Helios (HLIO) 10-Q 8 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 01, 2016	Oct. 28, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	SUN HYDRAULICS CORP
Entity Central Index Key	1,024,795
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Oct. 1, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	SNHY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		26,931,821

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 110,022	$ 81,932
Restricted cash	39	44
Accounts receivable, net of allowance for doubtful accounts of $163 and $184	17,701	13,531
Inventories	12,530	13,047
Income taxes receivable	509	123
Deferred income taxes	469	460
Short-term investments	33,858	44,174
Other current assets	3,397	3,707
Total current assets	178,525	157,018
Property, plant and equipment, net	71,235	74,121
Goodwill	4,912	4,988
Other assets	6,830	5,413
Total assets	261,502	241,540
Current liabilities:
Accounts payable	5,536	4,422
Accrued expenses and other liabilities	5,203	4,849
Dividends payable	2,424	2,411
Total current liabilities	13,163	11,682
Deferred income taxes	8,919	7,411
Other noncurrent liabilities	0	260
Total liabilities	22,082	19,353
Commitments and contingencies	0	0
Shareholders' equity:
Preferred stock, 2,000,000 shares authorized, par value $0.001, no shares outstanding	0	0
Common stock, 50,000,000 shares authorized, par value $0.001, 26,925,940 and 26,786,518 shares outstanding	27	27
Capital in excess of par value	88,664	82,265
Retained earnings	161,791	149,938
Accumulated other comprehensive income (loss)	(11,062)	(10,043)
Total shareholders' equity	239,420	222,187
Total liabilities and shareholders' equity	$ 261,502	$ 241,540

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts, accounts receivable	$ 163	$ 184
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	50,000,000	50,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares outstanding	26,925,940	26,786,518

Consolidated Statements of Oper

Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Sep. 26, 2015	Oct. 01, 2016	Sep. 26, 2015
Income Statement [Abstract]
Net sales	$ 45,232	$ 48,036	$ 147,069	$ 156,438
Cost of sales	29,692	29,536	93,035	95,140
Gross profit	15,540	18,500	54,034	61,298
Selling, engineering and administrative expenses	8,297	7,463	24,461	22,077
Operating income	7,243	11,037	29,573	39,221
Interest (income) expense, net	(298)	(361)	(1,056)	(1,021)
Foreign currency transaction (gain) loss, net	(46)	(140)	(311)	(839)
Miscellaneous (income) expense, net	30	(1,005)	594	(793)
Income before income taxes	7,557	12,543	30,346	41,874
Income tax provision	2,568	4,133	10,160	13,839
Net income	$ 4,989	$ 8,410	$ 20,186	$ 28,035
Basic net income per common share	$ 0.19	$ 0.32	$ 0.75	$ 1.05
Weighted average basic shares outstanding	26,923	26,695	26,879	26,662
Diluted net income per common share	$ 0.19	$ 0.32	$ 0.75	$ 1.05
Weighted average diluted shares outstanding	26,923	26,695	26,879	26,662
Dividends declared per share	$ 0.090	$ 0.090	$ 0.310	$ 0.360

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Sep. 26, 2015	Oct. 01, 2016	Sep. 26, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 4,989	$ 8,410	$ 20,186	$ 28,035
Other comprehensive income (loss)
Foreign currency translation adjustments, net of tax	321	(2,007)	(1,871)	(4,366)
Unrealized gain (loss) on available-for-sale securities, net of tax	199	(521)	852	(669)
Total other comprehensive income (loss)	520	(2,528)	(1,019)	(5,035)
Comprehensive income	$ 5,509	$ 5,882	$ 19,167	$ 23,000

