Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 28, 2020 | Apr. 24, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | HELIOS TECHNOLOGIES, INC. | |
Entity Central Index Key | 0001024795 | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 28, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HLIO | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock $.001 Par Value | |
Security Exchange Name | NASDAQ | |
Entity File Number | 0-21835 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-2754337 | |
Entity Address, Address Line One | 1500 WEST UNIVERSITY PARKWAY | |
Entity Address, City or Town | SARASOTA | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34243 | |
City Area Code | 941 | |
Local Phone Number | 362-1200 | |
Entity Common Stock, Shares Outstanding | 32,081,445 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 27,257 | $ 22,123 |
Restricted cash | 37 | 39 |
Accounts receivable, net of allowance for doubtful accounts of $1,187 and $1,131 | 71,638 | 66,677 |
Inventories, net | 86,727 | 85,195 |
Income taxes receivable | 1,757 | 3,196 |
Other current assets | 17,570 | 15,359 |
Total current assets | 204,986 | 192,589 |
Property, plant and equipment, net | 141,912 | 145,854 |
Deferred income taxes | 9,668 | 5,803 |
Goodwill | 343,815 | 377,569 |
Other intangible assets, net | 288,989 | 294,651 |
Other assets | 4,479 | 5,285 |
Total assets | 993,849 | 1,021,751 |
Current liabilities: | ||
Accounts payable | 33,145 | 29,730 |
Accrued compensation and benefits | 13,376 | 16,898 |
Other accrued expenses and current liabilities | 12,834 | 13,549 |
Current portion of contingent consideration | 828 | 828 |
Current portion of long-term non-revolving debt, net | 7,369 | 7,623 |
Dividends payable | 2,887 | 2,884 |
Income taxes payable | 7,954 | 4,941 |
Total current liabilities | 78,393 | 76,453 |
Revolving line of credit | 204,865 | 208,708 |
Long-term non-revolving debt, net | 82,197 | 84,062 |
Deferred income taxes | 48,680 | 49,290 |
Other noncurrent liabilities | 28,079 | 25,602 |
Total liabilities | 442,214 | 444,115 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, par value $0.001, 2,000 shares authorized, no shares issued or outstanding | ||
Common stock, par value $0.001, 100,000 shares authorized, 32,075 and 32,047 shares issued and outstanding | 32 | 32 |
Capital in excess of par value | 366,521 | 365,310 |
Retained earnings | 247,548 | 267,658 |
Accumulated other comprehensive loss | (62,466) | (55,364) |
Total shareholders' equity | 551,635 | 577,636 |
Total liabilities and shareholders' equity | $ 993,849 | $ 1,021,751 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts, accounts receivable | $ 1,187 | $ 1,131 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,000 | 2,000 |
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 | 100,000 |
Common stock, shares issued | 32,075 | 32,047 |
Common stock, shares outstanding | 32,075 | 32,047 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 129,483 | $ 146,851 |
Cost of sales | 77,633 | 90,342 |
Gross profit | 51,850 | 56,509 |
Selling, engineering and administrative expenses | 25,664 | 26,156 |
Amortization of intangible assets | 4,348 | 4,521 |
Goodwill impairment | 31,871 | |
Operating (loss) income | (10,033) | 25,832 |
Interest expense, net | 2,951 | 4,385 |
Foreign currency transaction loss (gain), net | 125 | (439) |
Miscellaneous (income) expense, net | (94) | 108 |
Change in fair value of contingent consideration | 719 | |
(Loss) income before income taxes | (13,015) | 21,059 |
Income tax provision | 4,208 | 4,655 |
Net (loss) income | $ (17,223) | $ 16,404 |
Basic and diluted net (loss) income per common share | $ (0.54) | $ 0.51 |
Basic and diluted weighted average shares outstanding | 32,062 | 31,978 |
Dividends declared per share | $ 0.09 | $ 0.09 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net (loss) income | $ (17,223) | $ 16,404 |
Other comprehensive loss | ||
Foreign currency translation adjustments, net of tax | (4,901) | (4,831) |
Unrealized loss on interest rate swap, net of tax | (2,201) | (1,082) |
Total other comprehensive loss | (7,102) | (5,913) |
Comprehensive (loss) income | $ (24,325) | $ 10,491 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common stock [Member] | Capital in excess of par value [Member] | Retained earnings [Member] | Accumulated other comprehensive (loss) [Member] |
Beginning Balance at Dec. 29, 2018 | $ 530,768 | $ 32 | $ 357,933 | $ 219,056 | $ (46,253) |
Beginning Balance, Shares at Dec. 29, 2018 | 31,965 | ||||
Shares issued, other compensation, Shares | 6 | ||||
Shares issued, ESPP | 408 | 408 | |||
Shares issued, ESPP, Shares | 13 | ||||
Shares issued, ESOP | 1,092 | 1,092 | |||
Shares issued, ESOP, Shares | 24 | ||||
Stock-based compensation | 1,368 | 1,368 | |||
Cancellation of shares for payment of employee tax withholding | (606) | (606) | |||
Cancellation of shares for payment of employee tax withholding, Shares | (12) | ||||
Dividends declared | (2,881) | (2,881) | |||
Net (loss) income | 16,404 | 16,404 | |||
Other comprehensive income (loss) | (5,913) | (5,913) | |||
Impact of adoption of ASU 2016-02, related to leases | ASU 2016-02 | (134) | (134) | |||
Ending Balance at Mar. 30, 2019 | 540,506 | $ 32 | 360,195 | 232,445 | (52,166) |
Ending Balance, Shares at Mar. 30, 2019 | 31,996 | ||||
Beginning Balance at Dec. 28, 2019 | 577,636 | $ 32 | 365,310 | 267,658 | (55,364) |
Beginning Balance, Shares at Dec. 28, 2019 | 32,047 | ||||
Shares issued, restricted stock, Shares | 21 | ||||
Shares issued, other compensation, Shares | 5 | ||||
Shares issued, ESPP | 355 | 355 | |||
Shares issued, ESPP, Shares | 12 | ||||
Stock-based compensation | 1,533 | 1,533 | |||
Cancellation of shares for payment of employee tax withholding | (677) | (677) | |||
Cancellation of shares for payment of employee tax withholding, Shares | (10) | ||||
Dividends declared | (2,887) | (2,887) | |||
Net (loss) income | (17,223) | (17,223) | |||
Other comprehensive income (loss) | (7,102) | (7,102) | |||
Ending Balance at Mar. 28, 2020 | $ 551,635 | $ 32 | $ 366,521 | $ 247,548 | $ (62,466) |
Ending Balance, Shares at Mar. 28, 2020 | 32,075 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (17,223) | $ 16,404 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,376 | 8,571 |
Loss on disposal of assets | 24 | 71 |
Goodwill impairment | 31,871 | |
Stock-based compensation expense | 1,533 | 1,368 |
Amortization of debt issuance costs | 179 | 179 |
Benefit for deferred income taxes | (1,186) | (322) |
Change in fair value of contingent consideration | 719 | |
Forward contract (gains) losses, net | (440) | 24 |
Other, net | 136 | 549 |
(Increase) decrease in: | ||
Accounts receivable | (6,838) | (8,848) |
Inventories | (2,818) | (3,729) |
Income taxes receivable | 1,415 | |
Other current assets | (2,740) | (2,455) |
Other assets | 1,213 | 1,088 |
Increase (decrease) in: | ||
Accounts payable | 3,867 | 662 |
Accrued expenses and other liabilities | (4,652) | 3,496 |
Income taxes payable | 3,051 | 2,710 |
Other noncurrent liabilities | (701) | (659) |
Net cash provided by operating activities | 15,067 | 19,828 |
Cash flows from investing activities: | ||
Capital expenditures | (2,937) | (8,792) |
Proceeds from dispositions of equipment | 3 | 64 |
Cash settlement of forward contracts | 1,634 | |
Net cash used in investing activities | (1,300) | (8,728) |
Cash flows from financing activities: | ||
Borrowings on revolving credit facility | 2,000 | 35,282 |
Repayment of borrowings on revolving credit facility | (5,500) | (48,000) |
Repayment of borrowings on long-term non-revolving debt | (2,100) | (1,623) |
Proceeds from stock issued | 355 | 408 |
Dividends to shareholders | (2,885) | (2,878) |
Other financing activities | (815) | (881) |
