Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 03, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | HELIOS TECHNOLOGIES, INC. | |
Entity Central Index Key | 0001024795 | |
Current Fiscal Year End Date | --01-01 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Apr. 3, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | HLIO | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock $.001 Par Value | |
Security Exchange Name | NASDAQ | |
Entity File Number | 0-21835 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 59-2754337 | |
Entity Address, Address Line One | 1500 WEST UNIVERSITY PARKWAY | |
Entity Address, City or Town | SARASOTA | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 34243 | |
City Area Code | 941 | |
Local Phone Number | 362-1200 | |
Entity Common Stock, Shares Outstanding | 32,234,227 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 25,924 | $ 25,216 |
Restricted cash | 41 | 41 |
Accounts receivable, net of allowance for credit losses of $1,453 and $1,493 | 124,391 | 97,623 |
Inventories, net | 119,763 | 110,372 |
Income taxes receivable | 579 | 1,103 |
Other current assets | 21,901 | 19,664 |
Total current assets | 292,599 | 254,019 |
Property, plant and equipment, net | 160,695 | 163,177 |
Deferred income taxes | 6,152 | 6,645 |
Goodwill | 434,059 | 443,533 |
Other intangible assets, net | 407,309 | 419,375 |
Other assets | 10,734 | 10,230 |
Total assets | 1,311,548 | 1,296,979 |
Current liabilities: | ||
Accounts payable | 72,608 | 59,477 |
Accrued compensation and benefits | 18,731 | 22,985 |
Other accrued expenses and current liabilities | 24,315 | 24,941 |
Current portion of long-term non-revolving debt, net | 15,841 | 16,229 |
Dividends payable | 2,900 | 2,891 |
Income taxes payable | 7,749 | 1,489 |
Total current liabilities | 142,144 | 128,012 |
Revolving line of credit | 249,797 | 255,909 |
Long-term non-revolving debt, net | 186,126 | 189,932 |
Deferred income taxes | 73,578 | 78,864 |
Other noncurrent liabilities | 34,623 | 36,472 |
Total liabilities | 686,268 | 689,189 |
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, 32,226 and 32,121 shares issued and outstanding | 32 | 32 |
Capital in excess of par value | 376,994 | 371,778 |
Retained earnings | 290,007 | 270,320 |
Accumulated other comprehensive loss | (41,753) | (34,340) |
Total shareholders' equity | 625,280 | 607,790 |
Total liabilities and shareholders' equity | $ 1,311,548 | $ 1,296,979 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Statement Of Financial Position [Abstract] | ||
Allowance for credit losses, accounts receivable | $ 1,453 | $ 1,493 |
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 issued | 32,226,000 | 32,121,000 |
Common stock, shares outstanding | 32,226,000 | 32,121,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 204,844 | $ 129,483 |
Cost of sales | 129,477 | 77,633 |
Gross profit | 75,367 | 51,850 |
Selling, engineering and administrative expenses | 30,561 | 25,664 |
Amortization of intangible assets | 10,198 | 4,348 |
Goodwill impairment | 31,871 | |
Operating income (loss) | 34,608 | (10,033) |
Interest expense, net | 4,751 | 2,951 |
Foreign currency transaction loss, net | 464 | 125 |
Other non-operating income, net | (1) | (94) |
Income (loss) before income taxes | 29,394 | (13,015) |
Income tax provision | 6,807 | 4,208 |
Net income (loss) | $ 22,587 | $ (17,223) |
Basic and diluted net income (loss) per common share | $ 0.70 | $ (0.54) |
Basic and diluted weighted average shares outstanding | 32,193 | 32,062 |
Dividends declared per share | $ 0.09 | $ 0.09 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ 22,587 | $ (17,223) |
Other comprehensive income (loss) | ||
Foreign currency translation adjustments, net of tax | (9,118) | (4,901) |
Unrealized gain (loss) on interest rate swap, net of tax | 1,705 | (2,201) |
Total other comprehensive loss | (7,413) | (7,102) |
Comprehensive income (loss) | $ 15,174 | $ (24,325) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common stock [Member] | Capital in excess of par value [Member] | Retained earnings [Member] | Accumulated other comprehensive loss [Member] |
Beginning Balance at Dec. 28, 2019 | $ 577,636 | $ 32 | $ 365,310 | $ 267,658 | $ (55,364) |
Beginning Balance, Shares at Dec. 28, 2019 | 32,047 | ||||
Shares issued, restricted stock, Shares | 21 | ||||
Shares issued, other compensation, Shares | 5 | ||||
Shares issued, ESPP | 355 | 355 | |||
Shares issued, ESPP, Shares | 12 | ||||
Stock-based compensation | 1,533 | 1,533 | |||
Cancellation of shares for payment of employee tax withholding | (677) | (677) | |||
Cancellation of shares for payment of employee tax withholding, Shares | (10) | ||||
Dividends declared | (2,887) | (2,887) | |||
Net income (loss) | (17,223) | (17,223) | |||
Other comprehensive loss | (7,102) | (7,102) | |||
Ending Balance at Mar. 28, 2020 | 551,635 | $ 32 | 366,521 | 247,548 | (62,466) |
Ending Balance, Shares at Mar. 28, 2020 | 32,075 | ||||
Beginning Balance at Jan. 02, 2021 | 607,790 | $ 32 | 371,778 | 270,320 | (34,340) |
Beginning Balance, Shares at Jan. 02, 2021 | 32,120 | ||||
Shares issued, restricted stock, Shares | 30 | ||||
Shares issued, other compensation, Shares | 7 | ||||
Shares issued, ESPP | 333 | 333 | |||
Shares issued, ESPP, Shares | 10 | ||||
Shares issued, acquisition | 3,624 | 3,624 | |||
Shares issued, acquisition, Shares | 63 | ||||
Stock-based compensation | 2,107 | 2,107 | |||
Cancellation of shares for payment of employee tax withholding | (848) | (848) | |||
Cancellation of shares for payment of employee tax withholding, Shares | (4) | ||||
Dividends declared | (2,900) | (2,900) | |||
Net income (loss) | 22,587 | 22,587 | |||
Other comprehensive loss | (7,413) | (7,413) | |||
Ending Balance at Apr. 03, 2021 | $ 625,280 | $ 32 | $ 376,994 | $ 290,007 | $ (41,753) |
Ending Balance, Shares at Apr. 03, 2021 | 32,226 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 22,587 | $ (17,223) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 15,237 | 8,376 |
Goodwill impairment | 31,871 | |
Stock-based compensation expense | 2,107 | 1,533 |
Amortization of debt issuance costs | 125 | 179 |
Benefit for deferred income taxes | (906) | (1,186) |
Forward contract gains, net | (2,402) | (440) |
Other, net | 32 | 160 |
(Increase) decrease in: | ||
Accounts receivable | (28,051) | (6,838) |
Inventories | (10,809) | (2,818) |
Income taxes receivable | 565 | 1,415 |
Other current assets | (2,614) | (2,740) |
Other assets | 2,139 | 1,213 |
Increase (decrease) in: | ||
Accounts payable | 13,912 | 3,867 |
Accrued expenses and other liabilities | (2,147) | (4,652) |
Income taxes payable | 6,126 | 3,051 |
Other noncurrent liabilities | (819) | (701) |
Net cash provided by operating activities | 15,082 | 15,067 |
Cash flows from investing activities: | ||
Acquisition of a business, net of cash acquired | (1,000) | |
Amounts paid for net assets acquired | (2,400) | |
Capital expenditures | (5,036) | (2,937) |
Proceeds from dispositions of equipment | 35 | 3 |
Cash settlement of forward contracts | 1,544 | 1,634 |
Software development costs | (623) | |
Net cash used in investing activities | (7,480) | (1,300) |
Cash flows from financing activities: | ||
Borrowings on revolving credit facilities | 6,602 | 2,000 |
Repayment of borrowings on revolving credit facilities | (8,500) | (5,500) |
Repayment of borrowings on long-term non-revolving debt | (4,029) | (2,100) |
Proceeds from stock issued | 333 | 355 |
Dividends to shareholders | (2,891) | (2,885) |
Other financing activities | (974) | (815) |
Net cash used in financing activities | (9,459) | (8,945) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2,565 | 310 |
Net increase in cash, cash equivalents and restricted cash | 708 | 5,132 |
Cash, cash equivalents and restricted cash, beginning of period | 25,257 | 22,162 |
Cash, cash equivalents and restricted cash, end of period | $ 25,965 | $ 27,294 |