Consolidated Statement of Chang

Consolidated Statement of Changes in Shareholders' Equity (unaudited) - 9 months ended Oct. 01, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Preferred stock	Common stock	Capital in excess of par value	Retained earnings	Accumulated other comprehensive income (loss)
Beginning Balance at Jan. 02, 2016	$ 222,187	$ 0	$ 27	$ 82,265	$ 149,938	$ (10,043)
Beginning Balance, Shares at Jan. 02, 2016		0	26,786
Shares issued, Restricted Stock	0
Shares issued, Restricted Stock, Shares			43
Shares issued, other compensation	0
Shares issued, other compensation, Shares			19
Shares issued, ESPP	830			830
Shares issued, ESPP, Shares			27
Shares issued, shared distribution	1,679			1,679
Shares issued, shared distribution, Shares			51
Stock-based compensation	3,890			3,890
Dividends declared	(8,333)				(8,333)
Net income	20,186				20,186
Other comprehensive income (loss)	(1,019)					(1,019)
Ending Balance at Oct. 01, 2016	$ 239,420	$ 0	$ 27	$ 88,664	$ 161,791	$ (11,062)
Ending Balance, Shares at Oct. 01, 2016		0	26,926

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2016	Sep. 26, 2015
Cash flows from operating activities:
Net income	$ 20,186	$ 28,035
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,550	7,054
(Gain)Loss on disposal of assets	316	(1,086)
Provision (benefit) for deferred income taxes	998	100
Allowance for doubtful accounts	(21)	(14)
Stock-based compensation expense	3,890	2,975
(Increase) decrease in:
Accounts receivable	(4,149)	641
Inventories	517	2,341
Income taxes receivable	(386)
Other current assets	310	(48)
Other assets	(773)	435
Increase (decrease) in:
Accounts payable	1,114	156
Accrued expenses and other liabilities	2,033	914
Income taxes payable		(443)
Other noncurrent liabilities	(260)	(20)
Net cash provided by operating activities	31,325	41,040
Cash flows from investing activities:
Investment in licensed technology	(850)	(1,425)
Capital expenditures	(4,507)	(4,697)
Proceeds from dispositions of equipment	2	1,645
Purchases of short-term investments	(24,699)	(20,666)
Proceeds from sale of short-term investments	35,389	17,459
Net cash provided by (used in) investing activities	5,335	(7,684)
Cash flows from financing activities:
Proceeds from stock issued	830	772
Dividends to shareholders	(8,321)	(9,596)
Change in restricted cash	5	21
Net cash used in financing activities	(7,486)	(8,803)
Effect of exchange rate changes on cash and cash equivalents	(1,084)	(4,781)
Net increase (decrease) in cash and cash equivalents	28,090	19,772
Cash and cash equivalents, beginning of period	81,932	56,843
Cash and cash equivalents, end of period	110,022	76,615
Cash paid:
Income taxes	9,047	14,575
Supplemental disclosure of noncash transactions:
Common stock issued for shared distribution through accrued expenses and other liabilities	$ 1,679	$ 3,535