Net cash used in financing activities | (8,945) | (17,692) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 310 | (167) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 5,132 | (6,759) |
Cash, cash equivalents and restricted cash, beginning of period | 22,162 | 23,515 |
Cash, cash equivalents and restricted cash, end of period | $ 27,294 | $ 16,756 |
Company Background
Company Background | 3 Months Ended |
Mar. 28, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
COMPANY BACKGROUND | 1. COMPANY BACKGROUND Helios Technologies, Inc. (“Helios” or the “Company”), together with its wholly-owned subsidiaries, is an industrial technology leader that develops and manufactures solutions for both the hydraulics and electronics markets. Sun Hydraulics, LLC (“Sun Hydraulics” or “Sun”), Enovation Controls, LLC (“Enovation Controls”), Faster S.r.l. (“Faster”) and Custom Fluidpower Pty Ltd (“Custom Fluidpower”), are the wholly-owned operating subsidiaries of Helios. 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 design (“Systems”). 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 and specialty vehicles. This broad range of products is complemented by extensive application expertise and unparalleled depth of software, embedded programming, hardware and sustaining engineering teams. This technology is referred to as Electronic Controls (“EC”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The financial statements are prepared on a consistent basis (including normal recurring adjustments) and should be read in conjunction with the consolidated financial statements and related notes contained in the Annual Report on Form 10-K for the fiscal year ended December 28, 2019, (“Form 10-K”), filed by Helios with the Securities and Exchange Commission on February 25, 2020. In management’s opinion, all adjustments necessary for a fair presentation of the Company’s financial statements are reflected in the interim periods presented. The Company faces various risks related to health epidemics, pandemics and similar outbreaks, including the global outbreak of COVID-19. The Company cannot at this time predict the impact of the COVID-19 pandemic, but it could have a material adverse effect on the business, financial position, results of operations and/or cash flows. Operating results for the three months ended March 28, 2020, are not necessarily indicative of the results that may be expected for the fiscal year ending January 2, 2021. Goodwill Goodwill, which represents the excess of the purchase price of an acquisition over the fair value of the net assets acquired, is carried at cost. Goodwill is tested for impairment annually, in the third and fourth quarters, 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. During the first quarter of 2020, t he Company determined that, based on current economic conditions and potential future impacts from the COVID-19 pandemic, it was more likely than not that the fair value of the Faster reporting unit was less than its carrying value. Upon completion of the interim impairment testing , the Company determined that the carrying value of goodwill was impaired. See Note 6 for discussion of interim impairment testing . 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 $2,741 and $2,796 at March 28, 2020 and December 28, 2019, 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 revenue being recognized. Contract liabilities totaled $253 and $353 at March 28, 2020 and December 28, 2019, respectively, and are presented in Other accrued expenses and current liabilities in the Consolidated Balance Sheets. Research and Development The Company conducts research and development (“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 $4,107, and $3,900 for the three months ended March 28, 2020 and March 30, 2019, respectively. Earnings Per Share The following table presents the computation of basic and diluted earnings per common share (in thousands except per share data): Three Months Ended March 28, 2020 March 30, 2019 Net (loss) income $ (17,223 ) $ 16,404 Basic and diluted weighted average shares outstanding 32,062 31,978 Basic and diluted net (loss) income per common share $ (0.54 ) $ 0.51 Recently Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3. 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 March 28, 2020 and December 28, 2019. March 28, 2020 Quoted Market Significant Other Observable Significant Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Forward foreign exchange contracts $ 710 $ — $ 710 $ — Total $ 710 $ — $ 710 $ — Liabilities Interest rate swap contract $ 9,821 $ — $ 9,821 $ — Forward foreign exchange contracts 1,309 — 1,309 — Contingent consideration 828 — — 828 Total $ 11,958 $ — $ 11,130 $ 828 December 28, 2019 Quoted Market Significant Other Observable Significant Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Forward foreign exchange contracts $ 815 $ — $ 815 $ — Total $ 815 $ — $ 815 $ — Liabilities Interest rate swap contract $ 5,792 $ — $ 5,792 $ — Forward foreign exchange contracts 219 — 219 — Contingent consideration 828 — — 828 Total $ 6,839 $ — $ 6,011 $ 828 |
Inventories
Inventories | 3 Months Ended |
Mar. 28, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 4. INVENTORIES At March 28, 2020 and December 28, 2019, inventory consisted of the following: March 28, 2020 December 28, 2019 Raw materials $ 35,760 $ 34,340 Work in process 31,189 28,667 Finished goods 27,183 29,711 Provision for obsolete and slow moving inventory (7,405 ) (7,523 ) Total $ 86,727 $ 85,195 |
Operating Leases
Operating Leases | 3 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
OPERATING LEASES | 5 . OPERATING LEASES The Company leases machinery, equipment, vehicles, buildings and office space throughout its locations, which are classified as operating leases. Remaining terms on these leases range from less than one year to ten years. For the three months ended March 28, 2020 and March 30, 2019, operating lease costs totaled $908 in each period. Supplemental balance sheet information related to operating leases is as follows: March 28, 2020 December 28, 2019 Right-of-use assets $ 10,841 $ 12,310 Lease liabilities: Current lease liabilities $ 3,092 $ 3,155 Non-current lease liabilities 7,911 9,312 Total lease liabilities $ 11,003 $ 12,467 Weighted average remaining lease term (in years): 5.3 Weighted average discount rate: 4.7 % Supplemental cash flow information related to leases is as follows: Three Months Ended March 28, 2020 March 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 915 $ 913 Right-of-use assets obtained in exchange for new operating lease liabilities $ 15 $ 901 Maturities of lease liabilities are as follows: 2020 Remaining $ 2,656 2021 3,419 2022 1,638 2023 1,289 2024 903 2025 631 Thereafter 2,053 Total lease payments 12,589 Less: Imputed interest (1,586 ) Total lease obligations 11,003 Less: Current lease liabilities (3,092 ) Non-current lease liabilities $ 7,911 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 28, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 6. GOODWILL AND INTANGIBLE ASSETS Goodwill A summary of changes in goodwill by segment for the three months ended March 28, 2020, is as follows: Hydraulics Electronics Total Balance at December 28, 2019 $ 271,196 $ 106,373 $ 377,569 Impairment charge (31,871 ) — (31,871 ) Currency translation (1,883 ) — (1,883 ) Balance at March 28, 2020 $ 237,442 $ 106,373 $ 343,815 During the first quarter of 2020, the global economy was significantly impacted by the COVID-19 pandemic. Given the economic impact, primarily in Europe, government mandated facility closures and an unfavorable outlook for certain end markets, the Company concluded that this change in circumstances triggered the need for an interim impairment review of its Faster reporting unit. The interim review was performed as of March 28, 2020. A recoverability test for