KADANT INC
For the period ended Jun 29, 2024. Filed Aug 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2024 · Filed Aug 7, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
(Note 8)
- 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 condensed consolidated balance sheet.
Changes in each component of accumulated other comprehensive items (AOCI), net of tax, are as follows:
| (In thousands) | Foreign Currency Translation Adjustment | Pension and Other Post-Retirement Benefit Liability Adjustments | Deferred Loss on Cash Flow Hedges | Total |
|---|---|---|---|---|
| Balance at December 30, 2023 | $(43,013) | $(11) | $(38) | $(43,062) |
| Other comprehensive items before reclassifications | (15,338) | 7 | — | (15,331) |
| Reclassifications from AOCI | — | (4) | 38 | 34 |
| Net current period other comprehensive items | (15,338) | 3 | 38 | (15,297) |
| Balance at June 29, 2024 | $(58,351) | $(8) | $— | $(58,359) |
- Derivatives
The Company uses forward currency-exchange contracts that generally have maturities oftwelve 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 condensed consolidated statement of income associated with the Company's forward currency-exchange contracts that were not designated as hedges were not material for the three- and six-month periods ended June 29, 2024 and July 1, 2023.
The following table summarizes the fair value of derivative instruments in the accompanying condensed consolidated balance sheet:
| June 29, 2024 · December 30, 2023 | |||||
|---|---|---|---|---|---|
| Balance Sheet Location | Asset (Liability) (a) | Notional Amount (b) | Asset (Liability) (a) | Notional Amount | |
| (In thousands) | |||||
| Derivatives Designated as Hedging Instruments: | |||||
| Derivatives in a Liability Position: | |||||
| Forward currency-exchange contract | Other Current Liabilities | $— | $— | $(51) | $430 |
| Derivatives Not Designated as Hedging Instruments: | |||||
| Derivatives in an Asset Position: | |||||
| Forward currency-exchange contracts | Other Current Assets | $— | $— | $8 | $701 |
| Derivatives in a Liability Position: | |||||
| Forward currency-exchange contracts | Other Current Liabilities | $(25) | $1,693 | $— | $— |
(a) See Note 10, Fair Value Measurements and Fair Value of Financial Instruments, for the fair value measurements relating to these financial instruments.
(b) The 2024 notional amounts are indicative of the level of the Company's recurring derivative activity.
The following table summarizes the activity in AOCI associated with the Company's foreign currency exchange contract designated as a cash flow hedge as of and for the six months ended June 29, 2024:
| (In thousands) | Total |
|---|---|
| Unrealized Loss, Net of Tax, at December 30, 2023 | $(38) |
| Loss recognized in AOCI | 38 |
| Unrealized Loss, Net of Tax, at June 29, 2024 | $— |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.