Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Trading Symbol | npk | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Entity Registrant Name | NATIONAL PRESTO INDUSTRIES INC | |
Entity Central Index Key | 0000080172 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,995,045 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 61,735 | $ 56,847 |
Marketable securities | 97,767 | 134,598 |
Accounts receivable, net | 36,511 | 52,372 |
Inventories: | ||
Finished goods | 26,169 | 28,791 |
Work in process | 67,690 | 59,580 |
Raw materials | 6,309 | 5,617 |
Total inventory | 100,168 | 93,988 |
Assets held for sale | 375 | |
Notes receivable, current | 7,245 | 7,213 |
Other current assets | 6,850 | 6,869 |
Total current assets | 310,276 | 352,262 |
PROPERTY, PLANT AND EQUIPMENT: | ||
PROPERTY, PLANT AND EQUIPMENT | 98,601 | 96,094 |
Less allowance for depreciation | 57,900 | 56,951 |
PROPERTY, PLANT AND EQUIPMENT, NET | 40,701 | 39,143 |
GOODWILL | 11,485 | 11,485 |
INTANGIBLE ASSETS, net | 1,000 | 1,000 |
NOTES RECEIVABLE | 7,019 | 6,966 |
RIGHT-OF-USE LEASE ASSETS | 3,832 | |
DEFERRED INCOME TAXES | 1,069 | 1,088 |
OTHER ASSETS | 1,159 | 1,674 |
Total assets | 376,541 | 413,618 |
CURRENT LIABILITIES: | ||
Accounts payable | 26,510 | 34,100 |
Federal and state income taxes | 3,113 | 1,384 |
Lease liabilities | 539 | |
Accrued liabilities | 12,417 | 12,011 |
Total current liabilities | 42,579 | 47,495 |
LEASE LIABILITIES - NON-CURRENT | 3,293 | |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock, $1 par value: Authorized: 12,000,000 shares; Issued: 7,440,518 shares | 7,441 | 7,441 |
Paid-in capital | 10,692 | 10,360 |
Retained earnings | 326,574 | 362,709 |
Accumulated other comprehensive income | 90 | 21 |
Stockholders' equity before treasury stock | 344,797 | 380,531 |
Less treasury stock, at cost | 14,128 | 14,408 |
Total stockholders' equity | 330,669 | 366,123 |
Total liabilities and stockholders' equity | $ 376,541 | $ 413,618 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 7,440,518 | 7,440,518 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Net sales | $ 63,850,000 | $ 76,826,000 |
Cost of sales | 51,358,000 | 56,549,000 |
Gross profit | 12,492,000 | 20,277,000 |
Selling and general expenses | 6,444,000 | 6,151,000 |
Intangibles amortization | 745,000 | |
Operating profit | 6,048,000 | 13,381,000 |
Other income | 1,632,000 | 895,000 |
Earnings from continuing operations before provision for income taxes | 7,680,000 | 14,276,000 |
Provision for income taxes from continuing operations | 1,729,000 | 3,282,000 |
Earnings from continuing operations | 5,951,000 | 10,994,000 |
Loss from discontinued operations, net of tax | 8,000 | |
Net earnings | $ 5,951,000 | $ 10,986,000 |
Weighted average common shares outstanding: | ||
Basic and diluted | 7,014 | 6,999 |
Earnings per share, basic and diluted: | ||
From continuing operations | $ 0.85 | $ 1.57 |
From discontinued operations | 0 | 0 |
Net earnings per share | $ 0.85 | $ 1.57 |
Other comprehensive income, net of tax: | ||
Unrealized gain on available-for-sale securities | $ 69,000 | $ 44,000 |
Comprehensive income | $ 6,020,000 | $ 11,030,000 |
Cash dividends declared and paid per common share | $ 6 | $ 6 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Cash flows from operating activities: | ||
Net earnings | $ 5,951 | $ 10,986 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Provision for depreciation | 949 | 1,052 |
Intangibles amortization | 745 | |
Non-cash retirement plan expense | 185 | 201 |
Other | 69 | 114 |
Changes in operating accounts: | ||
Accounts receivable | 15,638 | 21,660 |
Inventories | (6,180) | 3,059 |
Other assets and current assets | 534 | 256 |
Accounts payable and accrued liabilities | (7,184) | 657 |
Federal and state income taxes receivable/payable | 1,708 | 3,236 |
Net cash provided by operating activities | 11,670 | 41,966 |
Cash flows from investing activities: | ||
Marketable securities purchased | (46,345) | (51,583) |
Marketable securities - maturities and sales | 83,264 | 63,313 |
Purchase of property, plant and equipment | (2,507) | (1,790) |
Proceeds from insurnace settlement | 598 | 1,925 |
Net cash provided by investing activities | 35,010 | 11,865 |
Cash flows from financing activities: | ||
Dividends paid | (42,087) | (41,989) |
Proceeds from sale of treasury stock | 518 | 528 |
Other | (223) | (6) |
Net cash used in financing activities | (41,792) | (41,467) |
Net increase in cash and cash equivalents | 4,888 | 12,364 |
Cash and cash equivalents at beginning of year | 56,847 | 11,222 |
Cash and cash equivalents at end of year | $ 61,735 | $ 23,586 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2017 | $ 7,441 | $ 9,074 | $ 364,757 | $ (86) | $ (14,810) | $ 366,376 |
Balance, shares at Dec. 31, 2017 | 6,968 | |||||
Net earnings | 10,986 | 10,986 | ||||
Unrealized gain on available-for-sale securities | 44 | 44 | ||||
Dividends paid | (41,989) | (41,989) | ||||