Basis of Presentation and Summa

Basis of Presentation and Summary of Business	9 Months Ended
	Oct. 01, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF BUSINESS	1. BASIS OF PRESENTATION AND SUMMARY OF BUSINESS Sun Hydraulics Corporation, and its wholly-owned subsidiaries, design, manufacture, and sell screw-in cartridge valves and manifolds used in hydraulic systems. The Company has facilities in the United States, the United Kingdom, Germany, South Korea, France, China, and India. Sun Hydraulics Corporation (“Sun Hydraulics”), with its main offices located in Sarasota, Florida, designs, manufactures, and sells its products primarily through distributors. Sun Hydraulik Holdings Limited (“Sun Holdings”), a wholly-owned subsidiary of Sun Hydraulics, was formed to provide a holding company for the European market operations; its wholly-owned subsidiaries are Sun Hydraulics Limited (a British corporation, “Sun Ltd.”) and Sun Hydraulik GmbH (a German corporation, “Sun GmbH”). Sun Ltd. operates a manufacturing and distribution facility located in Coventry, England, and Sun GmbH operates a manufacturing and distribution facility located in Erkelenz, Germany. Sun Hydraulics Korea Corporation (“Sun Korea”), a wholly-owned subsidiary of Sun Hydraulics, located in Incheon, South Korea, operates a manufacturing and distribution facility. In 2012, Sun Korea acquired Seungwon Solutions Corporation (“Seungwon”), also located in Incheon, South Korea, a component supplier to Sun Korea and third parties. Sun Hydraulics (France) (“Sun France”), a liaison office located in Bordeaux, France, is used to service the French market. Sun Hydraulics established Sun Hydraulics China Co. Ltd., a representative office in Shanghai in January 2011, to develop new business opportunities in the Chinese market. Sun Hydraulics (India), a liaison office in Bangalore, India, is used to develop new business opportunities in the Indian market. In 2011, Sun Hydraulics purchased the outstanding shares of High Country Tek, Inc. (“HCT”) it did not already own. HCT, now a wholly-owned subsidiary of Sun Hydraulics, is located in Nevada City, California, and designs and manufactures ruggedized electronic/hydraulic control solutions for mobile equipment markets. In 2013, Sun Hydraulics purchased the remaining 60% of WhiteOak Inc., which was merged into HCT. WhiteOak, designs and produces complementary electronic control products. 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 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, 2016, filed by Sun Hydraulics Corporation (together with its subsidiaries, the “Company”) with the Securities and Exchange Commission on March 1, 2016. In Management’s opinion, all adjustments necessary for a fair presentation of the Company’s financial statements are reflected in the interim periods presented. Operating results for the nine month period ended October 1, 2016, are not necessarily indicative of the results that may be expected for the period ending December 31, 2016.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Oct. 01, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Earnings per share The following table represents the computation of basic and diluted earnings per common share (in thousands, except per share data): Three Months Ended Nine Months Ended October 1, 2016 September 26, 2015 October 1, 2016 September 26, 2015 Net income $ 4,989 $ 8,410 $ 20,186 $ 28,035 Weighted average basic shares outstanding 26,923 26,695 26,879 26,662 Basic net income per common share $ 0.19 $ 0.32 $ 0.75 $ 1.05 Effect of dilutive stock options - - - - Weighted average diluted shares outstanding 26,923 26,695 26,879 26,662 Diluted net income per common share $ 0.19 $ 0.32 $ 0.75 $ 1.05