Company Background
Company Background | 3 Months Ended |
Apr. 03, 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 acquisitions. The Company operates in two business segments: Hydraulics and Electronics. There are three key technologies within the Hydraulics segment: cartridge valve technology (“CVT”), quick-release hydraulic coupling solutions (“QRC”) and hydraulic system 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”). On November 6, 2020, the Company completed the acquisition of BWG Holdings I Corp. (hereinafter referred to as “Balboa Water Group” or “Balboa”), an innovative market leader of electronic controls for the health and wellness industry. The results of Balboas operations are reported in the Company’s Electronics segment and have been included in the Consolidated Financial Statements since the acquisition date. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 03, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The financial statements are prepared on a consistent basis (including normal recurring adjustments) and should be read in conjunction with the consolidated financial statements and related notes contained in the Annual Report on Form 10-K for the fiscal year ended January 2, 2021 (“Form 10-K”), filed by Helios with the Securities and Exchange Commission on March 2, 2021. In management’s opinion, all adjustments necessary for a fair presentation of the Company’s financial statements are reflected in the interim periods presented. The Company faces various risks related to health epidemics, pandemics and similar outbreaks, including the global outbreak of COVID-19. The current COVID-19 pandemic has had an impact on markets the Company serves and its operations. The Company cannot at this time predict the future 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. Operating results for the three months ended April 3, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ended January 1, 2022. Contract Assets and Liabilities Contract assets are recognized when the Company has a conditional right to consideration for performance completed on contracts. Contract asset balances totaled $2,239 and $2,776 at April 3, 2021 and January 2, 2021, respectively, and are presented in Other current assets in the Consolidated Balance Sheets. Accounts receivable balances represent unconditional rights to consideration from customers and are presented separate from contract assets in the Consolidated Balance Sheets. Contract liabilities are recognized when payment is received from customers prior to satisfying the underlying performance obligation. Contract liabilities totaled $3,865 and $4,208 at April 3, 2021 and January 2, 2021, respectively, and are presented in Other accrued expenses and current liabilities in the Consolidated Balance Sheets. Research and Development The Company conducts research and development (“R&D”) to create new products and to make improvements to products currently in use. R&D costs are charged to expense as incurred and totaled $4,298, and $4,107 for the three months ended April 3, 2021 and March 28, 2020, respectively. Earnings Per Share The following table presents the computation of basic and diluted earnings per common share (in thousands, except per share data): Three Months Ended April 3, 2021 March 28, 2020 Net income (loss) $ 22,587 $ (17,223 ) Basic and diluted weighted average shares outstanding 32,193 32,062 Basic and diluted net income (loss) per common share $ 0.70 $ (0.54 ) Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Apr. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3. FAIR VALUE OF FINANCIAL INSTRUMENTS The following tables provide information regarding the Company’s assets and liabilities measured at fair value on a recurring basis at April 3, 2021 and January 2, 2021. April 3, 2021 Quoted Market Significant Other Observable Significant Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Interest rate swap contract $ 861 $ — $ 861 $ — Forward foreign exchange contracts 251 — 251 — Total $ 1,112 $ — $ 1,112 $ — Liabilities Interest rate swap contract $ 6,329 $ — $ 6,329 $ — Forward foreign exchange contracts 731 — 731 — Contingent consideration 1,459 — — 1,459 Total $ 8,519 $ — $ 7,060 $ 1,459 January 2, 2021 Quoted Market Significant Other Observable Significant 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 A summary of the changes in the estimated fair value of contingent consideration at April 3, 2021 is as follows: Balance at January 2, 2021 $ 1,919 Change in estimated fair value (460 ) Balance at April 3, 2021 $ 1,459 |
Inventories
Inventories | 3 Months Ended |
Apr. 03, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 4. INVENTORIES At April 3, 2021 and January 2, 2021, inventory consisted of the following: April 3, 2021 January 2, 2021 Raw materials $ 58,133 $ 49,361 Work in process 33,169 30,675 Finished goods 38,014 39,332 Provision for obsolete and slow moving inventory (9,553 ) (8,996 ) Total $ 119,763 $ 110,372 |
Operating Leases
Operating Leases | 3 Months Ended |
Apr. 03, 2021 | |
Leases [Abstract] | |
OPERATING LEASES | 5. 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 three months ended April 3, 2021 and March 28, 2020, operating lease costs totaled $1,395 and $908, respectively. Supplemental balance sheet information related to operating leases is as follows: April 3, 2021 January 2, 2021 Right-of-use assets $ 15,512 $ 16,616 Lease liabilities: Current lease liabilities $ 4,341 $ 4,736 Non-current lease liabilities 11,982 12,728 Total lease liabilities $ 16,323 $ 17,464 Weighted average remaining lease term (in years): 5.0 Weighted average discount rate: 5.0 % Supplemental cash flow information related to leases is as follows: Three Months Ended April 3, 2021 March 28, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,355 $ 915 Non-cash impact of new leases and lease modifications $ 204 $ 15 Maturities of lease liabilities are as follows: 2021 Remaining $ 4,084 2022 3,594 2023 3,261 2024 2,602 2025 2,001 2026 1,606 Thereafter 1,297 Total lease payments 18,445 Less: Imputed interest (2,122 ) Total lease obligations 16,323 Less: Current lease liabilities (4,341 ) Non-current lease liabilities $ 11,982 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 6. GOODWILL AND INTANGIBLE ASSETS Goodwill A summary of changes in goodwill by segment for the three months ended April 3, 2021, is as follows: Hydraulics Electronics Total Balance at January 2, 2021 $ 261,129 $ 182,404 $ 443,533 Measurement period adjustment, Balboa Water Group acquisition — 90 90 Currency translation (9,564 ) — (9,564 ) Balance at April 3, 2021 $ 251,565 $ 182,494 $ 434,059 Intangible Assets At April 3, 2021, and January 2, 2021, intangible assets consisted of the following: April 3, 2021 January 2, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangibles: Trade names and brands $ 79,422 $ (12,112 ) $ 67,310 $ 80,402 $ (11,188 ) $ 69,214 Non-compete agreements 950 (823 ) 127 950 (776 ) 174 Technology 45,441 (13,460 ) 31,981 45,955 (12,368 ) 33,587 Supply agreement 21,000 (9,100 ) 11,900 21,000 (8,575 ) 12,425 Customer relationships 322,825 (33,977 ) 288,848 330,406 (31,431 ) 298,975 Sales order backlog 8,000 (6,833 ) 1,167 8,000 (3,000 ) 5,000 Workforce 6,077 (101 ) 5,976 — — — $ 483,715 $ (76,406 ) $ 407,309 $ 486,713 $ (67,338 ) $ 419,375 Amortization expense for the three months ended April 3, 2021, and March 28, 2020, was $10,198 and $4,348, respectively. Future estimated amortization expense is presented below. Year: 2021 Remaining $ 20,444 2022 25,519 2023 25,459 2024 24,805 2025 24,737 2026 23,349 Thereafter 262,996 Total $ 407,309 |
Derivative Instruments & Hedgin
Derivative Instruments & Hedging Activities | 3 Months Ended |
