Employee Benefit Plans

6 Months Ended

Jul. 04, 2015

Compensation and Retirement Disclosure [Abstract]

The Company sponsors a noncontributory defined benefit retirement plan for the benefit of eligible employees at its Kadant Solutions division and its corporate office (included in the table below under "Pension Benefits"). The Company also sponsors a restoration plan for the benefit of certain executive officers who also participate in the noncontributory defined benefit retirement plan (included in the table below under "Other Benefits"). In addition, employees at certain of the Company's subsidiaries participate in defined benefit retirement and post-retirement welfare benefit plans (included in the table below under "Other Benefits").

The components of the net periodic benefit cost for the pension benefits and other benefits plans are as follows:



	Three Months Ended July 4, 2015						Three Months Ended June 28, 2014
(In thousands)	Pension Benefits			Other Benefits			Pension Benefits			Other Benefits

Components of Net Periodic Benefit Cost:
Service cost	$	211		$	55		$	213		$	81
Interest cost	307			63			321			74
Expected return on plan assets	(356		)	(10		)	(370		)	(12		)
Recognized net actuarial loss	127			18			79			9
Amortization of prior service cost	14			24			14			24
Net periodic benefit cost	$	303		$	150		$	257		$	176

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

Discount rate	3.87		%	3.75		%	4.79		%	4.30		%
Expected long-term return on plan assets	5.25		%	—			5.75		%	—
Rate of compensation increase	3.00		%	2.99		%	3.50		%	3.24		%



	Six Months Ended July 4, 2015						Six Months Ended June 28, 2014
(In thousands)	Pension Benefits			Other Benefits			Pension Benefits			Other Benefits

Components of Net Periodic Benefit Cost:
Service cost	$	422		$	112		$	426		$	150
Interest cost	614			128			642			146
Expected return on plan assets	(712		)	(21		)	(740		)	(24		)
Recognized net actuarial loss	254			35			158			18
Amortization of prior service cost	28			46			28			45
Net periodic benefit cost	$	606		$	300		$	514		$	335

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

Discount rate	3.87		%	3.75		%	4.79		%	4.28		%
Expected long-term return on plan assets	5.25		%	—			5.75		%	—
Rate of compensation increase	3.00		%	2.99		%	3.50		%	3.23		%

The Company made cash contributions of $540,000 to its Kadant Solutions division's noncontributory defined benefit retirement plan in the first six months of 2015 and expects to make cash contributions of $540,000 over the remainder of 2015. For the remaining pension and post-retirement welfare benefits plans, the Company does not expect to make cash contributions other than to fund current benefit payments.