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Oct. 01, 2016
Share Based Compensation [Abstract]
STOCK-BASED COMPENSATION	3. STOCK-BASED COMPENSATION The Company’s 2006 Stock Option Plan (“2006 Plan”) provides for the grant of incentive stock options and nonqualified stock options for the purchase of up to an aggregate of 1,125,000 shares of the Company’s common stock by officers, employees and directors of the Company. Under the terms of the plan, incentive stock options may be granted to employees at an exercise price per share of not less than the fair value per common share on the date of the grant (not less than 110% of the fair value in the case of holders of more than 10% of the Company’s voting stock). Nonqualified stock options may be granted at the discretion of the Company’s Board of Directors. The maximum term of an option may not exceed 10 years, and options become exercisable at such times and in such installments as determined by the Board of Directors. No awards have been granted under the 2006 Plan. The Company’s 2011 Equity Incentive Plan (“2011 Plan”) provides for the grant of up to an aggregate of 1,000,000 shares of restricted stock, restricted share units, 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. The 2011 Plan was approved by the Company’s shareholders at the 2012 Annual Meeting. At October 1, 2016, 522,212 shares remained available to be issued through the 2011 Plan. Compensation cost is measured at the date of the grant and is recognized in earnings over the period in which the shares vest. Restricted stock expense for the nine months ended October 1, 2016 and September 26, 2015, totaled $3,051 and $2,159, respectively. The following table summarizes restricted stock activity from January 2, 2016, through October 1, 2016: Weighted average Number grant-date of shares (in thousands) fair value Nonvested balance at January 2, 2016 161 33.54 Granted 45 33.22 Vested (16 ) 36.41 Forfeitures (2 ) 34.22 Nonvested balance at October 1, 2016 188 33.21 The Company had $2,655 of total unrecognized compensation cost related to restricted stock awards granted under the 2011 Plan as of October 1, 2016. That cost is expected to be recognized over a weighted average period of 0.99 years. The Company maintains an Employee Stock Purchase Plan (“ESPP”), in which most employees are eligible to participate. Employees in the United States 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, under a separate plan, are granted an opportunity to purchase 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 ESPP. The ESPP authorizes the issuance, and the purchase by employees, of up to 1,096,875 shares of common stock through payroll deductions. No U.S. employee is allowed to buy more than $25 of common stock in any year, based on the market value of the common stock at the beginning of the purchase period, and no U.K. employee is allowed to buy more than the lesser of £1.5 or 10% of his or her annual salary in any year. Employees purchased 26,575 shares at a weighted average price of $25.99, and 23,607 shares at a weighted average price of $32.71, under the ESPP during the nine months ended October 1, 2016 and September 26, 2015, respectively. The Company recognized $221 and $159 of compensation expense during the nine months ended October 1, 2016 and September 26, 2015, respectively. At October 1, 2016, 592,765 shares remained available to be issued through the ESPP and the U.K. plan. In March 2012, the Board of Directors adopted the Sun Hydraulics Corporation 2012 Nonemployee Director Fees Plan (the “2012 Directors Plan”), which was approved by the shareholders of the Company at its 2012 annual meeting. Under the 2012 Directors Plan as initially adopted, as compensation for attendance at each Board meeting and each meeting of each committee of the Board on which he or she serves when the committee meeting is not held within one day of a meeting of the Board, each Nonemployee Director was paid 500 shares of Common Stock. The Chairman’s fee was twice that of a regular director, and the fee for the chairs of each Board Committee was 125% that of a regular director. In February 2015, the Board adopted amendments to the 2012 Directors Plan which revised the compensation for Nonemployee Directors. Each Nonemployee Director now receives an annual retainer of 2,000 shares of Common Stock. The Chairman’s retainer is twice that of a regular director, and the retainer for the chairs of each Board Committee is 150% that of a regular director. In addition, each Nonemployee Director receives 250 shares of Common Stock for attendance at each Board meeting and each meeting of each committee of the Board on which he or she serves when the committee meeting is not held within one day of a meeting of the Board. In June 2015, the Company's shareholders approved the amendments to the 2012 Directors Plan. The Board has the authority to change from time to time, in any manner it deems desirable or appropriate, the share compensation to be awarded to all or any one or more Nonemployee Directors, provided that, with limited exceptions, such changes are subject to prior shareholder approval. The aggregate number of shares which may be issued during any single calendar year is limited to 35,000 shares. The 2012 Directors Plan authorizes the issuance of up to 270,000 shares of common stock. At October 1, 2016, 180,749 shares remained available for issuance under the 2012 Directors Plan. Directors were granted 18,625 and 17,500 shares for the nine months ended October 1, 2016 and September 26, 2015, respectively. The Company recognized director stock compensation expense of $588 and $617 for the nine months ended October 1, 2016 and September 26, 2015, respectively.

Restricted Cash

Restricted Cash	9 Months Ended
	Oct. 01, 2016
Restricted Cash [Abstract]
RESTRICTED CASH	4. RESTRICTED CASH A restricted cash reserve for customs and excise taxes in the U.K. operation was $39 at October 1, 2016. The restricted amount was calculated as an estimate of two months of customs and excise taxes for items coming into the Company’s U.K. operations and is held with Lloyds TSB in the U.K.

Inventories

Inventories	9 Months Ended
	Oct. 01, 2016
Inventory Disclosure [Abstract]
INVENTORIES	5. INVENTORIES October 1, 2016 January 2, 2016 Raw materials $ 5,129 $ 5,555 Work in process 4,429 4,478 Finished goods 3,461 3,464 Provision for slow moving inventory (489 ) (450 ) Total $ 12,530 $ 13,047