Apr. 03, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS & HEDGING ACTIVITIES | 7. DERIVATIVE INSTRUMENTS & HEDGING ACTIVITIES The Company addresses certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments and hedging activities. The fair value of the Company’s derivative financial instruments included in the Consolidated Balance Sheets is presented as follows: Asset Derivatives Liability Derivatives Balance Sheet Fair Value (1) Fair Value (1) Balance Sheet Fair Value (1) Fair Value (1) Location April 3, 2021 January 2, 2021 Location April 3, 2021 January 2, 2021 Derivatives designated as hedging instruments: Interest rate swap contracts Other assets $ 861 $ — Other non-current liabilities $ 6,329 $ 7,679 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 30 169 Other current liabilities 731 1,413 Forward foreign exchange contracts Other assets 221 42 Other non-current liabilities — 138 Total derivatives $ 1,112 $ 211 $ 7,060 $ 9,230 (1) The amount of gains and losses related to the Company’s derivative financial instruments for the three months ended April 3, 2021 and March 28, 2020, are presented as follows: Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion) April 3, 2021 March 28, 2020 into Earnings (Effective Portion) April 3, 2021 March 28, 2020 Derivatives in cash flow hedging relationships: Interest rate swap contracts $ 2,210 $ (4,029 ) Interest expense, net $ (1,079 ) $ (525 ) Interest expense presented in the Consolidated Statements of Operations, in which the effects of cash flow hedges are recorded, totaled $4,751 and $2,951 for the three months ended April 3, 2021 and March 28, 2020, respectively. Amount of Gain or (Loss) Recognized in Earnings on Derivatives Location of Gain or (Loss) Recognized April 3, 2021 March 28, 2020 in Earnings on Derivatives Derivatives not designated as hedging instruments: Forward foreign exchange contracts $ 2,402 $ 440 Foreign currency transaction gain loss, net Interest Rate Swap Contracts The Company has entered into interest rate swap transactions to hedge the variable interest rate payments on its credit facilities. In connection with these 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 h e 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 April 3, 2021, the Company had 10 forward foreign exchange contracts with an aggregate notional value of €51,902, maturing at various dates through September 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 $105,797 as of April 3, 2021 and is included in the Revolving line of credit line item in the Consolidated Balance Sheets. The gain on the net investment hedge recorded in accumulated other comprehensive income (“AOCI”) as part of the currency translation adjustment was $3,172, net of tax, for the three months ended April 3, 2021. |
Credit Facilities
Credit Facilities | 3 Months Ended |
Apr. 03, 2021 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES | 8. CREDIT FACILITIES Total long-term non-revolving debt consists of the following: Maturity Date April 3, 2021 January 2, 2021 Long-term non-revolving debt: Term loan with PNC Bank 10/28/2025 $ 197,500 $ 200,000 Term loan with Intesa Sanpaolo S.p.A 12/23/2021 4,415 6,106 Term loan with Citibank 5/23/2023 398 400 Other long-term debt Various 232 264 Total long-term non-revolving debt 202,545 206,770 Less: current portion of long-term non-revolving debt 15,841 16,229 Less: unamortized debt issuance costs 578 609 Total long-term non-revolving debt, net $ 186,126 $ 189,932 Information on the Company’s revolving credit facilities is as follows: Balance Available Credit Maturity Date April 3, 2021 January 2, 2021 April 3, 2021 January 2, 2021 Revolving line of credit with PNC Bank 10/28/2025 $ 249,797 $ 255,909 $ 148,213 $ 144,045 Revolving line of credit with Citibank 11/18/2021 415 315 1,869 1,982 $ 250,212 $ 256,224 $ 150,082 $ 146,027 Future maturities of total debt are as follows: Year: 2021 Remaining $ 12,446 2022 15,374 2023 15,141 2024 20,000 2025 389,796 Total $ 452,757 Term Loan and Line of Credit with PNC Bank The Company has a credit agreement that includes a revolving line of credit and term loan credit facility with PNC Bank, National Association, as administrative agent, and the lenders party thereto. The revolving line of credit allows for borrowings up to an aggregate maximum principal amount of $ 400,000 The Company has exchanged a portion of the USD denominated borrowings on the line of credit for €90,000 in order to hedge currency exposure in foreign operations. The borrowings have been designated as a net investment hedge, see additional information in Note 7. The effective interest rate on the credit agreement at April 3, 2021 was 2.92%. Interest expense recognized on the credit agreement during the three months ended April 3, 2021 and March 28, 2020, totaled $3,633 and $2,408, respectively. Term Loan with Intesa Sanpaolo S.p.A. The Company has an agreement with Intesa Sanpaolo S.p.A. that provides an unsecured term loan of €5,000. The facility bears interest at 1.25%. Repayment of the facility began 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 The Company has 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, 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. Currently drawn funds have a final payment due date of May 2023 Under the Working Capital Facility, the Company may from time to time borrow amounts on an unsecured revolving facility of up to a total of RMB 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. INCOME TAXES The provision for income taxes for the three months ended April 3, 2021 At April 3, 2021, the Company had an unrecognized tax benefit of $12,344 including accrued interest. If recognized, $1,878 of unrecognized tax benefit 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 accrued as of April 3, 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 2009-2020. Although the Company is not currently under examination in most jurisdictions, limited transfer pricing disputes exist for years dating back to 2008. The Company anticipates the resolution of a transfer pricing dispute and along with the expiration of statutes of limitation that may result in a net benefit ranging from $0 to $2,388 that could be recognized within the next 12 months. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Apr. 03, 2021 | |
Share Based Compensation [Abstract] | |
STOCK-BASED COMPENSATION | 10. STOCK-BASED COMPENSATION Equity Incentive Plan The Company’s 2019 Equity Incentive Plan and its predecessor equity plan provide for the grant of shares of restricted stock, restricted share units, stock options, stock appreciation rights, dividend or dividend equivalent rights, stock awards and other awards valued in whole or in part by reference to or otherwise based on the Company’s common stock, to officers, employees and directors of the Company. Restricted Stock and Restricted Stock Units The Company grants restricted shares of common stock and restricted stock units (“RSUs”) in connection with a long-term incentive plan. Awards with time-based vesting requirements primarily vest ratably over a three-year three-year Compensation expense recognized for restricted stock and RSUs totaled $1,360 and $1,253, respectively, for the three months ended April 3, 2021 and March 28, 2020. The following table summarizes restricted stock and RSU activity for the three months ended April 3, 2021: Number of Weighted Average Shares / Units Grant-Date (in thousands) Fair Value per Share Nonvested balance at January 2, 2021 239 $ 38.95 Granted 99 54.24 Vested (57 ) 42.98 Forfeited (7 ) 44.82 Nonvested balance at April 3, 2021 (1) 274 $ 43.50 (1 ) The Company had $10,396 of total unrecognized compensation cost related to the restricted stock and RSU awards as of April 3, 2021. That cost is expected to be recognized over a weighted average period of 2.1 years. Stock Options The following table summarizes stock options the Company has granted to its officers (in thousands, except per share data): April 3, 2021 Options Option Exercise Options Options Options Date of Grant Granted (Strike) Price Forfeited Outstanding Exercisable