ROU assets	Other assets	22,642		24,998
Total operating lease assets		$	22,642	$	27,339

Short-term liabilities	Other current liabilities	$	4,458	$	4,596
Long-term liabilities	Other long-term liabilities	17,817		19,959
Total operating lease liabilities		$	22,275	$	24,555

Finance Leases:
ROU assets, at cost	Property, plant, and equipment, at cost	$	3,901	$	4,076
ROU assets accumulated amortization	Accumulated depreciation and amortization	(1,994)		(2,489)
ROU assets, net	Property, plant, and equipment, net	$	1,907	$	1,587

Short-term obligations	Short-term obligations and current maturities of long-term obligations	$	981	$	862
Long-term obligations	Long-term obligations	959		748
Total finance lease liabilities		$	1,940	$	1,610


	December 31, 2022		January 1, 2022
Weighted Average Remaining Lease Term (in years):
Operating leases	8.0		8.7
Finance leases	2.2		2.1

Weighted Average Discount Rate:
Operating leases	3.88	%	3.82	%
Finance leases	3.79	%	2.55	%

Future lease payments for operating lease liabilities

As of December 31, 2022, future lease payments for lease liabilities are as follows:


	Operating		Finance
(In thousands)	Leases		Leases
2023	$	5,220	$	1,036
2024	4,247		685
2025	3,086		301
2026	2,312		3
2027	1,989		—
2028 and Thereafter	9,338		—
Total Future Lease Payments	26,192		2,025
Less: Imputed Interest	(3,917)		(85)
Present Value of Lease Payments	$	22,275	$	1,940

Future lease payments for finance lease liabilities

As of December 31, 2022, future lease payments for lease liabilities are as follows:


	Operating		Finance
(In thousands)	Leases		Leases
2023	$	5,220	$	1,036
2024	4,247		685
2025	3,086		301
2026	2,312		3
2027	1,989		—
2028 and Thereafter	9,338		—
Total Future Lease Payments	26,192		2,025
Less: Imputed Interest	(3,917)		(85)
Present Value of Lease Payments	$	22,275	$	1,940

Short- and Long-Term Obligations - Additional Information (Details) € in Thousands		1 Months Ended		12 Months Ended
	Nov. 30, 2022 USD ($)	Aug. 31, 2022 USD ($)	Aug. 31, 2022 EUR (€)	Dec. 31, 2022 USD ($)	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)	Dec. 29, 2018 USD ($)	Mar. 01, 2017 USD ($)
Debt Instrument [Line Items]
Short-and long-term debt, excluding finance leases				$ 199,221,000
Current maturities of long-term obligations				3,821,000	$ 5,356,000
Purchase of property with outstanding loan receivable				1,397,000	0	$ 0
Facility
Debt Instrument [Line Items]
Consideration transferred for asset acquisition		$ 2,730,000	€ 2,722
Purchase of property with outstanding loan receivable		$ 1,397,000	€ 1,393
Clouth
Debt Instrument [Line Items]
Short-and long-term debt, excluding finance leases				1,920,000
Short-term debt				$ 665,000
Maximum \| Clouth
Debt Instrument [Line Items]
Effective interest rate				1.70%
Revolving credit facility
Debt Instrument [Line Items]
Short-and long-term debt, excluding finance leases				$ 186,131,000	$ 250,267,000
Weighted average interest rate for long-term obligations				4.33%	1.50%
Revolving credit facility \| 2017 Credit Agreement
Debt Instrument [Line Items]
Uncommitted unsecured additional borrowing capacity								$ 150,000,000
Revolving credit facility \| Credit Agreement
Debt Instrument [Line Items]
Uncommitted unsecured additional borrowing capacity	$ 200,000,000			$ 200,000,000
Borrowing capacity available under committed portion	400,000,000
Maximum amount of unrestricted U.S. cash	$ 50,000,000
Maximum consolidated leverage ratio	3.75
Maximum consolidated leverage ratio upon material acquisition	4.25
Short-and long-term debt, excluding finance leases				186,131,000
Remaining borrowing capacity				214,061,000
Revolving credit facility \| Euro-Denominated Borrowing
Debt Instrument [Line Items]
Short-and long-term debt, excluding finance leases				73,131,000
Revolving credit facility \| Minimum \| Credit Agreement \| Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee percentage	0.125%
Revolving credit facility \| Maximum \| Credit Agreement \| Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee percentage	0.35%
Revolving credit facility \| Base Rate \| Minimum \| Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	0.00%
Revolving credit facility \| Base Rate \| Maximum \| Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	1.25%
Revolving credit facility \| Eurocurrency Rate, Term SOFR, CDOR Rate, and RFR \| Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	0.10%
Revolving credit facility \| Eurocurrency Rate, Term SOFR, CDOR Rate, and RFR \| Minimum \| Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate (as a percentage)	1.00%
Revolving credit facility \| Eurocurrency Rate, Term SOFR, CDOR Rate, and RFR \| Maximum \| 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%
Current maturities of long-term obligations				$ 1,670,000

