Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 02, 2021 | Feb. 19, 2021 | Jun. 27, 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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 2, 2021 | ||
Document Fiscal Year Focus | 2020 | ||
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 | $ 1,167,758,700 | ||
Entity Common Stock, Shares Outstanding | 32,193,734 | ||
Title of 12(b) Security | Common Stock $.001 Par Value | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 0-21835 | ||
Entity Tax Identification Number | 59-2754337 | ||
Entity Address, Address Line One | 1500 WEST UNIVERSITY PARKWAY | ||
Entity Address, City or Town | SARASOTA | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 34243 | ||
City Area Code | 941 | ||
Local Phone Number | 362-1200 | ||
Entity Incorporation, State or Country Code | FL | ||
Entity Interactive Data Current | Yes | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement for the 2021 Annual Meeting of Shareholders to be held June 3, 2021, which is expected to be filed with the Securities and Exchange Commission on or about April 23, 2021, have been incorporated by reference into Part III, Items 10, 11, 12, 13 and 14 of this Annual Report on Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 25,216 | $ 22,123 |
Restricted cash | 41 | 39 |
Accounts receivable, net of allowance for credit losses of $1,493 and $1,131 | 97,623 | 66,677 |
Inventories, net | 110,372 | 85,195 |
Income taxes receivable | 1,103 | 3,196 |
Other current assets | 19,664 | 15,359 |
Total current assets | 254,019 | 192,589 |
Property, plant and equipment, net | 163,177 | 145,854 |
Deferred income taxes | 6,645 | 5,803 |
Goodwill | 443,533 | 377,569 |
Other intangible assets, net | 419,375 | 294,651 |
Other assets | 10,230 | 5,285 |
Total assets | 1,296,979 | 1,021,751 |
Current liabilities: | ||
Accounts payable | 59,477 | 29,730 |
Accrued compensation and benefits | 22,985 | 16,898 |
Other accrued expenses and current liabilities | 24,941 | 14,377 |
Current portion of long-term non-revolving debt, net | 16,229 | 7,623 |
Dividends payable | 2,891 | 2,884 |
Income taxes payable | 1,489 | 4,941 |
Total current liabilities | 128,012 | 76,453 |
Revolving line of credit | 255,909 | 208,708 |
Long-term non-revolving debt, net | 189,932 | 84,062 |
Deferred income taxes | 78,864 | 49,290 |
Other noncurrent liabilities | 36,472 | 25,602 |
Total liabilities | 689,189 | 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, 32,121 and 32,047 shares issued and outstanding | 32 | 32 |
Capital in excess of par value | 371,778 | 365,310 |
Retained earnings | 270,320 | 267,658 |
Accumulated other comprehensive loss | (34,340) | (55,364) |
Total shareholders' equity | 607,790 | 577,636 |
Total liabilities and shareholders' equity | $ 1,296,979 | $ 1,021,751 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for credit losses, accounts receivable | $ 1,493 | $ 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 | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 32,121,000 | 32,047,000 |
Common stock, shares issued | 32,121,000 | 32,047,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 523,040 | $ 554,665 | $ 508,045 |
Cost of sales | 326,812 | 342,383 | 315,362 |
Gross profit | 196,228 | 212,282 | 192,683 |
Selling, engineering and administrative expenses | 106,831 | 99,665 | 93,867 |
Restructuring charges | 1,724 | ||
Amortization of intangible assets | 22,114 | 18,065 | 23,262 |
Goodwill impairment | 31,871 | ||
Loss on disposal of intangible asset | 2,713 | ||
Operating income | 35,412 | 90,115 | 75,554 |
Interest expense, net | 13,286 | 15,387 | 13,876 |
Foreign currency transaction (gain) loss, net | (1,555) | (846) | 3,558 |
Other non-operating (income) expense, net | (366) | 267 | 1,725 |
Income before income taxes | 24,047 | 75,307 | 56,395 |
Income tax provision | 9,829 | 15,039 | 9,665 |
Net income | $ 14,218 | $ 60,268 | $ 46,730 |
Basic and diluted net income per common share | $ 0.44 | $ 1.88 | $ 1.49 |
Basic and diluted weighted average shares outstanding | 32,088 | 32,015 | 31,309 |
Dividends declared per share | $ 0.36 | $ 0.36 | $ 0.36 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 14,218 | $ 60,268 | $ 46,730 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments, net of tax | 21,574 | (6,048) | (37,466) |
Unrealized loss on interest rate swap, net of tax | (550) | (3,063) | (2,309) |
Total other comprehensive income (loss) | 21,024 | (9,111) | (39,775) |
Comprehensive income | $ 35,242 | $ 51,157 | $ 6,955 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common stock [Member] | Capital in excess of par value [Member] | Retained earnings [Member] | Retained earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated other comprehensive income (loss) [Member] |
Beginning Balance at Dec. 30, 2017 | $ 272,673 | $ 27 | $ 95,354 | $ 183,770 | $ (6,478) | ||
Beginning Balance, Shares at Dec. 30, 2017 | 27,077 | ||||||
Shares issued, restricted stock, Shares | 102 | ||||||
Shares issued, other compensation, Shares | 24 | ||||||
Shares issued, ESPP | 1,546 | 1,546 | |||||
Shares issued, ESPP, Shares | 36 | ||||||
Shares issued, public offering | 239,793 | $ 5 | 239,788 | ||||
Shares issued, public offering, Shares | 4,400 | ||||||
Shares issued, acquisition | 17,339 | 17,339 | |||||
Shares issued, acquisition, Shares | 333 | ||||||
Stock-based compensation | 4,271 | 4,271 | |||||
Cancellation of shares for payment of employee tax withholding | (365) | (365) | |||||
Cancellation of shares for payment of employee tax withholding, Shares | (7) | ||||||
Dividends declared | (11,444) | (11,444) | |||||
Net income | 46,730 | 46,730 | |||||
Other comprehensive income (loss) | (39,775) | (39,775) | |||||
Ending Balance at Dec. 29, 2018 | 530,768 | $ 32 | 357,933 | 219,056 | (46,253) | ||
Ending Balance, Shares at Dec. 29, 2018 | 31,965 | ||||||
Shares issued, restricted stock, Shares | (7) | ||||||
Shares issued, other compensation, Shares | 26 | ||||||
Shares issued, ESPP | 1,650 | 1,650 | |||||
Shares issued, ESPP, Shares | 52 | ||||||
Shares issued, ESOP | 1,152 | 1,152 | |||||
Shares issued, ESOP, Shares | 24 | ||||||
Stock-based compensation | 5,207 | 5,207 | |||||
Cancellation of shares for payment of employee tax withholding | (632) | (632) | |||||
Cancellation of shares for payment of employee tax withholding, Shares | (13) | ||||||
Dividends declared | (11,532) | (11,532) | |||||
Net income | 60,268 | 60,268 | |||||
Other comprehensive income (loss) | (9,111) | (9,111) | |||||
Ending Balance at Dec. 28, 2019 | $ 577,636 | $ (134) | $ 32 | 365,310 | $ 267,658 | $ (134) | (55,364) |
Ending Balance, Shares at Dec. 28, 2019 | 32,047 | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | us-gaap:AccountingStandardsUpdate201602Member | |||||
Shares issued, restricted stock, Shares | 13 | ||||||
Shares issued, other compensation, Shares | 25 | ||||||
Shares issued, ESPP | $ 1,344 | 1,344 | |||||
Shares issued, ESPP, Shares | 45 | ||||||
Shares issued, discretionary | 45 | 45 | |||||
Shares issued, discretionary, Shares | 1 | ||||||
Stock-based compensation | 5,781 | 5,781 | |||||
Cancellation of shares for payment of employee tax withholding | (702) | (702) | |||||
Cancellation of shares for payment of employee tax withholding, Shares | (11) | ||||||
Dividends declared | (11,556) | $ (11,556) | |||||
Net income | 14,218 | 14,218 | |||||
Other comprehensive income (loss) | 21,024 | 21,024 | |||||
Ending Balance at Jan. 02, 2021 | $ 607,790 | $ 32 | $ 371,778 | $ 270,320 | $ (34,340) | ||
Ending Balance, Shares at Jan. 02, 2021 | 32,120 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 14,218 | $ 60,268 | $ 46,730 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 39,695 | 35,215 | 39,714 |
Goodwill impairment | 31,871 | ||
Stock-based compensation expense | 5,781 | 5,207 | 4,271 |
Amortization of debt issuance costs | 1,107 | 717 | 729 |
Benefit for deferred income taxes | (3,631) | (551) | (1,455) |
Amortization of acquisition-related inventory step-up | 1,874 | 4,441 | |
Forward contract losses (gains), net | 5,458 | (2,863) | 3,496 |
Other, net | 1,006 | 4,614 | 1,452 |
(Increase) decrease in, net of acquisition: | |||
Accounts receivable | 727 | 5,657 | (5,976) |
Inventories | 570 | (1,450) | (11,703) |
Income taxes receivable | 1,731 | (2,459) | (4,054) |
Other current assets | (1,856) | (4,043) | 565 |
Other assets | 4,030 | 1,772 | (1,299) |
Increase (decrease) in, net of acquisition: | |||
Accounts payable | 10,569 | (10,750) | 5,894 |
Accrued expenses and other liabilities | 3,806 | 5,700 | (1,400) |
Income taxes payable | (5,127) | 6,234 | (5,031) |
Other noncurrent liabilities | (3,273) | (2,057) | 1,076 |
Contingent consideration payments in excess of acquisition date fair value | (10,731) | ||
Net cash provided by operating activities | 108,556 | 90,480 | 77,450 |
Cash flows from investing activities: | |||
Acquisitions of a business, net of cash acquired | (217,029) | (534,662) | |
Capital expenditures | (14,580) | (25,025) | (28,380) |
Proceeds from dispositions of equipment | 100 | 196 | 62 |
Cash settlement of forward contracts | (3,524) | 2,478 | (2,535) |
Software development costs | (865) | ||
Net cash used in investing activities | (235,898) | (22,351) | (565,515) |
Cash flows from financing activities: | |||
Borrowings on revolving credit facilities | 117,565 | 129,951 | 282,500 |
Repayment of borrowings on revolving credit facilities | (79,609) | (176,750) | (142,750) |
Borrowings on long-term non-revolving debt | 119,727 | 101,447 | |
Repayment of borrowings on long-term non-revolving debt | (5,958) | (5,465) | (3,825) |
Proceeds from stock issued | 1,344 | 1,650 | 241,338 |
Dividends to shareholders | (11,550) | (11,525) | (11,003) |
Debt issuance costs | (1,714) | (1,763) | |
Payment of contingent consideration liability | (830) | (8,016) | (17,342) |
Other financing activities | (1,234) | (1,588) | (1,262) |
Net cash provided by (used in) financing activities | 137,741 | (71,743) | 447,340 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (7,304) | 2,261 | 318 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,095 | (1,353) | (40,407) |
Cash, cash equivalents and restricted cash, beginning of period | 22,162 | 23,515 | 63,922 |
Cash, cash equivalents and restricted cash, end of period | 25,257 | 22,162 | 23,515 |
Cash paid: | |||
Income taxes | 11,341 | 11,421 | 20,227 |
Interest | 11,567 | 14,252 | 12,783 |
Supplemental disclosure of noncash transactions: | |||
Common stock issued to ESOP through accrued expenses and other liabilities | 1,152 | ||
Unrealized loss on interest rate swap | 1,887 | $ 3,482 | 2,309 |
Contingent consideration incurred in connection with acquisition | 1,919 | 938 | |
Indemnified tax liability incurred in connection with acquisition | 3,559 | ||
Stock issued for acquisition | $ 17,339 | ||
Foreign currency remeasurement impact on euro denominated debt | $ 7,246 |
Company Background
Company Background | 12 Months Ended |
Jan. 02, 2021 | |
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 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 85 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 acquisition. 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, specialty vehicles and therapy baths and spas. 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 | 12 Months Ended |
Jan. 02, 2021 | |
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 The Company faces various risks related to health epidemics, pandemics and similar outbreaks, including the global outbreak of COVID-19. The current COVID-19 pandemic has had an impact on markets the Company serves, its operations and, as a result, the financial results for the year and the Company’s near-term outlook. The Company cannot at this time predict the impact of the COVID-19 pandemic on its business or economic conditions as a whole, but it could have a material adverse effect on the business, financial position, results of operations and/or cash flows. 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. 56 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. 57 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. Property, Plant and Equipment, net Property, plant and equipment is stated at cost. 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 over the following useful lives: Years Machinery and equipment 2 - 14 Office furniture and equipment 2 - 14 Buildings 25 - 40 Building and land improvements 7 - 40 Leasehold improvements 3-6 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 In February 2016, the FASB issued ASU 2016-02, Leases 58 The Company determines whether an arrangement is a lease at its inception. Operating lease 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 a term of 12 months or less are not recorded on the balance sheet. See Note 7 for additional disclosures related to leases. Goodwill and Other Intangible Assets 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, the 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 its 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. In the third and fourth quarters of 2020, the Company completed its annual goodwill impairment testing and determined that the remaining carrying amount of goodwill was not impaired. See Note 8 for discussion of interim impairment testing and goodwill amounts. Other intangible assets with definite lives consist primarily of technology, customer relationships, trade names and brands, a favorable supply agreement and sales order backlog, and are amortized over their respective estimated useful lives, ranging from less than 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 January 2, 2021, 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. 59 The Company disaggregates revenue by reporting segment as well as by geographic destination of the sale. See disaggregated revenue balances in Note 1 6 , 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 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 with insignificant amounts recognized for sales discounts, rebates and product returns. The Company’s estimates for sales discounts, rebates and product returns reduce revenue recognized at the time of the sale. Revenue from Services The Company generates revenue from various services provided to customers including system design, maintenance, repairs, installation and commissioning and various other services. This is not a significant revenue stream for the Company, as it represents less than 5% of total revenue. Service contracts are typically completed within one quarter 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 $2,776 and $2,796 at January 2, 2021 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 satisfying the underlying performance obligation. Contract liabilities totaled $4,208 and $353 at January 2, 2021 and December 28, 2019, 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. 60 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 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 $15,557, $15,163 and $14,122 for the 2020, 2019 and 2018 fiscal years, respectively. Restructuring Charges During 2019, the Company incurred $1,724 of early retirement and severance costs associated with an organizational restructure. The restructuring plan was initiated to improve the global cost structure of the business while aligning employee talent with the strategic operational goals of the Company. All actions from this restructuring plan have been completed. 61 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 (“GILTI”) as a current-period expense when incurred. 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 thousands except per share data): January 2, 2021 December 28, 2019 December 29, 2018 Net income $ 14,218 $ 60,268 $ 46,730 Basic and diluted weighted average shares outstanding 32,088 32,015 31,309 Basic and diluted net income per common share $ 0.44 $ 1.88 $ 1.49 62 Reclassifications Certain reclassifications have been made to the prior period Consolidated Financial Statements to conform to the current year presentation. Recently Adopted Accounting Standards In January 2017, the FASB issued 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 |