February 28, 2020 18 $ 39.75 10 6 2 July 1, 2020 5 35.04 — 5 — January 28, 2021 18 55.30 — 18 — Total 41 10 29 2 The exercise prices per share are equal to the market price of Helios stock on the respective grant dates. The options vest ratably over a three-year period and have a 10-year expiration. The grant date fair value of the options was estimated using a Black Scholes valuation model. At April 3, 2021, the Company had $476 of unrecognized compensation cost related to the options which is expected to be recognized over a weighted average period of 2.6 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. Employees purchased 7,408 shares at a weighted average price of $44.90, and 10,927 shares at a weighted average price of $32.46, under the ESPP and UK plans during the three months ended April 3, 2021 and March 28, 2020, respectively. The Company recognized $195 and $60 of compensation expense during the three months ended April 3, 2021 and March 28, 2020, respectively. Nonemployee Director Fees Plan The Company’s 2012 Nonemployee Director Fees Plan compensates nonemployee directors for their board service with shares of common stock. Directors were granted 7,375 and 5,500 shares for the three months ended April 3, 2021 and March 28, 2020, respectively. The Company recognized director stock compensation expense of $538 and $235 for the three months ended April 3, 2021 and March 28, 2020, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 03, 2021 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 11. ACCUMULATED OTHER COMPREHENSIVE LOSS The following tables present changes in accumulated other comprehensive loss by component: Unrealized Gains and (Losses) on Derivative Instruments Foreign Currency Items Total Balance at January 2, 2021 $ (5,922 ) $ (28,418 ) $ (34,340 ) Other comprehensive income (loss) before reclassifications 3,019 (11,562 ) (8,543 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (809 ) — (809 ) Tax effect (505 ) 2,444 1,939 Net current period other comprehensive income (loss) 1,705 (9,118 ) (7,413 ) Balance at April 3, 2021 $ (4,217 ) $ (37,536 ) $ (41,753 ) Unrealized Gains and (Losses) on Derivative Instruments Foreign Currency Items Total Balance at December 28, 2019 $ (5,372 ) $ (49,992 ) $ (55,364 ) Other comprehensive loss before reclassifications (4,423 ) (5,950 ) (10,373 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 394 — 394 Tax effect 1,828 1,049 2,877 Net current period other comprehensive loss (2,201 ) (4,901 ) (7,102 ) Balance at March 28, 2020 $ (7,573 ) $ (54,893 ) $ (62,466 ) |
Segment Reporting
Segment Reporting | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 12. SEGMENT REPORTING The Company has two reportable segments: Hydraulics and Electronics. These segments are organized primarily based on the similar nature of products offered for sale, the types of customers served and the methods of distribution and are consistent with how the segments are managed, how resources are allocated and how information is used by the chief operating decision makers. The Company evaluates performance and allocates resources based primarily on segment operating income. Certain costs were not allocated to the 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 three months ended April 3, 2021, the unallocated costs totaled $11,745 and included acquisition and integration related expenses of $1,547 and amortization of acquisition-related intangible assets of $10,198. The accounting policies of the Company’s operating segments are the same as those used to prepare the accompanying Consolidated, Unaudited Financial Statements. The following table presents financial information by reportable segment: Three Months Ended April 3, 2021 March 28, 2020 Net sales Hydraulics $ 119,106 $ 103,818 Electronics 85,738 25,665 Total $ 204,844 $ 129,483 Operating income Hydraulics $ 28,073 $ 21,482 Electronics 18,280 4,778 Corporate and other (11,745 ) (36,293 ) Total $ 34,608 $ (10,033 ) Capital expenditures Hydraulics $ 2,635 $ 2,394 Electronics 2,401 543 Total $ 5,036 $ 2,937 April 3, 2021 January 2, 2021 Total assets Hydraulics $ 762,063 $ 765,155 Electronics 541,834 523,502 Corporate 7,651 8,322 Total $ 1,311,548 $ 1,296,979 Geographic Region Information Net sales are measured based on the geographic destination of sales. Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment and exclude right-of-use assets. Three Months Ended April 3, 2021 March 28, 2020 Net sales Americas $ 99,341 $ 58,950 EMEA 52,602 35,971 APAC 52,901 34,562 Total $ 204,844 $ 129,483 April 3, 2021 January 2, 2021 Tangible long-lived assets Americas $ 96,888 $ 96,752 EMEA 30,183 31,091 APAC 18,112 18,718 Total $ 145,183 $ 146,561 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Apr. 03, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 13. RELATED PARTY TRANSACTIONS The Company purchases from, and sells inventory to, entities partially owned or managed by directors of Helios. For the three months ended April 3, 2021 and March 28, 2020, inventory sales to the entities totaled $749 and $414, respectively, and inventory purchases from the entities totaled $2,107 and $999, respectively. At April 3, 2021 and January 2, 2021, amounts due from the entities totaled $389 and $528, respectively, and amounts due to the entities totaled $736 and $421, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 03, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is not a party to any legal proceedings other than routine litigation incidental to its business. In the opinion of management, the amount of ultimate liability with respect to these actions will not materially affect the results of operations, financial position or cash flows of the Company. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 03, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. SUBSEQUENT EVENTS On April 30, 2021, the Company’s President of Electronic Controls and Section 16 Officer, Jinger McPeak, informed the Company of her intention to resign. Ms. McPeak has agreed to continue her employment through June 1, 2021. In connection with her resignation, the Company and Ms. McPeak entered into a separation agreement. For additional detail, please refer to the Form 8-K filed by the Company on April 30, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 03, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, certain information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements are not included herein. The financial statements are prepared on a consistent basis (including normal recurring adjustments) and should be read in conjunction with the consolidated financial statements and related notes contained in the Annual Report on Form 10-K for the fiscal year ended January 2, 2021 (“Form 10-K”), filed by Helios with the Securities and Exchange Commission on March 2, 2021. In management’s opinion, all adjustments necessary for a fair presentation of the Company’s financial statements are reflected in the interim periods presented. The Company faces various risks related to health epidemics, pandemics and similar outbreaks, including the global outbreak of COVID-19. The current COVID-19 pandemic has had an impact on markets the Company serves and its operations. The Company cannot at this time predict the future 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. Operating results for the three months ended April 3, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ended January 1, 2022. |
