Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jul. 02, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | HELIOS TECHNOLOGIES, INC. | ||
Entity Central Index Key | 0001024795 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HLIO | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,095,264,288 | ||
Entity Common Stock, Shares Outstanding | 32,583,549 | ||
Title of 12(b) Security | Common Stock $.001 Par Value | ||
Security Exchange Name | NYSE | ||
Entity File Number | 0-21835 | ||
Entity Tax Identification Number | 59-2754337 | ||
Entity Address, Address Line One | 7456 16th St E | ||
Entity Address, City or Town | SARASOTA | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 34243 | ||
City Area Code | 941) | ||
Local Phone Number | 362-1200 | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Interactive Data Current | Yes | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement for the 2023 Annual Meeting of Shareholders to be held June 1, 2023, which is expected to be filed with the Securities and Exchange Commission on or about April 20, 2023, h ave been incorporated by reference into Part III, Items 10, 11, 12, 13 and 14 of this Annual Report on Form 10-K. | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | Tampa, Florida | ||
Auditor Firm ID | 248 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 43.7 | $ 28.5 |
Accounts receivable, net of allowance for credit losses of $1.5 and $1.2 | 125.1 | 134.6 |
Inventories, net | 191.6 | 165.6 |
Income taxes receivable | 10.2 | 2.8 |
Other current assets | 17.9 | 20.1 |
Total current assets | 388.5 | 351.6 |
Property, plant and equipment, net | 175.7 | 174.2 |
Deferred income taxes | 1.6 | 2.9 |
Goodwill | 468.5 | 459.9 |
Other intangible assets, net | 405.6 | 412.8 |
Other assets | 23.8 | 13.9 |
Total assets | 1,463.7 | 1,415.3 |
Current liabilities: | ||
Accounts payable | 73.7 | 85.3 |
Accrued compensation and benefits | 21.1 | 28.6 |
Other accrued expenses and current liabilities | 32 | 28.4 |
Current portion of long-term non-revolving debt, net | 19 | 18.1 |
Dividends payable | 2.9 | 2.9 |
Income taxes payable | 3.6 | 6.3 |
Total current liabilities | 152.3 | 169.6 |
Revolving line of credit | 261.3 | 242.3 |
Long-term non-revolving debt, net | 164.2 | 183.9 |
Deferred income taxes | 61 | 71.8 |
Other noncurrent liabilities | 30 | 38.7 |
Total liabilities | 668.8 | 706.3 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, par value $0.001, 2,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, par value $0.001, 100 shares authorized, 32.6 and 32.4 sharesnissued and outstanding | 0 | 0 |
Capital in excess of par value | 404.3 | 394.6 |
Retained earnings | 450 | 363.3 |
Accumulated other comprehensive loss | (59.4) | (49) |
Total shareholders' equity | 794.9 | 709 |
Total liabilities and shareholders' equity | $ 1,463.7 | $ 1,415.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses, accounts receivable | $ 1.5 | $ 1.2 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 32,600,000 | 32,400,000 |
Common stock, shares issued | 32,600,000 | 32,400,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 885.4 | $ 869.2 | $ 523 |
Cost of sales | 586.9 | 556.4 | 326.8 |
Gross profit | 298.5 | 312.8 | 196.2 |
Selling, engineering and administrative expenses | 133.1 | 130.7 | 106.8 |
Amortization of intangible assets | 28.1 | 32.8 | 22.1 |
Goodwill impairment | 0 | 0 | 31.9 |
Operating income | 137.3 | 149.3 | 35.4 |
Interest expense, net | 16.7 | 16.9 | 13.3 |
Foreign currency transaction (gain) loss, net | (0.9) | 1 | (1.6) |
Other non-operating (income) expense, net | (0.3) | 0.2 | (0.3) |
Income before income taxes | 121.8 | 131.2 | 24 |
Income tax provision | 23.4 | 26.6 | 9.8 |
Net income | $ 98.4 | $ 104.6 | $ 14.2 |
Net income per share: | |||
Basic | $ 3.03 | $ 3.24 | $ 0.44 |
Diluted | $ 3.02 | $ 3.22 | $ 0.44 |
Weighted average shares outstanding: | |||
Basic | 32.5 | 32.3 | 32.1 |
Diluted | 32.6 | 32.5 | 32.2 |
Dividends declared per share | $ 0.36 | $ 0.36 | $ 0.36 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 98.4 | $ 104.6 | $ 14.2 |
Other comprehensive (loss) income | |||
Foreign currency translation adjustments, net of tax | (20.3) | (19.2) | 21.6 |
Unrealized gain (loss) on interest rate swap, net of tax | 9.9 | 4.5 | (0.6) |
Total other comprehensive (loss) income | (10.4) | (14.7) | 21 |
Comprehensive income | $ 88 | $ 89.9 | $ 35.2 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Preferred stock [Member] | Common stock [Member] | Capital in excess of par value [Member] | Retained earnings [Member] | Accumulated other comprehensive loss [Member] |
Beginning Balance at Dec. 28, 2019 | $ 577.6 | $ 0 | $ 0 | $ 365.3 | $ 267.7 | $ (55.4) |
Beginning Balance, Shares at Dec. 28, 2019 | 0 | 32 | ||||
Shares issued, ESPP | 1.3 | 1.3 | ||||
Stock-based compensation | 5.8 | 5.8 | ||||
Cancellation of shares for payment of employee tax withholding | (0.7) | (0.7) | ||||
Dividends declared | (11.6) | (11.6) | ||||
Net income | 14.2 | 14.2 | ||||
Other comprehensive income (loss) | 21 | 21 | ||||
Ending Balance at Jan. 02, 2021 | 607.8 | $ 0 | $ 0 | 371.8 | 270.3 | (34.3) |
Ending Balance, Shares at Jan. 02, 2021 | 0 | 32.1 | ||||
Shares issued, ESPP | 1.8 | 1.8 | ||||
Shares issued, acquisitions | 14.2 | 14.2 | ||||
Shares issued, acquisitions, Shares | 0.2 | |||||
Stock-based compensation | 8.9 | 8.9 | ||||
Cancellation of shares for payment of employee tax withholding | (1.4) | (1.4) | ||||
Share repurchased | (0.6) | (0.6) | ||||
Dividends declared | (11.6) | (11.6) | ||||
Net income | 104.6 | 104.6 | ||||
Other comprehensive income (loss) | (14.7) | (14.7) | ||||
Ending Balance at Jan. 01, 2022 | 709 | $ 0 | $ 0 | 394.6 | 363.3 | (49) |
Ending Balance, Shares at Jan. 01, 2022 | 0 | 32.4 | ||||
Shares issued, restricted stock, Shares | 0.2 | |||||
Shares issued, restricted stock | 0.1 | 0.1 | ||||
Shares issued, ESPP | 2 | 2 | ||||
Shares issued, acquisitions | 1.6 | 1.6 | ||||
Stock-based compensation | 8.6 | 8.6 | ||||
Cancellation of shares for payment of employee tax withholding | (2.6) | (2.6) | ||||
Dividends declared | (11.7) | (11.7) | ||||
Net income | 98.4 | 98.4 | ||||
Other comprehensive income (loss) | (10.4) | (10.4) | ||||
Ending Balance at Dec. 31, 2022 | $ 794.9 | $ 0 | $ 0 | $ 404.3 | $ 450 | $ (59.4) |
Ending Balance, Shares at Dec. 31, 2022 | 0 | 32.6 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 98.4 | $ 104.6 | $ 14.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 51.6 | 54.4 | 39.7 |
Goodwill impairment | 0 | 0 | 31.9 |
Stock-based compensation expense | 8.6 | 8.9 | 5.8 |
Amortization of debt issuance costs | 0.5 | 0.5 | 1.1 |
Benefit for deferred income taxes | (4.5) | (1.4) | (3.6) |
Amortization of acquisition-related inventory step-up | 0 | 0.6 | 1.9 |
Forward contract (gains) losses, net | (4) | (4.7) | 5.5 |
Other, net | 0 | 0.1 | 1 |
(Increase) decrease in, net of acquisition: | |||
Accounts receivable | 9.1 | (32.4) | 0.7 |
Inventories | (27) | (52.5) | 0.6 |
Income taxes receivable | (5) | (0.7) | 1.7 |
Other current assets | 1.6 | 0.7 | (1.9) |
Other assets | 8 | 5.1 | 4 |
Increase (decrease) in, net of acquisition: | |||
Accounts payable | (11.5) | 23.8 | 10.6 |
Accrued expenses and other liabilities | (6.2) | 8.1 | 3.8 |
Income taxes payable | (2.3) | 5.7 | (5.1) |
Other noncurrent liabilities | (7.4) | (7.7) | (3.3) |
Net cash provided by operating activities | 109.9 | 113.1 | 108.6 |
Cash flows from investing activities: | |||
Acquisitions of businesses, net of cash acquired | (67.3) | (61.1) | (217) |
Capital expenditures | (31.9) | (26.8) | (14.6) |
Proceeds from dispositions of property, plant and equipment | 7.2 | 0.2 | 0.1 |
Cash settlement of forward contracts | 4.3 | 2.4 | (3.5) |
Software development costs | (3.1) | (2.6) | (0.9) |
Amounts paid for net assets acquired | 0 | (2.4) | |
Net cash used in investing activities | (90.8) | (90.3) | (235.9) |
Cash flows from financing activities: | |||
Borrowings on revolving credit facilities | 118.7 | 81.2 | 117.6 |
Repayment of borrowings on revolving credit facilities | (92.7) | (86.8) | (79.6) |
Borrowings on long-term non-revolving debt | 0 | 12 | 119.7 |
Repayment of borrowings on long-term non-revolving debt | (18) | (16.2) | (6) |
Proceeds from stock issued | 2.1 | 1.8 | 1.3 |
Dividends to shareholders | (11.7) | (11.6) | (11.6) |
Debt issuance costs | 0 | 0 | (1.7) |
Payment of employee tax withholding on equity award vestings | (2.6) | (1.4) | (0.7) |
Other financing activities | (2.7) | (1.6) | (1.3) |
Net cash (used in) provided by financing activities | (6.9) | (22.6) | 137.7 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 3 | 3 | (7.3) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 15.2 | 3.2 | 3.1 |
Cash, cash equivalents and restricted cash, beginning of period | 28.5 | 25.3 | 22.2 |
Cash, cash equivalents and restricted cash, end of period | 43.7 | 28.5 | 25.3 |
Cash paid: | |||
Income taxes | 31.7 | 23.6 | 11.3 |
Interest | 15.5 | 15.9 | 11.6 |
Supplemental disclosure of noncash transactions: | |||
Unrealized (gain) loss on interest rate swap | (12.8) | (6) | 1.9 |
Contingent consideration incurred in connection with acquisition | 0 | 3.3 | 1.9 |
Indemnified tax liability incurred in connection with acquisition | 0 | 0 | 3.6 |
Stock issued for acquisition | 1.6 | 14.2 | |
Foreign currency remeasurement impact on euro denominated debt | 4.6 | 5.9 | $ 7.2 |
Measurement period adjustment | $ 0 | $ 0.8 |
Company Background
Company Background | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COMPANY BACKGROUND | 1. COMPANY BACKGROUND Helios Technologies, Inc. together with its wholly-owned subsidiaries, is a global leader in highly engineered motion control and electronic controls technology for diverse end markets, including construction, material handling, agriculture, energy, recreational vehicles, marine, health and wellness. Helios sells its products to customers in over 90 countries around the world. The Company’s strategy for growth is to be the leading provider in niche markets, with premier products and solutions through innovative product development and acquisitions. The Company operates in two business segments: Hydraulics and Electronics. There are three key technologies within the Hydraulics segment: cartridge valve technology (CVT), quick-release hydraulic coupling solutions (QRC) and hydraulic system solutions (Systems), which often incorporate manifold solutions with CVT and QRC technologies. CVT products provide functions important to a hydraulic system: to control rates and direction of fluid flow and to regulate and control pressures. QRC products allow users to connect and disconnect quickly from any hydraulic circuit without leakage and ensure high-performance under high temperature and pressure using one or multiple couplers. Systems provide engineered solutions for machine users, manufacturers or designers to fulfill complete system design requirements including electro-hydraulic, remote control, electronic control and programmable logic controller systems, as well as automation of existing equipment. The Electronics segment provides complete, fully-tailored display and control solutions for engines, engine-driven equipment, specialty vehicles, therapy baths and traditional and swim spas. This broad range of products is complemented by extensive application expertise and unparalleled depth of software, embedded programming, hardware and sustaining engineering teams. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company reports on a fiscal year that ends on the Saturday closest to December 31 st . Each quarter generally consists of thirteen weeks, with a fourteen-week quarter occurring periodically. The 2020 fiscal year contained 53 weeks and ended January 2, 2021. The 2022 and 2021 fiscal years contained 52 weeks and ended December 31, 2022 and January 1, 2022, respectively. The Consolidated Financial Statements include the accounts and operations of Helios Technologies and its direct subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Foreign Currency Translation and Transactions The financial statements of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for operating results. Unrealized translation gains and losses are included in accumulated other comprehensive income (loss) (“AOCI”) in shareholders’ equity. When a transaction is denominated in a currency other than the subsidiary’s functional currency, the Company recognizes a transaction gain or loss in foreign currency transaction (gain) loss, net. Business Combinations Business combinations are accounted for under the acquisition method of accounting, which requires recognition separately from goodwill, the assets acquired and the liabilities assumed at their acquisition date fair values. While best estimates and assumptions are used to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, when applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, adjustments that are based on new information obtained about facts and circumstances that existed as of the acquisition date are recorded to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in the Consolidated Statements of Operations. Fair Value Measurements The Company applies fair value accounting guidelines for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Under these guidelines, fair value is defined as the price that would be received for the sale of an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3 - Unobservable inputs that are supported by little, infrequent, or no market activity and reflect the Company’s own assumptions about inputs used in pricing the asset or liability. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value of the Company’s cash and cash equivalents, accounts receivable, other current assets, accounts payable, accrued expenses and other liabilities approximate their carrying value, due to their short-term nature. Contingent consideration and newly acquired intangible assets are measured at fair value using level 3 inputs. The Company utilizes risk-adjusted probability analysis to estimate the fair value of contingent consideration arrangements. Forward foreign exchange contracts are measured at fair value based on quoted foreign exchange forward rates at the reporting dates. The fair value of interest rate swap contracts is based on the expected cash flows over the life of the trade. Expected cash flows are determined by evaluating transactions with a pricing model using a specific market environment. The values are estimated using the closing and mid-market market rate/price environment as of the end of the period. See Note 4 for detail on the level of inputs used in determining the fair value of assets and liabilities. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. Accounts Receivable, net Accounts receivable are stated at amounts owed by customers, net of an allowance for estimated credit losses. The allowance for estimated credit losses is based on management’s assessment of amounts which may become uncollectible in the future and is estimated from a review of historical experience and specific identification of those accounts that are significantly in arrears. Account balances are charged against the allowance when it is probable the receivable will not be recovered. See the Consolidated Balance Sheets for the allowance amounts. Inventories, net Inventories are valued at the lower of cost and net realizable value, on a first-in, first-out basis. On an ongoing basis, component parts found to be obsolete through design or process changes are disposed of and charged to material cost. The Company reviews on-hand balances of products and component parts against specific criteria. Products and component parts without usage or that have excess quantities on hand are evaluated. An inventory reserve is then established for the appropriate inventory value of those products and component parts deemed to be obsolete or slow moving. See Note 5 for inventory reserve amounts. Property, Plant and Equipment, net Property, plant and equipment is stated at cost less accumulated depreciation. Expenditures for repairs and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repairs and maintenance are expensed as incurred. Depreciation is computed using the straight-line method generally over the following useful lives: Years Machinery and equipment 3 - 12 Office furniture and equipment 2 - 10 Buildings 30 - 40 Building and land improvements 5 - 20 Leasehold improvements 2 - 10 Gains or losses on the retirement, sale, or disposal of property, plant and equipment are reflected in the Consolidated Statement of Operations in the period in which the assets are taken out of service. Leases The Company determines whether an arrangement is a lease at its inception. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and are presented in Property, plant and equipment in the Consolidated Balance Sheets. Operating lease liabilities represent the Company’s obligation to make lease payments arising from the leases and are presented in Other accrued expenses and current liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company utilizes an estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. The Company considers its existing credit facilities when calculating the incremental borrowing rate. Lease terms include options to extend the lease when it is reasonably certain that the Company will exercise the option. Leases with an initial term of 12 months or less are not recorded on the balance sheet. See Note 7 fo r additional disclosures related to leases. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price of an acquisition over the fair value of the net assets acquired. Goodwill is tested for impairment annually or more frequently if events or circumstances indicate a reduction in the fair value below the carrying value. As part of the impairment test, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after this optional qualitative assessment, the Company determines that impairment is more likely than not, then the Company performs the quantitative impairment test. The carrying value of assets is calculated at the reporting unit level. An impairment loss is recorded to the extent that the carrying value of the reporting unit exceeds its fair value, with the impairment loss limited to the amount of goodwill allocated to the reporting unit. The Company completed its annual goodwill impairment testing for 2022 and determined that the carrying amount of goodwill was not impaired. Other intangible assets with definite lives consist primarily of technology, customer relationships, trade names and brands and a favorable supply agreement, and are carried at cost less accumulated amortization and amortized over their respective estimated useful lives. Impairment of Long-Lived Assets Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the asset is measured by comparison of its carrying amount to future net cash flows the asset is expected to generate. If such assets are considered impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. For the year ended December 31, 2022 , there were no impairments recorded based on our analysis. Revenue Recognition Revenue recognition is evaluated through the following five steps: 1) identification of the contracts with customers; 2) identification of the performance obligations in the contracts; 3) determination of the transaction price; 4) allocation of the transaction price to the performance obligations in the contract; and 5) recognition of revenue as or when performance obligations are satisfied. The Company disaggregates revenue by reporting segment as well as by geographic destination of the sale. See disaggregated revenue balances in Note 16, Segment Reporting. These categories depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Revenue from Product Sales The significant majority of the Company’s contracts with its customers are for standard product sales under standard ship and bill arrangements. The contracts are generally accounted for as having a single performance obligation for the manufacture of product, which is considered the only distinct promise in the contract, and are short term in nature, typically completed within one quarter and not exceeding one year in duration. The transaction price is agreed upon in the contract. Revenue is recognized upon satisfaction of the performance obligation, which is typically at a point in time when control is transferred to the customer. Typically, control is transferred upon shipment to the customer but can also occur upon delivery to the customer, depending on contract terms. Revenue recognition can also occur over time for these contracts when the following criteria are met: the Company has no alternative use for the product; and the Company has an enforceable right to payment (including a reasonable margin) for performance completed to date. Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods. Consideration for product sales is primarily fixed in nature. The Company’s estimates for sales discounts, rebates and product returns reduce revenue recognized at the time of the sale. Contract Assets & Liabilities Contract assets are recognized when the Company has a conditional right to consideration for performance completed on contracts. Contract asset balances totaled $ 3.8 and $ 2.2 at December 31, 2022 and January 1, 2022, respectively and are presented in Other current assets in the Consolidated Balance Sheets. Accounts receivable balances represent unconditional rights to consideration from customers and are presented separate from contract assets in the Consolidated Balance Sheets. Contract liabilities are recognized when payment is received from customers prior to satisfying the underlying performance obligation. Contract liabilities totaled $ 3.3 an d $ 4.4 at December 31, 2022 and January 1, 2022, respectively, and are presented in Other accrued expenses and current liabilities in the Consolidated Balance Sheets. Other Revenue Recognition Considerations Contracts do not have significant financing components and payment terms do not exceed one year from the date of the sale. The Company does not incur significant credit losses from contracts with customers. The Company applies the practical expedient as permitted by the Financial Accounting Standards Board, which allows the omission of certain disclosures related to remaining performance obligations, as contract duration does not exceed one year. The Company’s warranties provide assurance that products will function as intended. Estimated costs of product warranties are recognized at the time of the sale. The estimates are based upon current and historical warranty trends and other related information known to the Company. The Company treats shipping and handling activities that occur after control of the product transfers as fulfillment activities, and therefore, does not account for shipping and handling costs as a separate performance obligation. Shipping and handling costs billed to customers are recorded in revenue. Shipping costs incurred by the Company are recorded in cost of goods sold. Derivative Instruments and Hedging Activities All derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is initially reported as a component of AOCI and is subsequently reclassified into the line item within the Consolidated Statements of Operations in which the hedged items are recorded in the same period in which the hedged item affects earnings. The Company enters into foreign exchange currency contracts that are not designated as hedging instruments for accounting purposes. Changes in the fair value of foreign exchange currency contracts not designated as hedging instruments are recognized in earnings. Derivative financial instruments are utilized as risk management tools and are not used for trading or speculative purposes. The Company utilizes foreign currency denominated debt to hedge currency exposure in foreign operations. The Company designates certain foreign currency denominated debt as hedges of net investments in foreign operations, which reduces the Company’s exposure to changes in currency exchange rates on investments in non-U.S. subsidiaries. Gains and losses on net investments in non-U.S. operations are economically offset by losses and gains on foreign currency borrowings. The change in the U.S. dollar value of foreign currency denominated debt is recorded in Foreign currency translation adjustments, a component of AOCI. Research and Development The Company conducts R&D to create new products and to make improvements to products currently in use. R&D costs are charged to expense as incurred and totaled $ 17.4 , $ 16.8 and $ 15.6 for the 2022, 2021 and 2020 fiscal years, respectively. Stock-Based Compensation All share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense in earnings over the requisite service period. For performance-based share awards, the Company recognizes expense when it is determined the performance criteria are probable of being met. The probability of vesting is reassessed at each reporting date and compensation cost is adjusted using a cumulative catch up adjustment. Forfeitures are recognized in compensation cost when they occur. Benefits or deficiencies of tax deductions in excess of recognized compensation costs are reported within operating cash flows. Income Taxes The Company’s income tax policy provides for a balance sheet approach under which deferred income taxes are provided for based upon enacted tax laws and rates applicable to the periods in which the taxes become payable. These differences result from items reported differently for financial reporting and income tax purposes, primarily depreciation, accrued expenses and reserves. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on available evidence. The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes potential interest and penalties related to its unrecognized tax benefits in income tax expense. The Company accounts for Global Intangible Low-Taxed Income as a current-period expense when incurred. The deferral method of accounting is used for investments that generate investment tax credits. Under this method, the investment tax credits are recognized as a reduction of the related asset. Capitalized Software Development Costs The Company sells certain products that contain embedded software that is integral to the functionality of the products. Internal and external costs incurred for developing this software are charged to expense until technological feasibility has been established, at which point the development costs are capitalized. Capitalized software development costs primarily include payroll, benefits and other headcount related expenses. Once the products are available for general release to customers, no additional costs are capitalized. Earnings Per Share The following table presents the computation of basic and diluted earnings per common share (in millions except per share data): December 31, 2022 January 1, 2022 January 2, 2021 Net income $ 98.4 $ 104.6 $ 14.2 Weighted average shares outstanding - Basic 32.5 32.3 32.1 Net effect of dilutive securities - Stock based compensation 0.1 0.2 0.1 Weighted average shares outstanding - Diluted 32.6 32.5 32.2 Net income per share: Basic $ 3.03 $ 3.24 $ 0.44 Diluted $ 3.02 $ 3.22 $ 0.44 |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | 3. BUSINESS ACQUISITIONS 2022 Acquisition of Daman On September 16, 2022 , the Company completed the acquisition of Daman Products Company, Inc. ( “Daman”), an Indiana corporation. The acquisition was completed pursuant to a Membership Interest Purchase Agreement among the Company and the owners of Daman. Daman is a leading designer and manufacturer of standard and custom precision hydraulic manifolds and other fluid conveyance products for its customer base, predominantly in North America. The acquisition of Daman expands the Company's technologies and markets and provides an opportunity to produce integrated package offerings with multiple Helios brands. The results of Daman’s operations are reported in the Company’s Hydraulics segment and have been included in the Consolidated Financial Statements since the date of acquisition. Cash consideration paid, net of cash acquired, totaled $ 64.4 . The consideration was funded with borrowings on the Company’s credit facility. The Company recorded $ 24.7 of goodwill and $ 29.7 of other identifiable intangible assets in connection with the acquisition. The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The fair value of identified intangibles assets acquired was based on estimates and assumptions made by management at the time of acquisition. The purchase price allocation is preliminary, pending finalization of the real estate purchase and tax related adjustments, and may be revised during the remainder of the measurement period (which will not exceed 12 months from the acquisition date). Any such revisions or changes to the fair values of the assets acquired and liabilities assumed could be material. Certain disclosures have not been presented as the effect of the acquisition was not material to the Company's financial results. 2021 Acquisition of NEM On July 9, 2021 , the Company completed the acquisition of HE-DI S.r.l., an Italian limited liability company and the owner of 100 % of the share capital of NEM S.r.l., an Italian limited liability company. The acquisition was completed pursuant to a Sale and Purchase Agreement (“SPA”) among the Company and the shareholders of NEM. NEM is an innovative hydraulic solutions company providing customized material handling, construction, industrial vehicle and agricultural applications to its global customer base, predominantly in Europe and Asia. The acquisition of NEM expands the Company's global reach, particularly in electro-hydraulics, by growing OEM business throughout the world and provides additional CVT manufacturing capability in Europe. The results of NEM’s operations are reported in the Company’s Hydraulics segment and have been included in the Consolidated Financial Statements since the date of acquisition. Consideration paid, net of cash acquired, totaled $ 56.5 and included 134,621 shares of the Company’s common stock and cash of $ 46.0 . In accordance with the terms of the SPA, the sellers are eligible for an additional cash earnout potential of € 5.4 , or $ 6.4 , based on defined revenue and EBITDA targets. The acquisition date fair value of the earnout was estimated at $ 3.3 . The cash consideration was funded with borrowings on the Company’s credit facility. The Company recorded $ 31.6 in goodwill and $ 28.2 in other identifiable intangible assets in connection with the acquisition. The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The fair value of identified intangibles assets acquired was based on estimates and assumptions made by management at the time of acquisition. Certain disclosures have not been presented as the effect of the acquisition was not material to the Company's financial results. 2020 Acquisition of Balboa Water Group On November 6, 2020 , the Company completed the acquisition of Balboa Water Group, LLC, an innovative market leader of electronic controls for the health and wellness industry with proprietary and patented technology that enables end-to-end electronic control systems for therapy bath and spas. Pursuant to the Agreement and Plan of Merger (the “Purchase Agreement”), the Company acquired all of the outstanding equity interests of BWG Holdings I Corp., the owner of 100 % of the share capital of Balboa. The acquisition was financed with cash on hand and borrowings on the Company’s credit facility. The acquisition enables Helios to enter new and adjacent, high growth markets with a robust complementary product portfolio and diversifies Helios’s end markets, customers and product offerings while enhancing scale, addressable market and innovation in electronic control systems. The results of Balboa’s operations are reported in the Company’s Electronics segment and have been included in the Consolidated Financial Statements since the acquisition date. The Purchase Agreement allows for future payments to the sellers for certain tax benefits realized, related to the pre-acquisition period, through tax periods ending on or before December 31, 2023. The estimated fair value of the contingent liability was determined to be $ 2.5 , as of the acquisition date. The fair value of total purchase consideration consisted of the following: Cash $ 224.2 Receivable from sellers ( 0.6 ) Acquisition date fair value of contingent consideration 2.5 Total purchase consideration 226.1 Less: cash acquired ( 6.0 ) Total purchase consideration, net of cash acquired $ 220.1 The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The fair value of identifiable intangible assets acquired was based on estimates and assumptions made by management at the time of the acquisition. The allocation of the total purchase price, net of cash acquired, is as follows: Accounts receivable $ 28.3 Inventories 24.8 Property, plant and equipment 12.5 Goodwill 76.5 Intangible assets 128.0 Other assets 12.2 Total assets acquired 282.3 Accounts payable 17.8 Other accrued expenses and current liabilities 10.2 Deferred income taxes 23.6 Other noncurrent liabilities 10.6 Total liabilities assumed 62.2 Fair value of net assets acquired $ 220.1 Goodwill is primarily attributable to Balboa’s assembled workforce and anticipated synergies and economies of scale expected from the operations of the combined company. The synergies included certain cost savings, operating efficiencies, access to key end markets and strategic benefits to be achieved as a result of the acquisition. Goodwill of $ 6.3 is expected to be deductible for tax purposes. Transaction costs of $ 6.6 incurred in connection with the acquisition are included in Selling, engineering and administrative expenses in the Consolidated Statement of Operations for the year ended January 2, 2021. Net sales and loss before income taxes of Balboa included in the Consolidated Statement of Operations for the period from acquisition date through January 2, 2021 totaled $ 26.1 and $ 1.5 , respectively. Included in Balboa’s loss for the period are $ 1.9 of charges related to the purchase accounting effects of inventory step up to fair value and $ 4.0 of amortization of acquisition related intangible assets. The fair value of identified intangible assets and their respective useful lives are as follows: Fair Value Weighted- Trade name $ 22.0 18 Technology 13.0 8 Customer relationships 85.0 25 Sales order backlog 8.0 0.5 Identified intangible assets $ 128.0 21 Other Acquisitions During the fiscal years ended December 31, 2022 and January 1, 2022, the Company completed three additional business acquisitions. The results of operations of the acquired businesses are included in the Company's Consolidated Financial Statements since the date of each acquisition. Certain disclosures have not been presented as the effects of the acquisitions, individually and in the aggregate, were not material to the Company's financial results. In January 2021, the Company acquired all of the assets of BJN Technologies, LLC, an innovative engineering solutions provider, and formed the Helios Center of Engineering Excellence, LLC to centralize innovation and technology advancements to better leverage Helios’ product portfolio and global talent. In October 2021, the Company completed the acquisition of assets related to the electronic control systems business of Shenzhen Joyonway Electronics & Technology Co., Ltd and its related entities. Joyonway is a developer of control panels, software, systems and accessories for the health and wellness industry. The results of Joyonway’s operations are reported in the Company’s Electronics segment. In July 2022, we completed the acquisition of the assets of Taimi R&D, Inc., a Canadian manufacturer of innovative hydraulic components that offer ball-less design swivel products, which improve hydraulic reliability of equipment, increase the service life of components and help protect the environment by reduced leakage. T he results of Taimi’s operations are reported in the Company’s Hydraulics segment. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 4. FAIR VALUE OF FINANCIAL INSTRUMENTS The following tables provide information regarding the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and January 1, 2022. December 31, 2022 Significant Other Significant Quoted Market Observable Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Interest rate swap contracts $ 11.1 $ — $ 11.1 $ — Forward foreign exchange contracts 1.0 — 1.0 — Total $ 12.1 $ — $ 12.1 $ — Liabilities Forward foreign exchange contracts $ 0.3 $ — $ 0.3 $ — Contingent consideration 6.7 — — 6.7 Total $ 7.0 $ — $ 0.3 $ 6.7 January 1, 2022 Significant Other Significant Quoted Market Observable Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Interest rate swap contract $ 1.5 $ — $ 1.5 $ — Forward foreign exchange contracts 1.1 — 1.1 — Total $ 2.6 $ — $ 2.6 $ — Liabilities Interest rate swap contract $ 3.2 $ — $ 3.2 $ — Forward foreign exchange contracts 0.1 — 0.1 — Contingent consideration 6.4 — — 6.4 Total $ 9.7 $ — $ 3.3 $ 6.4 A summary of changes in the estimated fair value of contingent consideration at December 31, 2022 and January 1, 2022 is as follows: Balance at January 2, 2021 $ 1.9 Change in estimated fair value 0.6 Contingent consideration incurred in connection with NEM acquisition 3.3 Measurement period adjustment to acquisition date fair value 0.6 Payment on liability ( 0.3 ) Accretion in value 0.4 Currency remeasurement ( 0.1 ) Balance at January 1, 2022 $ 6.4 Change in estimated fair value 1.3 Payment on liability ( 1.1 ) Accretion in value 0.5 Currency remeasurement ( 0.4 ) Balance at December 31, 2022 $ 6.7 |
INVENTORIES, NET