the long-lived assets within the Faster reporting unit was performed first and resulted in the conclusion that the carrying value of the long-lived assets was fully recoverable. An interim quantitative impairment test for goodwill was then performed. The fair value of the Faster reporting unit was determined based on a combination of income and market approach methodologies. The income approach utilized a discounted cash flow analysis, which estimates the present value of the projected free cash flows to be generated by the reporting unit. Principal assumptions used in the analysis include the Company's estimates of future revenue and terminal growth rates, margin assumptions and discount rates. While assumptions utilized are subject to a high degree of judgment and complexity, the Company has made every effort to estimate future cash flows as accurately as possible, given the high degree of economic uncertainty that currently exists. The market approaches estimate fair value by comparing to guideline public companies and guideline transactions. Various valuation multiples of companies that are economically and operationally similar were used as data points for selecting multiples. The Company concluded that the estimated fair value of the Faster reporting unit was less than its carrying value, and as a result, recorded a non-cash, non-tax-deductible goodwill impairment charge of $31,871. If the economic impact from the COVID-19 pandemic is more severe than anticipated, or if the economic recovery takes longer to materialize or does not materialize as strongly as anticipated, it could result in further goodwill impairment charges. The Company considered the known and anticipated impacts of the COVID-19 pandemic on its other reporting units and concluded that it was more likely than not that their fair value exceeded their carrying value . Intangible Assets At March 28, 2020, and December 28, 2019, intangible assets consisted of the following: March 28, 2020 December 28, 2019 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangibles: Trade names and brands $ 55,747 $ (8,362 ) $ 47,385 $ 56,032 $ (7,658 ) $ 48,374 Non-compete agreements 950 (633 ) 317 950 (586 ) 364 Technology 31,544 (9,414 ) 22,130 31,704 (8,661 ) 23,043 Supply agreement 21,000 (7,000 ) 14,000 21,000 (6,475 ) 14,525 Customer relationships 226,835 (21,678 ) 205,157 227,844 (19,499 ) 208,345 $ 336,076 $ (47,087 ) $ 288,989 $ 337,530 $ (42,879 ) $ 294,651 Amortization expense for the three months ended March 28, 2020, and March 30, 2019, was $4,348 and $4,521, respectively. Future estimated amortization expense is presented below. Year: 2020 Remaining $ 13,413 2021 17,674 2022 17,411 2023 17,352 2024 16,697 2025 16,642 Thereafter 189,800 Total $ 288,989 |
Derivative Instruments & Hedgin
Derivative Instruments & Hedging Activities | 3 Months Ended |
Mar. 28, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS & HEDGING ACTIVITIES | 7. 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 and hedging activities. 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 March 28, 2020 December 28, 2019 Location March 28, 2020 December 28, 2019 Derivatives designated as hedging instruments: Interest rate swap contract Other assets $ — $ — Other non-current liabilities $ 9,821 $ 5,792 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 547 509 Other current liabilities 1,228 213 Forward foreign exchange contracts Other assets 163 306 Other non-current liabilities 81 6 Total derivatives $ 710 $ 815 $ 11,130 $ 6,011 (1) The amount of gains and losses related to the Company’s derivative financial instruments for the three months ended March 28, 2020 and March 30, 2019, are presented as follows: Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives (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) March 28, 2020 March 30, 2019 into Earnings (Effective Portion) March 28, 2020 March 30, 2019 Derivatives in cash flow hedging relationships: Interest rate swap contract $ (4,029 ) $ (1,521 ) Interest expense, net $ (525 ) $ (183 ) Interest expense presented in the Consolidated Statements of Operations, in which the effects of cash flow hedges are recorded, totaled $2,951 and $4,385 for the three months ended March 28, 2020 and March 30, 2019, respectively. Amount of Gain or (Loss) Recognized in Earnings on Derivatives Location of Gain or (Loss) Recognized March 28, 2020 March 30, 2019 in Earnings on Derivatives Derivatives not designated as hedging instruments: Forward foreign exchange contracts $ 440 $ (24 ) Foreign currency transaction gain loss, net Interest Rate Swap Contract The Company has entered into an interest rate swap transaction to hedge the variable interest rate payments on the credit facilities. In connection with this transaction, 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 swap has an aggregate notional amount of $175,000, which decreases by $25,000 annually, has been designated as a hedging instrument and is accounted for as a cash flow hedge. The interest rate swap was effective on August 2, 2018 and is scheduled to expire on April 3, 2023. The contract will be settled with the respective counterparties on a net basis at each settlement date. Forward Foreign Exchange Contracts The Company has entered into forward contracts to economically hedge transactional exposure associated with commitments arising from transactions denominated in a currency other than the functional currency of the respective operating entity. The Company’s forward contracts are not designated as hedging instruments for accounting purposes. At March 28, 2020, the Company had eleven forward foreign exchange contracts with an aggregate notional value of €61,843, maturing at various dates through October 1, 2021. Net Investment Hedge The Company utilizes foreign currency denominated debt to hedge currency exposure in foreign operations. The Company has designated €100,000 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 $111,365 as of March 28, 2020 and is included in the Revolving line of credit line item in the Consolidated Balance Sheets. The gain or loss on the net investment hedge recorded in accumulated other comprehensive income (“AOCI”) as part of the currency translation adjustment was a gain of $265, net of tax, for the three months ended March 28, 2020. No amounts associated with the net investment hedge were reclassified from AOCI into income for the three months ended March 28, 2020. |
Credit Facilities
Credit Facilities | 3 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES | 8. CREDIT FACILITIES Total long-term non-revolving debt consists of the following: Maturity Date March 28, 2020 December 28, 2019 Long-term non-revolving debt: Term loan credit facility with PNC Bank 4/3/2023 $ 90,000 $ 91,250 Term loan credit facility with Shinhan Bank 3/30/2020 — 862 Other long-term debt Various 307 376 Total long-term non-revolving debt 90,307 92,488 Less: current portion of long-term non-revolving debt 7,369 7,623 Less: unamortized debt issuance costs 741 803 Total long-term non-revolving debt, net $ 82,197 $ 84,062 Information on the Company’s revolving credit facility is as follows: Balance Available credit Maturity Date March 28, 2020 December 28, 2019 March 28, 2020 December 28, 2019 Revolving line of credit with PNC Bank 4/3/2023 $ 204,865 $ 208,708 $ 195,135 $ 191,292 Future maturities of total debt are as follows: Year: 2020 Remaining $ 5,720 2021 7,636 2022 9,448 2023 272,368 Total $ 295,172 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 up to an aggregate maximum principal amount of $ 400,000 The effective interest rate on the credit agreement at March 28, 2020 was 2.34%. Interest expense recognized on the credit agreement during the three months ended March 28, 2020 and March 30, 2019, totaled $ 2,408 The Company had a credit agreement with Shinhan Bank that provided a term loan of 1,000,000 March 2020 The Company’s other long-term debt consists of auto loans payable to National Australia Bank. Principal and interest payments are due monthly. The loans mature at various dates through July 2023. Interest is charged at various rates ranging from 4.5% to 5.1%. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. INCOME TAXES The provision for income taxes for the three months ended March 28, 2020 and March 30, 2019, was 22.3% and 22.1% of pretax income, respectively, after adjusting for the impact of the goodwill impairment charge. At March 28, 2020, the Company had an unrecognized tax benefit of $8,491 including accrued interest. If recognized, the unrecognized tax benefit would have a favorable effect on the effective tax rate in future periods. The Company recognizes interest and penalties related to income tax matters in income tax expense. Interest accrued as of March 28, 2020 is not considered material to the Company’s consolidated financial statements. The Company files United States (“U.S.”) federal income tax returns as well as income tax returns in various states and foreign jurisdictions. The Company is no longer subject to income tax examinations by tax authorities for years prior to 2008 for the majority of tax jurisdictions where the Company files tax returns. The Company’s U.S. federal income tax returns are not currently under examination by the Internal Revenue Service (IRS). Florida income tax returns for tax years 2015 and 2016 are under examination. The 2016 pre-acquisition Italian income tax return for Faster is also under examination. To date, there have not been any significant proposed adjustments that have not been accounted for in the Company’s consolidated financial statements. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. It is reasonably possible that within the next twelve months, the Company will resolve some or all of the matters presently under consideration and there could be significant increases or decreases to unrecognized tax benefits. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 28, 2020 | |
Share Based Compensation [Abstract] | |
STOCK-BASED COMPENSATION | 10. STOCK-BASED COMPENSATION Equity Incentive Plan The Company’s 2019 Equity Incentive Plan and its predecessor equity plan provide for the grant of shares of restricted stock, restricted share 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. Restricted Stock and Restricted Stock Units The Company grants restricted shares of common stock and restricted stock units (“RSU”) in connection with a long-term incentive plan. Awards with time-based vesting requirements primarily vest ratably over a three-year three-year Compensation expense recognized for restricted stock and RSUs totaled $1,253 and $811, respectively, for the three months ended March 28, 2020, and March 30, 2019. The following table summarizes restricted stock and RSU activity for the three months ended March 28, 2020: Number of Weighted average shares / units grant-date (in thousands) fair value per share Nonvested balance at December 28, 2019 203 $ 42.73 Granted 112 38.88 Vested (58 ) 43.15 Forfeited (24 ) 43.33 Nonvested balance at March 28, 2020 (1) 233 $ 41.55 (1 ) The Company had $8,481 of total unrecognized compensation cost related to the restricted stock and RSU awards as of March 28, 2020. That cost is expected to be recognized over a weighted average period of 2.2 years. Stock Options During the first quarter of 2020, the Company granted 18,121 stock options to its officers. The exercise price of $39.75 per share is equal to the market price of Helios stock on the grant date. The options vest ratably over a three-year period and have a 10-year expiration. The weighted average grant date fair value of the options is $12.81 per share and was estimated using a Black Scholes valuation model. At March 28, 2020, the Company had $226 of unrecognized compensation cost related to the options which is expected to be recognized over a weighted average period of 2.9 years. Employee Stock Purchase Plans The Company maintains an Employee Stock Purchase Plan (“ESPP”) in which the U.S. employees of Helios, Sun Hydraulics and Enovation Controls 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 (“UK”), 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 purchased 10,927 shares at a weighted average price of $32.46, and 14,387 shares at a weighted average price of $28.37, under the ESPP and UK plans during the three months ended March 28, 2020, and March 30, 2019, respectively. The Company recognized $60 and $255 of compensation expense during the three months ended March 28, 2020, and March 30, 2019, respectively. Nonemployee Director Fees Plan The Company’s 2012 Nonemployee Director Fees Plan compensates nonemployee directors for their board service with shares of common stock. Directors were granted 5,500 and 5,875 shares for the three months ended March 28, 2020 and March 30, 2019, respectively. The Company recognized director stock compensation expense of $235 and $285 for the three months ended March 28, 2020 and March 30, 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 28, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 11. ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present changes in accumulated other comprehensive loss by component: Unrealized Gains and (Losses) on Derivative Instruments Foreign Currency Items Total Balance at December 28, 2019 $ (5,372 ) $ (49,992 ) $ (55,364 ) Other comprehensive loss before reclassifications (4,423 ) (5,950 ) (10,373 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 394 — 394 Tax effect 1,828 1,049 2,877 Net current period other comprehensive loss (2,201 ) (4,901 ) (7,102 ) Balance at March 28, 2020 $ (7,573 ) $ (54,893 ) $ (62,466 ) Unrealized Gains and (Losses) on Derivative Instruments Foreign Currency Items Total Balance at December 29, 2018 $ (2,309 ) $ (43,944 ) $ (46,253 ) Other comprehensive loss before reclassifications (1,666 ) (7,239 ) (8,905 ) Amounts reclassified from accumulated other comprehensive loss 144 — 144 Tax effect 440 2,408 2,848 Net current period other comprehensive loss (1,082 ) (4,831 ) (5,913 ) Balance at March 30, 2019 $ (3,391 ) $ (48,775 ) $ (52,166 ) |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 28, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 12. 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 makers. The Company evaluates performance and allocates resources based primarily on segment operating income. Certain costs were not allocated to the 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 three months ended March 28, 2020, the unallocated costs totaled $36,293 and primarily relate to amortization of acquisition-related intangible assets and the goodwill impairment charge. The accounting policies of the Company’s operating segments are the same as those used to prepare the accompanying Consolidated, Unaudited Financial Statements. The following table presents financial information by reportable segment: Three Months Ended March 28, 2020 March 30, 2019 Net sales Hydraulics $ 103,818 $ 116,463 Electronics 25,665 30,388 Total $ 129,483 $ 146,851 Operating (loss) income Hydraulics $ 21,482 $ 23,762 Electronics 4,778 6,512 Corporate and other (36,293 ) (4,442 ) Total $ (10,033 ) $ 25,832 Capital expenditures Hydraulics $ 2,394 $ 8,145 Electronics 543 647 Total $ 2,937 $ 8,792 March 28, 2020 December 28, 2019 Total assets Hydraulics $ 733,632 $ 768,324 Electronics 250,818 251,252 Corporate 9,399 2,175 Total $ 993,849 $ 1,021,751 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 right-of-use assets: Three Months Ended March 28, 2020 March 30, 2019 Net sales Americas $ 58,950 $ 67,706 EMEA 35,971 44,220 APAC 34,562 34,925 Total $ 129,483 $ 146,851 March 28, 