Other | 566 | 275 | 841 | |||
Other, shares | 9 | |||||
Balance at Apr. 01, 2018 | $ 7,441 | 9,640 | 333,754 | (42) | (14,535) | 336,258 |
Balance, shares at Apr. 01, 2018 | 6,977 | |||||
Balance at Dec. 31, 2018 | $ 7,441 | 10,360 | 362,709 | 21 | (14,408) | 366,123 |
Balance, shares at Dec. 31, 2018 | 6,981 | |||||
Net earnings | 5,951 | 5,951 | ||||
Unrealized gain on available-for-sale securities | 69 | 69 | ||||
Dividends paid | (42,087) | (42,087) | ||||
Other | 332 | 1 | 280 | 613 | ||
Other, shares | 14 | |||||
Balance at Mar. 31, 2019 | $ 7,441 | $ 10,692 | $ 326,574 | $ 90 | $ (14,128) | $ 330,669 |
Balance, shares at Mar. 31, 2019 | 6,995 |
Consolidated Statements Of St_2
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Regular dividends per share paid | $ 1 | $ 1 |
Extra dividends per share paid | $ 5 | $ 5 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | NOTE A – BASIS OF PRESENTATION The consolidated interim financial statements included herein are unaudited and have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). In the opinion of management of the Company, the consolidated interim financial statements reflect all the adjustments which were of a normal recurring nature necessary for a fair presentation of the results of the interim periods. The condensed consolidated balance sheet as of December 31, 2018 is summarized from audited consolidated financial statements, but does not include all the disclosures contained therein and should be read in conjunction with the 2018 Annual Report on Form 10-K. Interim results for the period are not indicative of those for the year. On January 3, 2017, the Company and its wholly-owned subsidiary, Presto Absorbent Products, Inc. (“PAPI”), entered into an asset purchase agreement wherein substantially all PAPI assets were sold and certain liabilities were assigned to Drylock Technologies, LTD. (“Drylock”) in exchange for $68,448,000 . The proceeds amount differs from the amount originally disclosed because of the customary post-closing adjustments that were finalized during the second quarter of 2017, totaling $1,448,000 . The asset purchase agreement also provided for additional proceeds of $4,000,000 upon the sale of certain delayed assets, consisting of machinery and equipment that were the subject of an involuntary conversion. The sale of the delayed assets was consummated during the second quarter of 2018 and resulted in no gain or loss. As a result of aforementioned transactions, the Company classified its results of operations for all periods presented to reflect its Absorbent Products business as a discontinued operation and classified the assets and liabilities of its Absorbent Products business as held for sale. See Note K for further discussion. |
Reclassifications
Reclassifications | 3 Months Ended |
Mar. 31, 2019 | |
Reclassifications [Abstract] | |
Reclassifications | NOTE B – RECLASSIFICATIONS Certain reclassifications have been made to the prior periods’ financial statements to conform to the current period’s financial statement presentation. These reclassifications did not affect net earnings or stockholders’ equity as previously reported. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2019 | |
Revenues [Abstract] | |
Revenues | NOTE C – REVENUES The Company’s revenues are derived from short-term contracts and programs that are typically completed within 3 to 24 months and are recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers . The Company’s contracts each contain one or more performance obligations: the physical delivery of distinct ordered product or products. The Company provides an assurance type product warranty on its products to the original owner. In addition, for the Housewares/Small Appliances segment, the Company estimates returns of seasonal products and returns of newly introduced products sold with a return privilege. Stand-alone selling prices are set forth in each contract and are used to allocate revenue to the corresponding performance obligations. For the Housewares/Small Appliances segment, contracts include variable consideration, as the prices are subject to customer allowances, which principally consist of allowances for cooperative advertising, defective product, and trade discounts. Customer allowances are generally allocated to the performance obligations based on budgeted rates agreed upon with customers, as well as historical experience, and yield the Company’s best estimate of the expected value for the variable consideration. The Company's contracts in the Defense segment are primarily with the U.S. Department of Defense (DOD) and DOD prime contractors. As a consequence, this segment's business essentially depends on the product needs and governmental funding of the DOD. Substantially all of the work performed by the Defense segment directly or indirectly for the DOD is performed on a fixed-price basis. Under fixed-price contracts, the