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

The Company enters into operating and finance lease commitments primarily for its manufacturing and office space, vehicles, and equipment that expire on various dates over the next 12 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 in 2032 to 2071. The lease in Canada also includes an assumed option to extend the term for up to 10 years.

The components of lease expense are as follows:


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Operating Lease Cost	$	5,870	$	5,895	$	5,602

Short-Term Lease Cost	697		674		671

Finance Lease Cost:
ROU asset amortization	1,026		1,045		1,157
Interest on lease liabilities	52		46		74
Total Finance Lease Cost	1,078		1,091		1,231

Total Lease Costs	$	7,645	$	7,660	$	7,504

Supplemental cash flow information related to leases is as follows:


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$	6,159	$	12,474	$	5,782
Operating cash flows from finance leases	$	51	$	46	$	74
Financing cash flows from finance leases	$	1,002	$	1,044	$	1,139

ROU Assets Obtained in Exchange for Lease Obligations:
Operating leases	$	4,002	$	7,247	$	2,560
Finance leases	$	1,468	$	1,147	$	622

Supplemental balance sheet information related to leases is as follows:


(In thousands)	Balance Sheet Line Item	December 31, 2022		January 1, 2022
Operating Leases:
ROU assets	Other current assets	$	—	$	2,341
ROU assets	Other assets	22,642		24,998
Total operating lease assets		$	22,642	$	27,339

Short-term liabilities	Other current liabilities	$	4,458	$	4,596
Long-term liabilities	Other long-term liabilities	17,817		19,959
Total operating lease liabilities		$	22,275	$	24,555

Finance Leases:
ROU assets, at cost	Property, plant, and equipment, at cost	$	3,901	$	4,076
ROU assets accumulated amortization	Accumulated depreciation and amortization	(1,994)		(2,489)
ROU assets, net	Property, plant, and equipment, net	$	1,907	$	1,587

Short-term obligations	Short-term obligations and current maturities of long-term obligations	$	981	$	862
Long-term obligations	Long-term obligations	959		748
Total finance lease liabilities		$	1,940	$	1,610


	December 31, 2022		January 1, 2022
Weighted Average Remaining Lease Term (in years):
Operating leases	8.0		8.7
Finance leases	2.2		2.1

Weighted Average Discount Rate:
Operating leases	3.88	%	3.82	%
Finance leases	3.79	%	2.55	%

As of December 31, 2022, future lease payments for lease liabilities are as follows:


	Operating		Finance
(In thousands)	Leases		Leases
2023	$	5,220	$	1,036
2024	4,247		685
2025	3,086		301
2026	2,312		3
2027	1,989		—
2028 and Thereafter	9,338		—
Total Future Lease Payments	26,192		2,025
Less: Imputed Interest	(3,917)		(85)
Present Value of Lease Payments	$	22,275	$	1,940

As of December 31, 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)	December 31, 2022		January 1, 2022		January 2, 2021
Operating Lease Cost	$	5,870	$	5,895	$	5,602

Short-Term Lease Cost	697		674		671

Finance Lease Cost:
ROU asset amortization	1,026		1,045		1,157
Interest on lease liabilities	52		46		74
Total Finance Lease Cost	1,078		1,091		1,231

Total Lease Costs	$	7,645	$	7,660	$	7,504

Supplemental cash flow information related to leases is as follows:


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$	6,159	$	12,474	$	5,782
Operating cash flows from finance leases	$	51	$	46	$	74
Financing cash flows from finance leases	$	1,002	$	1,044	$	1,139

ROU Assets Obtained in Exchange for Lease Obligations:
Operating leases	$	4,002	$	7,247	$	2,560
Finance leases	$	1,468	$	1,147	$	622

Supplemental balance sheet information related to leases is as follows:


(In thousands)	Balance Sheet Line Item	December 31, 2022		January 1, 2022
Operating Leases:
ROU assets	Other current assets	$	—	$	2,341
ROU assets	Other assets	22,642		24,998
Total operating lease assets		$	22,642	$	27,339