2020 December 28, 2019 Tangible long-lived assets Americas $ 86,490 $ 87,104 EMEA 27,842 28,436 APAC 16,739 18,004 Total $ 131,071 $ 133,544 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 28, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 13. RELATED PARTY TRANSACTIONS Enovation Controls purchases and sells inventory to entities partially owned by a director of Helios. For the three months ended March 28, 2020 and March 30, 2019, inventory sales to the entities totaled $414 and $482, respectively, and inventory purchases from the entities totaled $999 and $1,455, respectively. At March 28, 2020 and December 28, 2019, amounts due from the entities totaled $166 and $73, respectively, and amounts due to the entities totaled $243 and $361, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 28, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The financial statements are prepared on a consistent basis (including normal recurring adjustments) and should be read in conjunction with the consolidated financial statements and related notes contained in the Annual Report on Form 10-K for the fiscal year ended December 28, 2019, (“Form 10-K”), filed by Helios with the Securities and Exchange Commission on February 25, 2020. In management’s opinion, all adjustments necessary for a fair presentation of the Company’s financial statements are reflected in the interim periods presented. The Company faces various risks related to health epidemics, pandemics and similar outbreaks, including the global outbreak of COVID-19. The Company cannot at this time predict the impact of the COVID-19 pandemic, but it could have a material adverse effect on the business, financial position, results of operations and/or cash flows. Operating results for the three months ended March 28, 2020, are not necessarily indicative of the results that may be expected for the fiscal year ending January 2, 2021. |
Goodwill | Goodwill Goodwill, which represents the excess of the purchase price of an acquisition over the fair value of the net assets acquired, is carried at cost. Goodwill is tested for impairment annually, in the third and fourth quarters, 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. During the first quarter of 2020, t he Company determined that, based on current economic conditions and potential future impacts from the COVID-19 pandemic, it was more likely than not that the fair value of the Faster reporting unit was less than its carrying value. Upon completion of the interim impairment testing , the Company determined that the carrying value of goodwill was impaired. See Note 6 for discussion of interim impairment testing . |
Contract Assets & Liabilities | 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 $2,741 and $2,796 at March 28, 2020 and December 28, 2019, 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 revenue being recognized. Contract liabilities totaled $253 and $353 at March 28, 2020 and December 28, 2019, respectively, and are presented in Other accrued expenses and current liabilities in the Consolidated Balance Sheets. |
Research and Development | Research and Development The Company conducts research and development (“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 $4,107, and $3,900 for the three months ended March 28, 2020 and March 30, 2019, respectively. |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per common share (in thousands except per share data): Three Months Ended March 28, 2020 March 30, 2019 Net (loss) income $ (17,223 ) $ 16,404 Basic and diluted weighted average shares outstanding 32,062 31,978 Basic and diluted net (loss) income per common share $ (0.54 ) $ 0.51 |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses |
Recently Issued Accounting Standard | Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Computation of basic and diluted earnings per common share | The following table presents the computation of basic and diluted earnings per common share (in thousands except per share data): Three Months Ended March 28, 2020 March 30, 2019 Net (loss) income $ (17,223 ) $ 16,404 Basic and diluted weighted average shares outstanding 32,062 31,978 Basic and diluted net (loss) income per common share $ (0.54 ) $ 0.51 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 and December 28, 2019. March 28, 2020 Quoted Market Significant Other Observable Significant Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Forward foreign exchange contracts $ 710 $ — $ 710 $ — Total $ 710 $ — $ 710 $ — Liabilities Interest rate swap contract $ 9,821 $ — $ 9,821 $ — Forward foreign exchange contracts 1,309 — 1,309 — Contingent consideration 828 — — 828 Total $ 11,958 $ — $ 11,130 $ 828 December 28, 2019 Quoted Market Significant Other Observable Significant Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Forward foreign exchange contracts $ 815 $ — $ 815 $ — Total $ 815 $ — $ 815 $ — Liabilities Interest rate swap contract $ 5,792 $ — $ 5,792 $ — Forward foreign exchange contracts 219 — 219 — Contingent consideration 828 — — 828 Total $ 6,839 $ — $ 6,011 $ 828 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Summary of inventories | March 28, 2020 December 28, 2019 Raw materials $ 35,760 $ 34,340 Work in process 31,189 28,667 Finished goods 27,183 29,711 Provision for obsolete and slow moving inventory (7,405 ) (7,523 ) Total $ 86,727 $ 85,195 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases is as follows: March 28, 2020 December 28, 2019 Right-of-use assets $ 10,841 $ 12,310 Lease liabilities: Current lease liabilities $ 3,092 $ 3,155 Non-current lease liabilities 7,911 9,312 Total lease liabilities $ 11,003 $ 12,467 Weighted average remaining lease term (in years): 5.3 Weighted average discount rate: 4.7 % |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Three Months Ended March 28, 2020 March 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 915 $ 913 Right-of-use assets obtained in exchange for new operating lease liabilities $ 15 $ 901 |
Maturities of Lease Liabilities | Maturities of lease liabilities are as follows: 2020 Remaining $ 2,656 2021 3,419 2022 1,638 2023 1,289 2024 903 2025 631 Thereafter 2,053 Total lease payments 12,589 Less: Imputed interest (1,586 ) Total lease obligations 11,003 Less: Current lease liabilities (3,092 ) Non-current lease liabilities $ 7,911 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | Goodwill A summary of changes in goodwill by segment for the three months ended March 28, 2020, is as follows: Hydraulics Electronics Total Balance at December 28, 2019 $ 271,196 $ 106,373 $ 377,569 Impairment charge (31,871 ) — (31,871 ) Currency translation (1,883 ) — (1,883 ) Balance at March 28, 2020 $ 237,442 $ 106,373 $ 343,815 |
Schedule of intangible assets | Intangible Assets At March 28, 2020, and December 28, 2019, intangible assets consisted of the following: March 28, 2020 December 28, 2019 Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangibles: Trade names and brands $ 55,747 $ (8,362 ) $ 47,385 $ 56,032 $ (7,658 ) $ 48,374 Non-compete agreements 950 (633 ) 317 950 (586 ) 364 Technology 31,544 (9,414 ) 22,130 31,704 (8,661 ) 23,043 Supply agreement 21,000 (7,000 ) 14,000 21,000 (6,475 ) 14,525 Customer relationships 226,835 (21,678 ) 205,157 227,844 (19,499 ) 208,345 $ 336,076 $ (47,087 ) $ 288,989 $ 337,530 $ (42,879 ) $ 294,651 |
Schedule of estimated amortization expense of intangible assets | Amortization expense for the three months ended March 28, 2020, and March 30, 2019, was $4,348 and $4,521, respectively. Future estimated amortization expense is presented below. Year: 2020 Remaining $ 13,413 2021 17,674 2022 17,411 2023 17,352 2024 16,697 2025 16,642 Thereafter 189,800 Total $ 288,989 |
Derivative Instruments & Hedg_2
Derivative Instruments & Hedging Activities (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