Business Acquisition
Business Acquisition | 12 Months Ended |
Jan. 02, 2021 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | 3. BUSINESS ACQUISITION Acquisition of Balboa Water Group On November 6, 2020, the Company completed the acquisition of Balboa Water Group, LLC (“Balboa”), 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 completed for cash consideration totaling $223,158 and 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. 63 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 $1,919, as of the acquisition date. The fair value of total purchase consideration consisted of the following: Cash $ 223,158 Post closing adjustment receivable, net (431 ) Acquisition date fair value of contingent consideration 1,919 Total purchase consideration 224,646 Less: cash acquired (6,129 ) Total purchase consideration, net of cash acquired $ 218,517 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. As additional information becomes available, as of the acquisition date, management will finalize its analysis of the estimated fair value of the identified intangible assets and tax related items. As management completes its evaluation, the preliminary purchase price allocation 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 tangible and intangible assets acquired and liabilities assumed may be material. The preliminary allocation of the total purchase price, net of cash acquired, is as follows: Accounts receivable $ 28,328 Inventories 24,807 Property, plant and equipment 12,562 Goodwill 76,031 Intangible assets 128,000 Other assets 12,233 Total assets acquired 281,961 Accounts payable 17,840 Other accrued expenses and current liabilities 11,219 Deferred income taxes 23,823 Other noncurrent liabilities 10,562 Total liabilities assumed 63,444 Fair value of net assets acquired $ 218,517 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 $6,436 is expected to be deductible for tax purposes. Transaction costs of $6,644 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 $26,057 and $1,547, respectively. Included in Balboa’s loss for the period are $1,874 of charges related to the purchase accounting effects of inventory step up to fair value and $4,041 of amortization of acquisition related intangible assets. 64 The preliminary fair value of identified intangible assets and their respective useful lives are as follows: Fair Value Weighted- Average Amortization Periods (Yrs) Trade name $ 22,000 18 Technology 13,000 8 Customer relationships 85,000 25 Sales order backlog 8,000 0.5 Identified intangible assets $ 128,000 21 Unaudited Pro Forma Information The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, as if Balboa had been acquired as of the beginning of 2019. The pro forma information includes adjustments to amortization and depreciation for intangible assets and property, plant, and equipment and interest expense to reflect the borrowings of the combined entity. Non-recurring pro forma adjustments directly attributable to the Balboa acquisition included in the pro forma information presented below include the purchase accounting effect of inventory step up to fair value of $1,874, transaction costs for both entities totaling $7,239, other acquisition related costs of Balboa in 2019 of $1,683, other non-recurring costs of Balboa incurred in 2019 of $1,471 and amortization of sales order backlog intangible asset totaling $8,000. The pro forma information does not reflect any operating efficiencies or potential cost savings that may result from the acquisitions. Accordingly, the pro forma information is for illustrative purposes only and is not intended to present or be indicative of the actual results of operations of the combined company that may have been achieved had the acquisition actually occurred at the beginning of 2019, nor is it intended to represent or be indicative of future results of operations of the combined business. Consequently, actual results will differ from the unaudited pro forma information presented below: Fiscal Year 2020 2019 Net sales $ 638,288 $ 667,524 Net income 30,332 54,487 Basic and diluted net income per common share 0.95 1.70 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021 and December 28, 2019. January 2, 2021 Significant Other Significant Quoted Market Observable Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Forward foreign exchange contracts $ 211 $ — $ 211 $ — Total $ 211 $ — $ 211 $ — Liabilities Interest rate swap contract $ 7,679 $ — $ 7,679 $ — Forward foreign exchange contracts 1,551 — 1,551 — Contingent consideration 1,919 — — 1,919 Total $ 11,149 $ — $ 9,230 $ 1,919 65 December 28, 2019 Significant Other Significant Quoted Market Observable 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 A summary of changes in the estimated fair value of contingent consideration at January 2, 2021 and December 28, 2019 is as follows: Balance at December 29, 2018 $ 18,960 Change in estimated fair value 652 Payment on liability (18,747 ) Currency remeasurement (37 ) Balance at December 28, 2019 $ 828 Change in estimated fair value (47 ) Contingent consideration incurred in connection with Balboa acquisition 1,919 Payment on liability (830 ) Currency remeasurement 49 Balance at January 2, 2021 $ 1,919 During the years ended December 28, 2019, and January 2, 2021, the third and final payment to the sellers of Enovation Controls was made as well as the final payment to the sellers of Faster, respectively. |
Inventories
Inventories | 12 Months Ended |
Jan. 02, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. INVENTORIES At January 2, 2021 and December 28, 2019, inventory consisted of the following: January 2, 2021 December 28, 2019 Raw materials $ 49,361 $ 34,340 Work in process 30,675 28,667 Finished goods 39,332 29,711 Provision for obsolete and slow moving inventory (8,996 ) (7,523 ) Total $ 110,372 $ 85,195 66 |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Jan. 02, 2021 | |
Property Plant And Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | 6. PROPERTY, PLANT, AND EQUIPMENT At January 2, 2021 and December 28, 2019, property, plant and equipment consisted of the following: January 2, 2021 December 28, 2019 Machinery and equipment $ 168,012 $ 144,820 Office furniture and equipment 23,888 19,808 Buildings 57,854 54,979 Building and land improvements 15,440 15,377 Leasehold improvements 3,122 1,133 Land 13,930 13,585 $ 282,246 $ 249,702 Less: Accumulated depreciation (153,211 ) (133,582 ) Construction in progress 17,526 17,424 $ 146,561 $ 133,544 Operating lease ROU assets 16,616 12,310 Total $ 163,177 $ 145,854 Depreciation expense for the years ended January 2, 2021, December 28, 2019, and December 29, 2018 totaled |
Operating Leases
Operating Leases | 12 Months Ended |
Jan. 02, 2021 | |
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 ten years. For the years ended January 2, 2021 and December 28, 2019, operating lease costs totaled $4,119 and $3,689, respectively. Supplemental balance sheet information related to operating leases is as follows: January 2, 2021 December 28, 2019 Right-of-use assets $ 16,616 $ 12,310 Lease liabilities: Current lease liabilities $ 4,736 $ 3,155 Non-current lease liabilities 12,728 9,312 Total lease liabilities $ 17,464 $ 12,467 Weighted average remaining lease term (in years): 5.1 Weighted average discount rate: 5.0 % Supplemental cash flow information related to leases is as follows: For the Year Ended January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,077 $ 3,714 Non-cash impact of new leases and lease modifications $ 1,270 $ 1,834 67 Maturities of lease liabilities are as follows: 2021 $ 5,487 2022 3,561 2023 3,228 2024 2,599 2025 2,003 Thereafter 2,920 Total lease payments 19,798 Less: Imputed interest (2,334 ) Total lease obligations 17,464 Less: Current lease liabilities (4,736 ) Non-current lease liabilities $ 12,728 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021 and December 28, 2019 is as follows: Hydraulics Electronics Total Balance at December 29, 2018 $ 276,758 $ 106,373 $ 383,131 Faster acquisition measurement period adjustment (343 ) — (343 ) Custom Fluidpower acquisition measurement period adjustment 1,205 — 1,205 Currency translation (6,424 ) — (6,424 ) Balance at December 28, 2019 $ 271,196 $ 106,373 $ 377,569 Acquisition of Balboa — 76,031 76,031 Impairment charge (31,871 ) — (31,871 ) Currency translation 21,804 — 21,804 Balance at January 2, 2021 $ 261,129 $ 182,404 $ 443,533 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 to conduct 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. 68 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 made every effort to estimate future cash flows as accurately as possible, given the high degree of economic uncertainty that existed. 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 tha n 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. Intangibles Assets At January 2, 2021 and December 28, 2019, intangible assets consisted of the following: January 2, 2021 December 28, 2019 Useful life (years) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangibles: Trade names and brands 10-20 $ 80,402 $ (11,188 ) $ 69,214 $ 56,032 $ (7,658 ) $ 48,374 Non-compete agreements 5 950 (776 ) 174 950 (586 ) 364 Technology 7 - 13 45,955 (12,368 ) 33,587 31,704 (8,661 ) 23,043 Supply agreement 10 21,000 (8,575 ) 12,425 21,000 (6,475 ) 14,525 Customer relationships 15 - 26 330,406 (31,431 ) 298,975 227,844 (19,499 ) 208,345 Sales order backlog 0.5 8,000 (3,000 ) 5,000 — — — $ 486,713 $ (67,338 ) $ 419,375 $ 337,530 $ (42,879 ) $ 294,651 During 2019, the Company terminated its technology licensing agreement with Sturman Industries, Inc. A phase out of all digital logic valve (“DLV”) related products was completed and no further sales of any related products or technologies will occur. The termination of the agreement resulted in the recognition of a loss on disposal of the related intangibles asset totaling $2,713. Amortization expense for the 2020, 2019 and 2018 fiscal years was approximately $22,114, $18,065 and $23,262, respectively. Future estimated amortization expense is presented below. Year: 2021 $ 29,955 2022 24,692 2023 24,633 2024 23,978 2025 23,909 Thereafter 292,208 Total $ 419,375 69 |
Derivative Instruments & Hedgin
Derivative Instruments & Hedging Activities | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021 December 28, 2019 Location January 2, 2021 December 28, 2019 Derivatives designated as hedging instruments: Interest rate swap contract Other assets $ — $ — Other non-current liabilities $ 7,679 $ 5,792 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 169 509 Other current liabilities 1,413 213 Forward foreign exchange contracts Other assets 42 306 Other non-current liabilities 138 6 Total derivatives $ 211 $ 815 $ 9,230 $ 6,011 (1) The amount of gains and losses related to the Company’s derivative financial instruments for the 2020 and 2019 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) January 2, 2021 December 28, 2019 into Earnings (Effective Portion) January 2, 2021 December 28, 2019 Derivatives in cash flow hedging relationships: Interest rate swap contract $ (1,887 ) $ (3,482 ) Interest expense, net $ (3,712 ) $ (1,110 ) Interest expense presented in the Consolidated Statements of Operations, in which the effects of cash flow hedges are recorded, totaled $13,286 and $15,387 for the years ended January 2, 2021 and December 28, 2019, respectively. 70 Amount of Gain or (Loss) Recognized in Earnings on Derivatives Location of Gain or (Loss) Recognized January 2, 2021 December 28, 2019 in Earnings on Derivatives Derivatives not designated as hedging instruments: Forward foreign exchange contracts $ (5,458 ) $ 2,863 Foreign currency transaction gain loss, net Interest Rate Swap Contract 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 of $195,000, with periodic decreases, have been designated as hedging instruments and are accounted for as cash flow hedges. The interest rate swaps are scheduled to expire in April 2023 October 2025 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 January 2, 2021, the Company had twelve forward foreign exchange contracts with an aggregate notional value of €51,798, maturing at various dates through July 2022 Net Investment Hedge The Company utilizes foreign currency denominated debt to hedge currency exposure in foreign operations. The Company has designated €90,000 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 $109,909 as of January 2, 2021 and is included in the Revolving line of credit line item in the Consolidated Balance Sheets. The loss on the net investment hedge recorded in AOCI as part of the currency translation adjustment was $7,246, net of tax, for the year ended January 2, 2021. A loss of $164, associated with the net investment hedge, was reclassified from AOCI into income for the year ended January 2, 2021. 71 |