Short-term liabilities	Other current liabilities	$	4,458	$	4,596
Long-term liabilities	Other long-term liabilities	17,817		19,959
Total operating lease liabilities		$	22,275	$	24,555

Finance Leases:
ROU assets, at cost	Property, plant, and equipment, at cost	$	3,901	$	4,076
ROU assets accumulated amortization	Accumulated depreciation and amortization	(1,994)		(2,489)
ROU assets, net	Property, plant, and equipment, net	$	1,907	$	1,587

Short-term obligations	Short-term obligations and current maturities of long-term obligations	$	981	$	862
Long-term obligations	Long-term obligations	959		748
Total finance lease liabilities		$	1,940	$	1,610


	December 31, 2022		January 1, 2022
Weighted Average Remaining Lease Term (in years):
Operating leases	8.0		8.7
Finance leases	2.2		2.1

Weighted Average Discount Rate:
Operating leases	3.88	%	3.82	%
Finance leases	3.79	%	2.55	%

As of December 31, 2022, future lease payments for lease liabilities are as follows:


	Operating		Finance
(In thousands)	Leases		Leases
2023	$	5,220	$	1,036
2024	4,247		685
2025	3,086		301
2026	2,312		3
2027	1,989		—
2028 and Thereafter	9,338		—
Total Future Lease Payments	26,192		2,025
Less: Imputed Interest	(3,917)		(85)
Present Value of Lease Payments	$	22,275	$	1,940

As of December 31, 2022, the Company had no significant operating and finance leases that had not yet commenced.

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	KPMG LLP
Auditor Location	Boston, Massachusetts
Auditor Firm ID	185

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Unrecognized Tax Benefits, Beginning of Year	$ 9,731	$ 8,337
Gross Increases—Tax Positions in Prior Periods	2,116	2,409
Gross Decreases—Tax Positions in Prior Periods	(138)	(2,182)
Gross Increases—Current-period Tax Positions	1,260	1,920
Lapses of Statutes of Limitations	(2,251)	(649)
Currency Translation	(364)	(104)
Unrecognized Tax Benefits, End of Year	$ 10,354	$ 9,731

Gain on Sale and Other Costs, Net - Changes in Accrued Restructuring (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Restructuring Reserve [Roll Forward]
Provision	$ 603	$ 176	$ 1,118
2021 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance at beginning of period	156
Provision	603	176
Usage	(390)	(19)
Currency translation	20	(1)
Balance at end of period	389	156
2020 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance at beginning of period	0	61
Provision			1,118
Usage		(61)	(1,052)
Currency translation			(5)
Balance at end of period		0	61
Severance Costs \| 2021 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance at beginning of period	156
Provision	205	176
Usage	(159)	(19)
Currency translation	(13)	(1)
Balance at end of period	189	156
Severance Costs \| 2020 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance at beginning of period	0	61
Provision			1,118
Usage		(61)	(1,052)
Currency translation			(5)
Balance at end of period		0	61
Facility and Other Closure Costs \| 2021 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance at beginning of period	0
Provision	398	0
Usage	(231)	0
Currency translation	33	0
Balance at end of period	200	0
Facility and Other Closure Costs \| 2020 Restructuring Plan
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 0	0
Provision			0
Usage		0	0
Currency translation			0
Balance at end of period		$ 0	$ 0

Gain on Sale and Other Costs, Net (Tables)

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Summary of items included in gain on sale and other costs, net

A summary of the items included in gain on sale and other costs, net is as follows:


(In thousands)	December 31, 2022		January 1, 2022		January 2, 2021
Gain on Sale of Assets	$	(20,190)	$	(515)	$	—
Impairment Costs	731		804		1,861
Restructuring Costs	603		176		1,118
	$	(18,856)	$	465	$	2,979

Summary of changes in nontrade receivables

A summary of the change in the outstanding receivable on the China Transaction is as follows:


(In thousands)	December 31, 2022
Balance at Inception	$	17,294
Present value discount	(1,212)
Receivable recorded, net	16,082
Accretion of interest income	422
Currency translation	(1,323)
Balance at End of Year	$	15,181

Summary of changes in accrued restructuring costs

A summary of the changes in accrued restructuring costs included in other current liabilities in the accompanying consolidated balance sheet, which are expected to be paid in 2023, are as follows:


(In thousands)	Severance Costs		Facility and Other Closure Costs		Total
2021 Restructuring Plan
Provision	$	176	$	—	$	176
Usage	(19)		—		(19)
Currency translation	(1)		—		(1)
Balance at January 1, 2022	156		—		156
Provision	205		398		603
Usage	(159)		(231)		(390)
Currency translation	(13)		33		20
Balance at December 31, 2022	$	189	$	200	$	389

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

Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income Tax Disclosure [Abstract]
Provision for Income Taxes at Statutory Rate	$ 34,784	$ 23,531	$ 15,474
Increases (Decreases) Resulting From:
Foreign tax rate differential	5,770	2,819	1,891
Nondeductible expenses	2,683	1,673	2,117
State income taxes, net of federal income tax	2,316	863	807
Reversal of tax benefit reserves, net	(1,368)	(444)	(730)
U.S. tax cost of foreign earnings	932	481	599
Research and development tax credits	(425)	(454)	(465)
Excess tax benefit related to stock-based compensation	(377)	(1,525)	(661)
Change in valuation allowance	318	(31)	(469)
Other	(727)	258	(615)
Total income tax provision	$ 43,906	$ 27,171	$ 17,948

Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	$ 314,071	$ 311,888
Accumulated Amortization	(155,834)	(135,327)
Currency Translation	(10,842)	(6,141)
Net	147,395	170,420
Acquired Intangible Assets
Gross	343,130	340,947
Accumulated Amortization	(155,834)	(135,327)
Currency Translation	(11,651)	(6,277)
Net	175,645	199,343
Tradenames
Indefinite-Lived
Gross	29,059	29,059
Currency Translation	(809)	(136)
Net	28,250	28,923
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	218,782	217,021
Accumulated Amortization	(94,653)	(79,839)
Currency Translation	(7,045)	(3,455)
Net	117,084	133,727
Acquired Intangible Assets
Accumulated Amortization	(94,653)	(79,839)
Product technology
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	67,548	67,230
Accumulated Amortization	(39,940)	(35,833)
Currency Translation	(2,754)	(1,752)
Net	24,854	29,645
Acquired Intangible Assets
Accumulated Amortization	(39,940)	(35,833)
Tradenames
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	7,427	7,427
Accumulated Amortization	(3,903)	(3,405)
Currency Translation	(420)	(373)
Net	3,104	3,649
Acquired Intangible Assets
Accumulated Amortization	(3,903)	(3,405)
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Gross	20,314	20,210
Accumulated Amortization	(17,338)	(16,250)
Currency Translation	(623)	(561)
Net	2,353	3,399
Acquired Intangible Assets
Accumulated Amortization	$ (17,338)	$ (16,250)

Derivatives

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Interest Rate Swap Agreement

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

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

The counterparty to the 2018 Swap Agreement could demand an early termination of that agreement if the Company were to be in default under the Credit Agreement, or any agreement that amends or replaces the Credit Agreement in which the counterparty is a member, and if it were to be unable to cure the default. See Note 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 2022, 2021, and 2020.

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


		December 31, 2022				January 1, 2022
(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:
2018 Swap Agreement	Other Current Assets	$	131	$	15,000	$	—	$	—
Derivatives in a Liability Position:
2018 Swap Agreement	Other Long-Term Liabilities	$	—	$	—	$	(550)	$	15,000
Forward currency-exchange contract	Other Current Liabilities	$	(54)	$	430	$	(44)	$	842
Derivatives Not Designated as Hedging Instruments:
Derivatives in an Asset Position:
Forward currency-exchange contracts	Other Current Assets	$	15	$	647	$	14	$	1,200

(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 2022 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 December 31, 2022:


(In thousands)	Interest Rate Swap Agreements		Forward Currency- Exchange Contracts		Total
Unrealized Loss, Net of Tax, at January 1, 2022	$	(429)	$	(33)	$	(462)
Loss reclassified to earnings (a)	158		—		158
Gain (loss) recognized in AOCI	370		(8)		362
Unrealized Gain (Loss), Net of Tax, at December 31, 2022	$	99	$	(41)	$	58

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

At year-end 2022, the Company expects to reclassify gains of $58,000 from AOCI to earnings over the next twelve months based on the estimated cash flows of the 2018 Swap Agreement and the maturity date of the forward currency-exchange contract.