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 March 28, 2020 December 28, 2019 Location March 28, 2020 December 28, 2019 Derivatives designated as hedging instruments: Interest rate swap contract Other assets $ — $ — Other non-current liabilities $ 9,821 $ 5,792 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 547 509 Other current liabilities 1,228 213 Forward foreign exchange contracts Other assets 163 306 Other non-current liabilities 81 6 Total derivatives $ 710 $ 815 $ 11,130 $ 6,011 (1) |
Schedule of Gains and Losses Related to Derivative Financial Instruments | The amount of gains and losses related to the Company’s derivative financial instruments for the three months ended March 28, 2020 and March 30, 2019, are presented as follows: Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives (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) March 28, 2020 March 30, 2019 into Earnings (Effective Portion) March 28, 2020 March 30, 2019 Derivatives in cash flow hedging relationships: Interest rate swap contract $ (4,029 ) $ (1,521 ) Interest expense, net $ (525 ) $ (183 ) Amount of Gain or (Loss) Recognized in Earnings on Derivatives Location of Gain or (Loss) Recognized March 28, 2020 March 30, 2019 in Earnings on Derivatives Derivatives not designated as hedging instruments: Forward foreign exchange contracts $ 440 $ (24 ) Foreign currency transaction gain loss, net |
Credit Facilities (Tables)
Credit Facilities (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Total Long-Term Non-Revolving Debt | Total long-term non-revolving debt consists of the following: Maturity Date March 28, 2020 December 28, 2019 Long-term non-revolving debt: Term loan credit facility with PNC Bank 4/3/2023 $ 90,000 $ 91,250 Term loan credit facility with Shinhan Bank 3/30/2020 — 862 Other long-term debt Various 307 376 Total long-term non-revolving debt 90,307 92,488 Less: current portion of long-term non-revolving debt 7,369 7,623 Less: unamortized debt issuance costs 741 803 Total long-term non-revolving debt, net $ 82,197 $ 84,062 |
Summary of Information on Revolving Credit Facility | Information on the Company’s revolving credit facility is as follows: Balance Available credit Maturity Date March 28, 2020 December 28, 2019 March 28, 2020 December 28, 2019 Revolving line of credit with PNC Bank 4/3/2023 $ 204,865 $ 208,708 $ 195,135 $ 191,292 |
Summary of Future Maturities of Total Debt | Future maturities of total debt are as follows: Year: 2020 Remaining $ 5,720 2021 7,636 2022 9,448 2023 272,368 Total $ 295,172 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Share Based Compensation [Abstract] | |
Summary of Restricted Stock and RSU Activity | The following table summarizes restricted stock and RSU activity for the three months ended March 28, 2020: Number of Weighted average shares / units grant-date (in thousands) fair value per share Nonvested balance at December 28, 2019 203 $ 42.73 Granted 112 38.88 Vested (58 ) 43.15 Forfeited (24 ) 43.33 Nonvested balance at March 28, 2020 (1) 233 $ 41.55 (1 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following tables present changes in accumulated other comprehensive loss by component: Unrealized Gains and (Losses) on Derivative Instruments Foreign Currency Items Total Balance at December 28, 2019 $ (5,372 ) $ (49,992 ) $ (55,364 ) Other comprehensive loss before reclassifications (4,423 ) (5,950 ) (10,373 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 394 — 394 Tax effect 1,828 1,049 2,877 Net current period other comprehensive loss (2,201 ) (4,901 ) (7,102 ) Balance at March 28, 2020 $ (7,573 ) $ (54,893 ) $ (62,466 ) Unrealized Gains and (Losses) on Derivative Instruments Foreign Currency Items Total Balance at December 29, 2018 $ (2,309 ) $ (43,944 ) $ (46,253 ) Other comprehensive loss before reclassifications (1,666 ) (7,239 ) (8,905 ) Amounts reclassified from accumulated other comprehensive loss 144 — 144 Tax effect 440 2,408 2,848 Net current period other comprehensive loss (1,082 ) (4,831 ) (5,913 ) Balance at March 30, 2019 $ (3,391 ) $ (48,775 ) $ (52,166 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Segment Reporting [Abstract] | |
Schedule of financial information by reportable segment | The following table presents financial information by reportable segment: Three Months Ended March 28, 2020 March 30, 2019 Net sales Hydraulics $ 103,818 $ 116,463 Electronics 25,665 30,388 Total $ 129,483 $ 146,851 Operating (loss) income Hydraulics $ 21,482 $ 23,762 Electronics 4,778 6,512 Corporate and other (36,293 ) (4,442 ) Total $ (10,033 ) $ 25,832 Capital expenditures Hydraulics $ 2,394 $ 8,145 Electronics 543 647 Total $ 2,937 $ 8,792 March 28, 2020 December 28, 2019 Total assets Hydraulics $ 733,632 $ 768,324 Electronics 250,818 251,252 Corporate 9,399 2,175 Total $ 993,849 $ 1,021,751 |
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 right-of-use assets: Three Months Ended March 28, 2020 March 30, 2019 Net sales Americas $ 58,950 $ 67,706 EMEA 35,971 44,220 APAC 34,562 34,925 Total $ 129,483 $ 146,851 March 28, 2020 December 28, 2019 Tangible long-lived assets Americas $ 86,490 $ 87,104 EMEA 27,842 28,436 APAC 16,739 18,004 Total $ 131,071 $ 133,544 |
Company Background (Details Tex
Company Background (Details Textual) | 3 Months Ended |
Mar. 28, 2020Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of operating segments | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | |
Accounting Policies [Abstract] | |||
Contract asset, current | $ 2,741 | $ 2,796 | |
Contract Liabilities, current | 253 | $ 353 | |
Research and development costs charged to expense | $ 4,107 | $ 3,900 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Net (loss) income | $ (17,223) | $ 16,404 |
Basic and diluted weighted average shares outstanding | 32,062 | 31,978 |
Basic and diluted net (loss) income per common share | $ (0.54) | $ 0.51 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Recurring [Member] - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Assets | ||
Assets Measured at fair value | $ 710 | $ 815 |
Liabilities | ||
Liabilities measured at fair value | 11,958 | 6,839 |
Forward Foreign Exchange Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 710 | 815 |
Liabilities | ||
Liabilities measured at fair value | 1,309 | 219 |
Interest Rate Swap Contract [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 9,821 | 5,792 |
Level 2 [Member] | ||
Assets | ||
Assets Measured at fair value | 710 | 815 |
Liabilities | ||
Liabilities measured at fair value | 11,130 | 6,011 |
Level 2 [Member] | Forward Foreign Exchange Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 710 | 815 |
Liabilities | ||
Liabilities measured at fair value | 1,309 | 219 |
Level 2 [Member] | Interest Rate Swap Contract [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 9,821 | 5,792 |
Level 3 [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 828 | 828 |
Contingent Consideration [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 828 | 828 |
Contingent Consideration [Member] | Level 3 [Member] | ||
Liabilities | ||
Liabilities measured at fair value | $ 828 | $ 828 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Summary of inventories | ||
Raw materials | $ 35,760 | $ 34,340 |
Work in process | 31,189 | 28,667 |
Finished goods | 27,183 | 29,711 |
Provision for obsolete and slow moving inventory | (7,405) | (7,523) |
Total | $ 86,727 | $ 85,195 |
Operating Leases (Details Textu
Operating Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Leases [Line Items] | ||
Operating lease cost | $ 908 | $ 908 |
Minimum [Member] | ||
Leases [Line Items] | ||
Operating leases, remaining lease term | 1 year | |
Maximum [Member] | ||
Leases [Line Items] | ||
Operating leases, remaining lease term | 10 years |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Leases [Abstract] | ||