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Oct. 01, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	6. GOODWILL AND INTANGIBLE ASSETS A summary of changes in goodwill at October 1, 2016 is as follows: Balance at January 2, 2016 $ 4,988 Acquisitions - Currency translation (76 ) Balance at October 1, 2016 $ 4,912 Valuation models reflecting the expected future cash flow projections are used to value reporting units. A valuation of the reporting unit at January 2, 2016 indicated that there was no impairment of the carrying value of the goodwill at Sun Korea. A valuation of the reporting unit at October 1, 2016 indicated that there was no impairment of the carrying value of the goodwill at HCT. The Company recognized $2,658 and $746 in identifiable intangible assets as a result of the acquisitions of HCT and WhiteOak, respectively. Intangible assets are held in other assets on the balance sheet. In 2014, the Company entered into a licensing agreement with Sturman Industries, Inc., recognizing intangible assets of $1,075 in 2014 and $1,425 in 2015, and $850 in the nine months ending October 1, 2016. The agreement is for licensed technology to be used with the Company's electrically actuated hydraulic cartridge valves. Royalties will be paid from the date of the first commercial sale and continue for fifteen years thereafter, or until the last related licensed patent expires, whichever is the later date. At October 1, 2016 and January 2, 2016, intangible assets consisted of the following: October 1, 2016 January 2, 2016 Gross carrying amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Definite-lived intangibles: Trade Name $ 774 $ (397 ) $ 377 $ 774 $ (340 ) $ 434 Non-compete Agreement 11 (11 ) - 11 (11 ) - Technology 935 (427 ) 508 935 (304 ) 631 Customer Relationships 1,751 (433 ) 1,318 1,751 (363 ) 1,388 Licensing Agreement 3,350 (315 ) 3,035 2,500 (140 ) 2,360 $ 6,821 $ (1,583 ) $ 5,238 $ 5,971 $ (1,158 ) $ 4,813 Total estimated amortization expense for the years 2017 through 2021 is presented below. The remaining amortization for 2016 is approximately $114. Year: 2017 486 2018 486 2019 486 2020 486 2021 486 Total $ 2,430 Intangible assets are evaluated for impairment whenever events or circumstances indicate that the undiscounted net cash flows to be generated by their use over their expected useful lives and eventual disposition may be less than their net carrying value. No such events or circumstances occurred during the nine months ended October 1, 2016.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Oct. 01, 2016
Long Term Debt [Abstract]
LONG-TERM DEBT	7. LONG-TERM DEBT On July 29, 2016 the Company entered into a new credit agreement (the “2016 Credit Agreement”), with PNC Bank, National Association (the “Bank”), as administrative agent, and the lenders party thereto. The 2016 Credit Agreement provides the Company with a revolving line of credit (“the Facility”) of up to $100 million that is available through July 29, 2021. The 2016 Credit Agreement includes an accordion feature to increase the revolving line of credit by up to an additional $75 million. Interest is payable quarterly for loans under the Base Rate Option (as defined), and interest is payable on the last day of the applicable Interest Period (as defined) (and, if such Interest Period is longer than three (3) Months, interest is also payable on the 90th day of such Interest Period) for loans under the Euro Rate Option (as defined) . The loans under the facility will bear interest at the Euro Rate (as defined) or the Base Rate (as defined), at the Company’s option, plus the Applicable Margin (as defined) based on the Borrower’s Leverage Ratio (as defined). The Applicable Margin ranges from 1.25% to 2.00% for the Euro Rate and ranges from 0.25% to 1.00% for the Base Rate. Subject to customary breakage fees for loans under the Euro Rate Option that are prepaid on a day other than the last day of the applicable Interest Period, prepayment may be made without penalty or premium at any time upon the required notice to the Bank. The 2016 Credit Agreement requires the Company (together with its subsidiaries) to comply with certain financial tests, including a minimum Interest Coverage Ratio (as defined) of 3.0 to 1.0 and a maximum Leverage Ratio (as defined) of 3.5 to 1.0. As of the date of this filing, the Company was in compliance with all debt covenants related to the Facility. The 2016 Credit Agreement also requires the Company to comply with a number of restrictive covenants. These covenants limit, in certain circumstances, the Company’s ability to take a variety of actions, including but not limited to: incur indebtedness; create or maintain liens on its property or assets; make investments, loans and advances; repurchase shares of its Common Stock; engage in acquisitions, mergers, joint ventures, consolidations and asset sales; and pay dividends and distributions. The 2016 Credit Agreement contains customary default provisions and has various non-financial covenants, both requiring the Company to refrain from taking certain future actions (as described above) and requiring the Company to take certain affirmative actions, such as maintaining its corporate existence, paying liabilities timely, maintaining insurance, and providing its bank lending group with financial information on a timely basis. Maturity of the Credit Facility may be accelerated by the Bank upon an Event of Default (as defined). The Company and certain of its subsidiaries agreed to take certain actions to secure borrowings under the 2016 Credit Agreement. As a result, (i) the Company entered into a Pledge Agreement with the Bank, for the benefit of the lenders, granting a security interest in certain equity ownership in certain of its subsidiaries to secure amounts borrowed under the 2016 Credit Agreement and (ii) the Company’s domestic subsidiary entered into a Guaranty Agreement guarantying payment and performance of the Company’s obligations under the 2016 Credit Agreement. The 2016 Credit Agreement incorporates sub-facilities for swing loans up to $15 million and issuance of letters of credit up to $5 million. Swing loans and letters of credit issued under the 2016 Credit Agreement decrease availability under the $100 million revolving line of credit. The Company did not have any amounts drawn on the 2016 Credit Agreement for the period ended October 1, 2016. The 2016 Credit Agreement replaced a credit and security agreement with Fifth Third Bank that had been in place since August 1, 2011 (the “Fifth Third Agreement”). The Fifth Third Agreement initially provided for three separate credit facilities totaling $50,000. These included a $15,000 unsecured revolving line of credit, an accordion feature to increase the revolving line of credit to a $35,000 secured revolving line of credit, and a $15,000 construction and term loan (originally obtained to provide financing for the construction of the Company’s third factory in Sarasota). The construction and term loan was never activated, nor did the Company make any borrowings under the other facilities provided by the Fifth Third Agreement. Accordingly, there were no amounts drawn under the Fifth Third Agreement for the periods ended October 1, 2016, and September 26, 2015. At October 1, 2016, the facilities with Fifth Third Bank are no longer available.