Contract Assets and Liabilities | Contract Assets and Liabilities Contract assets are recognized when the Company has a conditional right to consideration for performance completed on contracts. Contract asset balances totaled $2,239 and $2,776 at April 3, 2021 and January 2, 2021, respectively, and are presented in Other current assets in the Consolidated Balance Sheets. Accounts receivable balances represent unconditional rights to consideration from customers and are presented separate from contract assets in the Consolidated Balance Sheets. Contract liabilities are recognized when payment is received from customers prior to satisfying the underlying performance obligation. Contract liabilities totaled $3,865 and $4,208 at April 3, 2021 and January 2, 2021, respectively, and are presented in Other accrued expenses and current liabilities in the Consolidated Balance Sheets. |
Research and Development | Research and Development The Company conducts research and development (“R&D”) to create new products and to make improvements to products currently in use. R&D costs are charged to expense as incurred and totaled $4,298, and $4,107 for the three months ended April 3, 2021 and March 28, 2020, respectively. |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per common share (in thousands, except per share data): Three Months Ended April 3, 2021 March 28, 2020 Net income (loss) $ 22,587 $ (17,223 ) Basic and diluted weighted average shares outstanding 32,193 32,062 Basic and diluted net income (loss) per common share $ 0.70 $ (0.54 ) |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Accounting Policies [Abstract] | |
Computation of basic and diluted earnings per common share | The following table presents the computation of basic and diluted earnings per common share (in thousands, except per share data): Three Months Ended April 3, 2021 March 28, 2020 Net income (loss) $ 22,587 $ (17,223 ) Basic and diluted weighted average shares outstanding 32,193 32,062 Basic and diluted net income (loss) per common share $ 0.70 $ (0.54 ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Apr. 03, 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 April 3, 2021 and January 2, 2021. April 3, 2021 Quoted Market Significant Other Observable Significant Unobservable Total Prices (Level 1) Inputs (Level 2) Inputs (Level 3) Assets Interest rate swap contract $ 861 $ — $ 861 $ — Forward foreign exchange contracts 251 — 251 — Total $ 1,112 $ — $ 1,112 $ — Liabilities Interest rate swap contract $ 6,329 $ — $ 6,329 $ — Forward foreign exchange contracts 731 — 731 — Contingent consideration 1,459 — — 1,459 Total $ 8,519 $ — $ 7,060 $ 1,459 January 2, 2021 Quoted Market Significant Other Observable Significant 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 |
Summary of changes in estimated fair value of contingent consideration | A summary of the changes in the estimated fair value of contingent consideration at April 3, 2021 is as follows: Balance at January 2, 2021 $ 1,919 Change in estimated fair value (460 ) Balance at April 3, 2021 $ 1,459 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of inventories | At April 3, 2021 and January 2, 2021, inventory consisted of the following: April 3, 2021 January 2, 2021 Raw materials $ 58,133 $ 49,361 Work in process 33,169 30,675 Finished goods 38,014 39,332 Provision for obsolete and slow moving inventory (9,553 ) (8,996 ) Total $ 119,763 $ 110,372 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases is as follows: April 3, 2021 January 2, 2021 Right-of-use assets $ 15,512 $ 16,616 Lease liabilities: Current lease liabilities $ 4,341 $ 4,736 Non-current lease liabilities 11,982 12,728 Total lease liabilities $ 16,323 $ 17,464 Weighted average remaining lease term (in years): 5.0 Weighted average discount rate: 5.0 % |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Three Months Ended April 3, 2021 March 28, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,355 $ 915 Non-cash impact of new leases and lease modifications $ 204 $ 15 |
Maturities of Lease Liabilities | Maturities of lease liabilities are as follows: 2021 Remaining $ 4,084 2022 3,594 2023 3,261 2024 2,602 2025 2,001 2026 1,606 Thereafter 1,297 Total lease payments 18,445 Less: Imputed interest (2,122 ) Total lease obligations 16,323 Less: Current lease liabilities (4,341 ) Non-current lease liabilities $ 11,982 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | Goodwill A summary of changes in goodwill by segment for the three months ended April 3, 2021, is as follows: Hydraulics Electronics Total Balance at January 2, 2021 $ 261,129 $ 182,404 $ 443,533 Measurement period adjustment, Balboa Water Group acquisition — 90 90 Currency translation (9,564 ) — (9,564 ) Balance at April 3, 2021 $ 251,565 $ 182,494 $ 434,059 |
Schedule of intangible assets | Intangible Assets At April 3, 2021, and January 2, 2021, intangible assets consisted of the following: April 3, 2021 January 2, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangibles: Trade names and brands $ 79,422 $ (12,112 ) $ 67,310 $ 80,402 $ (11,188 ) $ 69,214 Non-compete agreements 950 (823 ) 127 950 (776 ) 174 Technology 45,441 (13,460 ) 31,981 45,955 (12,368 ) 33,587 Supply agreement 21,000 (9,100 ) 11,900 21,000 (8,575 ) 12,425 Customer relationships 322,825 (33,977 ) 288,848 330,406 (31,431 ) 298,975 Sales order backlog 8,000 (6,833 ) 1,167 8,000 (3,000 ) 5,000 Workforce 6,077 (101 ) 5,976 — — — $ 483,715 $ (76,406 ) $ 407,309 $ 486,713 $ (67,338 ) $ 419,375 |
Schedule of estimated amortization expense of intangible assets, excluding software development in process | Amortization expense for the three months ended April 3, 2021, and March 28, 2020, was $10,198 and $4,348, respectively. Future estimated amortization expense is presented below. Year: 2021 Remaining $ 20,444 2022 25,519 2023 25,459 2024 24,805 2025 24,737 2026 23,349 Thereafter 262,996 Total $ 407,309 |
Derivative Instruments & Hedg_2
Derivative Instruments & Hedging Activities (Tables) | 3 Months Ended |
Apr. 03, 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 April 3, 2021 January 2, 2021 Location April 3, 2021 January 2, 2021 Derivatives designated as hedging instruments: Interest rate swap contracts Other assets $ 861 $ — Other non-current liabilities $ 6,329 $ 7,679 Derivatives not designated as hedging instruments: Forward foreign exchange contracts Other current assets 30 169 Other current liabilities 731 1,413 Forward foreign exchange contracts Other assets 221 42 Other non-current liabilities — 138 Total derivatives $ 1,112 $ 211 $ 7,060 $ 9,230 (1) |
Schedule of Gains and Losses Related to Derivative Financial Instruments | The amount of gains and losses related to the Company’s derivative financial instruments for the three months ended April 3, 2021 and March 28, 2020, are presented as follows: Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Earnings (Effective Portion) April 3, 2021 March 28, 2020 into Earnings (Effective Portion) April 3, 2021 March 28, 2020 Derivatives in cash flow hedging relationships: Interest rate swap contracts $ 2,210 $ (4,029 ) Interest expense, net $ (1,079 ) $ (525 ) Amount of Gain or (Loss) Recognized in Earnings on Derivatives Location of Gain or (Loss) Recognized April 3, 2021 March 28, 2020 in Earnings on Derivatives Derivatives not designated as hedging instruments: Forward foreign exchange contracts $ 2,402 $ 440 Foreign currency transaction gain loss, net |
Credit Facilities (Tables)
Credit Facilities (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Total Long-Term Non-Revolving Debt | Total long-term non-revolving debt consists of the following: Maturity Date April 3, 2021 January 2, 2021 Long-term non-revolving debt: Term loan with PNC Bank 10/28/2025 $ 197,500 $ 200,000 Term loan with Intesa Sanpaolo S.p.A 12/23/2021 4,415 6,106 Term loan with Citibank 5/23/2023 398 400 Other long-term debt Various 232 264 Total long-term non-revolving debt 202,545 206,770 Less: current portion of long-term non-revolving debt 15,841 16,229 Less: unamortized debt issuance costs 578 609 Total long-term non-revolving debt, net $ 186,126 $ 189,932 |
Summary of Information on Revolving Credit Facility | Information on the Company’s revolving credit facilities is as follows: Balance Available Credit Maturity Date April 3, 2021 January 2, 2021 April 3, 2021 January 2, 2021 Revolving line of credit with PNC Bank 10/28/2025 $ 249,797 $ 255,909 $ 148,213 $ 144,045 Revolving line of credit with Citibank 11/18/2021 415 315 1,869 1,982 $ 250,212 $ 256,224 $ 150,082 $ 146,027 |