Credit Facilities
Credit Facilities | 12 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES | 10. CREDIT FACILITIES Total long-term non-revolving debt consists of the following: Maturity Date January 2, 2021 December 28, 2019 Long-term non-revolving debt: Term loan credit facility with PNC Bank 10/28/2025 $ 200,000 $ 91,250 Term loan credit facility with Intesa Sanpaolo S.p.A. 12/23/2021 6,106 — Term loan credit facility with Citibank 11/22/2023 400 — Other long-term debt Various 264 1,238 Total long-term non-revolving debt 206,770 92,488 Less: current portion of long-term non-revolving debt 16,229 7,623 Less: unamortized debt issuance costs 609 803 Total long-term non-revolving debt, net $ 189,932 $ 84,062 Information on the Company's revolving credit facilities is as follows: Balance Available credit Maturity Date January 2, 2021 December 28, 2019 January 2, 2021 December 28, 2019 Revolving line of credit with PNC Bank 10/28/2025 $ 255,909 $ 208,708 $ 144,045 $ 191,292 Revolving line of credit with Citibank 11/18/2021 $ 315 $ — $ 1,982 $ — Future maturities of total debt are as follows: Year: 2021 $ 16,670 2022 15,274 2023 15,141 2024 20,000 2025 395,909 Total $ 462,994 Term Loan and Line of Credit with PNC Bank On October 28, 2020, the Company amended and restated its credit agreement with PNC Bank, National Association, as administrative agent, and the lenders party thereto. The amendment increased the term loan credit facility to an aggregate principle amount of $200,000 and revised the accordion feature to permit the increase of the amended and restated facility by up to an additional $300,000. The aggregate maximum borrowing amount on the revolving line of credit remained unchanged at $ 400,000 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 3.75 to 1.0. As of January 2, 2021, 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. 72 To hedge currency exposure in foreign operations, €90,000 of the borrowings on the line of credit are denominated in euros. The borrowings have been designated as a net investment hedge, see additional information in Note 9. The effective interest rate on the credit agreement at January 2, 2021, was 2.96%. Interest expense recognized on the credit agreement during the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was Term Loan with Intesa Sanpaolo S.p.A. On June 23, 2020, the Company entered into an agreement with Intesa Sanpaolo S.p.A. that provided an unsecured term loan of €5,000. The facility bears interest at 1.25%. Repayment of the facility begins in January 2021 and is due in 12 monthly installments. The loan bears a guarantee from SACE S.p.A. – the Italian export public credit agency operating in the insurance and financial services sectors – pursuant to the Law Decree No. 23 of April 8, 2020, converted (with amendments) into Law No. 40 of June 5, 2020. Term Loan and Line of Credit with Citibank On May 18, 2020, the Company entered into an uncommitted fixed asset facility agreement (the “Fixed Asset Facility”) and short-term revolving facility agreement (the “Working Capital Facility”) with Citibank (China) Co., Ltd. Shanghai Branch, as lender. Under the Fixed Asset Facility, the Company may, from time-to-time for a period of 180 days, borrow amounts on a secured basis up to a total of RMB 50,000. The proceeds of such loans may be used for purchases of certain 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 1.50%, to be repaid on a specified schedule with the final payment due in November 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 15,000. Proceeds may only be used for expenditures related to production at the Company’s facility located in Kunshan City, China. Outstanding borrowings under the Working Capital Facility accrue interest at a rate equal to the National Interbank Funding Center 1-year loan prime rate plus 0.50%. All outstanding balances will be due in November 2021 As of the date of this filing, the Company was in compliance with all debt covenants related to the Fixed Asset Facility and Working Capital Facility. Other Credit Facilities The Company had a credit agreement with Shinhan Bank that provided a term loan of KRW 1,000,000 March 2020 The Company’s other long-term debt consists of auto loans payable to National Australia Bank. Interest is charged at various rates ranging from 4.5% to 5.1%. Principal and interest payments are due monthly. The loans mature at various dates through July 2023. |
Dividends to Shareholders
Dividends to Shareholders | 12 Months Ended |
Jan. 02, 2021 | |
Equity [Abstract] | |
DIVIDENDS TO SHAREHOLDERS | 11. DIVIDENDS TO SHAREHOLDERS The Company declared dividends of $11,556, $11,532, and $11,444 to shareholders in 2020, 2019, and 2018, respectively. 73 The Company declared the following regular quarterly dividends to shareholders during 2020, 2019 and 2018. The dividends were declared to shareholders of record on the 5 th th 2020 2019 2018 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 |
Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 12. INCOME TAXES For financial reporting purposes, income before income taxes includes the following components: For the year ended January 2, 2021 December 28, 2019 December 29, 2018 United States $ 30,619 $ 51,007 $ 44,693 Foreign (6,572 ) 24,300 11,702 Total $ 24,047 $ 75,307 $ 56,395 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 sales of $106,147, $105,976, and $98,876 for the 2020, 2019 and 2018 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 January 2, 2021 December 28, 2019 December 29, 2018 Current tax expense (benefit): United States $ 3,251 $ 7,380 $ 4,229 State and local 1,166 (388 ) 2,522 Foreign 7,430 9,107 3,707 Total current 11,847 16,099 10,458 Deferred tax expense (benefit): United States 3,190 665 380 State and local (326 ) 58 110 Foreign (4,882 ) (1,783 ) (1,283 ) Total deferred (2,018 ) (1,060 ) (793 ) Total income tax provision $ 9,829 $ 15,039 $ 9,665 74 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. As a result of the Act, the Company recorded in the 2017 year-end income tax provision $459 of additional income tax expense, including a benefit of $1,541 related to remeasurement of deferred tax assets and liabilities and $2,000 of expense related to one-time transition tax on mandatory deemed repatriation of foreign earnings. Refinements to these items were made during 2018 for the purpose of 2017 tax return reporting, and provision-to-return adjustments have been recorded in the 2018 year-end provision to adjust the transition tax to $630. The Company elected to pay the transition tax in full during the 2018 fiscal year. As of January 2, 2021, the Company had approximately $19,300 of undistributed earnings of its non-U.S. subsidiaries for which it has not provided for non-U.S. withholding taxes and state taxes because such earnings are intended to be reinvested in international operations. In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (“GILTI”) provisions of the Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. The guidance indicates that either accounting for deferred taxes related to GILTI inclusions or treating any taxes on GILTI inclusions as a period cost are acceptable methods subject to an accounting policy election. The Company has elected to treat any taxes on GILTI inclusions as period costs. The reconciliation between the effective income tax rate and the U.S. federal statutory rate is as follows: For the year ended January 2, 2021 December 28, 2019 December 29, 2018 U.S. federal taxes at statutory rate $ 5,057 $ 15,815 $ 11,843 Increase (decrease) 986(c) FX gain/(loss) — (281 ) — Foreign withholding tax 326 — — Capitalized transaction costs 387 — — Foreign income taxed at different rate 1,363 1,446 1,292 FDII deduction (1,265 ) (1,790 ) (2,195 ) Changes in estimates related to prior years including foreign (2,530 ) — (2,049 ) Goodwill impairment 6,693 — — State and local taxes, net 595 (73 ) 1,462 Current year tax credits (674 ) (663 ) (633 ) Foreign deferred other true up — — (810 ) Change in reserve (453 ) 957 578 Foreign patent box benefit — (1,213 ) (937 ) Increase in valuation allowance — 116 526 Other 330 725 588 Income tax provision $ 9,829 $ 15,039 $ 9,665 75 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 January 2, 2021, and December 28, 2019, are presented below: January 2, 2021 December 28, 2019 Deferred tax assets: Foreign tax benefit of U.S. reserves $ 5,086 $ 3,691 Net operating losses 6,159 510 Inventory 2,495 1,824 Intangible assets and goodwill 675 2,518 Accrued expenses and other 5,485 2,883 Other comprehensive income — 3,887 Total deferred tax assets 19,900 15,313 Less: Valuation allowance (428 ) (428 ) Net deferred tax assets 19,472 14,885 Deferred tax liabilities: Depreciation (7,493 ) (6,495 ) Intangible assets and goodwill (82,126 ) (51,834 ) Other deferred tax liabilities (1,564 ) (43 ) Other comprehensive income (508 ) — Total deferred tax liabilities (91,691 ) (58,372 ) Net deferred tax liabilities $ (72,219 ) $ (43,487 ) As of January 2, 2021, the Company has federal net operating loss (“NOL”) carryforwards of approximately $14,400, Oklahoma NOLs carryforwards of $14,300 and California NOL carryforwards of $33,400. The Oklahoma NOLs are expected to be fully utilized by 2024. 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, 2021, and 2022. Despite these limitations, the Company expects to fully utilize the federal NOLs by 2027 and the California NOLs by 2025 and thus has recorded a deferred tax asset of $6,159 for all NOLs. Approximately $2,685 of the expected NOL benefit is payable to the previous owners of Balboa. The payout is considered contingent consideration and has an estimated fair value of $1,919 as of the acquisition date. 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. For the fiscal years ended 2020 and 2019 management has determined that no material valuation allowances were required. The Company prescribes a recognition threshold and measurement attribute for an uncertain tax position taken or expected to be taken in a tax return. 76 The following is a roll-forward of the Company’s unrecognized tax benefits: Unrecognized tax benefits - December 30, 2017 $ 4,542 Increases from positions taken during prior periods 372 Increases from positions taken during current period 2,036 Settled positions — Lapse of statute of limitations (837 ) Unrecognized tax benefits - December 29, 2018 $ 6,113 Increases from positions taken during prior periods 1,121 Increases from positions taken during current period 817 Settled positions — Lapse of statute of limitations — Unrecognized tax benefits - December 28, 2019 $ 8,051 Increases from positions taken during prior periods 656 Increases from positions taken during current period 459 Current year acquisitions 3,170 Settled positions (947 ) Lapse of statute of limitations — Unrecognized tax benefits - January 2, 2021 $ 11,389 At January 2, 2021, the Company had unrecognized tax benefits of $11,389 including accrued interest. If recognized, $1,842 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 January 2, 2021, is not considered material to the Company’s Consolidated Financial Statements. The Company remains subject to income tax examinations in the U.S. and various state and foreign jurisdictions for tax years 2009-2019. Although the Company is not currently under examination in most jurisdictions, limited transfer pricing disputes exist 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 |
Jan. 02, 2021 | |
Share Based Compensation [Abstract] | |