INVENTORIES, NET | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | 5. INVENTORIES, NET At December 31, 2022 and January 1, 2022, inventory consisted of the following: December 31, 2022 January 1, 2022 Raw materials $ 119.2 $ 90.5 Work in process 41.6 34.7 Finished goods 40.8 50.6 Provision for obsolete and slow moving inventory ( 10.0 ) ( 10.2 ) Total $ 191.6 $ 165.6 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT, NET | . PROPERTY, PLANT AND EQUIPMENT, NET At December 31, 2022 and January 1, 2022, property, plant and equipment, net consisted of the following: December 31, 2022 January 1, 2022 Machinery and equipment $ 207.2 $ 184.3 Office furniture and equipment 25.2 26.0 Buildings 53.2 58.8 Building and land improvements 19.3 18.8 Leasehold improvements 4.3 4.0 Land 13.1 13.6 $ 322.3 $ 305.5 Less: Accumulated depreciation ( 185.1 ) ( 174.8 ) Construction in progress 19.3 20.7 $ 156.5 $ 151.4 Operating lease ROU assets 19.2 22.8 Total $ 175.7 $ 174.2 Depreciation expense for the years ended December 31, 2022, January 1, 2022 and January 2, 2021 totaled $ 22.9 , $ 21.4 and $ 17.6 , respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
OPERATING LEASES | 7. OPERATING LEASES The Company leases machinery, equipment, vehicles, buildings and office space throughout its locations that are classified as operating leases. Remaining terms on these leases range from less than one year to nine years . For the years ended December 31, 2022, January 1, 2022 and January 2, 2021, operating lease costs totaled $ 6.8 , $ 6.0 and $ 4.1 , res pectively. Supplemental balance sheet information related to operating leases is as follows: December 31, 2022 January 1, 2022 Right-of-use assets $ 19.2 $ 22.8 Lease liabilities: Current lease liabilities $ 5.8 $ 5.9 Non-current lease liabilities 14.5 17.9 Total lease liabilities $ 20.3 $ 23.8 Weighted average remaining lease term (in years): 4.7 Weighted average discount rate: 4.5 % Supplemental cash flow information related to leases is as follows: For the Year Ended December 31, 2022 January 1, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6.9 $ 6.1 Non-cash impact of new leases and lease modifications $ 3.3 $ 10.8 Maturities of lease liabilities are as follows: 2023 $ 6.6 2024 4.4 2025 4.1 2026 3.4 2027 1.4 Thereafter 3.0 Total lease payments 22.9 Less: Imputed interest ( 2.6 ) Total lease obligations 20.3 Less: Current lease liabilities ( 5.8 ) Non-current lease liabilities $ 14.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 8. GOODWILL AND INTANGIBLE ASSETS Goodwill A summary of changes in goodwill by segment for the years ended December 31, 2022 and January 1, 2022 is as follows: Hydraulics Electronics Total Balance at January 2, 2021 $ 261.1 $ 182.4 $ 443.5 Acquisition of NEM 31.6 — 31.6 Measurement period adjustment, Balboa Water Group acquisition — 0.5 0.5 Acquisition of Joyonway — 3.3 3.3 Currency translation ( 19.0 ) — ( 19.0 ) Balance at January 1, 2022 $ 273.7 $ 186.2 $ 459.9 Acquisition of Daman 24.7 — 24.7 Acquisition of Taimi 0.3 — 0.3 Measurement period adjustment, Joyonway acquisition — 0.1 0.1 Currency translation ( 16.2 ) ( 0.3 ) ( 16.5 ) Balance at December 31, 2022 $ 282.5 $ 186.0 $ 468.5 Acquired Intangibles Assets At December 31, 2022 and January 1, 2022, intangible assets consisted of the following: December 31, 2022 January 1, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Definite-lived intangibles: Trade names and brands $ 87.5 $ ( 18.5 ) $ 69.0 $ 83.4 $ ( 15.2 ) $ 68.2 Non-compete agreements 2.1 ( 0.7 ) 1.4 3.3 ( 1.1 ) 2.2 Technology 50.8 ( 21.3 ) 29.5 50.4 ( 16.7 ) 33.7 Supply agreement 21.0 ( 12.8 ) 8.2 21.0 ( 10.7 ) 10.3 Customer relationships 349.4 ( 56.1 ) 293.3 336.8 ( 43.5 ) 293.3 Sales order backlog 0.7 ( 0.4 ) 0.3 1.0 ( 1.0 ) — Workforce 6.1 ( 2.2 ) 3.9 6.1 ( 1.0 ) 5.1 $ 517.6 $ ( 112.0 ) $ 405.6 $ 502.0 $ ( 89.2 ) $ 412.8 Amortization expense on acquired intangibles assets for the 2022, 2021 and 2020 fiscal years was approximately $ 28.1 , $ 32.8 and $ 22.1 , respectively. Future estimated amortization expense is presented below. Year: 2023 $ 29.6 2024 28.6 2025 28.4 2026 26.6 2027 23.4 Thereafter 269.0 Total $ 405.6 |
Derivative Instruments & Hedgin
Derivative Instruments & Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS & HEDGING ACTIVITIES | 9. DERIVATIVE INSTRUMENTS & HEDGING ACTIVITIES The Company addresses certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments. The Company enters into foreign currency forward contracts to reduce the effects of fluctuating foreign currency exchange rates. In addition, the Company enters into interest rate derivatives to manage the effects of interest rate movements on the Company’s credit facilities. For each derivative contract entered into where the Company looks to obtain hedge accounting treatment, the Company formally and contemporaneously documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking the hedge transaction, the nature of the risk being hedged, how the hedging instruments’ effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively. This process includes linking all derivatives to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the inception of the hedges and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. If it is determined that a derivative is not highly effective, or that it has ceased to be a highly effective hedge, the Company will discontinue hedge accounting with respect to that derivative prospectively. The fair value of the Company’s derivative financial instruments included in the Consolidated Balance Sheets is presented as follows: Asset Derivatives Liability Derivatives Balance Sheet Fair Value (1) Fair Value (1) Balance Sheet Fair Value (1) Fair Value (1) Location December 31, 2022 January 1, 2022 Location December 31, 2022 January 1, 2022 Derivatives designated as hedging instruments: Interest rate swap contracts Other assets $ 11.1 $ 1.5 Other non-current liabilities $ — $ 3.2 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 1.0 0.9 Other current liabilities — 0.1 Forward foreign exchange contracts Other assets — 0.2 Other non-current liabilities 0.3 — Total derivatives $ 12.1 $ 2.6 $ 0.3 $ 3.3 (1) See Note 4 for information regarding the inputs used in determining the fair value of derivative assets and liabilities. G ains and losses related to the Company’s derivative financial instruments for the 2022, 2021 and 2020 years are presented as follows: Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion) December 31, 2022 January 1, 2022 January 2, 2021 into Earnings (Effective Portion) December 31, 2022 January 1, 2022 January 2, 2021 Derivatives in cash flow hedging relationships: Interest rate swap contracts $ 12.8 $ 6.0 $ ( 1.9 ) Interest expense, net $ ( 0.2 ) $ ( 4.2 ) $ ( 3.7 ) Interest expense presented in the Consolidated Statements of Operations, in which the effects of cash flow hedges are recorded, total ed $ 16.7 , $ 16.9 and $ 13.3 for the years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively. Amount of Gain or (Loss) Recognized Location of Gain or (Loss) Recognized December 31, 2022 January 1, 2022 January 2, 2021 in Earnings on Derivatives Derivatives not designated as hedging instruments: Forward foreign exchange contracts $ 4.0 $ 4.7 $ ( 5.5 ) Foreign currency transaction gain / loss, net Interest Rate Swap Contracts Helios primarily utilizes variable-rate debt, which exposes the Company to variability in interest payments. The Company enters into various types of derivative instruments to manage fluctuations in cash flows resulting from interest rate risk attributable to changes in the benchmark interest rates. The Company assesses interest rate cash flow risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. The Company maintains risk management control systems to monitor interest rate cash flow risk attributable to both the Company’s outstanding and forecasted debt obligations as well as the Company’s offsetting hedge positions. The risk management control systems involve the use of analytical techniques to estimate the expected impact of changes in interest rates on the Company’s future cash flows. The Company has entered into interest rate swap transactions to hedge the variable interest rate payments on its credit facilities. In connection with the transactions, the Company pays interest based upon a fixed rate as agreed upon with the respective counterparties and receives variable rate interest payments based on the one-month LIBOR. The interest rate swaps have an aggregate notional amount o f $ 245.0 , with p eriodic decreases, have been designated as hedging instruments and are accounted for as cash flow hedges. The interest rate swaps are scheduled t o expire in April 2023 and October 2025 . The contracts are settled with the respective counterparties on a net basis at each settlement date. Assuming LIBOR rates consistent with year-end, the estimated gains included in AOCI at December 31, 2022, that are expected to be reclassified into earnings during the 2023 fiscal year total $5.0. Forward Foreign Exchange Contracts The Company has entered into forward contracts to economically hedge translational and transactional exposure associated with various business units whose local currency differs from the Company’s reporting currency. The Company’s forward contracts are not designated as hedging instruments for accounting purposes. At December 31, 2022 , the Company had six forward foreign exchange contracts with an aggregate notional value of € 22.0 , maturing at various dates through March 2024 . Net Investment Hedge The Company util izes foreign currency denominated debt to hedge currency exposure in foreign operations. The Company has designated € 90.0 of borrowings on the revolving credit facility as a net investment hedge of a portion of the Company’s European operations. The carrying value of the euro denominated debt totaled $ 96.3 as of December 31, 2022 and is included in the Revolving line of credit line item in the Consolidated Balance Sheets. The gain on the net investment hedge recorded in AOCI as part of the currency translation adjustment was $ 4.6 , net of tax, for the year ended December 31, 2022 . |
Credit Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES | 10. CREDIT FACILITIES Total non-revolving debt consists of the following: Maturity Date December 31, 2022 January 1, 2022 Long-term non-revolving debt: Term loan with PNC Bank Oct 2025 $ 175.0 $ 190.0 Term loans with Citibank Various 8.6 12.4 Other long-term debt Various — 0.1 Total non-revolving debt 183.6 202.5 Less: current portion of long-term non-revolving debt 19.0 18.1 Less: unamortized debt issuance costs 0.4 0.5 Total long-term non-revolving debt, net $ 164.2 $ 183.9 Information on the Company's revolving credit facilities is as follows: Balance Available credit Maturity Date December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022 Revolving line of credit with PNC Bank Oct 2025 $ 261.3 $ 242.3 $ 138.1 $ 157.5 Revolving line of credit with Citibank May 2023 $ 1.6 $ 0.7 $ 0.7 $ 0.5 Future maturities of total debt are as follows: Year: 2023 $ 20.7 2024 24.5 2025 401.3 Total $ 446.5 Term Loan and Line of Credit with PNC Bank The Company has a credit agreement that includes a revolving line of credit and term loan credit facility with PNC Bank, National Association, as administrative agent, and the lenders party thereto. The revolving line of credit allows for borrowings up to an aggregate maximum princip al amount of $ 400.0 . Borrowings under the line of credit bear interest at defined rates plus an applicable margin based on the Company's lever age ratio. The credit agreement requires the Company to comply with a number of restrictive covenants, including limitations on the Company’s ability to incur indebtedness; create or maintain liens on its property or assets; make investments, loans and advances; repurchase shares of its common stock; engage in acquisitions, mergers, joint ventures, consolidation and asset sales; and pay dividends and distributions. The Company (together with its subsidiaries) is also required to comply with certain financial tests, including a minimum interest coverage ratio (as defined therein) of 3.0 to 1.0 and a maximum leverage ratio of 4.25 to 1.0. As of December 31, 2022, the Company was in compliance with all covenants related to the credit agreement. The credit facility is guaranteed by the Company’s U.S. domestic subsidiaries and requires any future U.S. domestic subsidiaries to join as guarantors. In addition, the credit facility is required to be secured by substantially all of the assets of the Company and its current and future U.S. domestic subsidiaries of the Company. To hedge currency exposure in foreign ope rations, € 90.0 of the borrowings on the line of credit are denominated in euros. The borrowings have been designated as a net investment he dge, see additional information in Note 9. The effective interest rate on the credit agreement at December 31, 2022, was 5.8 %. Inte rest expense recognized on the credit agreement during the years ended December 31, 2022, January 1, 2022 and January 2, 2021 was $ 15.9 , $ 12.3 and $ 9.5 , resp ectively. Term Loan with Intesa Sanpaolo S.p.A. The Company had an agreement with Intesa Sanpaolo S.p.A. that provided an unsecured term loan of € 5.0 . The loan matured in December 2021, at which time the remaining balance was paid in full. Term Loans and Line of Credit with Citibank The Company has an uncommitted fixed asset facility agreement (the “Fixed Asset Facility”), short-term revolving facility agreement (the “Working Capital Facility”) and term loan facility agreement (the “Shanghai Branch Term Loan Facility”) with Citibank (China) Co., Ltd. Shanghai Branch, as lender. Under the Fixed Asset Facility, the Company borrowed on a secured basis RMB 2.6 . The proceeds of the loan were used for purchases of equipment. Outstanding borrowings under the Fixed Asset Facility accrue interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 1.5% , to be repaid on a specified schedule with the final payment due in May 2023 . Under the Working Capital Facility, the Company may from time to time borrow amounts on an unsecured revolving facility of up to a total of RMB 16.0 . Proceeds may only be used for expenditures related to production at the Company’s facility located in Kunshan City, Ch ina. Outst anding borrowings under the Working Capital Facility accrue interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 0.5% . All outstanding balances will be due in May 2023 . Under the Shanghai Branch Term Loan Facility, the Company borrowed on a secured bas is RMB 42.7 . The proceeds were used to fund the acquisition of Joyonway. Outstanding borrowings under the Shanghai Branch Term Loan Facility accrue interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 1.5% , to be repaid on a specified schedule with the final payment due in October 2024 . The Company has a term loa n facility agreement (the “Sydney Branch Term Loan Facility”) with Citibank, N.A., Sydney Branch, as lender. Under the Sydney Branch Term Loan Facility, the Company borrowed on a secured basis AUD 7.5 . The proceeds were used to repay other existing debt. Outstanding borrowings under the Sydney Branch Term Loan Facility accrue interest at a rate equal to the Australian Bank Bill Swap Reference Rate plus 2.0% , to be repaid throughout the term of the loan with a final payment due date of December 2024 . As of the date of this filing, the Company was in compliance with all debt covenants related to the Fixed Asset Facility, Workin g Capital Facility and Term Loan Facilities. |
Dividends to Shareholders
Dividends to Shareholders | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
DIVIDENDS TO SHAREHOLDERS | 11. DIVIDENDS TO SHAREHOLDERS The Company declared dividends of $ 11.7 , $ 11.6 and $ 11.6 to shareholders in 2022, 2021 and 2020, respectively. The Company declared the following regular quarterly dividends to shareholders during 2022, 2021 and 2020. The dividends were declared to shareholders of record on the 5 th day following the respective quarter end and paid on the 20 th day of each month following the date of declaration. 2022 2021 2020 First quarter $ 0.09 $ 0.09 $ 0.09 Second quarter 0.09 0.09 0.09 Third quarter 0.09 0.09 0.09 Fourth quarter 0.09 0.09 0.09 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 12. INCOME TAXES For financial reporting purposes, income befor e income taxes includes the following components: For the year ended December 31, 2022 January 1, 2022 January 2, 2021 United States $ 71.3 $ 87.1 $ 30.6 Foreign 50.5 44.1 ( 6.6 ) Total $ 121.8 $ 131.2 $ 24.0 The Company derives its pretax income based on the consolidated results of its legal entities. Products manufactured in the U.S. are sold worldwide and are the primary reason that pretax income in the U.S. is higher than foreign pretax income. The U.S. legal entities had third-party export s ales of $ 146.5 , $ 166.9 and $ 106.1 for the 2022, 2021 and 2020 years, respectively. Foreign pretax income is impacted by the level of foreign manufacturing, sales at varying market levels as well as direct sales to large OEM customers. The components of the income tax provision (benefit) are as follows: For the year ended December 31, 2022 January 1, 2022 January 2, 2021 Current tax expense (benefit): United States $ 12.3 $ 10.7 $ 3.3 State and local 0.4 3.1 1.2 Foreign 15.9 17.3 7.3 Total current 28.6 31.1 11.8 Deferred tax expense (benefit): United States ( 0.4 ) ( 1.1 ) 3.2 State and local ( 2.6 ) 0.2 ( 0.3 ) Foreign ( 2.2 ) ( 3.6 ) ( 4.9 ) Total deferred ( 5.2 ) ( 4.5 ) ( 2.0 ) Total income tax provision $ 23.4 $ 26.6 $ 9.8 The reconciliation between the effective income tax rate and the U.S. federal statutory rate is as follows: For the year ended December 31, 2022 January 1, 2022 January 2, 2021 U.S. federal taxes at statutory rate $ 25.6 $ 27.5 $ 5.1 Increase (decrease) Foreign withholding tax — 0.1 0.3 Capitalized transaction costs 0.3 — 0.4 Foreign income taxed at different rate 1.7 3.6 1.4 FDII deduction ( 2.8 ) ( 3.2 ) ( 1.3 ) Changes in estimates related to prior years including foreign 0.2 ( 0.2 ) ( 2.5 ) Goodwill impairment — — 6.7 State and local taxes, net ( 1.0 ) 2.7 0.6 Current year tax credits ( 0.9 ) ( 0.5 ) ( 0.7 ) Foreign deferred other true up ( 1.0 ) ( 1.6 ) — Change in reserve 0.2 ( 1.9 ) ( 0.5 ) Excess officer compensation 1.4 — — Other ( 0.3 ) 0.1 0.3 Income tax provision $ 23.4 $ 26.6 $ 9.8 The effective tax rate for the year ended December 31, 2022 was lower than the rate for 2021 primarily due to a decrease in the foreign income taxed at different rates and state and local tax benefits, when compared to the year ended January 1, 2022. For the year ended December 31, 2022 , the state and local taxes include a benefit for provision to return related to prior years. As a result of recent acquisitions, the Company’s state effective tax rate has decreased. The rate for all years benefited from tax deductions for foreign derived intangible income (FDII deduction). Deferred income tax assets and liabilities are provided to reflect the future tax consequences of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2022 and January 