Summary of Future Maturities of Total Debt | Future maturities of total debt are as follows: Year: 2021 Remaining $ 12,446 2022 15,374 2023 15,141 2024 20,000 2025 389,796 Total $ 452,757 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Share Based Compensation [Abstract] | |
Summary of Restricted Stock and RSU Activity | The following table summarizes restricted stock and RSU activity for the three months ended April 3, 2021: Number of Weighted Average Shares / Units Grant-Date (in thousands) Fair Value per Share Nonvested balance at January 2, 2021 239 $ 38.95 Granted 99 54.24 Vested (57 ) 42.98 Forfeited (7 ) 44.82 Nonvested balance at April 3, 2021 (1) 274 $ 43.50 |
Summary of Stock Options Granted | The following table summarizes stock options the Company has granted to its officers (in thousands, except per share data): April 3, 2021 Options Option Exercise Options Options Options Date of Grant Granted (Strike) Price Forfeited Outstanding Exercisable February 28, 2020 18 $ 39.75 10 6 2 July 1, 2020 5 35.04 — 5 — January 28, 2021 18 55.30 — 18 — Total 41 10 29 2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Loss by Component | The following tables present changes in accumulated other comprehensive loss by component: Unrealized Gains and (Losses) on Derivative Instruments Foreign Currency Items Total Balance at January 2, 2021 $ (5,922 ) $ (28,418 ) $ (34,340 ) Other comprehensive income (loss) before reclassifications 3,019 (11,562 ) (8,543 ) Amounts reclassified from accumulated other comprehensive loss, net of tax (809 ) — (809 ) Tax effect (505 ) 2,444 1,939 Net current period other comprehensive income (loss) 1,705 (9,118 ) (7,413 ) Balance at April 3, 2021 $ (4,217 ) $ (37,536 ) $ (41,753 ) Unrealized Gains and (Losses) on Derivative Instruments Foreign Currency Items Total Balance at December 28, 2019 $ (5,372 ) $ (49,992 ) $ (55,364 ) Other comprehensive loss before reclassifications (4,423 ) (5,950 ) (10,373 ) Amounts reclassified from accumulated other comprehensive loss, net of tax 394 — 394 Tax effect 1,828 1,049 2,877 Net current period other comprehensive loss (2,201 ) (4,901 ) (7,102 ) Balance at March 28, 2020 $ (7,573 ) $ (54,893 ) $ (62,466 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting [Abstract] | |
Schedule of financial information by reportable segment | The following table presents financial information by reportable segment: Three Months Ended April 3, 2021 March 28, 2020 Net sales Hydraulics $ 119,106 $ 103,818 Electronics 85,738 25,665 Total $ 204,844 $ 129,483 Operating income Hydraulics $ 28,073 $ 21,482 Electronics 18,280 4,778 Corporate and other (11,745 ) (36,293 ) Total $ 34,608 $ (10,033 ) Capital expenditures Hydraulics $ 2,635 $ 2,394 Electronics 2,401 543 Total $ 5,036 $ 2,937 April 3, 2021 January 2, 2021 Total assets Hydraulics $ 762,063 $ 765,155 Electronics 541,834 523,502 Corporate 7,651 8,322 Total $ 1,311,548 $ 1,296,979 |
Schedule of geographic region information | Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment and exclude right-of-use assets. Three Months Ended April 3, 2021 March 28, 2020 Net sales Americas $ 99,341 $ 58,950 EMEA 52,602 35,971 APAC 52,901 34,562 Total $ 204,844 $ 129,483 April 3, 2021 January 2, 2021 Tangible long-lived assets Americas $ 96,888 $ 96,752 EMEA 30,183 31,091 APAC 18,112 18,718 Total $ 145,183 $ 146,561 |
Company Background (Details Tex
Company Background (Details Textual) | Nov. 06, 2020 | Apr. 03, 2021CountrySegment |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of operating segments | Country | 85 | |
Number of operating segments | Segment | 2 | |
Balboa | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Date of business acquisition | Nov. 6, 2020 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Jan. 02, 2021 | |
Accounting Policies [Abstract] | |||
Contract asset, current | $ 2,239 | $ 2,776 | |
Contract Liabilities, current | 3,865 | $ 4,208 | |
Research and development costs charged to expense | $ 4,298 | $ 4,107 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 22,587 | $ (17,223) |
Basic and diluted weighted average shares outstanding | 32,193 | 32,062 |
Basic and diluted net income (loss) per common share | $ 0.70 | $ (0.54) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Recurring [Member] - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Assets | ||
Assets Measured at fair value | $ 1,112 | $ 211 |
Liabilities | ||
Liabilities measured at fair value | 8,519 | 11,149 |
Interest Rate Swap Contract [Member] | ||
Assets | ||
Assets Measured at fair value | 861 | |
Liabilities | ||
Liabilities measured at fair value | 6,329 | 7,679 |
Forward Foreign Exchange Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 251 | 211 |
Liabilities | ||
Liabilities measured at fair value | 731 | 1,551 |
Contingent Consideration [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 1,459 | 1,919 |
Level 2 [Member] | ||
Assets | ||
Assets Measured at fair value | 1,112 | 211 |
Liabilities | ||
Liabilities measured at fair value | 7,060 | 9,230 |
Level 2 [Member] | Interest Rate Swap Contract [Member] | ||
Assets | ||
Assets Measured at fair value | 861 | |
Liabilities | ||
Liabilities measured at fair value | 6,329 | 7,679 |
Level 2 [Member] | Forward Foreign Exchange Contracts [Member] | ||
Assets | ||
Assets Measured at fair value | 251 | 211 |
Liabilities | ||
Liabilities measured at fair value | 731 | 1,551 |
Level 3 [Member] | ||
Liabilities | ||
Liabilities measured at fair value | 1,459 | 1,919 |
Level 3 [Member] | Contingent Consideration [Member] | ||
Liabilities | ||
Liabilities measured at fair value | $ 1,459 | $ 1,919 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Details 1) $ in Thousands | 3 Months Ended |
Apr. 03, 2021USD ($) | |
Fair Value Disclosures [Abstract] | |
Beginning Balance | $ 1,919 |
Change in estimated fair value | (460) |
Ending Balance | $ 1,459 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Summary of inventories | ||
Raw materials | $ 58,133 | $ 49,361 |
Work in process | 33,169 | 30,675 |
Finished goods | 38,014 | 39,332 |
Provision for obsolete and slow moving inventory | (9,553) | (8,996) |
Total | $ 119,763 | $ 110,372 |
Operating Leases (Details Textu
Operating Leases (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Leases [Line Items] | ||
Operating lease cost | $ 1,395 | $ 908 |
Minimum [Member] | ||
Leases [Line Items] | ||
Operating leases, remaining lease term | 1 year | |
Maximum [Member] | ||
Leases [Line Items] | ||
Operating leases, remaining lease term | 10 years |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Right-of-use assets | $ 15,512 | $ 16,616 |
Weighted average remaining lease term (in years): | 5 years | |
Weighted average discount rate: | 5.00% | |
Other Accrued Expenses and Current Liabilities [Member] | ||
Current lease liabilities | $ 4,341 | 4,736 |
Other Noncurrent Liabilities [Member] | ||
Non-current lease liabilities | 11,982 | 12,728 |
Total Liabilities [Member] | ||
Total lease liabilities | $ 16,323 | $ 17,464 |
Operating Leases (Details 1)
Operating Leases (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 1,355 | $ 915 |
Non-cash impact of new leases and lease modifications | $ 204 | $ 15 |
Operating Leases (Details 2)
Operating Leases (Details 2) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
2021 Remaining | $ 4,084 | |
2022 | 3,594 | |
2023 | 3,261 | |
2024 | 2,602 | |
2025 | 2,001 | |
2026 | 1,606 | |
Thereafter | 1,297 | |
Total lease payments | 18,445 | |
Less: Imputed interest | (2,122) | |
Total Liabilities [Member] | ||
Total lease obligations | 16,323 | $ 17,464 |
Other Accrued Expenses and Current Liabilities [Member] | ||
Less: Current lease liabilities | (4,341) | (4,736) |