STOCK-BASED COMPENSATION | 13. STOCK-BASED COMPENSATION Equity Incentive Plan The Company’s 2019 Equity Incentive Plan (“2019 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. As of January 2, 2021, 968,666 shares remained available to be issued through the 2019 Plan. Restricted Stock and Restricted Stock Units The Company grants restricted shares of common stock and restricted stock units (“RSUs”) in connection with a long-term incentive plan. Awards with time-based vesting requirements primarily vest ratably over a three-year three-year 77 Compensation expense recognized for restricted stock and RSUs totaled $4,182, $3,465 and $2,728 for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. The following table summarizes restricted stock and RSU activity for the 2020 fiscal year: Number of shares / units (in thousands) Weighted average grant-date fair value per share Nonvested balance at December 28, 2019 203 $ 42.73 Granted 186 36.83 Vested (79 ) 43.60 Forfeited (71 ) 41.78 Nonvested balance at January 2, 2021 (1) 239 $ 38.95 (1 ) Includes The grant date fair value of restricted stock and RSUs granted during the 2020, 2019 and 2018 fiscal years totaled $6,843, $5,079 and $5,947, respectively. The Company had $5,444 of total unrecognized compensation cost related to the restricted stock and RSU awards as of January 2, 2021. That cost is expected to be recognized over a weighted average period of 1.7 years. Stock Options The following table summarizes stock options the Company has granted to its officers (in thousands, except per share data): January 2, 2021 Options Option Exercise Options Options Options Date of Grant Granted (Strike) Price Forfeited Outstanding Exercisable February 28, 2020 18 $ 39.75 10 9 — July 1, 2020 5 35.04 — 5 — Total 23 10 14 — The exercise prices per share are equal to the market price of Helios stock on the respective grant dates. The options vest ratable 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 January 2, 2021, the Company had $133 of unrecognized compensation cost related to the options which is expected to be recognized over a weighted average period of 2.3 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 (“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. The ESPP authorizes the issuance, and the purchase by employees, of up to 1,096,875 shares of common stock through payroll deductions. No U.S. employee is allowed to buy more than $25 of common stock in any year, based on the market value of the common stock at the beginning of the purchase period, and no UK employee is allowed to buy more than the lesser of £1.5 or 10% of his or her annual salary in any year. 78 Employees purchased 43,574 shares at a weighted average price of $30.86, and 49,195 shares at a weighted average price of $33.55, under the ESPP and UK Plan during the years ended January 2, 2021 and December 28, 2019, respectively. The Company recognized $431, $551 and $324 of compensation expense during the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. At January 2, 2021, 411,629 shares remained available to be issued through the ESPP and the U.K. plan. Nonemployee Director Fees Plan In March 2012, the Board of Directors adopted the Sun Hydraulics Corporation 2012 Nonemployee 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, Nonemployee Directors are 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 Nonemployee Directors. Each Nonemployee Director receives an annual retainer of 2,000 shares of Common Stock. The Chairman's retainer is twice that of a regular director, and the retainer for the chairs of each Board Committee is 150% that of a regular director. In addition, each Nonemployee Director receives 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. In June 2015, the Company's shareholders approved the amendments to the 2012 Directors Plan. The Board has the authority to change from time to time, in any manner it deems desirable or appropriate, the share compensation to be awarded to all or any one or more Nonemployee Directors, provided that, with limited exceptions, such changes are subject to prior shareholder approval. The aggregate number of shares which may be issued during any single calendar year is limited to 35,000 shares. The 2012 Directors Plan authorizes the issuance of up to 270,000 shares of common stock. At January 2, 2021, 71,549 shares remained available for issuance under the 2012 Directors Plan. Directors were granted 26,675 and 25,200 shares for the years ended January 2, 2021 and December 28, 2019, respectively. The Company recognized director stock compensation expense of $1,178, $1,162 and $1,213 for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Jan. 02, 2021 | |
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 recognized under the retirement plan amounted to approximately $2,373, $3,511, and $3,807 during 2020, 2019, and 2018, 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 $3,591, $1,905, and $1,865 during 2020, 2019, and 2018, respectively. 79 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jan. 02, 2021 | |
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 Gains and (Losses) on Derivative Instruments Foreign Currency Items Total Balance at December 30, 2017 $ — $ (6,478 ) $ (6,478 ) Other comprehensive loss before reclassifications (2,741 ) (37,466 ) (40,207 ) Amounts reclassified from accumulated other comprehensive loss 432 — 432 Net current period other comprehensive loss (2,309 ) (37,466 ) (39,775 ) Balance at December 29, 2018 $ (2,309 ) $ (43,944 ) $ (46,253 ) Other comprehensive loss before reclassifications (2,616 ) (9,515 ) (12,131 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (866 ) — (866 ) Tax effect 419 3,467 3,886 Net current period other comprehensive loss (3,063 ) (6,048 ) (9,111 ) Balance at December 28, 2019 $ (5,372 ) $ (49,992 ) $ (55,364 ) Other comprehensive income before reclassifications 975 27,306 28,281 Amounts reclassified from accumulated other comprehensive loss, net of tax (2,862 ) — (2,862 ) Tax effect 1,337 (5,732 ) (4,395 ) Net current period other comprehensive (loss) income (550 ) 21,574 21,024 Balance at January 2, 2021 $ (5,922 ) $ (28,418 ) $ (34,340 ) 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 January 2, 2021 December 28, 2019 December 29, 2018 Derivative financial instruments Interest rate swap Interest expense, net $ (3,712 ) $ (1,110 ) $ (547 ) Tax benefit 850 244 115 Net of tax $ (2,862 ) $ (866 ) $ (432 ) Total reclassifications for the period $ (2,862 ) $ (866 ) $ (432 ) |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jan. 02, 2021 | |
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 makers. 80 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 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, specialty vehicles and therapy baths and spas. 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). 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 January 2, 2021, these unallocated costs totaled $65,947 and include certain corporate costs not deemed to be allocable to either business segment of $2,567, goodwill impairment recognized on the Faster business unit of $31,871, acquisition related costs including Balboa transaction costs of $6,644, charges related to the inventory step up to fair value of $1,874, amortization of acquisition-related intangible assets of $22,114 and other acquisition and integration related activities of $877. The accounting policies of the Company’s operating segments 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: 2020 2019 2018 Net sales: Hydraulics $ 407,192 $ 442,812 $ 381,845 Electronics 115,848 111,853 126,200 Total $ 523,040 $ 554,665 $ 508,045 Operating income: Hydraulics $ 81,996 $ 86,027 $ 83,858 Electronics 19,363 21,994 25,046 Corporate and other (65,947 ) (17,906 ) (33,350 ) Total $ 35,412 $ 90,115 $ 75,554 Capital expenditures: Hydraulics $ 11,725 $ 22,221 $ 25,782 Electronics 2,855 2,804 2,598 Total $ 14,580 $ 25,025 $ 28,380 Total assets: Hydraulics $ 765,155 $ 768,324 $ 771,409 Electronics 523,502 251,252 263,412 Corporate 8,322 2,175 7,344 Total $ 1,296,979 $ 1,021,751 $ 1,042,165 81 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: 2020 2019 2018 Net sales Americas $ 224,470 $ 258,542 $ 257,684 EMEA 142,062 150,091 139,776 APAC 156,508 146,032 110,585 Total $ 523,040 $ 554,665 $ 508,045 Tangible long-lived assets Americas $ 96,752 $ 87,104 $ 83,664 EMEA 31,091 28,436 26,724 APAC 18,718 18,004 16,480 Total $ 146,561 $ 133,544 $ 126,868 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021, December 28, 2019 and December 29, 2018, inventory sales to the entities totaled $3,493, $1,441 and $2,584, respectively, and inventory purchases from the entities totaled $4,310, $4,732 and $6,178, respectively. The Company also utilizes the legal services of a law firm where a director of Helios is a partner. Expenses incurred from the entity totaled $246 for the year ended January 2, 2021. At January 2, 2021 and December 28, 2019, total amounts due from the entities totaled $528 and $73, respectively, and total amounts due to the entity totaled $421 and $361, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 02, 2021 | |
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 for €26,683. 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. 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. 82 Letters of Credit In the ordinary course of business, we are at times required to post letters of credit. The letters of credit are issued by financial institutions to guarantee our obligations to various parties. We were contingently liable for $1,840 of standby letters of credit with financial institutions as of January 2, 2021. |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information | 12 Months Ended |
Jan. 02, 2021 | |
Unaudited Quarterly Financial Information [Abstract] | |
UNAUDITED QUARTERLY FINANCIAL INFORMATION | 19. UNAUDITED QUARTERLY FINANCIAL INFORMATION For the quarter ended Jan 2, Sept 26, Jun 27, Mar 28, 2021 2020 2020 2020 Net sales $ 151,618 $ 122,645 $ 119,294 $ 129,483 Gross profit 52,716 46,943 44,719 51,850 Operating income (loss) 10,400 18,343 16,702 (10,033 ) Income (loss) before income taxes 7,156 16,362 13,544 (13,015 ) Net income (loss) 5,551 12,982 12,908 (17,223 ) Basic and diluted net income (loss) per common share $ 0.17 $ 0.40 $ 0.40 $ (0.54 ) For the quarter ended Dec 28, Sept 28, Jun 29, Mar 30, 2019 2019 2019 2019 Net sales $ 125,927 $ 138,045 $ 143,842 $ 146,851 Gross profit 47,427 52,119 56,227 56,509 Operating income 18,772 19,138 26,373 25,832 Income before income taxes 16,861 15,462 21,925 21,059 Net income 13,809 12,791 17,265 16,404 Basic and diluted net income per common share $ 0.43 $ 0.40 $ 0.54 $ 0.51 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2021 | |
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 The Company faces various risks related to health epidemics, pandemics and similar outbreaks, including the global outbreak of COVID-19. The current COVID-19 pandemic has had an impact on markets the Company serves, its operations and, as a result, the financial results for the year and the Company’s near-term outlook. The Company cannot at this time predict the impact of the COVID-19 pandemic on its business or economic conditions as a whole, but it could have a material adverse effect on the business, financial position, results of operations and/or cash flows. 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. 56 |
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. 57 |
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. |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment is stated at cost. 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 over the following useful lives: Years Machinery and equipment 2 - 14 Office furniture and equipment 2 - 14 Buildings 25 - 40 Building and land improvements 7 - 40 Leasehold improvements 3-6 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 In February 2016, the FASB issued ASU 2016-02, Leases 58 The Company determines whether an arrangement is a lease at its inception. Operating lease 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 a term of 12 months or less are not recorded on the balance sheet. See Note 7 for additional disclosures related to leases. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets 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, the 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 its 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. In the third and fourth quarters of 2020, the Company completed its annual goodwill impairment testing and determined that the remaining carrying amount of goodwill was not impaired. See Note 8 for discussion of interim impairment testing and goodwill amounts. Other intangible assets with definite lives consist primarily of technology, customer relationships, trade names and brands, a favorable supply agreement and sales order backlog, and are amortized over their respective estimated useful lives, ranging from less than |
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 January 2, 2021, 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. 59 The Company disaggregates revenue by reporting segment as well as by geographic destination of the sale. See disaggregated revenue balances in Note 1 6 , 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 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 with insignificant amounts recognized for sales discounts, rebates and product returns. The Company’s estimates for sales discounts, rebates and product returns reduce revenue recognized at the time of the sale. Revenue from Services The Company generates revenue from various services provided to customers including system design, maintenance, repairs, installation and commissioning and various other services. This is not a significant revenue stream for the Company, as it represents less than 5% of total revenue. Service contracts are typically completed within one quarter 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 $2,776 and $2,796 at January 2, 2021 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 satisfying the underlying performance obligation. Contract liabilities totaled $4,208 and $353 at January 2, 2021 and December 28, 2019, 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. 60 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. |
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 |
Restructuring Charges | Restructuring Charges During 2019, the Company incurred $1,724 of early retirement and severance costs associated with an organizational restructure. The restructuring plan was initiated to improve the global cost structure of the business while aligning employee talent with the strategic operational goals of the Company. All actions from this restructuring plan have been completed. 61 |
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 (“GILTI”) as a current-period expense when incurred. |
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): January 2, 2021 December 28, 2019 December 29, 2018 Net income $ 14,218 $ 60,268 $ 46,730 Basic and diluted weighted average shares outstanding 32,088 32,015 31,309 Basic and diluted net income per common share $ 0.44 $ 1.88 $ 1.49 |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior period Consolidated Financial Statements to conform to the current year presentation. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In January 2017, the FASB issued 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 | Recently Issued Accounting Standards Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Useful Lives of Assets | Property, plant and equipment is stated at cost. 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 over the following useful lives: Years Machinery and equipment 2 - 14 Office furniture and equipment 2 - 14 Buildings 25 - 40 Building and land improvements 7 - 40 Leasehold improvements 3-6 |