Right-of-use assets | $ 10,841 | $ 12,310 |
Current lease liabilities | 3,092 | 3,155 |
Non-current lease liabilities | 7,911 | 9,312 |
Total lease liabilities | $ 11,003 | $ 12,467 |
Weighted average remaining lease term (in years): | 5 years 3 months 18 days | |
Weighted average discount rate: | 4.70% |
Operating Leases (Details 1)
Operating Leases (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 915 | $ 913 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 15 | $ 901 |
Operating Leases (Details 2)
Operating Leases (Details 2) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Leases [Abstract] | ||
2020 Remaining | $ 2,656 | |
2021 | 3,419 | |
2022 | 1,638 | |
2023 | 1,289 | |
2024 | 903 | |
2025 | 631 | |
Thereafter | 2,053 | |
Total lease payments | 12,589 | |
Less: Imputed interest | (1,586) | |
Total lease obligations | 11,003 | $ 12,467 |
Less: Current lease liabilities | (3,092) | (3,155) |
Non-current lease liabilities | $ 7,911 | $ 9,312 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) $ in Thousands | 3 Months Ended |
Mar. 28, 2020USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 377,569 |
Impairment charge | (31,871) |
Currency translation | (1,883) |
Goodwill, Ending Balance | 343,815 |
Hydraulics [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 271,196 |
Impairment charge | (31,871) |
Currency translation | (1,883) |
Goodwill, Ending Balance | 237,442 |
Electronics [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 106,373 |
Impairment charge | 0 |
Currency translation | 0 |
Goodwill, Ending Balance | $ 106,373 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment charge | $ 31,871 | |
Amortization expense | $ 4,348 | $ 4,521 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 336,076 | $ 337,530 |
Accumulated amortization | (47,087) | (42,879) |
Net carrying amount | 288,989 | 294,651 |
Trade names and brands [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 55,747 | 56,032 |
Accumulated amortization | (8,362) | (7,658) |
Net carrying amount | 47,385 | 48,374 |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 950 | 950 |
Accumulated amortization | (633) | (586) |
Net carrying amount | 317 | 364 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 31,544 | 31,704 |
Accumulated amortization | (9,414) | (8,661) |
Net carrying amount | 22,130 | 23,043 |
Supply agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 21,000 | 21,000 |
Accumulated amortization | (7,000) | (6,475) |
Net carrying amount | 14,000 | 14,525 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 226,835 | 227,844 |
Accumulated amortization | (21,678) | (19,499) |
Net carrying amount | $ 205,157 | $ 208,345 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Details 2) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 Remaining | $ 13,413 | |
2021 | 17,674 | |
2022 | 17,411 | |
2023 | 17,352 | |
2024 | 16,697 | |
2025 | 16,642 | |
Thereafter | 189,800 | |
Net carrying amount | $ 288,989 | $ 294,651 |
Derivative Instruments & Hedg_3
Derivative Instruments & Hedging Activities (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 28, 2019 | |
Derivatives Fair Value [Line Items] | |||
Total Asset Derivatives, Fair Value | [1] | $ 710 | $ 815 |
Total Liability Derivatives, Fair Value | [1] | 11,130 | 6,011 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swap Contract [Member] | Other Non-current Liabilities [Member] | |||
Derivatives Fair Value [Line Items] | |||
Liability Derivatives Non-current, Fair Value | [1] | 9,821 | 5,792 |
Derivatives Not Designated as Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | Other Assets [Member] | |||
Derivatives Fair Value [Line Items] | |||
Asset Derivatives Non-current, Fair Value | [1] | 163 | 306 |
Derivatives Not Designated as Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | Other Current Assets [Member] | |||
Derivatives Fair Value [Line Items] | |||
Asset Derivatives Current, Fair Value | [1] | 547 | 509 |
Derivatives Not Designated as Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | Other Non-current Liabilities [Member] | |||
Derivatives Fair Value [Line Items] | |||
Liability Derivatives Non-current, Fair Value | [1] | 81 | 6 |
Derivatives Not Designated as Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | Other Current Liabilities [Member] | |||
Derivatives Fair Value [Line Items] | |||
Liability Derivatives Current, Fair Value | [1] | $ 1,228 | $ 213 |
[1] | See Note 3 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 Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Interest Rate Swap Contract [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) | $ (4,029) | $ (1,521) |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Interest Rate Swap Contract [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) | (525) | (183) |
Derivatives Not Designated as Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | Foreign Currency Transaction Gain Loss, Net [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in Earnings on Derivatives | $ 440 | $ (24) |
Derivative Instruments & Hedg_5
Derivative Instruments & Hedging Activities (Details Textual) € in Thousands | 3 Months Ended | |||
Mar. 28, 2020USD ($)Contract | Mar. 30, 2019USD ($) | Mar. 28, 2020EUR (€)Contract | Dec. 28, 2019USD ($) | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ 2,951,000 | $ 4,385,000 | ||
Carrying value of total long term non-revolving debt | 90,307,000 | $ 92,488,000 | ||
Gain loss on derivative hedge recorded in AOCI as a part of currency translation adjustment | 265,000 | |||
Net investment hedge reclassified from AOCI into income | 0 | |||
Europe [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Carrying value of total long term non-revolving debt | $ 111,365,000 | |||
Revolving Credit Facility [Member] | Europe [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Net investment hedge | € | € 100,000 | |||
Forward Foreign Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Derivative instrument, notional amount | € | € 61,843 | |||
Derivative contract expire date | Oct. 1, 2021 | |||
Derivative, number of instruments held | Contract | 11 | 11 | ||
Cash Flow Hedging [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ 2,951,000 | $ 4,385,000 | ||
Cash Flow Hedging [Member] | Interest Rate Swap Contract [Member] | Derivatives Designated as Hedging Instruments [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Derivative instrument, notional amount | 175,000,000 | |||
Annual decrease in derivative notional amount | $ 25,000,000 | |||
Derivative contract effective date | Aug. 2, 2018 | |||
Derivative contract expire date | Apr. 3, 2023 |
Credit Facilities (Details)
Credit Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | ||
Other long-term debt, Maturity Date | Various | |
Total long-term non-revolving debt | $ 90,307 | $ 92,488 |
Other long-term debt | 307 | 376 |
Less: current portion of long-term non-revolving debt | 7,369 | 7,623 |
Less: unamortized debt issuance costs | 741 | 803 |
Total long-term non-revolving debt, net | $ 82,197 | 84,062 |
PNC Bank [Member] | ||
Debt Instrument [Line Items] | ||
Term loan credit facility, Maturity Date | Apr. 3, 2023 | |
Total long-term non-revolving debt | $ 90,000 | 91,250 |
Shinhan Bank [Member] | ||
Debt Instrument [Line Items] | ||
Term loan credit facility, Maturity Date | Mar. 30, 2020 | |
Total long-term non-revolving debt | $ 0 | $ 862 |
Credit Facilities (Details 1)
Credit Facilities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | ||
Revolving line of credit | $ 204,865 | $ 208,708 |
PNC Bank [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Apr. 3, 2023 | |
Revolving line of credit | $ 204,865 | 208,708 |
Available credit | $ 195,135 | $ 191,292 |
Credit Facilities (Details 2)
Credit Facilities (Details 2) $ in Thousands | Mar. 28, 2020USD ($) |