Other Noncurrent Liabilities [Member] | ||
Non-current lease liabilities | $ 11,982 | $ 12,728 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) $ in Thousands | 3 Months Ended |
Apr. 03, 2021USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 443,533 |
Measurement period adjustment, Balboa Water Group acquisition | 90 |
Currency translation | (9,564) |
Goodwill, Ending Balance | 434,059 |
Hydraulics [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 261,129 |
Measurement period adjustment, Balboa Water Group acquisition | 0 |
Currency translation | (9,564) |
Goodwill, Ending Balance | 251,565 |
Electronics [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 182,404 |
Measurement period adjustment, Balboa Water Group acquisition | 90 |
Currency translation | 0 |
Goodwill, Ending Balance | $ 182,494 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 483,715 | $ 486,713 |
Accumulated Amortization | (76,406) | (67,338) |
Net Carrying Amount | 407,309 | 419,375 |
Trade names and brands [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 79,422 | 80,402 |
Accumulated Amortization | (12,112) | (11,188) |
Net Carrying Amount | 67,310 | 69,214 |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 950 | 950 |
Accumulated Amortization | (823) | (776) |
Net Carrying Amount | 127 | 174 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 45,441 | 45,955 |
Accumulated Amortization | (13,460) | (12,368) |
Net Carrying Amount | 31,981 | 33,587 |
Supply agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 21,000 | 21,000 |
Accumulated Amortization | (9,100) | (8,575) |
Net Carrying Amount | 11,900 | 12,425 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 322,825 | 330,406 |
Accumulated Amortization | (33,977) | (31,431) |
Net Carrying Amount | 288,848 | 298,975 |
Sales order backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 8,000 | 8,000 |
Accumulated Amortization | (6,833) | (3,000) |
Net Carrying Amount | 1,167 | $ 5,000 |
Workforce [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,077 | |
Accumulated Amortization | (101) | |
Net Carrying Amount | $ 5,976 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 10,198 | $ 4,348 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Details 2) $ in Thousands | Apr. 03, 2021USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2021 Remaining | $ 20,444 |
2022 | 25,519 |
2023 | 25,459 |
2024 | 24,805 |
2025 | 24,737 |
2026 | 23,349 |
Thereafter | 262,996 |
Net Carrying Amount | $ 407,309 |
Derivative Instruments & Hedg_3
Derivative Instruments & Hedging Activities (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 | |
Derivatives Fair Value [Line Items] | |||
Total Asset Derivatives, Fair Value | [1] | $ 1,112 | $ 211 |
Total Liability Derivatives, Fair Value | [1] | 7,060 | 9,230 |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swap Contract [Member] | Other Assets [Member] | |||
Derivatives Fair Value [Line Items] | |||
Asset Derivatives Non-current, Fair Value | [1] | 861 | |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swap Contract [Member] | Other Noncurrent Liabilities [Member] | |||
Derivatives Fair Value [Line Items] | |||
Liability Derivatives Non-current, Fair Value | [1] | 6,329 | 7,679 |
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] | 221 | 42 |
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] | 30 | 169 |
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] | $ 731 | 1,413 |
Derivatives Not Designated as Hedging Instruments [Member] | Forward Foreign Exchange Contracts [Member] | Other Noncurrent Liabilities [Member] | |||
Derivatives Fair Value [Line Items] | |||
Liability Derivatives Non-current, Fair Value | [1] | $ 138 | |
[1] | See Note 3 for information regarding the inputs used in determining the fair value of derivative assets and liabilities. |
Derivative Instruments & Hedg_4
Derivative Instruments & Hedging Activities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Interest Rate Swap Contract [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives (Effective Portion) | $ 2,210 | $ (4,029) |
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) | (1,079) | (525) |
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 | $ 2,402 | $ 440 |
Derivative Instruments & Hedg_5
Derivative Instruments & Hedging Activities (Details Textual) € in Thousands, $ in Thousands | 3 Months Ended | |||
Apr. 03, 2021USD ($)Contract | Mar. 28, 2020USD ($) | Apr. 03, 2021EUR (€)Contract | Jan. 02, 2021USD ($) | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ 4,751 | $ 2,951 | ||
Carrying value of total long term non-revolving debt | 202,545 | $ 206,770 | ||
Gain loss on derivative hedge recorded in AOCI as a part of currency translation adjustment | 3,172 | |||
Europe [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Carrying value of total long term non-revolving debt | $ 105,797 | |||
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 | € | € 51,902 | |||
Derivative contract expire date | Sep. 30, 2022 | |||
Derivative, number of instruments held | Contract | 10 | 10 | ||
Cash Flow Hedging [Member] | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ 4,751 | $ 2,951 | ||
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 | |||
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 | 3 Months Ended | |
Apr. 03, 2021 | Jan. 02, 2021 | |
Debt Instrument [Line Items] | ||
Total long-term non-revolving debt | $ 202,545 | $ 206,770 |
Other long-term debt | 232 | 264 |
Less: current portion of long-term non-revolving debt | 15,841 | 16,229 |
Less: unamortized debt issuance costs | 578 | 609 |
Total long-term non-revolving debt, net | $ 186,126 | 189,932 |
Other long-term debt, Maturity Date | Various | |
PNC Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term non-revolving debt | $ 197,500 | 200,000 |
Term loan, Maturity Date | Oct. 28, 2025 | |
Intesa Sanpaolo S.p.A [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term non-revolving debt | $ 4,415 | 6,106 |
Term loan, Maturity Date | Dec. 23, 2021 | |
Citibank [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term non-revolving debt | $ 398 | $ 400 |
Term loan, Maturity Date | May 23, 2023 |
Credit Facilities (Details 1)
Credit Facilities (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Jan. 02, 2021 | |
Debt Instrument [Line Items] | ||
Revolving lines of credit | $ 250,212 | $ 256,224 |
Available Credit | $ 150,082 | 146,027 |
PNC Bank [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Oct. 28, 2025 | |
Revolving lines of credit | $ 249,797 | 255,909 |
Available Credit | $ 148,213 | 144,045 |
Citibank [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Nov. 18, 2021 | |
Revolving lines of credit | $ 415 | 315 |
Available Credit | $ 1,869 | $ 1,982 |
Credit Facilities (Details 2)
Credit Facilities (Details 2) $ in Thousands | Apr. 03, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 Remaining | $ 12,446 |
2022 | 15,374 |
2023 | 15,141 |
2024 | 20,000 |
2025 | 389,796 |
Total | $ 452,757 |
Credit Facilities (Details Text
Credit Facilities (Details Textual) € in Thousands, ¥ in Thousands | 3 Months Ended | |||
Apr. 03, 2021USD ($)Installment | Mar. 28, 2020USD ($) | Apr. 03, 2021EUR (€) | Apr. 03, 2021CNY (¥) | |
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest expense recognized | $ | $ 3,633,000 | $ 2,408,000 | ||
PNC Bank, National Association, as Administrative Agent, and Lender Party [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facilities, maximum borrowing capacity | $ | $ 400,000,000 | |||
Net investment hedge | € | € 90,000 | |||
Effective interest rate | 2.92% | 2.92% | 2.92% | |
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 | May 31, 2023 | |||
Citibank [Member] | Working Capital Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1-year loan prime rate plus 0.50% | |||
Maximum borrow amounts under agreement | ¥ | ¥ 15,000 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Tax Contingency [Line Items] | ||