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): January 2, 2021 December 28, 2019 December 29, 2018 Net income $ 14,218 $ 60,268 $ 46,730 Basic and diluted weighted average shares outstanding 32,088 32,015 31,309 Basic and diluted net income per common share $ 0.44 $ 1.88 $ 1.49 |
Business Acquisition (Tables)
Business Acquisition (Tables) - Balboa [Member] | 12 Months Ended |
Jan. 02, 2021 | |
Components of Fair Value of Total Purchase Consideration | The fair value of total purchase consideration consisted of the following: Cash $ 223,158 Post closing adjustment receivable, net (431 ) Acquisition date fair value of contingent consideration 1,919 Total purchase consideration 224,646 Less: cash acquired (6,129 ) Total purchase consideration, net of cash acquired $ 218,517 |
Schedule of Allocation of Total Purchase Price, Net of Cash Acquired | The preliminary allocation of the total purchase price, net of cash acquired, is as follows: Accounts receivable $ 28,328 Inventories 24,807 Property, plant and equipment 12,562 Goodwill 76,031 Intangible assets 128,000 Other assets 12,233 Total assets acquired 281,961 Accounts payable 17,840 Other accrued expenses and current liabilities 11,219 Deferred income taxes 23,823 Other noncurrent liabilities 10,562 Total liabilities assumed 63,444 Fair value of net assets acquired $ 218,517 |
Schedule of Preliminary Fair Value of Identified Intangible Assets and Useful Lives | The preliminary fair value of identified intangible assets and their respective useful lives are as follows: Fair Value Weighted- Average Amortization Periods (Yrs) Trade name $ 22,000 18 Technology 13,000 8 Customer relationships 85,000 25 Sales order backlog 8,000 0.5 Identified intangible assets $ 128,000 21 |
Schedule of Unaudited Pro Forma Information | The pro forma information does not reflect any operating efficiencies or potential cost savings that may result from the acquisitions. Accordingly, the pro forma information is for illustrative purposes only and is not intended to present or be indicative of the actual results of operations of the combined company that may have been achieved had the acquisition actually occurred at the beginning of 2019, nor is it intended to represent or be indicative of future results of operations of the combined business. Consequently, actual results will differ from the unaudited pro forma information presented below: Fiscal Year 2020 2019 Net sales $ 638,288 $ 667,524 Net income 30,332 54,487 Basic and diluted net income per common share 0.95 1.70 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021 and December 28, 2019. January 2, 2021 Significant Other Significant Quoted Market Observable Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Forward foreign exchange contracts $ 211 $ — $ 211 $ — Total $ 211 $ — $ 211 $ — Liabilities Interest rate swap contract $ 7,679 $ — $ 7,679 $ — Forward foreign exchange contracts 1,551 — 1,551 — Contingent consideration 1,919 — — 1,919 Total $ 11,149 $ — $ 9,230 $ 1,919 65 December 28, 2019 Significant Other Significant Quoted Market Observable 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 |
Summary of Changes in Estimated Fair Value of Contingent Consideration | A summary of changes in the estimated fair value of contingent consideration at January 2, 2021 and December 28, 2019 is as follows: Balance at December 29, 2018 $ 18,960 Change in estimated fair value 652 Payment on liability (18,747 ) Currency remeasurement (37 ) Balance at December 28, 2019 $ 828 Change in estimated fair value (47 ) Contingent consideration incurred in connection with Balboa acquisition 1,919 Payment on liability (830 ) Currency remeasurement 49 Balance at January 2, 2021 $ 1,919 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of inventories | At January 2, 2021 and December 28, 2019, inventory consisted of the following: January 2, 2021 December 28, 2019 Raw materials $ 49,361 $ 34,340 Work in process 30,675 28,667 Finished goods 39,332 29,711 Provision for obsolete and slow moving inventory (8,996 ) (7,523 ) Total $ 110,372 $ 85,195 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | At January 2, 2021 and December 28, 2019, property, plant and equipment consisted of the following: January 2, 2021 December 28, 2019 Machinery and equipment $ 168,012 $ 144,820 Office furniture and equipment 23,888 19,808 Buildings 57,854 54,979 Building and land improvements 15,440 15,377 Leasehold improvements 3,122 1,133 Land 13,930 13,585 $ 282,246 $ 249,702 Less: Accumulated depreciation (153,211 ) (133,582 ) Construction in progress 17,526 17,424 $ 146,561 $ 133,544 Operating lease ROU assets 16,616 12,310 Total $ 163,177 $ 145,854 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases is as follows: January 2, 2021 December 28, 2019 Right-of-use assets $ 16,616 $ 12,310 Lease liabilities: Current lease liabilities $ 4,736 $ 3,155 Non-current lease liabilities 12,728 9,312 Total lease liabilities $ 17,464 $ 12,467 Weighted average remaining lease term (in years): 5.1 Weighted average discount rate: 5.0 % |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: For the Year Ended January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,077 $ 3,714 Non-cash impact of new leases and lease modifications $ 1,270 $ 1,834 |
Maturities of Lease Liabilities | Maturities of lease liabilities are as follows: 2021 $ 5,487 2022 3,561 2023 3,228 2024 2,599 2025 2,003 Thereafter 2,920 Total lease payments 19,798 Less: Imputed interest (2,334 ) Total lease obligations 17,464 Less: Current lease liabilities (4,736 ) Non-current lease liabilities $ 12,728 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | A summary of changes in goodwill by segment for the years ended January 2, 2021 and December 28, 2019 is as follows: Hydraulics Electronics Total Balance at December 29, 2018 $ 276,758 $ 106,373 $ 383,131 Faster acquisition measurement period adjustment (343 ) — (343 ) Custom Fluidpower acquisition measurement period adjustment 1,205 — 1,205 Currency translation (6,424 ) — (6,424 ) Balance at December 28, 2019 $ 271,196 $ 106,373 $ 377,569 Acquisition of Balboa — 76,031 76,031 Impairment charge (31,871 ) — (31,871 ) Currency translation 21,804 — 21,804 Balance at January 2, 2021 $ 261,129 $ 182,404 $ 443,533 |
Schedule of intangible assets | At January 2, 2021 and December 28, 2019, intangible assets consisted of the following: January 2, 2021 December 28, 2019 Useful life (years) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangibles: Trade names and brands 10-20 $ 80,402 $ (11,188 ) $ 69,214 $ 56,032 $ (7,658 ) $ 48,374 Non-compete agreements 5 950 (776 ) 174 950 (586 ) 364 Technology 7 - 13 45,955 (12,368 ) 33,587 31,704 (8,661 ) 23,043 Supply agreement 10 21,000 (8,575 ) 12,425 21,000 (6,475 ) 14,525 Customer relationships 15 - 26 330,406 (31,431 ) 298,975 227,844 (19,499 ) 208,345 Sales order backlog 0.5 8,000 (3,000 ) 5,000 — — — $ 486,713 $ (67,338 ) $ 419,375 $ 337,530 $ (42,879 ) $ 294,651 |
Schedule of estimated amortization expense of intangible assets | Amortization expense for the 2020, 2019 and 2018 fiscal years was approximately $22,114, $18,065 and $23,262, respectively. Future estimated amortization expense is presented below. Year: 2021 $ 29,955 2022 24,692 2023 24,633 2024 23,978 2025 23,909 Thereafter 292,208 Total $ 419,375 |
Derivative Instruments & Hedg_2
Derivative Instruments & Hedging Activities (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021 December 28, 2019 Location January 2, 2021 December 28, 2019 Derivatives designated as hedging instruments: Interest rate swap contract Other assets $ — $ — Other non-current liabilities $ 7,679 $ 5,792 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 169 509 Other current liabilities 1,413 213 Forward foreign exchange contracts Other assets 42 306 Other non-current liabilities 138 6 Total derivatives $ 211 $ 815 $ 9,230 $ 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 2020 and 2019 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) January 2, 2021 December 28, 2019 into Earnings (Effective Portion) January 2, 2021 December 28, 2019 Derivatives in cash flow hedging relationships: Interest rate swap contract $ (1,887 ) $ (3,482 ) Interest expense, net $ (3,712 ) $ (1,110 ) Amount of Gain or (Loss) Recognized in Earnings on Derivatives Location of Gain or (Loss) Recognized January 2, 2021 December 28, 2019 in Earnings on Derivatives Derivatives not designated as hedging instruments: Forward foreign exchange contracts $ (5,458 ) $ 2,863 Foreign currency transaction gain loss, net |
Credit Facilities (Tables)
Credit Facilities (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Total Long-Term Non-Revolving Debt | Total long-term non-revolving debt consists of the following: Maturity Date January 2, 2021 December 28, 2019 Long-term non-revolving debt: Term loan credit facility with PNC Bank 10/28/2025 $ 200,000 $ 91,250 Term loan credit facility with Intesa Sanpaolo S.p.A. 12/23/2021 6,106 — Term loan credit facility with Citibank 11/22/2023 400 — Other long-term debt Various 264 1,238 Total long-term non-revolving debt 206,770 92,488 Less: current portion of long-term non-revolving debt 16,229 7,623 Less: unamortized debt issuance costs 609 803 Total long-term non-revolving debt, net $ 189,932 $ 84,062 |
Summary of Information on Revolving Credit Facilities | Information on the Company's revolving credit facilities is as follows: Balance Available credit Maturity Date January 2, 2021 December 28, 2019 January 2, 2021 December 28, 2019 Revolving line of credit with PNC Bank 10/28/2025 $ 255,909 $ 208,708 $ 144,045 $ 191,292 Revolving line of credit with Citibank 11/18/2021 $ 315 $ — $ 1,982 $ — |
Summary of Future Maturities of Total Debt | Future maturities of total debt are as follows: Year: 2021 $ 16,670 2022 15,274 2023 15,141 2024 20,000 2025 395,909 Total $ 462,994 |
Dividends to Shareholders (Tabl
Dividends to Shareholders (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Equity [Abstract] | |
Schedule of Quarterly Dividends Declared | The Company declared the following regular quarterly dividends to shareholders during 2020, 2019 and 2018. The dividends were declared to shareholders of record on the 5 th th 2020 2019 2018 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 |
Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | For financial reporting purposes, income before income taxes includes the following components: For the year ended January 2, 2021 December 28, 2019 December 29, 2018 United States $ 30,619 $ 51,007 $ 44,693 Foreign (6,572 ) 24,300 11,702 Total $ 24,047 $ 75,307 $ 56,395 |
Schedule of Components of Income Tax Provision (Benefit) | The components of the income tax provision (benefit) are as follows: For the year ended January 2, 2021 December 28, 2019 December 29, 2018 Current tax expense (benefit): United States $ 3,251 $ 7,380 $ 4,229 State and local 1,166 (388 ) 2,522 Foreign 7,430 9,107 3,707 Total current 11,847 16,099 10,458 Deferred tax expense (benefit): United States 3,190 665 380 State and local (326 ) 58 110 Foreign (4,882 ) (1,783 ) (1,283 ) Total deferred (2,018 ) (1,060 ) (793 ) Total income tax provision $ 9,829 $ 15,039 $ 9,665 |
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 January 2, 2021 December 28, 2019 December 29, 2018 U.S. federal taxes at statutory rate $ 5,057 $ 15,815 $ 11,843 Increase (decrease) 986(c) FX gain/(loss) — (281 ) — Foreign withholding tax 326 — — Capitalized transaction costs 387 — — Foreign income taxed at different rate 1,363 1,446 1,292 FDII deduction (1,265 ) (1,790 ) (2,195 ) Changes in estimates related to prior years including foreign (2,530 ) — (2,049 ) Goodwill impairment 6,693 — — State and local taxes, net 595 (73 ) 1,462 Current year tax credits (674 ) (663 ) (633 ) Foreign deferred other true up — — (810 ) Change in reserve (453 ) 957 578 Foreign patent box benefit — (1,213 ) (937 ) Increase in valuation allowance — 116 526 Other 330 725 588 Income tax provision $ 9,829 $ 15,039 $ 9,665 |
Schedule of Deferred Tax Assets and Liabilities | The temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of January 2, 2021, and December 28, 2019, are presented below: January 2, 2021 December 28, 2019 Deferred tax assets: Foreign tax benefit of U.S. reserves $ 5,086 $ 3,691 Net operating losses 6,159 510 Inventory 2,495 1,824 Intangible assets and goodwill 675 2,518 Accrued expenses and other 5,485 2,883 Other comprehensive income — 3,887 Total deferred tax assets 19,900 15,313 Less: Valuation allowance (428 ) (428 ) Net deferred tax assets 19,472 14,885 Deferred tax liabilities: Depreciation (7,493 ) (6,495 ) Intangible assets and goodwill (82,126 ) (51,834 ) Other deferred tax liabilities (1,564 ) (43 ) Other comprehensive income (508 ) — Total deferred tax liabilities (91,691 ) (58,372 ) Net deferred tax liabilities $ (72,219 ) $ (43,487 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | 76 The following is a roll-forward of the Company’s unrecognized tax benefits: Unrecognized tax benefits - December 30, 2017 $ 4,542 Increases from positions taken during prior periods 372 Increases from positions taken during current period 2,036 Settled positions — Lapse of statute of limitations (837 ) Unrecognized tax benefits - December 29, 2018 $ 6,113 Increases from positions taken during prior periods 1,121 Increases from positions taken during current period 817 Settled positions — Lapse of statute of limitations — Unrecognized tax benefits - December 28, 2019 $ 8,051 Increases from positions taken during prior periods 656 Increases from positions taken during current period 459 Current year acquisitions 3,170 Settled positions (947 ) Lapse of statute of limitations — Unrecognized tax benefits - January 2, 2021 $ 11,389 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Share Based Compensation [Abstract] | |
Summary of Restricted Stock and RSU Activity | The following table summarizes restricted stock and RSU activity for the 2020 fiscal year: Number of shares / units (in thousands) Weighted average grant-date fair value per share Nonvested balance at December 28, 2019 203 $ 42.73 Granted 186 36.83 Vested (79 ) 43.60 Forfeited (71 ) 41.78 Nonvested balance at January 2, 2021 (1) 239 $ 38.95 |