1, 2022, are presented below: December 31, 2022 January 1, 2022 Deferred tax assets: Foreign tax benefit of U.S. reserves $ 1.9 $ 1.8 Net operating losses 6.2 5.2 Inventory 3.2 3.0 Intangible assets and goodwill 0.7 0.7 Accrued expenses and other 5.3 6.6 Other comprehensive income 5.6 3.4 Total deferred tax assets 22.9 20.7 Less: Valuation allowance ( 1.7 ) ( 0.4 ) Net deferred tax assets 21.2 20.3 Deferred tax liabilities: Depreciation ( 8.6 ) ( 9.6 ) Intangible assets and goodwill ( 71.7 ) ( 79.3 ) Other deferred tax liabilities ( 0.3 ) ( 0.3 ) Total deferred tax liabilities ( 80.6 ) ( 89.2 ) Net deferred tax liabilities $ ( 59.4 ) $ ( 68.9 ) As of December 31, 2022 , the Company has federal net operating loss (“NOL”) carryforwards of approximately $ 9.1 , Oklahoma NOLs carryforwards of $ 5.4 and California NOL carryforwards of $ 36.8 . The Oklahoma NOLs are expected to be fully utilized by 2023 . The federal and California NOLs were generated by Balboa during pre-acquisition tax years 2011-2019 and are subject to a 20 -year carryforward period. As a result of the acquisition, both the federal and the California NOLs are subject to various limitations under Internal Revenue Code (“IRC”) Section 382. IRC Section 382 limits the use of NOLs to the extent there has been an ownership change of more than 50 percent. Additionally, California enacted legislation in June 2020 to suspend the usage of NOLs for tax years 2020 and 2021. The California NOL suspension for 2022 was lifted. Despite these limitations, the Company expects to fully utilize the federal and California NOLs by 2027 and thus has recorded a deferred tax asset of $ 4.9 for all NOLs after the valuation allowance. The Company has foreign NOL carryforwards of $ 7.2 that it does not believe will be utilized, and therefore, has no t recognized a deferred tax asset for these NOLs. A valuation allowance to reduce the deferred tax assets reported is required if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The valuation allowance for deferred tax assets as of December 31, 2022 and January 1, 2022 was $ 1.7 and $ 0.4 , respectively. The portion of valuation allowance related to capital losses was $ 0.4 as of December 31, 2022 and January 1, 2022 . The net change in total valuation was an increase of $ 1.3 in 2022 and was primarily related to foreign NOL carryforwards that, in the judgment of management, are not more likely than not to be realized. The Company recognized a minimal amount in its effective tax rate in 2022, and $ 1.3 related to a presentational reclass within the table of deferred items from 2021. The Company accounts for investment tax credits utilizing the deferral method. Investment tax credits generated in 2022 totaled $ 3.0 . The Company prescribes a recognition threshold and measurement attribute for an uncertain tax position taken or expected to be taken in a tax return. The following is a roll-forward of the Company’s unrecognized tax benefits: Unrecognized tax benefits - December 28, 2019 $ 8.1 Increases from positions taken during prior periods 0.7 Increases from positions taken during current period 0.5 Current year acquisitions 3.2 Settled positions ( 0.9 ) Unrecognized tax benefits - January 2, 2021 $ 11.4 Decreases from positions taken during prior periods ( 0.2 ) Increases from positions taken during current period 0.6 Lapse of statute of limitations ( 2.8 ) Unrecognized tax benefits - January 1, 2022 $ 9.0 Increases from positions taken during prior periods 0.9 Increases from positions taken during current period 0.2 Settled positions ( 0.2 ) Lapse of statute of limitations ( 2.0 ) Unrecognized tax benefits - December 31, 2022 $ 7.9 At December 31, 2022 , the Company had unrecognized tax benefits of $ 7.9 including accrued interest. If recognized, $ 2.7 of unrecognized tax benefits would reduce the effective tax rate in future periods. The Company recognizes interest and penalties related to income tax matters in income tax expense. Interest related to the unrecognized tax benefit has been recognized and included in income tax expense. Interest accrued as of December 31, 2022, is not considered material to the Company’s Consolidated Financial Statements. The Company is currently under state a udit and remains subject to income tax examinations in the U.S. and various state and foreign jurisdictions for tax years 2017-2020. During 2022, the Company resolved several U.S. and foreign examinations, including limited transfer pricing disputes that existed for years dating back to 2008. The Company believes it has adequately reserved for income taxes that could result from any audit adjustments. Although the timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK-BASED COMPENSATION | 13. STOCK-BASED COMPENSATION Equity Incentive Plan The Company’s 2019 Equity Incentive Plan (“2019 Plan”) provides for the grant of shares of restricted stock, restricted stock units, stock options, stock appreciation rights, dividend or dividend equivalent rights, stock awards and other awards valued in whole or in part by reference to or otherwise based on the Company’s common stock, to officers, employees and directors of the Company. As of December 31, 2022 , 790,190 shares remained available to be issued through the 2019 Plan. Restricted Stock Units The Company grants restricted stock units (“RSUs”) to employees in connection with a long-term incentive plan. Awards with time-based vesting requirements primarily vest ratably over a three-year period. Awards with performance-based vesting requirements cliff vest after a three-year performance cycle and only after the achievement of certain performance criteria over that cycle. The number of shares ultimately issued for the performance-based units may vary from 0 % to 200 % of their target amount based on the achievement of defined performance targets. Compe nsation expense recognized for RSUs granted to employees totaled $ 7.0 , $ 6.0 and $ 4.2 for the ye ars ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively. In March 2012, the board of directors adopted the Sun Hydraulics Corporation 2012 Non-Employee Director Fees Plan (the “2012 Directors Plan”), which was approved by the shareholders of the Company at its 2012 annual meeting. Under the 2012 Directors Plan, Non-Employee Directors were compensated for their board service solely in shares of common stock. In February 2015, the board adopted amendments to the 2012 Directors Plan, which revised the compensation for Non-Employee Directors. Each Non-Employee Director received an annual retainer of 2,000 shares of Common Stock. The Chairman's retainer was twice that of a regular director, and the retainer for the chairs of each Board Committee was 150 % that of a regular director. In addition, each Non-Employee Director received 250 shares of Common Stock for attendance at each Board meeting and each meeting of each committee of the board on which he or she serves when the committee meeting is not held within one day of a meeting of the board. Effective January 1, 2022, the board terminated the 2012 Non-Employee Director Fees Plan and approved a new Helios Technologies, Inc. Non-Employee Director Compensation Policy (the “Director Compensation Policy”), which revised the compensation for Non-Employee Directors. The Director Compensation Policy compensates Non-Employee Directors for their board service with cash awards and equity-based compensation through grants of RSUs, issued pursuant to the 2019 Plan, which vest over a one-year period. Directors were grant ed 18,260 RSUs during the year ended December 31, 2022 . The Company recognized director stock compensation expense on the RSUs of $ 0.5 for t he year ended December 31, 2022. Direct ors were granted 26,500 shares of stock f or the year ended January 1, 2022 and the Company recognized director stock compensation expense of $ 2.2 and $ 1.2 f or the year ended January 1, 2022 and January 2, 2021, respectively, under the 2012 Directors Plan. The following table summarizes RSU activity for the 2022 fiscal year: Number of Weighted Average Nonvested balance at January 1, 2022 237 $ 45.58 Granted 108 90.47 Vested ( 109 ) 43.79 Forfeited ( 19 ) 66.20 Nonvested balance at December 31, 2022 (1) 217 $ 66.98 (1) Inc ludes 104,774 nonvested performance-based RSUs. The grant date fair value of restricted stock and RSUs granted during the 2022, 2021 and 2020 fiscal years totale d $ 9.7 , $ 6.2 and $ 6.8 , respectively. The Comp any had $ 8.0 of total unrecognized compensation cost related to the RSU awards as of December 31, 2022 . That cost is expected to be recognized over a weighted average period of 1.7 years. Stock Options In 2022, the Company granted stock options with market-based vesting conditions to its officers. As of December 31, 2022 , there were 82,500 unvested options and no vested unexercised options. The exercise price per share is $ 50.60 , which is equal to the market price of Helios stock on the grant date. The options vest after achievement of defined stock prices and after the required service periods, which range from one to two years. These options have a 10 -year expiration. The grant date fair value of the options totaled $ 2.3 and was estimated using a Monte Carlo simulation. The Company has also granted stock options with only time-based vesting conditions to its officers. As of December 31, 2022 , there were 13,222 unvested options and 11,011 vested unexercised options. The exercise prices per share, which range from $ 35.04 to $ 55.03 , are equal to the market price of Helios stock on the respective grant dates. The options vest ratably over a three-year period and have a 10 -year expiration. The grant date fair value of the options was estimated using a Black Scholes valuation model. At December 31, 2022 , the Company had $ 1.9 of unrecognized compensation cost related to the options, which is expected to be recognized over a weighted average period of 0.9 years. Employee Stock Purchase Plans The Company maintains an Employee Stock Purchase Plan (“ESPP”) in which U.S. employees are eligible to participate. Employees who choose to participate are granted an opportunity to purchase common stock at 85 percent of market value on the first or last day of the quarterly purchase period, whichever is lower. Employees in the United Kingdom (“U.K.”), under a separate plan, are granted an opportunity to purchase the Company’s common stock at market value, on the first or last day of the quarterly purchase period, whichever is lower, with the Company issuing one additional free share of common stock for each six shares purchased by the employee under the plan. Employees purch ased 38,392 shares at a weighted average price of $ 51.54 , and 29,420 share s at a weighted average price of $ 60.71 , under the ESPP and U.K. plan during the years ended December 31, 2022 and January 1, 2022, respectively. The Company recogni zed $ 0.4 , $ 0.7 and $ 0.4 of compensation expense during the years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively. At December 31, 2022 , 343,818 shares remained available to be issued through the ESPP and the U.K. plan. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits [Abstract] | |
EMPLOYEE BENEFITS | 14. EMPLOYEE BENEFITS The Company has a defined contribution retirement plan, under the provisions of Section 401(k) of the Internal Revenue Code, covering substantially all of its eligible U.S. employees. Employer contribution costs r ecognized under the retirement plan amounted to approximately $ 3.1 , $ 3.0 and $ 2.4 during 2022, 2021 and 2020, respectively. The Company provides supplemental pension benefits to its employees of foreign operations in addition to mandatory benefits included in local country payroll statutes. These benefits amounted to approximately $ 3.3 , $ 3.4 an d $ 3.6 during 2022, 2021 and 2020 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 15. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents changes in accumulated other comprehensive loss by component: Unrealized Foreign Total Balance at December 28, 2019 $ ( 5.4 ) $ ( 50.0 ) $ ( 55.4 ) Other comprehensive income before 1.0 27.3 28.3 Amounts reclassified from accumulated ( 2.8 ) — ( 2.8 ) Tax effect 1.3 ( 5.7 ) ( 4.4 ) Net current period other comprehensive (loss) income ( 0.5 ) 21.6 21.1 Balance at January 2, 2021 $ ( 5.9 ) $ ( 28.4 ) $ ( 34.3 ) Other comprehensive income (loss) before 9.2 ( 24.5 ) ( 15.3 ) Amounts reclassified from accumulated ( 3.3 ) — ( 3.3 ) Tax effect ( 1.4 ) 5.3 3.9 Net current period other comprehensive income (loss) 4.5 ( 19.2 ) ( 14.7 ) Balance at January 1, 2022 $ ( 1.4 ) $ ( 47.6 ) $ ( 49.0 ) Other comprehensive income (loss) before 13.0 ( 25.4 ) ( 12.4 ) Amounts reclassified from accumulated ( 0.2 ) — ( 0.2 ) Tax effect ( 2.9 ) 5.1 2.2 Net current period other comprehensive income (loss) 9.9 ( 20.3 ) ( 10.4 ) Balance at December 31, 2022 $ 8.5 $ ( 67.9 ) $ ( 59.4 ) The following table presents reclassifications out of accumulated other comprehensive loss: Details about Accumulated Other Affected Line Item in the Consolidated For the year Ended Comprehensive Income Components Statements of Operations December 31, 2022 January 1, 2022 January 2, 2021 Derivative financial instruments Interest rate swaps Interest expense, net $ ( 0.2 ) $ ( 4.2 ) $ ( 3.7 ) Tax benefit — 0.9 0.9 Net of tax $ ( 0.2 ) $ ( 3.3 ) $ ( 2.8 ) Total reclassifications for the period $ ( 0.2 ) $ ( 3.3 ) $ ( 2.8 ) |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 16. SEGMENT REPORTING The Company has two reportable segments: Hydraulics and Electronics. These segments are organized primarily based on the similar nature of products offered for sale, the types of customers served and the methods of distribution and are consistent with how the segments are managed, how resources are allocated and how information is used by the chief operating decision maker. The Hydraulics segment provides the global capital goods industries with hydraulic components and systems used to transmit power and control force, speed and motion. There are three key technologies within the Hydraulics segment: cartridge valve technology (CVT), quick-release hydraulic coupling solutions (QRC) and hydraulic system solutions (Systems), which often incorporate manifold solutions with CVT and QRC technologies. CVT products provide functions important to a hydraulic system: to control rates and direction of fluid flow and to regulate and control pressures. QRC products allow users to connect and disconnect quickly from any hydraulic circuit without leakage and ensure high-performance under high temperature and pressure using one or multiple couplers. Systems provide engineered solutions for machine users, manufacturers or designers to fulfill complete system design requirements including electro-hydraulic, remote control, electronic control and programmable logic controller systems, as well as automation of existing equipment. The Electronics segment provides complete, fully-tailored display and control solutions for engines, engine-driven equipment, specialty vehicles, therapy baths and traditional and swim spas. This broad range of products is complemented by extensive application expertise and unparalleled depth of software, embedded programming, hardware and sustaining engineering teams. Product categories include traditional mechanical and electronic gauge instrumentation, plug and go CAN-based instruments, robust environmentally sealed controllers, pumps and jets, hydraulic controllers, engineered panels and application specialists, process monitoring instrumentation, proprietary hardware and software development, printed circuit board assembly and wiring harness design and manufacturing and after-market support through global distribution. The Company evaluates performance and allocates resources based primarily on segment operating income. Certain costs were not allocated to the business segments as they are not used in evaluating the results of, or in allocating resources to the Company’s segments. These costs are presented in the Corporate and other line item. For the year ended December 31, 2022, these unallocated costs totaled $ 37.9 and include certain corporate costs not deemed to be allocable to either business segment of $ 0.3 , amortization of acquisition-related intangible assets of $ 28.1 and other acquisition and integration related costs of $ 9.5 . The accounting policies of the Company’s operating segme nts are the same as those used to prepare the accompanying Consolidated Financial Statements. The following table presents financial information by reportable segment for the last three fiscal years: 2022 2021 2020 Net sales: Hydraulics $ 551.3 $ 516.4 $ 407.2 Electronics 334.1 352.7 115.8 Total $ 885.4 $ 869.2 $ 523.0 Operating income: Hydraulics $ 122.7 $ 119.8 $ 82.0 Electronics 52.5 71.7 19.4 Corporate and other ( 37.9 ) ( 42.2 ) ( 66.0 ) Total $ 137.3 $ 149.3 $ 35.4 Capital expenditures: Hydraulics $ 21.5 $ 17.5 $ 11.7 Electronics 10.4 9.3 2.9 Total $ 31.9 $ 26.8 $ 14.6 Total assets: Hydraulics $ 874.8 $ 821.8 $ 765.2 Electronics 567.1 585.7 523.5 Corporate 21.8 7.8 8.3 Total $ 1,463.7 $ 1,415.3 $ 1,297.0 Geographic Region Information: Net sales are measured based on the geographic destination of sales. Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment and exclude ROU assets. The following table presents financial information by region for the last three fiscal years: 2022 2021 2020 Net sales Americas $ 470.4 $ 425.5 $ 224.5 EMEA 223.6 222.0 142.1 APAC 191.4 221.7 156.4 Total $ 885.4 $ 869.2 $ 523.0 Tangible long-lived assets Americas $ 105.7 $ 97.6 $ 96.8 EMEA 33.1 35.8 31.1 APAC 17.7 18.0 18.7 Total $ 156.5 $ 151.4 $ 146.6 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS The Company purchases from, and sells inventory to, entities partially owned or managed by directors of Helios. For the years ended December 31, 2022, January 1, 2022 and January 2, 2021, inventory sales to the e ntities totaled $ 3.1 , $ 3.4 and $ 3.5 , respectively, and inventory purchases from the entities totaled $ 0.0 , $ 3.2 and $ 4.3 , respect ively. At December 31, 2022 and January 1, 2022, total amounts due from the entities totaled $ 0.4 and $ 0.3 , respectively. In March 2022, the Company completed a sale of real estate to one of its executive officers for $ 1.9 , which sale price was based on the valuation from an independent third-party appraisal. Concurrent with the sale, the Company also purchased real estate from the executive officer for $ 1.0 , which purchase price reflected a below market valuation based on the original cost of the property to the executive officer, plus the cost of improvements funded by the executive officer. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES Building Purchase Commitment The Company has entered into a lease to buy agreement for the purchase of a building f or € 26.7 . T he agreement includes an option to purchase during the lease period with a commitment to purchase at the end of the 6-year lease period. The purchase price will be reduced by 60% of the lease payments made prior to purchase . Legal Proceedings The Company is not a party to any legal proceedings other than routine litigation incidental to its business. In the opinion of management, the amount of ultimate liability with respect to these actions will not materially affect the results of operations, financial position or cash flows of the Company. Insurance The Company accrues for certain health care benefit costs under a self-funded plan and records a liability for all unresolved claims at the anticipated cost to the Company at the end of the period based on management’s assessment. The Company believes it has adequate reserves for all self-insured claims. Letters of Credit In the ordinary course of business, the Company is at times required to post letters of credit. The letters of credit are issued by financial institutions to guarantee our obligations to various parties. The Company was contingently liabl e for $ 1.6 of st andby letters of credit with financial institutions as of December 31, 2022 . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 19. SUBSEQUENT EVENTS In January 2023, the Company completed the acquisition of Schultes Precision Manufacturing, Inc. (“Schultes”), an Illinois corporation. The acquisition was completed pursuant to a Stock Purchase Agreement (“Agreement”) among the Company and the owners of Schultes. Schultes is a highly trusted specialist in manufacturing precision machined components and assemblies for customers requiring very tight tolerances, superior quality and exceptional value-added manufacturing processes. Currently serving the hydraulic, aerospace, communication, food services, medical device and dental industries, Schultes brings the manufacturing quality, reliability and responsiveness critical to its customers’ success. Initial cash consideration paid at closing, net of cash acquired, totaled $ 85.0 . Total consideration for the acquisition is subject to a post-closing adjustment in accordance with the terms of the Agreement. The consideration was funded with borrowings on the Company’s credit facility. The Company determined the acquisition of Schultes was not a significant acquisition under Rule 3-05 of Regulation S-X. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company reports on a fiscal year that ends on the Saturday closest to December 31 st . Each quarter generally consists of thirteen weeks, with a fourteen-week quarter occurring periodically. The 2020 fiscal year contained 53 weeks and ended January 2, 2021. The 2022 and 2021 fiscal years contained 52 weeks and ended December 31, 2022 and January 1, 2022, respectively. The Consolidated Financial Statements include the accounts and operations of Helios Technologies and its direct subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The financial statements of foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for operating results. Unrealized translation gains and losses are included in accumulated other comprehensive income (loss) (“AOCI”) in shareholders’ equity. When a transaction is denominated in a currency other than the subsidiary’s functional currency, the Company recognizes a transaction gain or loss in foreign currency transaction (gain) loss, net. |
Business Combinations | Business Combinations Business combinations are accounted for under the acquisition method of accounting, which requires recognition separately from goodwill, the assets acquired and the liabilities assumed at their acquisition date fair values. While best estimates and assumptions are used to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, when applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, adjustments that are based on new information obtained about facts and circumstances that existed as of the acquisition date are recorded to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recognized in the Consolidated Statements of Operations. |
Fair Value Measurements | Fair Value Measurements The Company applies fair value accounting guidelines for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Under these guidelines, fair value is defined as the price that would be received for the sale of an asset or paid to transfer a liability (i.e., an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3 - Unobservable inputs that are supported by little, infrequent, or no market activity and reflect the Company’s own assumptions about inputs used in pricing the asset or liability. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The fair value of the Company’s cash and cash equivalents, accounts receivable, other current assets, accounts payable, accrued expenses and other liabilities approximate their carrying value, due to their short-term nature. Contingent consideration and newly acquired intangible assets are measured at fair value using level 3 inputs. The Company utilizes risk-adjusted probability analysis to estimate the fair value of contingent consideration arrangements. Forward foreign exchange contracts are measured at fair value based on quoted foreign exchange forward rates at the reporting dates. The fair value of interest rate swap contracts is based on the expected cash flows over the life of the trade. Expected cash flows are determined by evaluating transactions with a pricing model using a specific market environment. The values are estimated using the closing and mid-market market rate/price environment as of the end of the period. See Note 4 for detail on the level of inputs used in determining the fair value of assets and liabilities. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. |
Accounts Receivable, Net | Accounts Receivable, net Accounts receivable are stated at amounts owed by customers, net of an allowance for estimated credit losses. The allowance for estimated credit losses is based on management’s assessment of amounts which may become uncollectible in the future and is estimated from a review of historical experience and specific identification of those accounts that are significantly in arrears. Account balances are charged against the allowance when it is probable the receivable will not be recovered. See the Consolidated Balance Sheets for the allowance amounts. |
Inventories, Net | Inventories, net Inventories are valued at the lower of cost and net realizable value, on a first-in, first-out basis. On an ongoing basis, component parts found to be obsolete through design or process changes are disposed of and charged to material cost. The Company reviews on-hand balances of products and component parts against specific criteria. Products and component parts without usage or that have excess quantities on hand are evaluated. An inventory reserve is then established for the appropriate inventory value of those products and component parts deemed to be obsolete or slow moving. See Note 5 for inventory reserve amounts. |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment is stated at cost less accumulated depreciation. Expenditures for repairs and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repairs and maintenance are expensed as incurred. Depreciation is computed using the straight-line method generally over the following useful lives: Years Machinery and equipment 3 - 12 Office furniture and equipment 2 - 10 Buildings 30 - 40 Building and land improvements 5 - 20 Leasehold improvements 2 - 10 Gains or losses on the retirement, sale, or disposal of property, plant and equipment are reflected in the Consolidated Statement of Operations in the period in which the assets are taken out of service. |
Leases | Leases The Company determines whether an arrangement is a lease at its inception. Operating lease right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and are presented in Property, plant and equipment in the Consolidated Balance Sheets. Operating lease liabilities represent the Company’s obligation to make lease payments arising from the leases and are presented in Other accrued expenses and current liabilities and Other noncurrent liabilities in the Consolidated Balance Sheets. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company utilizes an estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. The Company considers its existing credit facilities when calculating the incremental borrowing rate. Lease terms include options to extend the lease when it is reasonably certain that the Company will exercise the option. Leases with an initial term of 12 months or less are not recorded on the balance sheet. See Note 7 fo r additional disclosures related to leases. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price of an acquisition over the fair value of the net assets acquired. Goodwill is tested for impairment annually or more frequently if events or circumstances indicate a reduction in the fair value below the carrying value. As part of the impairment test, the Company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If after this optional qualitative assessment, the Company determines that impairment is more likely than not, then the Company performs the quantitative impairment test. The carrying value of assets is calculated at the reporting unit level. An impairment loss is recorded to the extent that the carrying value of the reporting unit exceeds its fair value, with the impairment loss limited to the amount of goodwill allocated to the reporting unit. The Company completed its annual goodwill impairment testing for 2022 and determined that the carrying amount of goodwill was not impaired. Other intangible assets with definite lives consist primarily of technology, customer relationships, trade names and brands and a favorable supply agreement, and are carried at cost less accumulated amortization and amortized over their respective estimated useful lives. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the asset is measured by comparison of its carrying amount to future net cash flows the asset is expected to generate. If such assets are considered impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. For the year ended December 31, 2022 , there were no impairments recorded based on our analysis. |
Revenue Recognition | Revenue Recognition Revenue recognition is evaluated through the following five steps: 1) identification of the contracts with customers; 2) identification of the performance obligations in the contracts; 3) determination of the transaction price; 4) allocation of the transaction price to the performance obligations in the contract; and 5) recognition of revenue as or when performance obligations are satisfied. The Company disaggregates revenue by reporting segment as well as by geographic destination of the sale. See disaggregated revenue balances in Note 16, Segment Reporting. These categories depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Revenue from Product Sales The significant majority of the Company’s contracts with its customers are for standard product sales under standard ship and bill arrangements. The contracts are generally accounted for as having a single performance obligation for the manufacture of product, which is considered the only distinct promise in the contract, and are short term in nature, typically completed within one quarter and not exceeding one year in duration. The transaction price is agreed upon in the contract. Revenue is recognized upon satisfaction of the performance obligation, which is typically at a point in time when control is transferred to the customer. Typically, control is transferred upon shipment to the customer but can also occur upon delivery to the customer, depending on contract terms. Revenue recognition can also occur over time for these contracts when the following criteria are met: the Company has no alternative use for the product; and the Company has an enforceable right to payment (including a reasonable margin) for performance completed to date. Revenue is recognized in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods. Consideration for product sales is primarily fixed in nature. The Company’s estimates for sales discounts, rebates and product returns reduce revenue recognized at the time of the sale. Contract Assets & Liabilities Contract assets are recognized when the Company has a conditional right to consideration for performance completed on contracts. Contract asset balances totaled $ 3.8 and $ 2.2 at December 31, 2022 and January 1, 2022, respectively and are presented in Other current assets in the Consolidated Balance Sheets. Accounts receivable balances represent unconditional rights to consideration from customers and are presented separate from contract assets in the Consolidated Balance Sheets. Contract liabilities are recognized when payment is received from customers prior to satisfying the underlying performance obligation. Contract liabilities totaled $ 3.3 an d $ 4.4 at December 31, 2022 and January 1, 2022, respectively, and are presented in Other accrued expenses and current liabilities in the Consolidated Balance Sheets. Other Revenue Recognition Considerations Contracts do not have significant financing components and payment terms do not exceed one year from the date of the sale. The Company does not incur significant credit losses from contracts with customers. The Company applies the practical expedient as permitted by the Financial Accounting Standards Board, which allows the omission of certain disclosures related to remaining performance obligations, as contract duration does not exceed one year. The Company’s warranties provide assurance that products will function as intended. Estimated costs of product warranties are recognized at the time of the sale. The estimates are based upon current and historical warranty trends and other related information known to the Company. The Company treats shipping and handling activities that occur after control of the product transfers as fulfillment activities, and therefore, does not account for shipping and handling costs as a separate performance obligation. Shipping and handling costs billed to customers are recorded in revenue. Shipping costs incurred by the Company are recorded in cost of goods sold. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities All derivative instruments are recorded gross on the Consolidated Balance Sheets at their respective fair values. The accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is initially reported as a component of AOCI and is subsequently reclassified into the line item within the Consolidated Statements of Operations in which the hedged items are recorded in the same period in which the hedged item affects earnings. The Company enters into foreign exchange currency contracts that are not designated as hedging instruments for accounting purposes. Changes in the fair value of foreign exchange currency contracts not designated as hedging instruments are recognized in earnings. Derivative financial instruments are utilized as risk management tools and are not used for trading or speculative purposes. The Company utilizes foreign currency denominated debt to hedge currency exposure in foreign operations. The Company designates certain foreign currency denominated debt as hedges of net investments in foreign operations, which reduces the Company’s exposure to changes in currency exchange rates on investments in non-U.S. subsidiaries. Gains and losses on net investments in non-U.S. operations are economically offset by losses and gains on foreign currency borrowings. The change in the U.S. dollar value of foreign currency denominated debt is recorded in Foreign currency translation adjustments, a component of AOCI. |
Research and Development | Research and Development The Company conducts R&D to create new products and to make improvements to products currently in use. R&D costs are charged to expense as incurred and totaled $ 17.4 , $ 16.8 and $ 15.6 for the 2022, 2021 and 2020 fiscal years, respectively. |
Stock-Based Compensation | Stock-Based Compensation All share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as an expense in earnings over the requisite service period. For performance-based share awards, the Company recognizes expense when it is determined the performance criteria are probable of being met. The probability of vesting is reassessed at each reporting date and compensation cost is adjusted using a cumulative catch up adjustment. Forfeitures are recognized in compensation cost when they occur. Benefits or deficiencies of tax deductions in excess of recognized compensation costs are reported within operating cash flows. |
Income Taxes | Income Taxes The Company’s income tax policy provides for a balance sheet approach under which deferred income taxes are provided for based upon enacted tax laws and rates applicable to the periods in which the taxes become payable. These differences result from items reported differently for financial reporting and income tax purposes, primarily depreciation, accrued expenses and reserves. If necessary, the measurement of deferred tax assets is reduced by the amount of any tax benefits that are not expected to be realized based on available evidence. The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes potential interest and penalties related to its unrecognized tax benefits in income tax expense. The Company accounts for Global Intangible Low-Taxed Income as a current-period expense when incurred. The deferral method of accounting is used for investments that generate investment tax credits. Under this method, the investment tax credits are recognized as a reduction of the related asset. |
Capitalized Software Development Costs | Capitalized Software Development Costs The Company sells certain products that contain embedded software that is integral to the functionality of the products. Internal and external costs incurred for developing this software are charged to expense until technological feasibility has been established, at which point the development costs are capitalized. Capitalized software development costs primarily include payroll, benefits and other headcount related expenses. Once the products are available for general release to customers, no additional costs are capitalized. |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per common share (in millions except per share data): December 31, 2022 January 1, 2022 January 2, 2021 Net income $ 98.4 $ 104.6 $ 14.2 Weighted average shares outstanding - Basic 32.5 32.3 32.1 Net effect of dilutive securities - Stock based compensation 0.1 0.2 0.1 Weighted average shares outstanding - Diluted 32.6 32.5 32.2 Net income per share: Basic $ 3.03 $ 3.24 $ 0.44 Diluted $ 3.02 $ 3.22 $ 0.44 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Useful Lives of Assets | Property, plant and equipment is stated at cost less accumulated depreciation. Expenditures for repairs and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repairs and maintenance are expensed as incurred. Depreciation is computed using the straight-line method generally over the following useful lives: Years Machinery and equipment 3 - 12 Office furniture and equipment 2 - 10 Buildings 30 - 40 Building and land improvements 5 - 20 Leasehold improvements 2 - 10 |