Nature of Operations and Summary of Significant Accounting Policies - Product Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Changes in the carrying amount of accrued warranty costs [Roll Forward]
Balance at Beginning of Year	$ 7,298	$ 7,064
Provision charged to expense	4,955	4,366
Usage	(4,587)	(4,268)
Acquisitions	0	429
Currency translation	(383)	(293)
Balance at End of Year	$ 7,283	$ 7,298

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Operating
2023	$ 5,220
2024	4,247
2025	3,086
2026	2,312
2027	1,989
2028 and Thereafter	9,338
Total Future Lease Payments	26,192
Less: Imputed Interest	(3,917)
Present Value of Lease Payments	22,275	$ 24,555
Finance
2023	1,036
2024	685
2025	301
2026	3
2027	0
2028 and Thereafter	0
Total Future Lease Payments	2,025
Less: Imputed Interest	(85)
Total finance lease liabilities	$ 1,940	$ 1,610

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Summary of assets acquired and liabilities assumed


(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	14,255		5,000		19,255
Property, Plant, and Equipment	24,045		5,143		29,188
Other Assets	6,056		2,922		8,978
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	25,773		27,449		53,222
Total assets acquired	116,327		74,672		190,999

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	9,013		6,760		15,773
Long-Term Obligations	4,244		—		4,244
Other Liabilities	8,240		6,929		15,169
Total liabilities assumed	24,177		14,486		38,663
Net assets acquired	$	92,150	$	60,186	$	152,336

Purchase Price:
Cash Paid	$	92,150	$	60,186	$	152,336

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

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 3,595	$ 2,735
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)	2,949,997	3,003,419

Short- and Long-Term Obligations - Short- and Long-term Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Debt Instrument [Line Items]
Long-term debt	$ 199,221
Finance Leases, due 2023 to 2026	1,940	$ 1,610
Total	201,161	269,514
Less: Short-Term Obligations and Current Maturities of Long-Term Obligations	(3,821)	(5,356)
Long-Term Obligations	197,340	264,158
Revolving Credit Facility, due 2027
Debt Instrument [Line Items]
Long-term debt	186,131	250,267
Senior Promissory Notes, due 2023 to 2028
Debt Instrument [Line Items]
Long-term debt	10,000	10,000
Other Borrowings, due 2023 to 2028
Debt Instrument [Line Items]
Other Borrowings, due 2023 to 2028	$ 3,090	$ 7,637

Acquisitions - 2022 Acquisition Additional Information (Details) $ in Thousands	Nov. 14, 2022 USD ($)
Canada \| 2022 Business Acquisitions \| Material Handling
Business Acquisition [Line Items]
Consideration transferred	$ 3,612

Nature of Operations and Summary of Significant Accounting Policies - Performance Obligations Narrative (Details)	Dec. 31, 2022
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	66.00%
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]: 2023-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percent	34.00%
Revenue, remaining performance obligation, expected timing of satisfaction after the twelve month period

Acquisitions - 2021 Acquisition Purchase Price Allocation (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 02, 2021	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021	Aug. 23, 2021
Net Assets Acquired:
Goodwill		$ 385,455	$ 396,887	$ 351,753
Purchase Price:
Cash Paid		$ 3,597	152,661	$ 7,565
Weighted average useful life of acquired intangible assets		13 years
Customer relationships
Purchase Price:
Weighted average useful life of acquired intangible assets		14 years
2021 Acquisitions
Net Assets Acquired:
Cash and Cash Equivalents			8,680
Accounts Receivable			8,449
Inventories			19,255
Property, Plant, and Equipment			29,188
Other Assets			8,978
Goodwill			53,222
Total assets acquired			190,999
Short-term Obligations and Current Maturities of Long-term Obligations			1,393
Accounts Payable			2,084
Long-Term Deferred Income Taxes			15,773
Long-Term Obligations			4,244
Other Liabilities			15,169
Total liabilities assumed			38,663
Net assets acquired			152,336
Purchase Price:
Cash Paid			152,336
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	14,255
Property, Plant, and Equipment	24,045
Other Assets	6,056
Goodwill	25,773
Total assets acquired	116,327
Short-term Obligations and Current Maturities of Long-term Obligations	1,393
Accounts Payable	1,287
Long-Term Deferred Income Taxes	9,013
Long-Term Obligations	4,244
Other Liabilities	8,240
Total liabilities assumed	24,177
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			5,000
Property, Plant, and Equipment			5,143
Other Assets			2,922
Goodwill			27,449
Total assets acquired			74,672
Short-term Obligations and Current Maturities of Long-term Obligations			0
Accounts Payable			797
Long-Term Deferred Income Taxes			6,760
Long-Term Obligations			0
Other Liabilities			6,929
Total liabilities assumed			14,486
Net assets acquired			60,186
Purchase Price:
Cash Paid			$ 60,186
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					$ 26,334