Summary of Stock Options Granted | The following table summarizes stock options the Company has granted to its officers (in thousands, except per share data): January 2, 2021 Options Option Exercise Options Options Options Date of Grant Granted (Strike) Price Forfeited Outstanding Exercisable February 28, 2020 18 $ 39.75 10 9 — July 1, 2020 5 35.04 — 5 — Total 23 10 14 — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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 Gains and (Losses) on Derivative Instruments Foreign Currency Items Total Balance at December 30, 2017 $ — $ (6,478 ) $ (6,478 ) Other comprehensive loss before reclassifications (2,741 ) (37,466 ) (40,207 ) Amounts reclassified from accumulated other comprehensive loss 432 — 432 Net current period other comprehensive loss (2,309 ) (37,466 ) (39,775 ) Balance at December 29, 2018 $ (2,309 ) $ (43,944 ) $ (46,253 ) Other comprehensive loss before reclassifications (2,616 ) (9,515 ) (12,131 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (866 ) — (866 ) Tax effect 419 3,467 3,886 Net current period other comprehensive loss (3,063 ) (6,048 ) (9,111 ) Balance at December 28, 2019 $ (5,372 ) $ (49,992 ) $ (55,364 ) Other comprehensive income before reclassifications 975 27,306 28,281 Amounts reclassified from accumulated other comprehensive loss, net of tax (2,862 ) — (2,862 ) Tax effect 1,337 (5,732 ) (4,395 ) Net current period other comprehensive (loss) income (550 ) 21,574 21,024 Balance at January 2, 2021 $ (5,922 ) $ (28,418 ) $ (34,340 ) |
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 January 2, 2021 December 28, 2019 December 29, 2018 Derivative financial instruments Interest rate swap Interest expense, net $ (3,712 ) $ (1,110 ) $ (547 ) Tax benefit 850 244 115 Net of tax $ (2,862 ) $ (866 ) $ (432 ) Total reclassifications for the period $ (2,862 ) $ (866 ) $ (432 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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: 2020 2019 2018 Net sales: Hydraulics $ 407,192 $ 442,812 $ 381,845 Electronics 115,848 111,853 126,200 Total $ 523,040 $ 554,665 $ 508,045 Operating income: Hydraulics $ 81,996 $ 86,027 $ 83,858 Electronics 19,363 21,994 25,046 Corporate and other (65,947 ) (17,906 ) (33,350 ) Total $ 35,412 $ 90,115 $ 75,554 Capital expenditures: Hydraulics $ 11,725 $ 22,221 $ 25,782 Electronics 2,855 2,804 2,598 Total $ 14,580 $ 25,025 $ 28,380 Total assets: Hydraulics $ 765,155 $ 768,324 $ 771,409 Electronics 523,502 251,252 263,412 Corporate 8,322 2,175 7,344 Total $ 1,296,979 $ 1,021,751 $ 1,042,165 |
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: 2020 2019 2018 Net sales Americas $ 224,470 $ 258,542 $ 257,684 EMEA 142,062 150,091 139,776 APAC 156,508 146,032 110,585 Total $ 523,040 $ 554,665 $ 508,045 Tangible long-lived assets Americas $ 96,752 $ 87,104 $ 83,664 EMEA 31,091 28,436 26,724 APAC 18,718 18,004 16,480 Total $ 146,561 $ 133,544 $ 126,868 |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Information (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Unaudited Quarterly Financial Information [Abstract] | |
Schedule of Unaudited Quarterly Financial Information | For the quarter ended Jan 2, Sept 26, Jun 27, Mar 28, 2021 2020 2020 2020 Net sales $ 151,618 $ 122,645 $ 119,294 $ 129,483 Gross profit 52,716 46,943 44,719 51,850 Operating income (loss) 10,400 18,343 16,702 (10,033 ) Income (loss) before income taxes 7,156 16,362 13,544 (13,015 ) Net income (loss) 5,551 12,982 12,908 (17,223 ) Basic and diluted net income (loss) per common share $ 0.17 $ 0.40 $ 0.40 $ (0.54 ) For the quarter ended Dec 28, Sept 28, Jun 29, Mar 30, 2019 2019 2019 2019 Net sales $ 125,927 $ 138,045 $ 143,842 $ 146,851 Gross profit 47,427 52,119 56,227 56,509 Operating income 18,772 19,138 26,373 25,832 Income before income taxes 16,861 15,462 21,925 21,059 Net income 13,809 12,791 17,265 16,404 Basic and diluted net income per common share $ 0.43 $ 0.40 $ 0.54 $ 0.51 |
Company Background (Details Tex
Company Background (Details Textual) | 12 Months Ended |
Jan. 02, 2021SegmentCountry | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of operating segments | Segment | 2 |
Number Of Countries Products Sold | Country | 85 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Jan. 02, 2021 | |
Machinery and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Machinery and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 14 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 | 14 years |
Building and land improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Building and land improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Buildings [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 years |
Buildings [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Leasehold improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Leasehold improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 6 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Right-of-use assets | $ 16,616 | $ 12,310 | ||
Retained earnings | 270,320 | 267,658 | ||
Long-lived asset impairment | 0 | |||
Contract asset, current | 2,776 | 2,796 | ||
Contract Liabilities, current | 4,208 | 353 | ||
Research and development costs charged to expense | $ 15,557 | 15,163 | $ 14,122 | |
Restructuring charges | 1,724 | |||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Finite-lived intangible assets, estimated useful life | 1 year | |||
Minimum [Member] | Custom Products [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Contract period for sale of product | 3 months | |||
Minimum [Member] | Various Services [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Service contracts period | 3 months | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Finite-lived intangible assets, estimated useful life | 26 years | |||
Maximum [Member] | Custom Products [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Contract period for sale of product | 1 year | |||
Maximum [Member] | Various Services [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of revenue | 5.00% | |||
Service contracts period | 1 year | |||
Total Liabilities [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Lease liabilities | $ 17,464 | $ 12,467 | ||
ASU 2016-02 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Right-of-use assets | $ 13,900 | |||
Retained earnings | 134 | |||
ASU 2016-02 | Total Liabilities [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Lease liabilities | $ 13,900 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual 1) | Jan. 02, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-03 | |
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 Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 5,551 | $ 12,982 | $ 12,908 | $ (17,223) | $ 13,809 | $ 12,791 | $ 17,265 | $ 16,404 | $ 14,218 | $ 60,268 | $ 46,730 |
Basic and diluted weighted average shares outstanding | 32,088 | 32,015 | 31,309 | ||||||||
Basic and diluted net income per common share | $ 0.17 | $ 0.40 | $ 0.40 | $ (0.54) | $ 0.43 | $ 0.40 | $ 0.54 | $ 0.51 | $ 0.44 | $ 1.88 | $ 1.49 |
Business Acquisition (Details T
Business Acquisition (Details Textual) - USD ($) $ in Thousands | Nov. 06, 2020 | Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Business Acquisition [Line Items] | ||||||||||||
Net sales | $ 151,618 | $ 122,645 | $ 119,294 | $ 129,483 | $ 125,927 | $ 138,045 | $ 143,842 | $ 146,851 | $ 523,040 | $ 554,665 | $ 508,045 | |
Business acquisition, transaction costs | $ 6,644 | 6,644 | ||||||||||
Balboa [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business acquisition, date of acquisition | Nov. 6, 2020 | |||||||||||
Business acquisition of outstanding equity interest perceentage | 100.00% | |||||||||||
Cash consideration transferred | $ 223,158 | |||||||||||
Estimated fair value of contingent liability | 1,919 | |||||||||||
Goodwill expected to be deductible for tax purposes | $ 6,436 | |||||||||||
Acquisition-related costs (included in selling, engineering, and administrative expenses) | 6,644 | |||||||||||
Net sales | 26,057 | |||||||||||
Income (loss) before income taxes | 1,547 | |||||||||||
Charges related to purchase accounting effects of inventory | 1,874 | 1,874 | ||||||||||
Amortization of Acquisition-related intangible assets | $ 4,041 | |||||||||||
Business acquisition, transaction costs | $ 7,239 | 7,239 | ||||||||||
Business acquisition, other acquisition related costs | 1,683 | |||||||||||
Business acquisition, other non-recurring costs | 1,471 | |||||||||||
Business acquisition, amortization of sales order backlog intangible asset | $ 8,000 |
Business Acquisition (Details)
Business Acquisition (Details) - USD ($) $ in Thousands | Nov. 06, 2020 | Jan. 02, 2021 | Dec. 29, 2018 |
Business Acquisition [Line Items] | |||
Total purchase consideration, net of cash acquired | $ 217,029 | $ 534,662 | |
Balboa [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 223,158 | ||
Post closing adjustment receivable, net | (431) | ||
Acquisition date fair value of contingent consideration | 1,919 | ||
Total purchase consideration | 224,646 | ||
Less: cash acquired | (6,129) | ||
Total purchase consideration, net of cash acquired | $ 218,517 |
Business Acquisition (Details 1
Business Acquisition (Details 1) - USD ($) $ in Thousands | Jan. 02, 2021 | Nov. 06, 2020 | Dec. 28, 2019 | Dec. 29, 2018 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 443,533 | $ 377,569 | $ 383,131 | |
Balboa [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 28,328 | |||
Inventories | 24,807 | |||
Property, plant and equipment | 12,562 | |||
Goodwill | 76,031 | |||
Intangible assets | 128,000 | |||
Other assets | 12,233 | |||
Total assets acquired | 281,961 | |||
Accounts payable | 17,840 | |||
Other accrued expenses and current liabilities | 11,219 | |||
Deferred income taxes | 23,823 | |||
Other noncurrent liabilities | 10,562 | |||
Total liabilities assumed | 63,444 | |||
Fair value of net assets acquired | $ 218,517 |
Business Acquisition (Details 2
Business Acquisition (Details 2) - Balboa [Member] $ in Thousands | Nov. 06, 2020USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 128,000 |
Weighted-Average Amortization Periods (Yrs) | 21 years |
Trade Name [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 22,000 |
Weighted-Average Amortization Periods (Yrs) | 18 years |
Technology [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 13,000 |
Weighted-Average Amortization Periods (Yrs) | 8 years |
Sales order backlog [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 8,000 |
Weighted-Average Amortization Periods (Yrs) | 6 months |
Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Intangible assets | $ 85,000 |
Weighted-Average Amortization Periods (Yrs) | 25 years |
Business Acquisition (Details 3
Business Acquisition (Details 3) - Balboa [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Business Acquisition [Line Items] | ||
Net sales | $ 638,288 | $ 667,524 |
Net income | $ 30,332 | $ 54,487 |
Basic and diluted net income per common share | $ 0.95 | $ 1.70 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Recurring [Member] - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Assets | ||
Assets Measured at fair value | $ 211 | $ 815 |
Liabilities | ||
Liabilities measured at fair value | 11,149 | 6,839 |
Forward Foreign Exchange Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 211 | 815 |
Liabilities | ||
Liabilities measured at fair value | 1,551 | 219 |
Interest Rate Swap Contract [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 7,679 | 5,792 |
Contingent Consideration [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 1,919 | 828 |
Level 2 [Member] | ||
Assets | ||
Assets Measured at fair value | 211 | 815 |
Liabilities | ||
Liabilities measured at fair value | 9,230 | 6,011 |
Level 2 [Member] | Forward Foreign Exchange Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 211 | 815 |
Liabilities | ||
Liabilities measured at fair value | 1,551 | 219 |
Level 2 [Member] | Interest Rate Swap Contract [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 7,679 | 5,792 |
Level 3 [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 1,919 | 828 |
Level 3 [Member] | Contingent Consideration [Member] | ||
Liabilities | ||
Liabilities measured at fair value | $ 1,919 | $ 828 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 828 | $ 18,960 |
Change in estimated fair value | (47) | 652 |
Payment on liability | (830) | (18,747) |
Currency remeasurement | 49 | (37) |
Ending Balance | 1,919 | $ 828 |
Balboa [Member] | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration incurred in connection with Balboa acquisition | $ 1,919 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Summary of inventories | ||
Raw materials | $ 49,361 | $ 34,340 |
Work in process | 30,675 | 28,667 |
Finished goods | 39,332 | 29,711 |
Provision for obsolete and slow moving inventory | (8,996) | (7,523) |
Total | $ 110,372 | $ 85,195 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 282,246 | $ 249,702 |
Less: Accumulated depreciation | (153,211) | (133,582) |
Construction in progress | 17,526 | 17,424 |
Property, Plant and Equipment, Net | 146,561 | 133,544 |
Operating lease ROU assets | 16,616 | 12,310 |
Total | 163,177 | 145,854 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 168,012 | 144,820 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 23,888 | 19,808 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 57,854 | 54,979 |
Building and land improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 15,440 | 15,377 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,122 | 1,133 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 13,930 | $ 13,585 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Property Plant And Equipment [Abstract] | |||
Depreciation | $ 17,570 | $ 17,150 | $ 16,452 |
Operating Leases (Details Textu
Operating Leases (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Leases [Line Items] | ||
Operating lease cost | $ 4,119 | $ 3,689 |
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 | Jan. 02, 2021 | Dec. 28, 2019 |
Right-of-use assets | $ 16,616 | $ 12,310 |
Weighted average remaining lease term (in years): | 5 years 1 month 6 days | |
Weighted average discount rate: | 5.00% | |