Computation of basic and diluted earnings per common share | The following table presents the computation of basic and diluted earnings per common share (in millions except per share data): December 31, 2022 January 1, 2022 January 2, 2021 Net income $ 98.4 $ 104.6 $ 14.2 Weighted average shares outstanding - Basic 32.5 32.3 32.1 Net effect of dilutive securities - Stock based compensation 0.1 0.2 0.1 Weighted average shares outstanding - Diluted 32.6 32.5 32.2 Net income per share: Basic $ 3.03 $ 3.24 $ 0.44 Diluted $ 3.02 $ 3.22 $ 0.44 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Components of Fair Value of Total Purchase Consideration | The fair value of total purchase consideration consisted of the following: Cash $ 224.2 Receivable from sellers ( 0.6 ) Acquisition date fair value of contingent consideration 2.5 Total purchase consideration 226.1 Less: cash acquired ( 6.0 ) Total purchase consideration, net of cash acquired $ 220.1 |
Schedule of Allocation of Total Purchase Price, Net of Cash Acquired | The allocation of the total purchase price, net of cash acquired, is as follows: Accounts receivable $ 28.3 Inventories 24.8 Property, plant and equipment 12.5 Goodwill 76.5 Intangible assets 128.0 Other assets 12.2 Total assets acquired 282.3 Accounts payable 17.8 Other accrued expenses and current liabilities 10.2 Deferred income taxes 23.6 Other noncurrent liabilities 10.6 Total liabilities assumed 62.2 Fair value of net assets acquired $ 220.1 |
Schedule of Preliminary Fair Value of Identified Intangible Assets and Useful Lives | The fair value of identified intangible assets and their respective useful lives are as follows: Fair Value Weighted- Trade name $ 22.0 18 Technology 13.0 8 Customer relationships 85.0 25 Sales order backlog 8.0 0.5 Identified intangible assets $ 128.0 21 Other Acquisitions During the fiscal years ended December 31, 2022 and January 1, 2022, the Company completed three additional business acquisitions. The results of operations of the acquired businesses are included in the Company's Consolidated Financial Statements since the date of each acquisition. Certain disclosures have not been presented as the effects of the acquisitions, individually and in the aggregate, were not material to the Company's financial results. In January 2021, the Company acquired all of the assets of BJN Technologies, LLC, an innovative engineering solutions provider, and formed the Helios Center of Engineering Excellence, LLC to centralize innovation and technology advancements to better leverage Helios’ product portfolio and global talent. In October 2021, the Company completed the acquisition of assets related to the electronic control systems business of Shenzhen Joyonway Electronics & Technology Co., Ltd and its related entities. Joyonway is a developer of control panels, software, systems and accessories for the health and wellness industry. The results of Joyonway’s operations are reported in the Company’s Electronics segment. In July 2022, we completed the acquisition of the assets of Taimi R&D, Inc., a Canadian manufacturer of innovative hydraulic components that offer ball-less design swivel products, which improve hydraulic reliability of equipment, increase the service life of components and help protect the environment by reduced leakage. T he results of Taimi’s operations are reported in the Company’s Hydraulics segment. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables provide information regarding the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and January 1, 2022. December 31, 2022 Significant Other Significant Quoted Market Observable Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Interest rate swap contracts $ 11.1 $ — $ 11.1 $ — Forward foreign exchange contracts 1.0 — 1.0 — Total $ 12.1 $ — $ 12.1 $ — Liabilities Forward foreign exchange contracts $ 0.3 $ — $ 0.3 $ — Contingent consideration 6.7 — — 6.7 Total $ 7.0 $ — $ 0.3 $ 6.7 January 1, 2022 Significant Other Significant Quoted Market Observable Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Interest rate swap contract $ 1.5 $ — $ 1.5 $ — Forward foreign exchange contracts 1.1 — 1.1 — Total $ 2.6 $ — $ 2.6 $ — Liabilities Interest rate swap contract $ 3.2 $ — $ 3.2 $ — Forward foreign exchange contracts 0.1 — 0.1 — Contingent consideration 6.4 — — 6.4 Total $ 9.7 $ — $ 3.3 $ 6.4 |
Summary of Changes in Estimated Fair Value of Contingent Consideration | A summary of changes in the estimated fair value of contingent consideration at December 31, 2022 and January 1, 2022 is as follows: Balance at January 2, 2021 $ 1.9 Change in estimated fair value 0.6 Contingent consideration incurred in connection with NEM acquisition 3.3 Measurement period adjustment to acquisition date fair value 0.6 Payment on liability ( 0.3 ) Accretion in value 0.4 Currency remeasurement ( 0.1 ) Balance at January 1, 2022 $ 6.4 Change in estimated fair value 1.3 Payment on liability ( 1.1 ) Accretion in value 0.5 Currency remeasurement ( 0.4 ) Balance at December 31, 2022 $ 6.7 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of inventories, Net | At December 31, 2022 and January 1, 2022, inventory consisted of the following: December 31, 2022 January 1, 2022 Raw materials $ 119.2 $ 90.5 Work in process 41.6 34.7 Finished goods 40.8 50.6 Provision for obsolete and slow moving inventory ( 10.0 ) ( 10.2 ) Total $ 191.6 $ 165.6 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | At December 31, 2022 and January 1, 2022, property, plant and equipment, net consisted of the following: December 31, 2022 January 1, 2022 Machinery and equipment $ 207.2 $ 184.3 Office furniture and equipment 25.2 26.0 Buildings 53.2 58.8 Building and land improvements 19.3 18.8 Leasehold improvements 4.3 4.0 Land 13.1 13.6 $ 322.3 $ 305.5 Less: Accumulated depreciation ( 185.1 ) ( 174.8 ) Construction in progress 19.3 20.7 $ 156.5 $ 151.4 Operating lease ROU assets 19.2 22.8 Total $ 175.7 $ 174.2 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases is as follows: December 31, 2022 January 1, 2022 Right-of-use assets $ 19.2 $ 22.8 Lease liabilities: Current lease liabilities $ 5.8 $ 5.9 Non-current lease liabilities 14.5 17.9 Total lease liabilities $ 20.3 $ 23.8 Weighted average remaining lease term (in years): 4.7 Weighted average discount rate: 4.5 % |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: For the Year Ended December 31, 2022 January 1, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6.9 $ 6.1 Non-cash impact of new leases and lease modifications $ 3.3 $ 10.8 |
Maturities of Lease Liabilities | Maturities of lease liabilities are as follows: 2023 $ 6.6 2024 4.4 2025 4.1 2026 3.4 2027 1.4 Thereafter 3.0 Total lease payments 22.9 Less: Imputed interest ( 2.6 ) Total lease obligations 20.3 Less: Current lease liabilities ( 5.8 ) Non-current lease liabilities $ 14.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | A summary of changes in goodwill by segment for the years ended December 31, 2022 and January 1, 2022 is as follows: Hydraulics Electronics Total Balance at January 2, 2021 $ 261.1 $ 182.4 $ 443.5 Acquisition of NEM 31.6 — 31.6 Measurement period adjustment, Balboa Water Group acquisition — 0.5 0.5 Acquisition of Joyonway — 3.3 3.3 Currency translation ( 19.0 ) — ( 19.0 ) Balance at January 1, 2022 $ 273.7 $ 186.2 $ 459.9 Acquisition of Daman 24.7 — 24.7 Acquisition of Taimi 0.3 — 0.3 Measurement period adjustment, Joyonway acquisition — 0.1 0.1 Currency translation ( 16.2 ) ( 0.3 ) ( 16.5 ) Balance at December 31, 2022 $ 282.5 $ 186.0 $ 468.5 |
Schedule of intangible assets | At December 31, 2022 and January 1, 2022, intangible assets consisted of the following: December 31, 2022 January 1, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Definite-lived intangibles: Trade names and brands $ 87.5 $ ( 18.5 ) $ 69.0 $ 83.4 $ ( 15.2 ) $ 68.2 Non-compete agreements 2.1 ( 0.7 ) 1.4 3.3 ( 1.1 ) 2.2 Technology 50.8 ( 21.3 ) 29.5 50.4 ( 16.7 ) 33.7 Supply agreement 21.0 ( 12.8 ) 8.2 21.0 ( 10.7 ) 10.3 Customer relationships 349.4 ( 56.1 ) 293.3 336.8 ( 43.5 ) 293.3 Sales order backlog 0.7 ( 0.4 ) 0.3 1.0 ( 1.0 ) — Workforce 6.1 ( 2.2 ) 3.9 6.1 ( 1.0 ) 5.1 $ 517.6 $ ( 112.0 ) $ 405.6 $ 502.0 $ ( 89.2 ) $ 412.8 |
Schedule of estimated amortization expense of intangible assets | Future estimated amortization expense is presented below. Year: 2023 $ 29.6 2024 28.6 2025 28.4 2026 26.6 2027 23.4 Thereafter 269.0 Total $ 405.6 |
Derivative Instruments & Hedg_2
Derivative Instruments & Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Financial Instruments Included in Consolidated Balance Sheets | The fair value of the Company’s derivative financial instruments included in the Consolidated Balance Sheets is presented as follows: Asset Derivatives Liability Derivatives Balance Sheet Fair Value (1) Fair Value (1) Balance Sheet Fair Value (1) Fair Value (1) Location December 31, 2022 January 1, 2022 Location December 31, 2022 January 1, 2022 Derivatives designated as hedging instruments: Interest rate swap contracts Other assets $ 11.1 $ 1.5 Other non-current liabilities $ — $ 3.2 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 1.0 0.9 Other current liabilities — 0.1 Forward foreign exchange contracts Other assets — 0.2 Other non-current liabilities 0.3 — Total derivatives $ 12.1 $ 2.6 $ 0.3 $ 3.3 (1) See Note 4 for information regarding the inputs used in determining the fair value of derivative assets and liabilities. G |
Schedule of Gains and Losses Related to Derivative Financial Instruments | ains and losses related to the Company’s derivative financial instruments for the 2022, 2021 and 2020 years are presented as follows: Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion) December 31, 2022 January 1, 2022 January 2, 2021 into Earnings (Effective Portion) December 31, 2022 January 1, 2022 January 2, 2021 Derivatives in cash flow hedging relationships: Interest rate swap contracts $ 12.8 $ 6.0 $ ( 1.9 ) Interest expense, net $ ( 0.2 ) $ ( 4.2 ) $ ( 3.7 ) Interest expense presented in the Consolidated Statements of Operations, in which the effects of cash flow hedges are recorded, total ed $ 16.7 , $ 16.9 and $ 13.3 for the years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively. Amount of Gain or (Loss) Recognized Location of Gain or (Loss) Recognized December 31, 2022 January 1, 2022 January 2, 2021 in Earnings on Derivatives Derivatives not designated as hedging instruments: Forward foreign exchange contracts $ 4.0 $ 4.7 $ ( 5.5 ) Foreign currency transaction gain / loss, net |
Credit Facilities (Tables)
Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Total Long-Term Non-Revolving Debt | Total non-revolving debt consists of the following: Maturity Date December 31, 2022 January 1, 2022 Long-term non-revolving debt: Term loan with PNC Bank Oct 2025 $ 175.0 $ 190.0 Term loans with Citibank Various 8.6 12.4 Other long-term debt Various — 0.1 Total non-revolving debt 183.6 202.5 Less: current portion of long-term non-revolving debt 19.0 18.1 Less: unamortized debt issuance costs 0.4 0.5 Total long-term non-revolving debt, net $ 164.2 $ 183.9 |
Summary of Information on Revolving Credit Facilities | Information on the Company's revolving credit facilities is as follows: Balance Available credit Maturity Date December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022 Revolving line of credit with PNC Bank Oct 2025 $ 261.3 $ 242.3 $ 138.1 $ 157.5 Revolving line of credit with Citibank May 2023 $ 1.6 $ 0.7 $ 0.7 $ 0.5 |
Summary of Future Maturities of Total Debt | Future maturities of total debt are as follows: Year: 2023 $ 20.7 2024 24.5 2025 401.3 Total $ 446.5 |
Dividends to Shareholders (Tabl
Dividends to Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Quarterly Dividends Declared | The Company declared the following regular quarterly dividends to shareholders during 2022, 2021 and 2020. The dividends were declared to shareholders of record on the 5 th day following the respective quarter end and paid on the 20 th day of each month following the date of declaration. 2022 2021 2020 First quarter $ 0.09 $ 0.09 $ 0.09 Second quarter 0.09 0.09 0.09 Third quarter 0.09 0.09 0.09 Fourth quarter 0.09 0.09 0.09 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | For financial reporting purposes, income befor e income taxes includes the following components: For the year ended December 31, 2022 January 1, 2022 January 2, 2021 United States $ 71.3 $ 87.1 $ 30.6 Foreign 50.5 44.1 ( 6.6 ) Total $ 121.8 $ 131.2 $ 24.0 |
Schedule of Components of Income Tax Provision (Benefit) | The components of the income tax provision (benefit) are as follows: For the year ended December 31, 2022 January 1, 2022 January 2, 2021 Current tax expense (benefit): United States $ 12.3 $ 10.7 $ 3.3 State and local 0.4 3.1 1.2 Foreign 15.9 17.3 7.3 Total current 28.6 31.1 11.8 Deferred tax expense (benefit): United States ( 0.4 ) ( 1.1 ) 3.2 State and local ( 2.6 ) 0.2 ( 0.3 ) Foreign ( 2.2 ) ( 3.6 ) ( 4.9 ) Total deferred ( 5.2 ) ( 4.5 ) ( 2.0 ) Total income tax provision $ 23.4 $ 26.6 $ 9.8 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation between the effective income tax rate and the U.S. federal statutory rate is as follows: For the year ended December 31, 2022 January 1, 2022 January 2, 2021 U.S. federal taxes at statutory rate $ 25.6 $ 27.5 $ 5.1 Increase (decrease) Foreign withholding tax — 0.1 0.3 Capitalized transaction costs 0.3 — 0.4 Foreign income taxed at different rate 1.7 3.6 1.4 FDII deduction ( 2.8 ) ( 3.2 ) ( 1.3 ) Changes in estimates related to prior years including foreign 0.2 ( 0.2 ) ( 2.5 ) Goodwill impairment — — 6.7 State and local taxes, net ( 1.0 ) 2.7 0.6 Current year tax credits ( 0.9 ) ( 0.5 ) ( 0.7 ) Foreign deferred other true up ( 1.0 ) ( 1.6 ) — Change in reserve 0.2 ( 1.9 ) ( 0.5 ) Excess officer compensation 1.4 — — Other ( 0.3 ) 0.1 0.3 Income tax provision $ 23.4 $ 26.6 $ 9.8 The effective tax rate for the year ended December 31, 2022 was lower than the rate for 2021 primarily due to a decrease in the foreign income taxed at different rates and state and local tax benefits, when compared to the year ended January 1, 2022. For the year ended December 31, 2022 , the state and local taxes include a benefit for provision to return related to prior years. As a result of recent acquisitions, the Company’s state effective tax rate has decreased. The rate for all years benefited from tax deductions for foreign derived intangible income (FDII deduction). |
Schedule of Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities are provided to reflect the future tax consequences of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2022 and January 1, 2022, are presented below: December 31, 2022 January 1, 2022 Deferred tax assets: Foreign tax benefit of U.S. reserves $ 1.9 $ 1.8 Net operating losses 6.2 5.2 Inventory 3.2 3.0 Intangible assets and goodwill 0.7 0.7 Accrued expenses and other 5.3 6.6 Other comprehensive income 5.6 3.4 Total deferred tax assets 22.9 20.7 Less: Valuation allowance ( 1.7 ) ( 0.4 ) Net deferred tax assets 21.2 20.3 Deferred tax liabilities: Depreciation ( 8.6 ) ( 9.6 ) Intangible assets and goodwill ( 71.7 ) ( 79.3 ) Other deferred tax liabilities ( 0.3 ) ( 0.3 ) Total deferred tax liabilities ( 80.6 ) ( 89.2 ) Net deferred tax liabilities $ ( 59.4 ) $ ( 68.9 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a roll-forward of the Company’s unrecognized tax benefits: Unrecognized tax benefits - December 28, 2019 $ 8.1 Increases from positions taken during prior periods 0.7 Increases from positions taken during current period 0.5 Current year acquisitions 3.2 Settled positions ( 0.9 ) Unrecognized tax benefits - January 2, 2021 $ 11.4 Decreases from positions taken during prior periods ( 0.2 ) Increases from positions taken during current period 0.6 Lapse of statute of limitations ( 2.8 ) Unrecognized tax benefits - January 1, 2022 $ 9.0 Increases from positions taken during prior periods 0.9 Increases from positions taken during current period 0.2 Settled positions ( 0.2 ) Lapse of statute of limitations ( 2.0 ) Unrecognized tax benefits - December 31, 2022 $ 7.9 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of Restricted Stock and RSU Activity | The following table summarizes RSU activity for the 2022 fiscal year: Number of Weighted Average Nonvested balance at January 1, 2022 237 $ 45.58 Granted 108 90.47 Vested ( 109 ) 43.79 Forfeited ( 19 ) 66.20 Nonvested balance at December 31, 2022 (1) 217 $ 66.98 (1) Inc ludes 104,774 nonvested performance-based RSUs. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following table presents changes in accumulated other comprehensive loss by component: Unrealized Foreign Total Balance at December 28, 2019 $ ( 5.4 ) $ ( 50.0 ) $ ( 55.4 ) Other comprehensive income before 1.0 27.3 28.3 Amounts reclassified from accumulated ( 2.8 ) — ( 2.8 ) Tax effect 1.3 ( 5.7 ) ( 4.4 ) Net current period other comprehensive (loss) income ( 0.5 ) 21.6 21.1 Balance at January 2, 2021 $ ( 5.9 ) $ ( 28.4 ) $ ( 34.3 ) Other comprehensive income (loss) before 9.2 ( 24.5 ) ( 15.3 ) Amounts reclassified from accumulated ( 3.3 ) — ( 3.3 ) Tax effect ( 1.4 ) 5.3 3.9 Net current period other comprehensive income (loss) 4.5 ( 19.2 ) ( 14.7 ) Balance at January 1, 2022 $ ( 1.4 ) $ ( 47.6 ) $ ( 49.0 ) Other comprehensive income (loss) before 13.0 ( 25.4 ) ( 12.4 ) Amounts reclassified from accumulated ( 0.2 ) — ( 0.2 ) Tax effect ( 2.9 ) 5.1 2.2 Net current period other comprehensive income (loss) 9.9 ( 20.3 ) ( 10.4 ) Balance at December 31, 2022 $ 8.5 $ ( 67.9 ) $ ( 59.4 ) |
Summary of Reclassifications Out of Accumulated Other Comprehensive Loss | The following table presents reclassifications out of accumulated other comprehensive loss: Details about Accumulated Other Affected Line Item in the Consolidated For the year Ended Comprehensive Income Components Statements of Operations December 31, 2022 January 1, 2022 January 2, 2021 Derivative financial instruments Interest rate swaps Interest expense, net $ ( 0.2 ) $ ( 4.2 ) $ ( 3.7 ) Tax benefit — 0.9 0.9 Net of tax $ ( 0.2 ) $ ( 3.3 ) $ ( 2.8 ) Total reclassifications for the period $ ( 0.2 ) $ ( 3.3 ) $ ( 2.8 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of financial information by reportable segment | The following table presents financial information by reportable segment for the last three fiscal years: 2022 2021 2020 Net sales: Hydraulics $ 551.3 $ 516.4 $ 407.2 Electronics 334.1 352.7 115.8 Total $ 885.4 $ 869.2 $ 523.0 Operating income: Hydraulics $ 122.7 $ 119.8 $ 82.0 Electronics 52.5 71.7 19.4 Corporate and other ( 37.9 ) ( 42.2 ) ( 66.0 ) Total $ 137.3 $ 149.3 $ 35.4 Capital expenditures: Hydraulics $ 21.5 $ 17.5 $ 11.7 Electronics 10.4 9.3 2.9 Total $ 31.9 $ 26.8 $ 14.6 Total assets: Hydraulics $ 874.8 $ 821.8 $ 765.2 Electronics 567.1 585.7 523.5 Corporate 21.8 7.8 8.3 Total $ 1,463.7 $ 1,415.3 $ 1,297.0 |