Provision of Income Tax | 23.20% | 22.30% |
Unrecognized tax benefit | $ 12,344 | |
Unrecognized tax benefits that would impact effective tax rate | $ 1,878 | |
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 2009-2020. Although the Company is not currently under examination in most jurisdictions, limited transfer pricing disputes exist for years dating back to 2008. The Company anticipates the resolution of a transfer pricing dispute and along with the expiration of statutes of limitation that may result in a net benefit ranging from $0 to $2,388 that could be recognized within the next 12 months. | |
Transfer Pricing Dispute Resolution [Member] | Minimum [Member] | ||
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefit | $ 0 | |
Transfer Pricing Dispute Resolution [Member] | Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefit | $ 2,388 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Recognized weighted average period (in years) | 2 years 7 months 6 days | |
Contractual term of stock options | 10 years | |
Unrecognized compensation cost related to the stock options | $ 476 | |
Award of shares granted (in shares) | 99,000 | |
Stock-based compensation expense | $ 2,107 | $ 1,533 |
2012 Nonemployee Director Fees Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award of shares granted (in shares) | 7,375 | 5,500 |
Stock-based compensation expense | $ 538 | $ 235 |
Employee Stock Purchase Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Rate of common stock at market value | 85.00% | |
Employee Stock Purchase Plan and U.K. Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares purchased by employees | 7,408 | 10,927 |
Weighted average price | $ 44.90 | $ 32.46 |
Share-based compensation expenses | $ 195 | $ 60 |
Ratio for additional common stock shares issued, under ESPP | 6 | |
Time Based [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Performance Based [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 3 years | |
RSUs [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Target amount percentage | 0.00% | |
RSUs [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Target amount percentage | 200.00% | |
Restricted Stock and Restricted Stock Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Compensation expense | $ 1,360 | $ 1,253 |
Total unrecognized compensation | $ 10,396 | |
Recognized weighted average period (in years) | 2 years 1 month 6 days |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) shares in Thousands | 3 Months Ended | |
Apr. 03, 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 | 239 | |
Granted, Number of shares | shares | 99 | |
Vested, Number of shares | shares | (57) | |
Forfeited, Number of shares | shares | (7) | |
Nonvested Ending balance Number of shares | shares | 274 | [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 | $ 38.95 | |
Granted, Weighted average grant-date fair value | $ / shares | 54.24 | |
Vested, Weighted average grant-date fair value | $ / shares | 42.98 | |
Forfeited, Weighted average grant-date fair value | $ / shares | 44.82 | |
Nonvested Ending balance, Weighted average grant-date fair value | $ / shares | $ 43.50 | [1] |
[1] | Includes 113,751 unvested performance-based RSUs. |
Stock-Based Compensation (Paren
Stock-Based Compensation (Parenthetical) (Details) - shares | Apr. 03, 2021 | Jan. 02, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unvested Number of shares | 274,000 | [1] | 239,000 |
RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unvested Number of shares | 113,751 | ||
[1] | Includes 113,751 unvested performance-based RSUs. |
Summary of Stock Options Grante
Summary of Stock Options Granted (Details) | 3 Months Ended |
Apr. 03, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options Granted | 41,000 |
Options Forfeited | 10,000 |
Options Outstanding | 29,000 |
Options Exercisable | 2,000 |
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 | 6,000 |
Options Exercisable | 2,000 |
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 |
January 28, 2021 [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options Granted | 18,000 |
Option Exercise(Strike) Price | $ / shares | $ 55.30 |
Options Outstanding | 18,000 |
Date of Grant | Jan. 28, 2021 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ 607,790 | $ 577,636 |
Ending Balance | 625,280 | 551,635 |
Unrealized Gains and (Losses) on Derivative Instruments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (5,922) | (5,372) |
Other comprehensive income (loss) before reclassifications | 3,019 | (4,423) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (809) | 394 |
Tax effect | (505) | 1,828 |
Net current period other comprehensive income (loss) | 1,705 | (2,201) |
Ending Balance | (4,217) | (7,573) |
Foreign Currency Items [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (28,418) | (49,992) |
Other comprehensive income (loss) before reclassifications | (11,562) | (5,950) |
Tax effect | 2,444 | 1,049 |
Net current period other comprehensive income (loss) | (9,118) | (4,901) |
Ending Balance | (37,536) | (54,893) |
Accumulated other comprehensive income (loss) [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (34,340) | (55,364) |
Other comprehensive income (loss) before reclassifications | (8,543) | (10,373) |
Amounts reclassified from accumulated other comprehensive loss, net of tax | (809) | 394 |
Tax effect | 1,939 | 2,877 |
Net current period other comprehensive income (loss) | (7,413) | (7,102) |
Ending Balance | $ (41,753) | $ (62,466) |
Segment Reporting (Details Text
Segment Reporting (Details Textual) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021USD ($)Segment | Mar. 28, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Amortization of intangible assets | $ 10,198 | $ 4,348 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Unallocated costs | 11,745 | |
Corporate costs not deemed allocable to either business segment | $ 1,547 |
Segment Reporting (Details 1)
Segment Reporting (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Jan. 02, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 204,844 | $ 129,483 | |
Operating income | 34,608 | (10,033) | |
Capital expenditures | 5,036 | 2,937 | |
Total assets | 1,311,548 | $ 1,296,979 | |
Operating Segments [Member] | Hydraulics [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 119,106 | 103,818 | |
Operating income | 28,073 | 21,482 | |
Capital expenditures | 2,635 | 2,394 | |
Total assets | 762,063 | 765,155 | |
Operating Segments [Member] | Electronics [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 85,738 | 25,665 | |
Operating income | 18,280 | 4,778 | |
Capital expenditures | 2,401 | 543 | |
Total assets | 541,834 | 523,502 | |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | (11,745) | $ (36,293) | |
Total assets | $ 7,651 | $ 8,322 |
Segment Reporting (Details 2)
Segment Reporting (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Jan. 02, 2021 | |
Net sales | |||
Net sales | $ 204,844 | $ 129,483 | |
Tangible long-lived assets | |||
Tangible long-lived assets | 145,183 | $ 146,561 | |
Americas [Member] | |||
Net sales | |||
Net sales | 99,341 | 58,950 | |
Tangible long-lived assets | |||
Tangible long-lived assets | 96,888 | 96,752 | |
EMEA [Member] | |||
Net sales | |||
Net sales | 52,602 | 35,971 | |
Tangible long-lived assets | |||
Tangible long-lived assets | 30,183 | 31,091 | |
APAC [Member] | |||
Net sales | |||
Net sales | 52,901 | $ 34,562 | |
Tangible long-lived assets | |||
Tangible long-lived assets | $ 18,112 | $ 18,718 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Jan. 02, 2021 | |
Related Party Transaction [Line Items] | |||
Due from entities | $ 389 | $ 528 | |
Due to entities | 736 | $ 421 | |
Inventory Transactions [Member] | |||
Related Party Transaction [Line Items] | |||
Total sales to entities | 749 | $ 414 | |
Total purchases from entities/related party | $ 2,107 | $ 999 |