Other Accrued Expenses and Current Liabilities [Member] | ||
Current lease liabilities | $ 4,736 | 3,155 |
Other Noncurrent Liabilities [Member] | ||
Non-current lease liabilities | 12,728 | 9,312 |
Total liabilities [Member] | ||
Total lease liabilities | $ 17,464 | $ 12,467 |
Operating Leases (Details 1)
Operating Leases (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 4,077 | $ 3,714 |
Non-cash impact of new leases and lease modifications | $ 1,270 | $ 1,834 |
Operating Leases (Details 2)
Operating Leases (Details 2) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
2021 | $ 5,487 | |
2022 | 3,561 | |
2023 | 3,228 | |
2024 | 2,599 | |
2025 | 2,003 | |
Thereafter | 2,920 | |
Total lease payments | 19,798 | |
Less: Imputed interest | (2,334) | |
Total Liabilities [Member] | ||
Total lease obligations | 17,464 | $ 12,467 |
Other Accrued Expenses and Current Liabilities [Member] | ||
Less: Current lease liabilities | (4,736) | (3,155) |
Other Noncurrent Liabilities [Member] | ||
Non-current lease liabilities | $ 12,728 | $ 9,312 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 377,569 | $ 383,131 |
Impairment charge | (31,871) | |
Currency translation | 21,804 | (6,424) |
Goodwill, Ending Balance | 443,533 | 377,569 |
Faster S.r.l [Member] | ||
Goodwill [Line Items] | ||
Acquisition measurement period adjustment | (343) | |
Balboa Water Group, LLC [Member] | ||
Goodwill [Line Items] | ||
Acquisition measurement period adjustment | 76,031 | |
Custom Fluidpower [Member] | ||
Goodwill [Line Items] | ||
Acquisition measurement period adjustment | 1,205 | |
Hydraulics [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 271,196 | 276,758 |
Impairment charge | (31,871) | |
Currency translation | 21,804 | (6,424) |
Goodwill, Ending Balance | 261,129 | 271,196 |
Hydraulics [Member] | Faster S.r.l [Member] | ||
Goodwill [Line Items] | ||
Acquisition measurement period adjustment | (343) | |
Hydraulics [Member] | Balboa Water Group, LLC [Member] | ||
Goodwill [Line Items] | ||
Acquisition measurement period adjustment | 0 | |
Hydraulics [Member] | Custom Fluidpower [Member] | ||
Goodwill [Line Items] | ||
Acquisition measurement period adjustment | 1,205 | |
Electronics [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 106,373 | 106,373 |
Impairment charge | 0 | |
Currency translation | 0 | 0 |
Goodwill, Ending Balance | 182,404 | 106,373 |
Electronics [Member] | Faster S.r.l [Member] | ||
Goodwill [Line Items] | ||
Acquisition measurement period adjustment | 0 | |
Electronics [Member] | Balboa Water Group, LLC [Member] | ||
Goodwill [Line Items] | ||
Acquisition measurement period adjustment | $ 76,031 | |
Electronics [Member] | Custom Fluidpower [Member] | ||
Goodwill [Line Items] | ||
Acquisition measurement period adjustment | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Impairment charge | $ 31,871 | ||
Amortization expense | $ 22,114 | $ 18,065 | $ 23,262 |
Loss on disposal of intangible asset | $ 2,713 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 486,713 | $ 337,530 |
Accumulated Amortization | (67,338) | (42,879) |
Net Carrying Amount | $ 419,375 | 294,651 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 1 year | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 26 years | |
Trade names and brands [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 80,402 | 56,032 |
Accumulated Amortization | (11,188) | (7,658) |
Net Carrying Amount | $ 69,214 | 48,374 |
Trade names and brands [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 10 years | |
Trade names and brands [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 20 years | |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 5 years | |
Gross Carrying Amount | $ 950 | 950 |
Accumulated Amortization | (776) | (586) |
Net Carrying Amount | 174 | 364 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 45,955 | 31,704 |
Accumulated Amortization | (12,368) | (8,661) |
Net Carrying Amount | $ 33,587 | 23,043 |
Technology [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 7 years | |
Technology [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 13 years | |
Supply agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 10 years | |
Gross Carrying Amount | $ 21,000 | 21,000 |
Accumulated Amortization | (8,575) | (6,475) |
Net Carrying Amount | 12,425 | 14,525 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 330,406 | 227,844 |
Accumulated Amortization | (31,431) | (19,499) |
Net Carrying Amount | $ 298,975 | $ 208,345 |
Customer relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 15 years | |
Customer relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 26 years | |
Sales Order Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (years) | 6 months | |
Gross Carrying Amount | $ 8,000 | |
Accumulated Amortization | (3,000) | |
Net Carrying Amount | $ 5,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Details 2) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2021 | $ 29,955 | |
2022 | 24,692 | |
2023 | 24,633 | |
2024 | 23,978 | |
2025 | 23,909 | |
Thereafter | 292,208 | |
Net Carrying Amount | $ 419,375 | $ 294,651 |
Derivative Instruments & Hedg_3
Derivative Instruments & Hedging Activities (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 | |
Derivatives Fair Value [Line Items] | |||
Total Asset Derivatives, Fair Value | [1] | $ 211 | $ 815 |
Total Liability Derivatives, Fair Value | [1] | 9,230 | 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] | 7,679 | 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] | 42 | 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] | 169 | 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] | 138 | 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] | $ 1,413 | $ 213 |
[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 Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | $ 1,887 | $ 3,482 | $ 2,309 |
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 Derivative (Effective Portion) | (1,887) | (3,482) | |
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) | (3,712) | (1,110) | |
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 | $ (5,458) | $ 2,863 |
Derivative Instruments & Hedg_5
Derivative Instruments & Hedging Activities (Details Textual) € in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 02, 2021USD ($)Contract | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Jan. 02, 2021EUR (€)Contract | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ 13,286 | $ 15,387 | $ 13,876 | |
Net investment hedge reclassified from AOCI into income | 164 | |||
Carrying value of total long term non-revolving debt | 206,770 | 92,488 | ||
loss on derivative hedge recorded in AOCI as a part of currency translation adjustment | 7,246 | |||
Europe [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Carrying value of total long term non-revolving debt | $ 109,909 | |||
Revolving Credit Facility [Member] | Europe [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Net investment hedge | € | € 90,000 | |||
Forward Foreign Exchange Contracts [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Derivative instrument, notional amount | € | € 51,798 | |||
Derivative contract expire date | Jul. 31, 2022 | |||
Derivative, number of instruments held | Contract | 12 | 12 | ||
Cash Flow Hedging [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ 13,286 | $ 15,387 | ||
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 | 195,000 | |||
Net investment hedge reclassified from AOCI into income | $ 3,978 | |||
Cash Flow Hedging [Member] | Interest Rate Swap Contract [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 Contract [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 Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | ||
Total long-term non-revolving debt | $ 206,770 | $ 92,488 |
Other long-term debt | 264 | 1,238 |
Less: current portion of long-term non-revolving debt | 16,229 | 7,623 |
Less: unamortized debt issuance costs | 609 | 803 |
Total long-term non-revolving debt, net | $ 189,932 | 84,062 |
Other long-term debt, Maturity Date | Various | |
PNC Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term non-revolving debt | $ 200,000 | $ 91,250 |
Term loan credit facility, Maturity Date | Oct. 28, 2025 | |
Intesa Sanpaolo S.p.A [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term non-revolving debt | $ 6,106 | |
Term loan credit facility, Maturity Date | Dec. 23, 2021 | |
Citibank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term non-revolving debt | $ 400 | |
Term loan credit facility, Maturity Date | Nov. 22, 2023 |
Credit Facilities (Details 1)
Credit Facilities (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Debt Instrument [Line Items] | ||
Revolving line of credit | $ 255,909 | $ 208,708 |
PNC Bank [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct. 28, 2025 | |
Revolving line of credit | $ 255,909 | 208,708 |
Available credit | $ 144,045 | $ 191,292 |
Citibank [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Nov. 18, 2021 | |
Revolving line of credit | $ 315 | |
Available credit | $ 1,982 |
Credit Facilities (Details 2)
Credit Facilities (Details 2) $ in Thousands | Jan. 02, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 16,670 |
2022 | 15,274 |
2023 | 15,141 |
2024 | 20,000 |
2025 | 395,909 |
Total | $ 462,994 |
Credit Facilities (Details Text
Credit Facilities (Details Textual) € in Thousands, ₩ in Thousands, ¥ in Thousands | Jun. 23, 2020EUR (€)Installment | May 18, 2020CNY (¥) | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Jan. 02, 2021EUR (€) | Oct. 28, 2020USD ($) | Dec. 28, 2019KRW (₩) |
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 | $ 9,500,000 | $ 14,149,000 | $ 12,799,000 | |||||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest coverage ratio | 3 | |||||||
Leverage ratio | 3.75 | |||||||
Net investment hedge | € | € 90,000 | |||||||
Effective interest rate | 2.96% | |||||||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Revolving Credit Facility [Member] | Amended and Restatement Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principle amount | $ 200,000,000 | |||||||
Credit facilities, maximum capacity | 400,000,000 | |||||||
Accordion feature to increase maximum capacity | $ 300,000,000 | |||||||
Intesa Sanpaolo S.p.A [Member] | Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Loan provided under agreement | € | € 5,000 | |||||||
Number of monthly installments for repayment of loan facility | Installment | 12 | |||||||
Interest rate | 1.25% | |||||||
Citibank [Member] | Fixed Asset Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrows amount | ¥ | ¥ 50,000 | |||||||
Interest rate | 1-year loan prime rate plus 1.50% | |||||||
Final payment due date | Nov. 30, 2023 | |||||||
Number of days for borrows amount | 180 days | |||||||
Citibank [Member] | Working Capital Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 1-year loan prime rate plus 0.50% | |||||||
Final payment due date | Nov. 30, 2021 | |||||||
Maximum borrow amounts under agreement | ¥ | ¥ 15,000 | |||||||
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] | Other Long-Term Debt [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rates | 4.50% | |||||||
National Australia Bank [Member] | Other Long-Term Debt [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rates | 5.10% |
Dividends to Shareholders (Deta
Dividends to Shareholders (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Equity [Abstract] | |||
Dividends declared | $ 11,556 | $ 11,532 | $ 11,444 |
Dividends to Shareholders (De_2
Dividends to Shareholders (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
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 Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Components of Income Before Income Taxes [Abstract] | |||||||||||
United States | $ 30,619 | $ 51,007 | $ 44,693 | ||||||||
Foreign | (6,572) | 24,300 | 11,702 | ||||||||
Income before income taxes | $ 7,156 | $ 16,362 | $ 13,544 | $ (13,015) | $ 16,861 | $ 15,462 | $ 21,925 | $ 21,059 | $ 24,047 | $ 75,307 | $ 56,395 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 30, 2017 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Nov. 06, 2020 | |
Income Tax Disclosure [Line Items] | ||||||
Corporate tax rate | 21.00% | 35.00% | ||||
Additional income tax expense | $ 459 | |||||
Provisional amount related to remeasurement of deferred tax assets and liabilities, benefit | $ 1,541 | |||||
Provisional amount related to one-time transition tax mandatory deemed repatriation of foreign earnings | 2,000 | |||||
Provision of return adjustments to transition tax | 630 | |||||
Undistributed earnings permanently reinvested in foreign operations | 19,300 | |||||
Net operating losses | 6,159 | $ 510 | ||||
Unrecognized tax benefits | $ 4,542 | 11,389 | 8,051 | $ 6,113 | $ 4,542 | |
Unrecognized tax benefits that would impact effective tax rate | $ 1,842 | |||||
Federal returns currently under examination | The Company remains subject to income tax examinations in the U.S. and various state and foreign jurisdictions for tax years 2009-2019. Although the Company is not currently under examination in most jurisdictions, limited transfer pricing disputes exist 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. | |||||
Balboa [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Operating loss carryforwards benefit payable | $ 2,685 | |||||
Estimated fair value of contingent liability | $ 1,919 | |||||
Oklahoma [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carryforwards | $ 14,300 | |||||
Operating loss carryforwards expiration year | 2024 | |||||
California [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carryforwards | $ 33,400 | |||||
Operating loss carryforwards expiration year | 2025 | |||||
Federal [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carryforwards | $ 14,400 | |||||
Operating loss carryforwards expiration year | 2027 | |||||
Federal [Member] | California [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
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 | 50.00% | |||||
Parent Company [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Third Party Export Sales | $ 106,147 | $ 105,976 | $ 98,876 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Current tax expense (benefit): | |||