Schedule of geographic region information | Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment and exclude ROU assets. The following table presents financial information by region for the last three fiscal years: 2022 2021 2020 Net sales Americas $ 470.4 $ 425.5 $ 224.5 EMEA 223.6 222.0 142.1 APAC 191.4 221.7 156.4 Total $ 885.4 $ 869.2 $ 523.0 Tangible long-lived assets Americas $ 105.7 $ 97.6 $ 96.8 EMEA 33.1 35.8 31.1 APAC 17.7 18.0 18.7 Total $ 156.5 $ 151.4 $ 146.6 |
Company Background (Details Tex
Company Background (Details Textual) | 12 Months Ended |
Dec. 31, 2022 Country Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | Segment | 2 |
Number of countries products sold | Country | 90 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 12 years |
Office furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Office furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Building and land improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Building and land improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Leasehold improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Leasehold improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Right-of-use assets | $ 19.2 | $ 22.8 | |
Retained earnings | 450 | 363.3 | |
Long-lived asset impairment | 0 | ||
Contract asset, current | 3.8 | 2.2 | |
Contract Liabilities, current | 3.3 | 4.4 | |
Research and development costs charged to expense | $ 17.4 | $ 16.8 | $ 15.6 |
Custom Products [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Contract period for sale of product | 3 months | ||
Custom Products [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Contract period for sale of product | 1 year |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual 1) | Dec. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Summary Of Significant Accounting Policies [Line Items] | |
Term of revenue recognition | 1 year |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Accounting Policies [Abstract] | |||
Net income | $ 98.4 | $ 104.6 | $ 14.2 |
Weighted average shares outstanding - Basic | 32.5 | 32.3 | 32.1 |
Net effect of dilutive securities - Stock based compensation | $ 0.1 | $ 0.2 | $ 0.1 |
Weighted average shares outstanding - Diluted | 32.6 | 32.5 | 32.2 |
Net income per share: | |||
Basic | $ 3.03 | $ 3.24 | $ 0.44 |
Diluted | $ 3.02 | $ 3.22 | $ 0.44 |
Business Acquisition (Details T
Business Acquisition (Details Textual) € in Millions, $ in Millions | 12 Months Ended | |||||
Jul. 09, 2021 USD ($) shares | Nov. 06, 2020 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | Jul. 09, 2021 EUR (€) | |
Business Acquisition [Line Items] | ||||||
Business acquisition, cash consideration transferred, net of cash acquired | $ 67.3 | $ 61.1 | $ 217 | |||
Estimated fair value of contingent liability | $ 2.5 | |||||
Net sales | 885.4 | 869.2 | 523 | |||
Goodwill | $ 468.5 | 459.9 | 443.5 | |||
Daman Products Company Inc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, date of acquisition | Sep. 16, 2022 | |||||
Business acquisition, cash consideration transferred, net of cash acquired | $ 64.4 | |||||
Goodwill acquired | 24.7 | |||||
Intangible assets acquired | $ 29.7 | |||||
Balboa [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, date of acquisition | Nov. 06, 2020 | |||||
Business acquisition of outstanding equity interest perceentage | 100% | |||||
Business acquisition, cash consideration transferred, net of cash acquired | $ 220.1 | |||||
Cash consideration transferred | 224.2 | |||||
Estimated fair value of contingent liability | 2.5 | |||||
Goodwill expected to be deductible for tax purposes | 6.3 | |||||
Acquisition-related costs (included in selling, engineering, and administrative expenses) | 6.6 | |||||
Net sales | 26.1 | |||||
Income (loss) before income taxes | 1.5 | |||||
Charges related to purchase accounting effects of inventory | 1.9 | |||||
Amortization of Acquisition-related intangible assets | $ 4 | |||||
Goodwill | $ 76.5 | |||||
N E M S R L | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, date of acquisition | Jul. 09, 2021 | |||||
Business acquisition of outstanding equity interest perceentage | 100% | 100% | ||||
Initial consideration paid, net of cash acquired | $ 56.5 | |||||
Business acquisition, cash consideration transferred, net of cash acquired | 46 | |||||
Additional cash earn-out potential | 6.4 | € 5.4 | ||||
Estimated fair value of contingent liability | $ 3.3 | |||||
Goodwill acquired | 31.6 | |||||
Intangible assets acquired | $ 28.2 | |||||
N E M S R L | Common stock [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued against consideration of acquisition | shares | 134,621 |
Business Acquisition (Details)
Business Acquisition (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Nov. 06, 2020 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Business Acquisition [Line Items] | ||||
Acquisition date fair value of contingent consideration | $ 2.5 | |||
Total purchase consideration, net of cash acquired | $ 67.3 | $ 61.1 | $ 217 | |
Balboa [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | 224.2 | |||
Post closing adjustment receivable, net | (0.6) | |||
Acquisition date fair value of contingent consideration | 2.5 | |||
Total purchase consideration | 226.1 | |||
Less: cash acquired | (6) | |||
Total purchase consideration, net of cash acquired | $ 220.1 |
Business Acquisition (Details 1
Business Acquisition (Details 1) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Nov. 06, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 468.5 | $ 459.9 | $ 443.5 | |
Balboa [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 28.3 | |||
Inventories | 24.8 | |||
Property, plant and equipment | 12.5 | |||
Goodwill | 76.5 | |||
Intangible assets | 128 | |||
Other assets | 12.2 | |||
Total assets acquired | 282.3 | |||
Accounts payable | 17.8 | |||
Other accrued expenses and current liabilities | 10.2 | |||
Deferred income taxes | 23.6 | |||
Other noncurrent liabilities | 10.6 | |||
Total liabilities assumed | 62.2 | |||
Fair value of net assets acquired | $ 220.1 |
Business Acquisition (Details 2
Business Acquisition (Details 2) - Balboa [Member] $ in Millions | Nov. 06, 2020 USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 128 |
Weighted-Average Amortization Periods (Yrs) | 21 years |
Trade Name [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 22 |
Weighted-Average Amortization Periods (Yrs) | 18 years |
Technology [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 13 |
Weighted-Average Amortization Periods (Yrs) | 8 years |
Sales order backlog [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 8 |
Weighted-Average Amortization Periods (Yrs) | 6 months |
Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 85 |
Weighted-Average Amortization Periods (Yrs) | 25 years |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Assets | ||
Assets Measured at fair value | $ 12.1 | $ 2.6 |
Liabilities | ||
Liabilities measured at fair value | 7 | 9.7 |
Forward Foreign Exchange Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 1 | 1.1 |
Liabilities | ||
Liabilities measured at fair value | 0.3 | 0.1 |
Interest Rate Swap Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 11.1 | 1.5 |
Liabilities | ||
Liabilities measured at fair value | 3.2 | |
Contingent Consideration [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 6.7 | 6.4 |
Level 2 [Member] | ||
Assets | ||
Assets Measured at fair value | 12.1 | 2.6 |
Liabilities | ||
Liabilities measured at fair value | 0.3 | 3.3 |
Level 2 [Member] | Forward Foreign Exchange Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 1 | 1.1 |
Liabilities | ||
Liabilities measured at fair value | 0.3 | 0.1 |
Level 2 [Member] | Interest Rate Swap Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 11.1 | 1.5 |
Liabilities | ||
Liabilities measured at fair value | 3.2 | |
Level 3 [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 6.7 | 6.4 |
Level 3 [Member] | Contingent Consideration [Member] | ||
Liabilities | ||
Liabilities measured at fair value | $ 6.7 | $ 6.4 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 6.4 | $ 1.9 |
Change in estimated fair value | 1.3 | 0.6 |
Measurement period adjustment to acquisition date fair value | 0.6 | |
Payment on liability | (1.1) | (0.3) |
Accretion in value | 0.5 | 0.4 |
Currency remeasurement | (0.4) | (0.1) |
Ending Balance | $ 6.7 | 6.4 |
NEM [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration incurred in connection with NEM acquisition | $ 3.3 |
INVENTORIES, NET (Details)
INVENTORIES, NET (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Summary of inventories | ||
Raw materials | $ 119.2 | $ 90.5 |
Work in process | 41.6 | 34.7 |
Finished goods | 40.8 | 50.6 |
Provision for obsolete and slow moving inventory | (10) | (10.2) |
Total | $ 191.6 | $ 165.6 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 322.3 | $ 305.5 |
Less: Accumulated depreciation | (185.1) | (174.8) |
Construction in progress | 19.3 | 20.7 |
Property, Plant and Equipment, Net | 156.5 | 151.4 |
Operating lease ROU assets | 19.2 | 22.8 |
Total | 175.7 | 174.2 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 207.2 | 184.3 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 25.2 | 26 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 53.2 | 58.8 |
Building and land improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 19.3 | 18.8 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 4.3 | 4 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 13.1 | $ 13.6 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 22.9 | $ 21.4 | $ 17.6 |
Operating Leases (Details Textu
Operating Leases (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Leases [Line Items] | |||
Operating lease cost | $ 6.8 | $ 6 | $ 4.1 |
Minimum [Member] | |||
Leases [Line Items] | |||
Operating leases, remaining lease term | 1 year | ||
Maximum [Member] | |||
Leases [Line Items] | |||
Operating leases, remaining lease term | 9 years |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Right-of-use assets | $ 19.2 | $ 22.8 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Liabilities | Liabilities |
Current lease liabilities | $ 5.8 | $ 5.9 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Accrued Expenses And Current Liabilities | Other Accrued Expenses And Current Liabilities |
Non-current lease liabilities | $ 14.5 | $ 17.9 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total lease liabilities | $ 20.3 | $ 23.8 |
Weighted average remaining lease term (in years): | 4 years 8 months 12 days | |
Weighted average discount rate: | 4.50% |
Operating Leases (Details 1)
Operating Leases (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 6.9 | $ 6.1 |
Non-cash impact of new leases and lease modifications | $ 3.3 | $ 10.8 |
Operating Leases (Details 2)
Operating Leases (Details 2) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
2023 | $ 6.6 | |
2024 | 4.4 | |
2025 | 4.1 | |
2026 | 3.4 | |
2027 | 1.4 | |
Thereafter | 3 | |
Total lease payments | 22.9 | |
Less: Imputed interest | (2.6) | |
Total lease liabilities | 20.3 | $ 23.8 |
Less: Current lease liabilities | (5.8) | (5.9) |
Non-current lease liabilities | $ 14.5 | $ 17.9 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | $ 459.9 | $ 443.5 | |
Impairment charge | 0 | 0 | $ (31.9) |
Currency translation | (16.5) | (19) | |
Measurement period adjustment | 0 | 0.8 | |
Goodwill, Ending Balance | 468.5 | 459.9 | 443.5 |
Balboa Water Group, LLC [Member] | |||
Goodwill [Line Items] | |||
Measurement period adjustment | 0.5 | ||
N E M S R L [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 31.6 | ||
Joyonway [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 3.3 | ||
Measurement period adjustment | 0.1 | ||
Daman Products Company Inc [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 24.7 | ||
Taimi [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 0.3 | ||
Hydraulics [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 273.7 | 261.1 | |
Currency translation | (16.2) | (19) | |
Goodwill, Ending Balance | 282.5 | 273.7 | 261.1 |
Hydraulics [Member] | Balboa Water Group, LLC [Member] | |||
Goodwill [Line Items] | |||
Measurement period adjustment | 0 | ||
Hydraulics [Member] | N E M S R L [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 31.6 | ||
Hydraulics [Member] | Joyonway [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 0 | ||
Measurement period adjustment | 0 | ||
Hydraulics [Member] | Daman Products Company Inc [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 24.7 | ||
Hydraulics [Member] | Taimi [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 0.3 | ||
Electronics [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Beginning Balance | 186.2 | 182.4 | |
Currency translation | (0.3) | 0 | |
Goodwill, Ending Balance | 186 | 186.2 | $ 182.4 |
Electronics [Member] | Balboa Water Group, LLC [Member] | |||
Goodwill [Line Items] | |||
Measurement period adjustment | 0.5 | ||
Electronics [Member] | N E M S R L [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 0 | ||
Electronics [Member] | Joyonway [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | $ 3.3 | ||
Measurement period adjustment | 0.1 | ||
Electronics [Member] | Daman Products Company Inc [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 0 | ||
Electronics [Member] | Taimi [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment charge | $ 0 | $ 0 | $ 31.9 |
Amortization expense | $ 28.1 | $ 32.8 | $ 22.1 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 517.6 | $ 502 |
Accumulated Amortization | (112) | (89.2) |
Net Carrying Amount | 405.6 | 412.8 |
Trade names and brands [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 87.5 | 83.4 |
Accumulated Amortization | (18.5) | (15.2) |
Net Carrying Amount | 69 | 68.2 |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2.1 | 3.3 |
Accumulated Amortization | (0.7) | (1.1) |
Net Carrying Amount | 1.4 | 2.2 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50.8 | 50.4 |
Accumulated Amortization | (21.3) | (16.7) |
Net Carrying Amount | 29.5 | 33.7 |
Supply agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21 | 21 |
Accumulated Amortization | (12.8) | (10.7) |
Net Carrying Amount | 8.2 | 10.3 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 349.4 | 336.8 |
Accumulated Amortization | (56.1) | (43.5) |
Net Carrying Amount | 293.3 | 293.3 |
Sales Order Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 0.7 | 1 |
Accumulated Amortization | (0.4) | (1) |
Net Carrying Amount | 0.3 | 0 |
Workforce [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6.1 | 6.1 |
Accumulated Amortization | (2.2) | (1) |
Net Carrying Amount | $ 3.9 | $ 5.1 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Details 2) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 29.6 | |
2024 | 28.6 | |
2025 | 28.4 | |
2026 | 26.6 | |
2027 | 23.4 | |
Thereafter | 269 | |
Net Carrying Amount | $ 405.6 | $ 412.8 |
Derivative Instruments & Hedg_3
Derivative Instruments & Hedging Activities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 | |
Derivatives Fair Value [Line Items] | |||
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | ||
Total Asset Derivatives, Fair Value | [1] | $ 12.1 | $ 2.6 |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | ||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities, Current | ||
Total Liability Derivatives, Fair Value | [1] | $ 0.3 | 3.3 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swap Contracts [Member] | |||
Derivatives Fair Value [Line Items] | |||
Asset Derivatives Non-current, Fair Value | [1] | 11.1 | 1.5 |
Liability Derivatives Non-current, Fair Value | [1] | 0 | 3.2 |
Derivatives Not Designated as Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | |||
Derivatives Fair Value [Line Items] | |||
Asset Derivatives Non-current, Fair Value | [1] | 0 | 0.2 |
Asset Derivatives Current, Fair Value | [1] | 1 | 0.9 |
Liability Derivatives Non-current, Fair Value | [1] | 0.3 | 0 |
Liability Derivatives Current, Fair Value | [1] | $ 0 | $ 0.1 |
[1] See Note 4 for information regarding the inputs used in determining the fair value of derivative assets and liabilities. |
Derivative Instruments & Hedg_4
Derivative Instruments & Hedging Activities (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | $ 12.8 | $ 6 | $ (1.9) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Foreign Currency Transaction Gain (Loss), before Tax | ||
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Interest Rate Swap Contracts [Member] | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | $ 12.8 | 6 | (1.9) |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Interest Rate Swap Contracts [Member] | Interest Expense, Net [Member] | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion) | (0.2) | (4.2) | (3.7) |
Derivatives Not Designated as Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | $ 4 | $ 4.7 | $ (5.5) |
Derivative Instruments & Hedg_5
Derivative Instruments & Hedging Activities (Details Textual) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Contract | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | Dec. 31, 2022 EUR (€) Contract | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ 16.7 | $ 16.9 | $ 13.3 | |
Carrying value of total long term non-revolving debt | 183.6 | 202.5 | ||
Loss on derivative hedge recorded in AOCI as a part of currency translation adjustment | 4.6 | |||
Europe [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Carrying value of total long term non-revolving debt | $ 96.3 | |||
Revolving Credit Facility [Member] | Europe [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Net investment hedge | € | € 90 | |||
Forward Foreign Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Derivative instrument, notional amount | € | € 22 | |||
Derivative contract expire date | Mar. 30, 2024 | |||
Derivative, number of instruments held | Contract | 6 | 6 | ||
Cash Flow Hedging [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ 16.7 | $ 16.9 | $ 13.3 | |
Cash Flow Hedging [Member] | Interest Rate Swap Contracts [Member] | Derivatives Designated as Hedging Instruments [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Derivative instrument, notional amount | $ 245 | |||
Cash Flow Hedging [Member] | Interest Rate Swap Contracts [Member] | Minimum [Member] | Derivatives Designated as Hedging Instruments [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Derivative contract expire date | Apr. 30, 2023 | |||
Cash Flow Hedging [Member] | Interest Rate Swap Contracts [Member] | Maximum [Member] | Derivatives Designated as Hedging Instruments [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Derivative contract expire date | Oct. 31, 2025 |
Credit Facilities (Details)
Credit Facilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Debt Instrument [Line Items] | ||
Total long-term non-revolving debt | $ 183.6 | $ 202.5 |
Other long-term debt | 0 | 0.1 |
Less: current portion of long-term non-revolving debt | 19 | 18.1 |
Less: unamortized debt issuance costs | 0.4 | 0.5 |