price paid to the contractor is awarded based on competition at the outset of the contract and therefore, with the exception of limited escalation provisions on specific materials, is generally not subject to any adjustments reflecting the actual costs incurred by the contractor. Revenue is recognized at a point in time. For the Housewares/Small Appliance segment, revenue is generally recognized as the completed, ordered product is shipped to the customer from the Company’s warehouses. For the relatively few situations in which revenue should be recognized when product is received by the customer, the Company adjusts revenue accordingly. For the Defense segment, revenue is recognized when the customer has legal title and formally documents that it has accepted the products. In some situations, the customer may obtain legal title and accept the products at the Company’s facilities, arranging for transportation at a later date, typically in one to four weeks. The Company does not consider the short-term storage of the customer owned products to be a material performance obligation, and no part of the transaction price is allocated to it. The timing of revenue recognition, billings, and cash collections results in billed accounts receivable, and customer advances and deposits (contract liabilities) on the Company’s Condensed Consolidated Balance Sheets. For the Defense segment, the Company occasionally receives advances or deposits from certain customers before revenue is recognized, resulting in contract liabilities. These advances or deposits do not represent a significant financing component. As of March 31, 2019 and December 31, 2018, $8,547,000 and $9,579,000 , respectively, of contract liabilities were included in Accounts Payable on the Company’s Condensed Consolidated Balance Sheets. The Company recognized revenue of $1,067,000 during the three-month period ended March 31, 2019 that was included in the Defense segment contract liability at the beginning of that period. The Company monitors its estimates of variable consideration, which includes customer allowances for cooperative advertising, defective product, and trade discounts, and returns of seasonal and newly introduced product, all of which pertain to the Housewares/Small Appliances segment, and periodically makes cumulative adjustments to the carrying amounts of these contract liabilities as appropriate. During the three month periods ended March 31, 2019 and April 1, 2018, there were no material adjustments to the aforementioned estimates. There were no amounts of revenue recognized during the same periods related to performance obligations satisfied in a previous period. The portion of contract transaction prices allocated to unsatisfied performance obligations, also known as the contract backlog, in the Company’s Defense segment were $345,399,000 and $333,592,000 as of March 31, 2019 and December 31, 2018, respectively. The Company anticipates that the unsatisfied performance obligations will be fulfilled in an 18 to 24 -month period. The performance obligations in the Housewares/Small Appliances segment have original expected durations of less than one year. The Company’s principal sources of revenue are derived from two segments: Housewares/Small Appliance and Defense, as shown in Note E. Management utilizes the performance measures by segment to evaluate the financial performance of and make operating decisions for the Company. |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Net Earnings Per Share [Abstract] | |
Net Earnings Per Share | NOTE D – EARNINGS PER SHARE Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share also includes the dilutive effect of additional potential common shares issuable. Unvested stock awards, which contain non-forfeitable rights to dividends whether paid or unpaid (“participating securities”), are included in the number of shares outstanding for both basic and diluted earnings per share calculations. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2019 | |
Business Segments [Abstract] | |
Business Segments | NOTE E – BUSINESS SEGMENTS In the following summary, operating profit represents earnings before other income and income taxes. The Company's segments operate discretely from each other with no shared manufacturing facilities. Costs associated with corporate activities (such as cash and marketable securities management) and the assets associated with such activities are included within the Housewares/Small Appliances segment for all periods presented. (in thousands) Housewares / Small Appliance Defense Assets Held for Sale Total Quarter ended March 31, 2019 External net sales $ 19,709 $ 44,141 $ $ 63,850 Gross profit 2,184 10,308 12,492 Operating profit (loss) (1,529) 7,577 6,048 Total assets 240,490 136,051 - 376,541 Depreciation and amortization 367 582 949 Capital expenditures 229 2,278 2,507 Quarter ended April 1, 2018 External net sales $ 16,057 $ 60,769 $ $ 76,826 Gross profit 1,899 18,378 20,277 Operating profit (loss) (875) 14,256 13,381 Total assets 231,875 149,399 4,417 385,691 Depreciation and amortization 336 1,461 1,797 Capital expenditures 1,709 81 1,790 |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | NOTE F - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company utilizes the methods of fair value as described in Financial Accounting Standard Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures, to value its financial assets and liabilities. ASC 820 utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying amounts for cash and cash equivalents, accounts receivable, notes receivable, accounts payable, and accrued liabilities approximate fair value due to the immediate or short-term maturity of these financial instruments. |
Cash, Cash Equivalents And Mark
Cash, Cash Equivalents And Marketable Securities | 3 Months Ended |
Mar. 31, 2019 | |
Cash, Cash Equivalents And Marketable Securities [Abstract] | |
Cash, Cash Equivalents And Marketable Securities | NOTE G - CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES The Company considers all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents. Cash equivalents include money market funds. The Company deposits its cash in high quality financial institutions. The balances, at times, may exceed federally insured limits. Money market funds are reported at fair value determined using quoted prices in active markets for identical securities (Level 1, as defined by FASB ASC 820). The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at estimated fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity. Highly liquid, tax-exempt variable rate demand notes with put options exercisable in three months or less are classified as marketable securities. At March 31, 2019 and December 31, 2018, cost for marketable securities was determined using the specific identification method. A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the periods presented is shown in the following table. All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable. (In Thousands) MARKETABLE SECURITIES Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses March 31, 2019 Tax-exempt Municipal Bonds $ 47,700 $ 47,814 $ 120 $ 6 Variable Rate Demand Notes 49,953 49,953 - - Total Marketable Securities $ 97,653 $ 97,767 $ 120 $ 6 December 31, 2018 Tax-exempt Municipal Bonds $ 40,156 $ 40,182 $ 44 $ 18 Variable Rate Demand Notes 94,416 94,416 - - Total Marketable Securities $ 134,572 $ 134,598 $ 44 $ 18 Proceeds from maturities and sales of available-for-sale securities totaled $ 83,264,000 and $ 63,313,000 for the three month periods ended March 31, 2019 and April 1, 2018, respectively. There were no gross gains or losses related to sales of marketable securities during the same periods. Net unrealized gains included in other comprehensive income were $ 88,000 and $ 55,000 before taxes for the three month periods ended March 31, 2019 and April 1, 2018, respectively. No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods. The contractual maturities of the marketable securities held at March 3 1 , 201 9 are as follows: $27,644,000 within one year; $ 27,242,000 beyond one year to five years; $ 6,503,000 beyond five years to ten years, and $ 36,378,000 beyond ten years. All of the instruments in the beyond five year ranges are variable rate demand notes which can be tendered for cash at par plus interest within seven days. Despite the stated contractual maturity date, to the extent a tender is not honored, the notes become immediately due and payable. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets [Abstract] | |
Other Assets | NOTE H – OTHER ASSETS Other Assets includes prepayments that are made from time to time by the Company for certain materials used in the manufacturing process in the Housewares/Small Appliances segment. The Company expects to utilize the prepayments and related materials over an estimated period of up to two years. As of March 31, 2019 and December 31, 2018, $6,349,000 and $6,864,000 of such prepayments, respectively, remained unused and outstanding. At both March 31, 2019 and December 31, 2018, $5,190,000 of these amounts were included in Other Current Assets, representing the Company’s best estimate of the expected utilization of the prepayments and related materials during the twelve-month periods following those dates. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE I – LEASES The Company accounts for leases under ASC Topic 842, Leases , which was adopted on January 1, 2019. The Company’s leasing activities include roles as both lessee and lessor. As lessee, the Company’s primary leasing activities include buildings and structures to support its manufacturing operations at one location in its Defense segment, and warehouse space and equipment to support its distribution center operations in its Housewares/Small Appliances segment. As lessor, the Company’s primary leasing activity is comprised of manufacturing and office space located adjacent to its corporate offices. All of the Company’s leases are classified as operating leases. The Company’s leases as lessee in its Defense segment provide for variable lease payments that are based on changes in the Consumer Price Index. As lessor, the Company’s primary lease also provides for variable lease payments that are based on changes in the Consumer Price Index, as well as on increases in costs of insurance, real estate taxes, and utilities related to the leased space. Generally, all of the Company’s lease contracts provide for options to extend and terminate them. The majority of lease terms of the Company’s lease contracts reflect extension options, while none reflect termination options. The Company has determined that the rates implicit in its leases are not readily determinable and estimates its incremental borrowing rates utilizing quotes from financial institutions for real estate and equipment, as applicable, over periods of time similar to the terms of its leases. The Company has entered into various short-term leases as lessee and has elected a non-recognition accounting policy, as permitted by ASC Topic 842 . Quarter Ending Summary of Lease Cost (in thousands) March 31, 2019 Operating lease cost $ 168 Sort-term and variable lease cost 23 Total lease cost $ 191 Operating cash used f o r operating leases was $191,000 for the quarter ended March 31, 2019. The weighted-average remaining lease term was 8.2 years, and the weighted-average discount rate was 5.5% as of March 31, 2019. Maturities of operating lease liabilities are as follows: Years ending December 31: (In thousands) 2019 (remaining nine months) $ 501 2020 655 2021 644 2022 648 2023 531 Thereafter 1,823 Total lease payments $ 4,802 Less: future interest expense 970 Lease liabilities $ 3,832 Lease income from operating lease payments for the quarter ended March 31, 2019 was $444,000 . Undiscounted cash flows provided by lease payments are expected as follows: Years ending December 31: (In thousands) 2019 (remaining nine months) $ 1,331 2020 1,761 2021 1,755 2022 1,755 2023 1,755 Thereafter 15,795 Total lease payments $ 24,152 The Company considers risk associated with the residual value of its leased real property to be low, given the nature of the long-term lease agreement, the Company’s ability to control the maintenance of the property, and the creditworthiness of the lessee. The residual value risk is further mitigated by the long-lived nature of the property, and the propensity of such assets to hold their value or, in some cases, appreciate in value. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | NOTE J – COMMITMENTS AND CONTINGENCIES The Company is involved in largely routine litigation incidental to its business. Management believes the ultimate outcome of the litigation will not have a material effect on the Company's consolidated financial position, liquidity, or results of operations. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | NOTE K – DISCONTINUED OPERATIONS On January 3, 2017, the Company and its wholly-owned subsidiary, Presto Absorbent Products, Inc. (“PAPI”), entered into an asset purchase agreement wherein substantially all PAPI assets were sold and certain liabilities were assigned to Drylock Technologies, LTD. (“Drylock”) in exchange for $68,448,000 . The proceeds amount differs from the amount originally disclosed because of the customary post-closing adjustments that were finalized during the second quarter of 2017, totaling $1,448,000 . The asset purchase agreement also provided for additional proceeds of $4,000,000 upon the sale of certain delayed assets, consisting of machinery and equipment that were the subject of an involuntary conversion. The sale of the delayed assets was consummated during the second quarter of 2018 and resulted in no gain or loss. As a result of the aforementioned transactions, the Company classified its results of operations for all periods presented to reflect its Absorbent Products business as a discontinued operation and classified the assets and liabilities of its Absorbent Products business as held for sale. The Company’s pre-tax gain on sale of $11,413,000 , net of one-time transaction costs, was recorded in 2017 within earnings from discontinued operations. This amount differs from the gain previously reported as a result of the post-closing adjustments mentioned above that were finalized in the second quarter of 2017. The following table summarizes the results of the Absorbent Products business within discontinued operations for each of the periods presented: Three Months Ended (Unaudited) (in thousands) March 31, 2019 April 1, 2018 Cost of sales - (11) Earnings (loss) from discontinued operations before provision for income taxes - (11) Provision for (benefit from) income taxes from discontinued operations - (3) Earnings (loss) from discontinued operations, net of tax $ - $ (8) The following table summarizes the major classes of assets and liabilities of the Absorbent Products business held for sale for each of the periods presented: (in thousands) March 31, 2019 (Unaudited) December 31, 2018 Accounts receivable, net $ - $ 375 Assets held for sale $ - $ 375 The Consolidated Statements of Cash Flows do not present the cash flows from discontinued operations separately from cash flows from continuing operations. Cash used in operating activities from discontinued operations was $0 and $353,000 for the three months ended March 31, 2019 and April 1, 2018, respectively. Cash provided by investing activities related to discontinued operations was $598,000 and $1,925,000 for the three months ended March 31, 2019 and April 1, 2018, respectively. In connection with the asset purchase agreement discussed above, the Company entered into a 10 -year lease agreement with Drylock for a portion of its manufacturing and warehouse facilities. The lease agreement provided for total annual payments of $1,288,000 initially. During the fourth quarter of 2018, the lease agreement was amended to incorporate additional facilities that the Company built for Drylock. The amended lease provides for an initial term of approximately 14 years, and allows for successive three -year renewal periods, as well as options to terminate the lease early after five and ten years. The amended lease also provides for adjustments to the rental payments based on certain price indices, taxes, and space occupied. The Company estimates that annual payments under the lease will total $1,755,000 . The Company also had entered into a transition services agreement with Drylock, which terminated at the end of 2017. The amounts received from Drylock for rental income are recorded in Other Income on the Consolidated Statements of Comprehensive Income. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Recently Issued Accounting Pronouncements [Abstract] | |
Recently Issued Accounting Pronouncements | NOTE L – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates the performance of Step 2 from the goodwill impairment test. In performing its annual or interim impairment testing, an entity will instead compare the fair value of the reporting unit with its carrying amount and recognize any impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The standard is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 provides guidance for estimating credit losses on certain types of financial instruments, including trade receivables, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. ASU 2016-13 also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance requires a modified retrospective transition method and early adoption is permitted. The Company is in the early stages of evaluating the impact of the adoption of ASU 2016-13 on its consolidated financial statements. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Segments [Abstract] | |
Summary Of Business Segments Information | (in thousands) Housewares / Small Appliance Defense Assets Held for Sale Total Quarter ended March 31, 2019 External net sales $ 19,709 $ 44,141 $ $ 63,850 Gross profit 2,184 10,308 12,492 Operating profit (loss) (1,529) 7,577 6,048 Total assets 240,490 136,051 - 376,541 Depreciation and amortization 367 582 949 Capital expenditures 229 2,278 2,507 Quarter ended April 1, 2018 External net sales $ 16,057 $ 60,769 $ $ 76,826 Gross profit 1,899 18,378 20,277 Operating profit (loss) (875) 14,256 13,381 Total assets 231,875 149,399 4,417 385,691 Depreciation and amortization 336 1,461 1,797 Capital expenditures 1,709 81 1,790 |
Cash, Cash Equivalents And Ma_2
Cash, Cash Equivalents And Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash, Cash Equivalents And Marketable Securities [Abstract] | |
Summary Of The Amortized Costs And Fair Values Of Marketable Securities | (In Thousands) MARKETABLE SECURITIES Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses March 31, 2019 Tax-exempt Municipal Bonds $ 47,700 $ 47,814 $ 120 $ 6 Variable Rate Demand Notes 49,953 49,953 - - Total Marketable Securities $ 97,653 $ 97,767 $ 120 $ 6 December 31, 2018 Tax-exempt Municipal Bonds $ 40,156 $ 40,182 $ 44 $ 18 Variable Rate Demand Notes 94,416 94,416 - - Total Marketable Securities $ 134,572 $ 134,598 $ 44 $ 18 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Lease Cost | Quarter Ending Summary of Lease Cost (in thousands) March 31, 2019 Operating lease cost $ 168 Sort-term and variable lease cost 23 Total lease cost $ 191 |
Summary of Operating Lease Liability Maturities | Years ending December 31: (In thousands) 2019 (remaining nine months) $ 501 2020 655 2021 644 2022 648 2023 531 Thereafter 1,823 Total lease payments $ 4,802 Less: future interest expense 970 Lease liabilities $ 3,832 |