United States | $ 3,251 | $ 7,380 | $ 4,229 |
State and local | 1,166 | (388) | 2,522 |
Foreign | 7,430 | 9,107 | 3,707 |
Total current | 11,847 | 16,099 | 10,458 |
Deferred tax expense (benefit): | |||
United States | 3,190 | 665 | 380 |
State and local | (326) | 58 | 110 |
Foreign | (4,882) | (1,783) | (1,283) |
Total deferred | (2,018) | (1,060) | (793) |
Total income tax provision | $ 9,829 | $ 15,039 | $ 9,665 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. federal taxes at statutory rate | $ 5,057 | $ 15,815 | $ 11,843 |
986(c) FX gain/(loss) | (281) | ||
Foreign withholding tax | 326 | ||
Capitalized transaction costs | 387 | ||
Foreign income taxed at different rate | 1,363 | 1,446 | 1,292 |
FDII deduction | (1,265) | (1,790) | (2,195) |
Changes in estimates related to prior years including foreign | (2,530) | (2,049) | |
Goodwill impairment | 6,693 | ||
State and local taxes, net | 595 | (73) | 1,462 |
Current year tax credits | (674) | (663) | (633) |
Foreign deferred other true up | (810) | ||
Change in reserve | (453) | 957 | 578 |
Foreign patent box benefit | (1,213) | (937) | |
Increase in valuation allowance | 116 | 526 | |
Other | 330 | 725 | 588 |
Total income tax provision | $ 9,829 | $ 15,039 | $ 9,665 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Deferred tax assets: | ||
Foreign tax benefit of U.S. reserves | $ 5,086 | $ 3,691 |
Net operating losses | 6,159 | 510 |
Inventory | 2,495 | 1,824 |
Intangible assets and goodwill | 675 | 2,518 |
Accrued expenses and other | 5,485 | 2,883 |
Other comprehensive income | 3,887 | |
Total deferred tax assets | 19,900 | 15,313 |
Less: Valuation allowance | (428) | (428) |
Net deferred tax assets | 19,472 | 14,885 |
Deferred tax liabilities: | ||
Depreciation | (7,493) | (6,495) |
Intangible assets and goodwill | (82,126) | (51,834) |
Other deferred tax liabilities | (1,564) | (43) |
Other comprehensive income | (508) | |
Total deferred tax liabilities | (91,691) | (58,372) |
Net deferred tax liabilities | $ (72,219) | $ (43,487) |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefit, beginning balance | $ 8,051 | $ 6,113 | $ 4,542 |
Increases from positions taken during prior periods | 656 | 1,121 | 372 |
Increases from positions taken during current period | 459 | 817 | 2,036 |
Current year acquisitions | 3,170 | ||
Settled positions | (947) | ||
Lapse of statute of limitations | 0 | 0 | (837) |
Unrecognized tax benefit, ending balance | $ 11,389 | $ 8,051 | $ 6,113 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) | Jun. 01, 2015shares | Jan. 02, 2021USD ($)$ / sharesshares | Jan. 02, 2021GBP (£)shares | Dec. 28, 2019USD ($)$ / sharesshares | Dec. 29, 2018USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares available for issuance | 23,000 | ||||
Fair value of RSUs/restricted stock granted | $ | $ 6,843,000 | $ 5,079,000 | $ 5,947,000 | ||
Recognized weighted average period (in years) | 2 years 3 months 18 days | 2 years 3 months 18 days | |||
Contractual term of stock options | 10 years | 10 years | |||
Unrecognized compensation cost related to the stock options | $ | $ 133,000 | ||||
2012 Nonemployee Director Fees Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Aggregate number of shares authorized for grant | 270,000 | ||||
Shares available for issuance | 71,549 | ||||
Common stock shares for each nonemployee director | 250 | ||||
Fee for the chairs of each Board committee | 150.00% | ||||
Annual retainer of common stock received by non employee directors | 2,000 | 2,000 | |||
Stock option granted, shares | 26,675 | 26,675 | 25,200 | ||
Share-based compensation expenses under Director's plan | $ | $ 1,178,000 | $ 1,162,000 | 1,213,000 | ||
Employee Stock Purchase Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Aggregate number of shares authorized for grant | 1,096,875 | ||||
Rate of common stock at market value | 85.00% | 85.00% | |||
Employee Stock Purchase Plan and U.K. Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares available for issuance | 411,629 | ||||
Number of shares purchased by employees | 43,574 | 43,574 | 49,195 | ||
Weighted average price | $ / shares | $ 30.86 | $ 33.55 | |||
Share-based compensation expenses | $ | $ 431,000 | $ 551,000 | 324,000 | ||
Minimum [Member] | Employee Stock Purchase Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Allowable employees purchase rate of common stock based on annual salary | 10.00% | 10.00% | |||
Minimum [Member] | Employee Stock Purchase Plan [Member] | United States [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares allowed to be purchased by employees | $ | $ 25,000 | ||||
Minimum [Member] | Employee Stock Purchase Plan [Member] | United Kingdom [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares allowed to be purchased by employees | £ | £ 1,500 | ||||
Maximum [Member] | 2012 Nonemployee Director Fees Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Maximum number of share issuable to non employee directors per year | 35,000 | ||||
2019 Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares available for issuance | 968,666 | ||||
Time Based [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | 3 years | |||
Performance Based [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | 3 years | |||
RSUs [Member] | Minimum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Target amount percentage | 0.00% | 0.00% | |||
RSUs [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Target amount percentage | 200.00% | 200.00% | |||
Restricted Stock and Restricted Stock Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Compensation expense | $ | $ 4,182,000 | $ 3,465,000 | $ 2,728,000 | ||
Total unrecognized compensation | $ | $ 5,444,000 | ||||
Recognized weighted average period (in years) | 1 year 8 months 12 days | 1 year 8 months 12 days |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) shares in Thousands | 12 Months Ended | |
Jan. 02, 2021$ / 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 | 186 | |
Vested, Number of shares | shares | (79) | |
Forfeited, Number of shares | shares | (71) | |
Nonvested Ending balance Number of shares | shares | 239 | [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 | 36.83 | |
Vested, Weighted average grant-date fair value | $ / shares | 43.60 | |
Forfeited, Weighted average grant-date fair value | $ / shares | 41.78 | |
Nonvested Ending balance, Weighted average grant-date fair value | $ / shares | $ 38.95 | [1] |
[1] | Includes |
Stock-Based Compensation (Paren
Stock-Based Compensation (Parenthetical) (Details) - shares | Jan. 02, 2021 | Dec. 28, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unvested Number of shares | 239,000 | [1] | 203,000 |
RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unvested Number of shares | 61,386 | ||
[1] | Includes |
Summary of Stock Options Grante
Summary of Stock Options Granted (Details) | 12 Months Ended |
Jan. 02, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options Granted | 23,000 |
Options Forfeited | 10,000 |
Options Outstanding | 14,000 |
February 28, 2020 [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options Granted | 18,000 |
Option Exercise(Strike) Price | $ / shares | $ 39.75 |
Options Forfeited | 10,000 |
Options Outstanding | 9,000 |
Date of Grant | Feb. 28, 2020 |
July 1, 2020 [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options Granted | 5,000 |
Option Exercise(Strike) Price | $ / shares | $ 35.04 |
Options Outstanding | 5,000 |
Date of Grant | Jul. 1, 2020 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 2,373 | $ 3,511 | $ 3,807 |
Foreign Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Contribution Benefit Plan Supplemental Pension Benefits Amount | $ 3,591 | $ 1,905 | $ 1,865 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 577,636 | $ 530,768 | $ 272,673 |
Ending Balance | 607,790 | 577,636 | 530,768 |
Unrealized Gains and (Losses) on Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (5,372) | (2,309) | |
Other comprehensive (loss) income before reclassifications | 975 | (2,616) | (2,741) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (2,862) | (866) | 432 |
Tax effect | 1,337 | 419 | |
Net current period other comprehensive (loss) income | (550) | (3,063) | (2,309) |
Ending Balance | (5,922) | (5,372) | (2,309) |
Foreign Currency Items [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (49,992) | (43,944) | (6,478) |
Other comprehensive (loss) income before reclassifications | 27,306 | (9,515) | (37,466) |
Tax effect | (5,732) | 3,467 | |
Net current period other comprehensive (loss) income | 21,574 | (6,048) | (37,466) |
Ending Balance | (28,418) | (49,992) | (43,944) |
Accumulated other comprehensive income (loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (55,364) | (46,253) | (6,478) |
Other comprehensive (loss) income before reclassifications | 28,281 | (12,131) | (40,207) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (2,862) | (866) | 432 |
Tax effect | (4,395) | 3,886 | |
Net current period other comprehensive (loss) income | 21,024 | (9,111) | (39,775) |
Ending Balance | $ (34,340) | $ (55,364) | $ (46,253) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Details 1) - Accumulated other comprehensive income (loss) [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Tax benefit | $ 850 | $ 244 | $ 115 |
Net of tax | (2,862) | (866) | (432) |
Total reclassifications for the period | 2,862 | 866 | (432) |
Interest Rate Swap Contract [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense, net | $ (3,712) | $ (1,110) | $ (547) |
Segment Reporting (Details Text
Segment Reporting (Details Textual) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021USD ($)Segment | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Goodwill impairment | $ 31,871 | ||
Business acquisition, transaction costs | 6,644 | ||
Amortization of acquisition-related inventory step-up | 1,874 | $ 4,441 | |
Amortization of intangible assets | 22,114 | $ 18,065 | $ 23,262 |
Other acquisition and integration expenses | 877 | ||
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Unallocated costs | 65,947 | ||
Corporate costs not deemed allocable to either business segment | $ 2,567 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 151,618 | $ 122,645 | $ 119,294 | $ 129,483 | $ 125,927 | $ 138,045 | $ 143,842 | $ 146,851 | $ 523,040 | $ 554,665 | $ 508,045 |
Operating income | 10,400 | $ 18,343 | $ 16,702 | $ (10,033) | 18,772 | $ 19,138 | $ 26,373 | $ 25,832 | 35,412 | 90,115 | 75,554 |
Capital expenditures | 14,580 | 25,025 | 28,380 | ||||||||
Total assets | 1,296,979 | 1,021,751 | 1,296,979 | 1,021,751 | 1,042,165 | ||||||
Operating Segments [Member] | Hydraulics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 407,192 | 442,812 | 381,845 | ||||||||
Operating income | 81,996 | 86,027 | 83,858 | ||||||||
Capital expenditures | 11,725 | 22,221 | 25,782 | ||||||||
Total assets | 765,155 | 768,324 | 765,155 | 768,324 | 771,409 | ||||||
Operating Segments [Member] | Electronics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 115,848 | 111,853 | 126,200 | ||||||||
Operating income | 19,363 | 21,994 | 25,046 | ||||||||
Capital expenditures | 2,855 | 2,804 | 2,598 | ||||||||
Total assets | 523,502 | 251,252 | 523,502 | 251,252 | 263,412 | ||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating income | (65,947) | (17,906) | (33,350) | ||||||||
Total assets | $ 8,322 | $ 2,175 | $ 8,322 | $ 2,175 | $ 7,344 |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Net sales | |||||||||||
Net sales | $ 151,618 | $ 122,645 | $ 119,294 | $ 129,483 | $ 125,927 | $ 138,045 | $ 143,842 | $ 146,851 | $ 523,040 | $ 554,665 | $ 508,045 |
Tangible long-lived assets | |||||||||||
Tangible long-lived assets | 146,561 | 133,544 | 146,561 | 133,544 | 126,868 | ||||||
Americas [Member] | |||||||||||
Net sales | |||||||||||
Net sales | 224,470 | 258,542 | 257,684 | ||||||||
Tangible long-lived assets | |||||||||||
Tangible long-lived assets | 96,752 | 87,104 | 96,752 | 87,104 | 83,664 | ||||||
EMEA [Member] | |||||||||||
Net sales | |||||||||||
Net sales | 142,062 | 150,091 | 139,776 | ||||||||
Tangible long-lived assets | |||||||||||
Tangible long-lived assets | 31,091 | 28,436 | 31,091 | 28,436 | 26,724 | ||||||
APAC [Member] | |||||||||||
Net sales | |||||||||||
Net sales | 156,508 | 146,032 | 110,585 | ||||||||
Tangible long-lived assets | |||||||||||
Tangible long-lived assets | $ 18,718 | $ 18,004 | $ 18,718 | $ 18,004 | $ 16,480 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Related Party Transaction [Line Items] | |||
Related party transaction expense | $ 246 | ||
Due from entities | 528 | $ 73 | |
Due to entity | 421 | 361 | |
Inventory Transactions [Member] | |||
Related Party Transaction [Line Items] | |||
Total sales to entities | 3,493 | 1,441 | $ 2,584 |
Total purchases from entities/related party | $ 4,310 | $ 4,732 | $ 6,178 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - 12 months ended Jan. 02, 2021 € in Thousands, $ in Thousands | 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 | $ | $ 1,840 | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Payments in purchase of building | € | € 26,683 |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Unaudited Quarterly Financial Information [Abstract] | |||||||||||
Net sales | $ 151,618 | $ 122,645 | $ 119,294 | $ 129,483 | $ 125,927 | $ 138,045 | $ 143,842 | $ 146,851 | $ 523,040 | $ 554,665 | $ 508,045 |
Gross profit | 52,716 | 46,943 | 44,719 | 51,850 | 47,427 | 52,119 | 56,227 | 56,509 | 196,228 | 212,282 | 192,683 |
Operating income (loss) | 10,400 | 18,343 | 16,702 | (10,033) | 18,772 | 19,138 | 26,373 | 25,832 | 35,412 | 90,115 | 75,554 |
Income (loss) before income taxes | 7,156 | 16,362 | 13,544 | (13,015) | 16,861 | 15,462 | 21,925 | 21,059 | 24,047 | 75,307 | 56,395 |
Net income (loss) | $ 5,551 | $ 12,982 | $ 12,908 | $ (17,223) | $ 13,809 | $ 12,791 | $ 17,265 | $ 16,404 | $ 14,218 | $ 60,268 | $ 46,730 |
Basic and diluted net income per common share | $ 0.17 | $ 0.40 | $ 0.40 | $ (0.54) | $ 0.43 | $ 0.40 | $ 0.54 | $ 0.51 | $ 0.44 | $ 1.88 | $ 1.49 |