Total non-revolving debt | $ 164.2 | 183.9 |
Other long-term debt, Maturity Date | Various | |
PNC Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term non-revolving debt | $ 175 | 190 |
Term loan, Maturity Date | Oct 2025 | |
Citibank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term non-revolving debt | $ 8.6 | $ 12.4 |
Other long-term debt, Maturity Date | Various |
Credit Facilities (Details 1)
Credit Facilities (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Debt Instrument [Line Items] | ||
Revolving line of credit | $ 261.3 | $ 242.3 |
PNC Bank [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct 2025 | |
Line Of Credit | $ 261.3 | 242.3 |
Available credit | $ 138.1 | 157.5 |
Citibank [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | May 2023 | |
Line Of Credit | $ 1.6 | 0.7 |
Available credit | $ 0.7 | $ 0.5 |
Credit Facilities (Details 2)
Credit Facilities (Details 2) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 20.7 |
2024 | 24.5 |
2025 | 401.3 |
Total | $ 446.5 |
Credit Facilities (Details Text
Credit Facilities (Details Textual) € in Millions, ¥ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 AUD ($) | |
Debt Instrument [Line Items] | |||||||
Loans maturity, description | Various | ||||||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense recognized | $ | $ 15.9 | $ 12.3 | $ 9.5 | ||||
Loan maturity month and year | Oct 2025 | ||||||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facilities, maximum capacity | $ | $ 400 | ||||||
Net investment hedge | € | € 90 | ||||||
Effective interest rate | 5.80% | 5.80% | 5.80% | 5.80% | |||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Revolving Credit Facility [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest coverage ratio | 3 | ||||||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Interest Coverage Ratio | 4.25 | ||||||
Intesa Sanpaolo S.p.A [Member] | Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan provided under agreement | € | € 5 | ||||||
Citibank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loans maturity, description | Various | ||||||
Citibank [Member] | Fixed Asset Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrows amount | ¥ | ¥ 2.6 | ||||||
Interest rate | 1-year loan prime rate plus 1.5% | ||||||
Final payment due date | May 31, 2023 | ||||||
Citibank [Member] | Working Capital Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1-year loan prime rate plus 0.5% | ||||||
Final payment due date | May 31, 2023 | ||||||
Maximum borrow amounts under agreement | ¥ | 16 | ||||||
Citibank [Member] | Shanghai Branch Term Loan Facility [Member] | Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrows amount | ¥ | ¥ 42.7 | ||||||
Interest rate | 1-year loan prime rate plus 1.5% | ||||||
Final payment due date | Oct. 31, 2024 | ||||||
Citibank [Member] | Sydney Branch Term Loan Facility [Member] | Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Borrows amount | $ | $ 7.5 | ||||||
Interest rate | Australian Bank Bill Swap Reference Rate plus 2.0% | ||||||
Final payment due date | Dec. 31, 2024 |
Dividends to Shareholders (Deta
Dividends to Shareholders (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Equity [Abstract] | |||
Dividends declared | $ 11.7 | $ 11.6 | $ 11.6 |
Dividends to Shareholders (De_2
Dividends to Shareholders (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Equity [Abstract] | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.36 | $ 0.36 | $ 0.36 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Components of Income Before Income Taxes [Abstract] | |||
United States | $ 71.3 | $ 87.1 | $ 30.6 |
Foreign | 50.5 | 44.1 | (6.6) |
Income before income taxes | $ 121.8 | $ 131.2 | $ 24 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Nov. 06, 2020 | Dec. 28, 2019 | |
Income Tax Disclosure [Line Items] | |||||
Net operating losses | $ 6,200 | $ 5,200 | |||
Deferred tax assets, operating loss carryforwards net | 4,900 | ||||
Estimated fair value of contingent liability | $ 2,500 | ||||
Investment tax credits | 3,000 | ||||
Unrecognized tax benefits | 7,900 | 9,000 | $ 11,400 | $ 8,100 | |
Unrecognized tax benefits that would impact effective tax rate | $ 2,700 | ||||
Federal returns currently under examination | The Company is currently under state audit and remains subject to income tax examinations in the U.S. and various state and foreign jurisdictions for tax years 2017-2020. During 2022, the Company resolved several U.S. and foreign examinations, including limited transfer pricing disputes that existed for years dating back to 2008. The Company believes it has adequately reserved for income taxes that could result from any audit adjustments. Although the timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. | ||||
Deferred Tax Assets NOL | $ 0 | ||||
Deferred Tax Assets Valuation Allowance | 1,700 | 400 | |||
Deferred tax assets capital losses | 400 | 400 | |||
Increase in Valuation Allowance | 1,300 | ||||
Presentational reclass | 1,300 | ||||
Balboa [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Estimated fair value of contingent liability | $ 2,500 | ||||
Oklahoma [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforwards | $ 5,400 | ||||
Operating loss carryforwards expiration year | 2023 | ||||
California [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforwards | $ 36,800 | ||||
Federal [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforwards | $ 9,100 | ||||
Operating loss carryforwards expiration year | 2027 | ||||
Federal [Member] | California [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Operating loss carryforwards expiration year | 2027 | ||||
Operating loss carryforward preacquisition tax year description | The federal and California NOLs were generated by Balboa during pre-acquisition tax years 2011-2019 and are subject to a 20-year carryforward period. | ||||
Operating loss carryforward period | 20 years | ||||
Operating Loss carryforwards, limitations on use | IRC Section 382 limits the use of NOLs to the extent there has been an ownership change of more than 50 percent. | ||||
Federal [Member] | California [Member] | Minimum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Operating loss carryforwards ownership percentage change limit under IRC | 50% | ||||
Foreign | |||||
Income Tax Disclosure [Line Items] | |||||
Net operating loss carryforwards | $ 7,200 | ||||
Parent Company [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Third Party Export Sales | $ 146,500 | $ 166,900 | $ 106,100 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Current tax expense (benefit): | |||
United States | $ 12.3 | $ 10.7 | $ 3.3 |
State and local | 0.4 | 3.1 | 1.2 |
Foreign | 15.9 | 17.3 | 7.3 |
Total current | 28.6 | 31.1 | 11.8 |
Deferred tax expense (benefit): | |||
United States | (0.4) | (1.1) | 3.2 |
State and local | (2.6) | 0.2 | (0.3) |
Foreign | (2.2) | (3.6) | (4.9) |
Total deferred | (5.2) | (4.5) | (2) |
Total income tax provision | $ 23.4 | $ 26.6 | $ 9.8 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. federal taxes at statutory rate | $ 25.6 | $ 27.5 | $ 5.1 |
Foreign withholding tax | 0 | 0.1 | 0.3 |
Capitalized transaction costs | 0.3 | 0 | 0.4 |
Foreign income taxed at different rate | 1.7 | 3.6 | 1.4 |
FDII deduction | (2.8) | (3.2) | (1.3) |
Changes in estimates related to prior years including foreign | 0.2 | (0.2) | (2.5) |
Goodwill impairment | 0 | 0 | 6.7 |
State and local taxes, net | (1) | 2.7 | 0.6 |
Current year tax credits | (0.9) | (0.5) | (0.7) |
Foreign deferred other true up | (1) | (1.6) | 0 |
Change in reserve | 0.2 | (1.9) | (0.5) |
Excess officer compensation | 1.4 | 0 | 0 |
Other | (0.3) | 0.1 | 0.3 |
Total income tax provision | $ 23.4 | $ 26.6 | $ 9.8 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | Dec. 31, 2022 | Jan. 01, 2022 |
Deferred tax assets: | ||
Foreign tax benefit of U.S. reserves | $ 1.9 | $ 1.8 |
Net operating losses | 6.2 | 5.2 |
Inventory | 3.2 | 3 |
Intangible assets and goodwill | 0.7 | 0.7 |
Accrued expenses and other | 5.3 | 6.6 |
Other comprehensive income | 5.6 | 3.4 |
Total deferred tax assets | 22.9 | 20.7 |
Less: Valuation allowance | (1.7) | (0.4) |
Net deferred tax assets | 21.2 | 20.3 |
Deferred tax liabilities: | ||
Depreciation | (8.6) | (9.6) |
Intangible assets and goodwill | (71.7) | (79.3) |
Other deferred tax liabilities | (0.3) | (0.3) |
Total deferred tax liabilities | (80.6) | (89.2) |
Net deferred tax liabilities | $ (59.4) | $ (68.9) |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefit, beginning balance | $ 9 | $ 11.4 | $ 8.1 |
Increases from positions taken during prior periods | 0.9 | 0.7 | |
Decreases from positions taken during prior periods | (0.2) | ||
Increases from positions taken during current period | 0.2 | 0.6 | 0.5 |
Current year acquisitions | 3.2 | ||
Settled positions | (0.2) | (0.9) | |
Lapse of statute of limitations | (2) | (2.8) | |
Unrecognized tax benefit, ending balance | $ 7.9 | $ 9 | $ 11.4 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2015 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock option granted, shares | 108,000 | |||
Stock-based compensation expense | $ 8.6 | $ 8.9 | $ 5.8 | |
Monte Carlo Valuation Model [Member] | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Monte Carlo Valuation Model [Member] | Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Employee Stock Purchase Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Rate of common stock at market value | 85% | |||
Employee Stock Purchase Plan and U.K. Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares available for issuance | 343,818 | |||
Number of shares purchased by employees | 38,392 | 29,420 | ||
Weighted average price | $ 51.54 | $ 60.71 | ||
Share-based compensation expenses | $ 0.4 | $ 0.7 | 0.4 | |
Ratio for additional common stock shares issued, under ESPP | 6 | |||
Time Based [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Performance Based [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
RSUs [Member] | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Target amount percentage | 0% | |||
RSUs [Member] | Maximum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Target amount percentage | 200% | |||
Restricted Stock and Restricted Stock Units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation expense | $ 7 | 6 | 4.2 | |
Fair value of RSUs/restricted stock granted | 9.7 | $ 6.2 | 6.8 | |
Total unrecognized compensation | $ 8 | |||
Recognized weighted average period (in years) | 1 year 8 months 12 days | |||
Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation cost related to the stock options | $ 1.9 | |||
Recognized weighted average period (in years) | 10 months 24 days | |||
Stock Options [Member] | Monte Carlo Valuation Model [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Contractual term of stock options | 10 years | |||
Options grant date fair value | $ 2.3 | |||
Unvested stock options | 82,500 | |||
Vested unexercised stock options | 0 | |||
Exercise price per share | $ 50.60 | |||
Stock Options [Member] | Black Scholes Valuation Model [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Contractual term of stock options | 10 years | |||
Exercise prices per share, lower range limit | $ 35.04 | |||
Exercise prices per share, upper range limit | $ 55.03 | |||
Unvested stock options | 13,222 | |||
Vested unexercised stock options | 11,011 | |||
2019 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares available for issuance | 790,190 | |||
Stock option granted, shares | 18,260 | |||
Stock-based compensation expense | $ 0.5 | |||
2012 Non-Employee Director Fees Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock shares for each nonemployee director | 2,000 | |||
Fee for the chairs of each Board committee | 150% | |||
Annual retainer of common stock received by non employee directors | 250 | |||
Stock option granted, shares | 26,500 | |||
Stock-based compensation expense | $ 2.2 | $ 1.2 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 $ / shares shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested Beginning balance Number of shares | shares | 237 | |
Granted, Number of shares | shares | 108 | |
Vested, Number of shares | shares | (109) | |
Forfeited, Number of shares | shares | (19) | |
Nonvested Ending balance Number of shares | shares | 217 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Nonvested Beginning balance, Weighted average grant-date fair value | $ / shares | $ 45.58 | |
Granted, Weighted average grant-date fair value | $ / shares | 90.47 | |
Vested, Weighted average grant-date fair value | $ / shares | 43.79 | |
Forfeited, Weighted average grant-date fair value | $ / shares | 66.20 | |
Nonvested Ending balance, Weighted average grant-date fair value | $ / shares | $ 66.98 | [1] |
[1] Inc ludes 104,774 nonvested performance-based RSUs. |
Stock-Based Compensation (Paren
Stock-Based Compensation (Parenthetical) (Details) - shares | Dec. 31, 2022 | Jan. 01, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unvested number of shares | 217,000 | [1] | 237,000 |
RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unvested number of shares | 104,774 | ||
[1] Inc ludes 104,774 nonvested performance-based RSUs. |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 3.1 | $ 3 | $ 2.4 |
Foreign Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Benefit Plan Supplemental Pension Benefits Amount | $ 3.3 | $ 3.4 | $ 3.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 709 | $ 607.8 | $ 577.6 |
Ending Balance | 794.9 | 709 | 607.8 |
Unrealized Gains and (Losses) on Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (1.4) | (5.9) | (5.4) |
Other comprehensive (loss) income before reclassifications | 13 | 9.2 | 1 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (0.2) | (3.3) | (2.8) |
Tax effect | (2.9) | (1.4) | 1.3 |
Net current period other comprehensive (loss) income | 9.9 | 4.5 | (0.5) |
Ending Balance | 8.5 | (1.4) | (5.9) |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (47.6) | (28.4) | (50) |
Other comprehensive (loss) income before reclassifications | (25.4) | (24.5) | 27.3 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 0 | 0 | 0 |
Tax effect | 5.1 | 5.3 | (5.7) |
Net current period other comprehensive (loss) income | (20.3) | (19.2) | 21.6 |
Ending Balance | (67.9) | (47.6) | (28.4) |
Accumulated other comprehensive income (loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (49) | (34.3) | (55.4) |
Other comprehensive (loss) income before reclassifications | (12.4) | (15.3) | 28.3 |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (0.2) | (3.3) | (2.8) |
Tax effect | 2.2 | 3.9 | (4.4) |
Net current period other comprehensive (loss) income | (10.4) | (14.7) | 21.1 |
Ending Balance | $ (59.4) | $ (49) | $ (34.3) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Details 1) - Accumulated other comprehensive income (loss) [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Tax benefit | $ 0 | $ 0.9 | $ 0.9 |
Net of tax | (0.2) | (3.3) | (2.8) |
Total reclassifications for the period | (0.2) | (3.3) | (2.8) |
Interest Rate Swap Contracts [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense, net | $ (0.2) | $ (4.2) | $ (3.7) |
Segment Reporting (Details Text
Segment Reporting (Details Textual) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Segment | Jan. 01, 2022 USD ($) | Jan. 02, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Amortization of acquisition-related inventory step-up | $ 0 | $ 0.6 | $ 1.9 |
Amortization of intangible assets | 28.1 | $ 32.8 | $ 22.1 |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Unallocated costs | 37.9 | ||
Corporate costs not deemed allocable to either business segment | 0.3 | ||
Amortization of intangible assets | 28.1 | ||
Other acquisition and integration expenses | $ 9.5 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 885.4 | $ 869.2 | $ 523 |
Operating income | 137.3 | 149.3 | 35.4 |
Capital expenditures | 31.9 | 26.8 | 14.6 |
Total assets | 1,463.7 | 1,415.3 | 1,297 |
Operating Segments [Member] | Hydraulics [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 551.3 | 516.4 | 407.2 |
Operating income | 122.7 | 119.8 | 82 |
Capital expenditures | 21.5 | 17.5 | 11.7 |
Total assets | 874.8 | 821.8 | 765.2 |
Operating Segments [Member] | Electronics [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 334.1 | 352.7 | 115.8 |
Operating income | 52.5 | 71.7 | 19.4 |
Capital expenditures | 10.4 | 9.3 | 2.9 |
Total assets | 567.1 | 585.7 | 523.5 |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | (37.9) | (42.2) | (66) |
Total assets | $ 21.8 | $ 7.8 | $ 8.3 |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Net sales | |||
Net sales | $ 885.4 | $ 869.2 | $ 523 |
Tangible long-lived assets | |||
Tangible long-lived assets | 156.5 | 151.4 | 146.6 |
Americas [Member] | |||
Net sales | |||
Net sales | 470.4 | 425.5 | 224.5 |
Tangible long-lived assets | |||
Tangible long-lived assets | 105.7 | 97.6 | 96.8 |
EMEA [Member] | |||
Net sales | |||
Net sales | 223.6 | 222 | 142.1 |
Tangible long-lived assets | |||
Tangible long-lived assets | 33.1 | 35.8 | 31.1 |
APAC [Member] | |||
Net sales | |||
Net sales | 191.4 | 221.7 | 156.4 |
Tangible long-lived assets | |||
Tangible long-lived assets | $ 17.7 | $ 18 | $ 18.7 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 17, 2022 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Related Party Transaction [Line Items] | ||||
Due from entities | $ 0.4 | $ 0.3 | ||
Real Estate [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total sales to entities | $ 1.9 | |||
Total purchases from entities/related party | $ 1 | |||
Inventory Transactions [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total sales to entities | 3.1 | 3.4 | $ 3.5 | |
Total purchases from entities/related party | $ 0 | $ 3.2 | $ 4.3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - 12 months ended Dec. 31, 2022 € in Millions, $ in Millions | EUR (€) | USD ($) |
Property, Plant and Equipment [Line Items] | ||
Purchase commitment, description | The agreement includes an option to purchase during the lease period with a commitment to purchase at the end of the 6-year lease period. The purchase price will be reduced by 60% of the lease payments made prior to purchase | |
Financial Standby Letter of Credit [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Letters of credit outstanding amount | $ | $ 1.6 | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Payments in purchase of building | € | € 26.7 |
SUBSEQUENT EVENTS (Additional I
SUBSEQUENT EVENTS (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 27, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Subsequent Event [Line Items] | ||||
Total purchase consideration, net of cash acquired | $ 67.3 | $ 61.1 | $ 217 | |
Daman Products Company, Inc. [Member] | ||||
Subsequent Event [Line Items] | ||||
Total purchase consideration, net of cash acquired | $ 64.4 | |||
Schultes Precision Manufacturing, Inc. [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Total purchase consideration, net of cash acquired | $ 85 |