Summary of Lease Income from Operating Lease Payments | Years ending December 31: (In thousands) 2019 (remaining nine months) $ 1,331 2020 1,761 2021 1,755 2022 1,755 2023 1,755 Thereafter 15,795 Total lease payments $ 24,152 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations [Abstract] | |
Results of discontinued operations and schedule of major classes of assets and liabilities | The following table summarizes the results of the Absorbent Products business within discontinued operations for each of the periods presented: Three Months Ended (Unaudited) (in thousands) March 31, 2019 April 1, 2018 Cost of sales - (11) Earnings (loss) from discontinued operations before provision for income taxes - (11) Provision for (benefit from) income taxes from discontinued operations - (3) Earnings (loss) from discontinued operations, net of tax $ - $ (8) The following table summarizes the major classes of assets and liabilities of the Absorbent Products business held for sale for each of the periods presented: (in thousands) March 31, 2019 (Unaudited) December 31, 2018 Accounts receivable, net $ - $ 375 Assets held for sale $ - $ 375 |
Basis Of Presentation (Narrativ
Basis Of Presentation (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jul. 01, 2018 | Jul. 02, 2017 | |
Basis Of Presentation [Abstract] | ||
Proceeds from sale | $ 4,000,000 | $ 68,448,000 |
Post-closing adjustments | $ 1,448,000 | |
Net loss (gain) and impairment on divestiture of businesses | $ 0 |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Dec. 31, 2018 | |
Housewares/ Small Appliances [Member] | |||
Change in estimate of variable consideration | $ 0 | $ 0 | |
Revenue recognized from performance obligations satisfied in a prior period | 0 | $ 0 | |
Defense [Member] | |||
Contract liabilities | 8,547,000 | $ 9,579,000 | |
Revenue recognized that was previously included in contract liability | 1,067,000 | ||
Unsatified performance obligations | $ 345,399,000 | $ 333,592,000 | |
Defense [Member] | Minimum [Member] | |||
Holding period following recognition of revenue | 7 days | ||
Defense [Member] | Maximum [Member] | |||
Holding period following recognition of revenue | 28 days |
Revenues (Timing Of Performance
Revenues (Timing Of Performance Obligation) (Narrative) (Details) - Defense [Member] - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-02 | Mar. 31, 2019 |
Minimum [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Fulfullment period of unsatisfied performance obligations | 18 months |
Maximum [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Fulfullment period of unsatisfied performance obligations | 24 months |
Business Segments (Schedule Of
Business Segments (Schedule Of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Apr. 01, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
External net sales | $ 63,850 | $ 76,826 | |
Gross profit | 12,492 | 20,277 | |
Operating profit | 6,048 | 13,381 | |
Total assets | 376,541 | 385,691 | $ 413,618 |
Depreciation and amortization | 949 | 1,797 | |
Capital expenditures | 2,507 | 1,790 | |
Housewares/ Small Appliances [Member] | |||
Segment Reporting Information [Line Items] | |||
External net sales | 19,709 | 16,057 | |
Gross profit | 2,184 | 1,899 | |
Operating profit | (1,529) | (875) | |
Total assets | 240,490 | 231,875 | |
Depreciation and amortization | 367 | 336 | |
Capital expenditures | 229 | 1,709 | |
Defense [Member] | |||
Segment Reporting Information [Line Items] | |||
External net sales | 44,141 | 60,769 | |
Gross profit | 10,308 | 18,378 | |
Operating profit | 7,577 | 14,256 | |
Total assets | 136,051 | 149,399 | |
Depreciation and amortization | 582 | 1,461 | |
Capital expenditures | $ 2,278 | 81 | |
Discontinued Operations Held-for-sale [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 4,417 |
Cash, Cash Equivalents And Ma_3
Cash, Cash Equivalents And Marketable Securities (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Apr. 01, 2018 | |
Cash, Cash Equivalents And Marketable Securities [Line Items] | ||
Proceeds from sales of available-for-sale securities | $ 83,264,000 | $ 63,313,000 |
Gross gains or losses related to sales of marketable securities | 0 | 0 |
Net unrealized gains (losses) included in accumulated other comprehensive income, before taxes | 88,000 | 55,000 |
Contractual maturities of marketable securities within 1 year | 27,644,000 | |
Contractual maturities of marketable securities, years 2-5 | 27,242,000 | |
Contractual maturities of marketable securities, years 6-10 | 6,503,000 | |
Contractual maturities of marketable securities, after 10 years | $ 36,378,000 | |
Marketable securities liquidation period | 7 days | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Cash, Cash Equivalents And Marketable Securities [Line Items] | ||
Reclassification out of AOCI | $ 0 | $ 0 |
Cash, Cash Equivalents And Ma_4
Cash, Cash Equivalents And Marketable Securities (Summary Of The Amortized Costs And Fair Values Of Marketable Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
