If enabled, thinning and/or smoothing will be performed during contour generation; thinning is performed before smoothing if both are enabled. These same operations are also available in Feature Tools - Simplify/Smooth.
Thinning (checkbox), Tolerance (edit box)
Set checkbox to enable thinning. Points will be removed from the contour using the Douglas-Peucker algorithm. The Tolerance represents the largest deviation that the simplified feature will have from the original.
For dense data sets, like LiDAR, even a small tolerance will remove a large number of redundant points from your contours.
Set checkbox to enable smoothing. Points will be removed and inserted to make the contours smoother - sharp corners will be rounded. A smoothed contour will usually have more points than the original. A larger Smoothing distance will create contours that deviate farther from the original.