Debt Disclosure [Abstract] | |
2020 Remaining | $ 5,720 |
2021 | 7,636 |
2022 | 9,448 |
2023 | 272,368 |
Total | $ 295,172 |
Credit Facilities (Details Text
Credit Facilities (Details Textual) ₩ in Thousands | 3 Months Ended | ||
Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) | Mar. 28, 2020KRW (₩) | |
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 | $ 2,408,000 | $ 4,164,000 | |
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facilities, maximum capacity | $ 400,000,000 | ||
Effective interest rate | 2.34% | 2.34% | |
Shinhan Bank [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Credit facilities, maximum capacity | ₩ | ₩ 1,000,000 | ||
Loan maturity month and year | 2020-03 | ||
National Australia Bank [Member] | Other Long-Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Loans, frequency of payments | monthly | ||
Loans maturity, description | The loans mature at various dates through July 2023. | ||
National Australia Bank [Member] | Minimum [Member] | Other Long-Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Interest rates | 4.50% | 4.50% | |
National Australia Bank [Member] | Maximum [Member] | Other Long-Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Interest rates | 5.10% | 5.10% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Provision of Income Tax | 22.30% | 22.10% |
Unrecognized tax benefit | $ 8,491 | |
Federal returns currently under examination | The Company’s U.S. federal income tax returns are not currently under examination by the Internal Revenue Service (IRS). Florida income tax returns for tax years 2015 and 2016 are under examination. The 2016 pre-acquisition Italian income tax return for Faster is also under examination. |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Recognized weighted average period (in years) | 2 years 10 months 24 days | |
Stock options granted to employees | 18,121 | |
Exercise price of stock options granted to employees | $ 39.75 | |
Contractual term of stock options | 10 years | |
Weighted average grant-date fair value of options vested | $ 12.81 | |
Unrecognized compensation cost related to the stock options | $ 226 | |
2012 Nonemployee Director Fees Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award of shares granted (in shares) | 5,500 | 5,875 |
Share-based compensation expenses under Director's plan | $ 235 | $ 285 |
Employee Stock Purchase Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Rate of common stock at market value | 85.00% | |
Employee Stock Purchase Plan and U.K. Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares purchased by employees | 10,927 | 14,387 |
Weighted average price | $ 32.46 | $ 28.37 |
Share-based compensation expenses | $ 60 | $ 255 |
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 | 0.00% | |
RSUs [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Target amount percentage | 200.00% | |
Restricted Stock and Restricted Stock Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Compensation expense | $ 1,253 | $ 811 |
Total unrecognized compensation | $ 8,481 | |
Recognized weighted average period (in years) | 2 years 2 months 12 days |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) shares in Thousands | 3 Months Ended | |
Mar. 28, 2020$ / sharesshares | ||
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 | 203 | |
Granted, Number of shares | shares | 112 | |
Vested, Number of shares | shares | (58) | |
Forfeited, Number of shares | shares | (24) | |
Nonvested Ending balance Number of shares | shares | 233 | [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 | $ 42.73 | |
Granted, Weighted average grant-date fair value | $ / shares | 38.88 | |
Vested, Weighted average grant-date fair value | $ / shares | 43.15 | |
Forfeited, Weighted average grant-date fair value | $ / shares | 43.33 | |
Nonvested Ending balance, Weighted average grant-date fair value | $ / shares | $ 41.55 | [1] |
[1] | Includes 82,528 unvested performance-based RSUs. |
Stock-Based Compensation (Paren
Stock-Based Compensation (Parenthetical) (Details) - shares | Mar. 28, 2020 | Dec. 28, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unvested Number of shares | 233,000 | [1] | 203,000 |
RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unvested Number of shares | 82,528 | ||
[1] | Includes 82,528 unvested performance-based RSUs. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 577,636 | $ 530,768 |
Net current period other comprehensive income (loss) | (7,102) | (5,913) |
Ending Balance | 551,635 | 540,506 |
Unrealized Gains and (Losses) on Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (5,372) | (2,309) |
Other comprehensive income (loss) before reclassifications | (4,423) | (1,666) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 394 | 144 |
Tax effect | 1,828 | 440 |
Net current period other comprehensive income (loss) | (2,201) | (1,082) |
Ending Balance | (7,573) | (3,391) |
Foreign Currency Items [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (49,992) | (43,944) |
Other comprehensive income (loss) before reclassifications | (5,950) | (7,239) |
Tax effect | 1,049 | 2,408 |
Net current period other comprehensive income (loss) | (4,901) | (4,831) |
Ending Balance | (54,893) | (48,775) |
Accumulated other comprehensive income (loss) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (55,364) | (46,253) |
Other comprehensive income (loss) before reclassifications | (10,373) | (8,905) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | 394 | 144 |
Tax effect | 2,877 | 2,848 |
Net current period other comprehensive income (loss) | (7,102) | (5,913) |
Ending Balance | $ (62,466) | $ (52,166) |
Segment Reporting (Details Text
Segment Reporting (Details Textual) $ in Thousands | 3 Months Ended |
Mar. 28, 2020USD ($)Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | Segment | 2 |
Corporate and Other [Member] | |
Segment Reporting Information [Line Items] | |
Unallocated costs | $ | $ 36,293 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 129,483 | $ 146,851 | |
Operating income | (10,033) | 25,832 | |
Capital expenditures | 2,937 | 8,792 | |
Total assets | 993,849 | $ 1,021,751 | |
Operating Segments [Member] | Hydraulics [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 103,818 | 116,463 | |
Operating income | 21,482 | 23,762 | |
Capital expenditures | 2,394 | 8,145 | |
Total assets | 733,632 | 768,324 | |
Operating Segments [Member] | Electronics [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 25,665 | 30,388 | |
Operating income | 4,778 | 6,512 | |
Capital expenditures | 543 | 647 | |
Total assets | 250,818 | 251,252 | |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | (36,293) | $ (4,442) | |
Total assets | $ 9,399 | $ 2,175 |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | |
Net sales | |||
Net sales | $ 129,483 | $ 146,851 | |
Tangible long-lived assets | |||
Tangible long-lived assets | 131,071 | $ 133,544 | |
Americas [Member] | |||
Net sales | |||
Net sales | 58,950 | 67,706 | |
Tangible long-lived assets | |||
Tangible long-lived assets | 86,490 | 87,104 | |
EMEA [Member] | |||
Net sales | |||
Net sales | 35,971 | 44,220 | |
Tangible long-lived assets | |||
Tangible long-lived assets | 27,842 | 28,436 | |
APAC [Member] | |||
Net sales | |||
Net sales | 34,562 | $ 34,925 | |
Tangible long-lived assets | |||
Tangible long-lived assets | $ 16,739 | $ 18,004 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - Enovation Controls [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 28, 2019 | |
Related Party Transaction [Line Items] | |||
Due from entities | $ 166 | $ 73 | |
Due to entities | 243 | $ 361 | |
Inventory Transactions [Member] | |||
Related Party Transaction [Line Items] | |||
Total sales to entities | 414 | $ 482 | |
Total purchases from entities/related party | $ 999 | $ 1,455 |