MARKETABLE SECURITIES, Amortized Cost | $ 97,653 | $ 134,572 |
MARKETABLE SECURITIES, Fair Value | 97,767 | 134,598 |
MARKETABLE SECURITIES, Gross Unrealized Gains | 120 | 44 |
MARKETABLE SECURITIES, Gross Unrealized Losses | 6 | 18 |
Tax-Exempt Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
MARKETABLE SECURITIES, Amortized Cost | 47,700 | 40,156 |
MARKETABLE SECURITIES, Fair Value | 47,814 | 40,182 |
MARKETABLE SECURITIES, Gross Unrealized Gains | 120 | 44 |
MARKETABLE SECURITIES, Gross Unrealized Losses | 6 | 18 |
Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
MARKETABLE SECURITIES, Amortized Cost | 49,953 | 94,416 |
MARKETABLE SECURITIES, Fair Value | $ 49,953 | $ 94,416 |
Other Assets (Narrative) (Detai
Other Assets (Narrative) (Details) - Housewares/ Small Appliances [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Expected prepayment utilization period | 2 years | |
Other Assets [Member] | ||
Materials Prepayments | $ 6,349 | $ 6,864 |
Other Current Assets [Member] | ||
Materials Prepayments | $ 5,190 | $ 5,190 |
Leases (Narrative) (Detail)
Leases (Narrative) (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash used from operating leases | $ 191 |
Weighted-average remaining lease term | 8 years 2 months 12 days |
Weighted average discount rate | 5.50% |
Lease income from operating lease payments | $ 444 |
Leases (Summary of Lease Cost)
Leases (Summary of Lease Cost) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 168 |
Short-term and variable lease cost | 23 |
Total lease cost | $ 191 |
Leases (Summary of Maturities o
Leases (Summary of Maturities of Lease Liabilities) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining nine months) | $ 501 |
2020 | 655 |
2021 | 644 |
2022 | 648 |
2023 | 531 |
Thereafter | 1,823 |
Total lease payments | 4,802 |
Less: future interest expense | 970 |
Lease liabilities | $ 3,832 |
Leases (Summary of Lease Income
Leases (Summary of Lease Income from Operating Lease Payments) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining nine months) | $ 1,331 |
2020 | 1,761 |
2021 | 1,755 |
2022 | 1,755 |
2023 | 1,755 |
Thereafter | 15,795 |
Total lease payments | $ 24,152 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Jul. 01, 2018 | Apr. 01, 2018 | Jul. 02, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale | $ 4,000,000 | $ 68,448,000 | ||
Post-closing adjustments | 1,448,000 | |||
Cash provided by (used in) operating activities of discontinued operations | $ 0 | $ (353,000) | ||
Cash provided by (used in) investing activities related to discontinued operations | $ 598,000 | $ 1,925,000 | ||
Original lease agreement [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Term of lease | 10 years | |||
Amended lease agreement [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Term of lease | 14 years | |||
Lease renewal period | 3 years | |||
Discontinued Operations Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on divestiture, net | $ 0 | $ 11,413,000 | ||
Discontinued Operations Held-for-sale [Member] | Original lease agreement [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total annual lease payments | $ 1,288,000 | |||
Discontinued Operations Held-for-sale [Member] | Current twelve month estimate [Member] | Amended lease agreement [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total annual lease payments | $ 1,755,000 | |||
Minimum [Member] | Amended lease agreement [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Early termination term | 5 years | |||
Maximum [Member] | Amended lease agreement [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Early termination term | 10 years |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Results) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Jul. 01, 2018 | Apr. 01, 2018 | Jul. 02, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | $ 63,850,000 | $ 76,826,000 | ||
Cost of sales | (51,358,000) | (56,549,000) | ||
Selling and general expenses | (6,444,000) | (6,151,000) | ||
Other income | $ 1,632,000 | 895,000 | ||
Earnings (loss) from discontinued operations, net of tax | (8,000) | |||
Discontinued Operations Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cost of sales | (11,000) | |||
Gain on divestiture, net | $ 0 | $ 11,413,000 | ||
Earnings (loss) from discontinued operations before provision for income taxes | (11,000) | |||
Provision for (benefit from) income taxes from discontinued operations | (3,000) | |||
Earnings (loss) from discontinued operations, net of tax | $ (8,000) |
Discontinued Operations (Summ_2
Discontinued Operations (Summary of Major Classes of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 36,511 | $ 52,372 |
Inventories | 100,168 | 93,988 |
Property, Plant and equipment, net | 40,701 | 39,143 |
Accounts payable | 26,510 | 34,100 |
Accrued liabilities | $ 12,417 | 12,011 |
Discontinued Operations Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 375 | |
Assets held for sale | $ 375 |