Income Taxes

Income Taxes	9 Months Ended
	Oct. 01, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	8. INCOME TAXES At October 1, 2016, the Company had an unrecognized tax benefit of $328 including accrued interest. If recognized, the unrecognized tax benefit would have a favorable effect on the effective tax rate in future periods. The Company recognizes interest and penalties related to income tax matters in income tax expense. Interest accrued as of October 1, 2016, is not considered material to the Company’s consolidated financial statements. The Company files U.S. federal income tax returns as well as income tax returns in various states and foreign jurisdictions. The Company is no longer subject to income tax examinations by tax authorities for years prior to 2007 for the majority of tax jurisdictions. The Company’s federal returns are currently under examination by the Internal Revenue Service (IRS) in the United States for the periods 2007 through 2012. To date, there have not been any significant proposed adjustments that have not been accounted for in the Company’s consolidated financial statements. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. It is reasonably possible that within the next twelve months the Company will resolve some or all of the matters presently under consideration for 2007 through 2012 with the IRS and that there could be significant increases or decreases to unrecognized tax benefits.

Segment Reporting

Segment Reporting	9 Months Ended
	Oct. 01, 2016
Segment Reporting [Abstract]
SEGMENT REPORTING	9. SEGMENT REPORTING The individual subsidiaries comprising the Company operate predominantly in a single industry as manufacturers and distributors of hydraulic components. Given the similar nature of products offered for sale, the type of customers, the methods of distribution and how the Company is managed, the Company determined that it has only one operating and reporting segment for both internal and external reporting purposes. Geographic Region Information: Net sales are measured based on the geographic destination of sales. Total and long-lived assets are shown based on the physical location of the assets. Long-lived assets primarily include net property, plant and equipment: Three months ended October 1, 2016 September 26, 2015 Net sales Americas 21,425 23,678 Europe/Africa/ME 13,960 15,578 Asia/Pacific 9,847 8,780 Total 45,232 48,036 YTD 2016 YTD 2015 Net sales Americas 69,541 75,507 Europe/Africa/ME 45,440 48,493 Asia/Pacific 32,088 32,438 Total 147,069 156,438 October 1, 2016 January 2, 2016 Total assets Americas 188,193 168,662 Europe/Africa/ME 56,458 56,720 Asia/Pacific 16,851 16,158 Total 261,502 241,540 Long-lived assets Americas 71,676 72,529 Europe/Africa/ME 6,671 7,923 Asia/Pacific 4,630 4,070 Total 82,977 84,522

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Oct. 01, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	10. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company applies fair value accounting guidelines for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Under these guidelines, fair value is defined as the price that would be received for the sale of an asset or paid to transfer a liability (i.e. an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3 - Unobservable inputs that are supported by little, infrequent, or no market activity and reflect the Company’s own assumptions about inputs used in pricing the asset or liability. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s valuation techniques used to measure the fair value of marketable equity securities and mutual funds were derived from quoted prices in active markets for identical assets or liabilities. The valuation techniques used to measure the fair value of all other financial instruments were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. The Company’s short-term investments have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designation at each balance sheet date. The Company may or may not hold securities with stated maturities greater than 12 months until maturity. As management views these securities as available to support current operations, the Company classifies securities with maturities beyond 12 months as current assets under the caption short-term investments in the accompanying Consolidated Balance Sheets. These investments are carried at fair value, with the unrealized gains and losses reported as a component of shareholder’s equity. Realized gains and losses on sales of investments are generally determined using the specific identification method, and are included in miscellaneous (income) expense in the Consolidated Statements of Operations. The following tables provide information regarding the Company’s assets and liabilities measured at fair value on a recurring basis at October 1, 2016 and January 2, 2016. October 1, 2016 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Assets Level 1: Equity securities - - - - Mutual funds 1,483 - (185 ) 1,298 Subtotal 1,483 - (185 ) 1,298 Level 2: Corporate fixed income 26,613 75 (478 ) 26,210 Municipal bonds 6,412 - (62 ) 6,350 Certificates of deposit and time deposits - - - - Asset backed securities - - - - Subtotal 33,025 75 (540 ) 32,560 Total 34,508 75 (725 ) 33,858 Liabilities Level 2: Phantom stock units $ 26 - - 26 Total $ 26 - - 26 January 2, 2016 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Assets Level 1: Equity securities 1,318 28 (36 ) 1,310 Mutual funds 2,611 1 (238 ) 2,374 Subtotal 3,929 29 (274 ) 3,684 Level 2: Corporate fixed income 35,936 8 (1,682 ) 34,262 Municipal bonds 2,897 - (94 ) 2,803 Certificates of deposit and time deposits 2,947 - - 2,947 Asset backed securities 498 - (20 ) 478 Subtotal 42,278 8 (1,796 ) 40,490 Total 46,207 37 (2,070 ) 44,174 Liabilities Level 2: Phantom stock units 17 - - 17 Total 17 - - 17 The Company recognized a net realized loss on investments during the nine months ended October 1, 2016 of $296 and a net realized loss of $241 during the nine months ended September 26, 2015. As of October 1, 2016, gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer were not significant. The Company considers these unrealized losses in market value of its investments to be temporary in nature. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. During the nine months ended October 1, 2016, the Company recognized an impairment charge of $276, which is included in the net realized loss for the period. There were no other-than-temporary impairments during the nine month periods ended September 26, 2015. Maturities of investments at October 1, 2016 are as follows: Adjusted Cost Fair Value Due in less than one year $ 18,199 $ 18,122 Due after one year but within five years 11,691 11,410 Due after five years but within ten years 1,801 1,758 Due after ten years 1,334 1,270 Total $ 33,025 $ 32,560 The Company reports phantom stock units as a liability. The Company recognized expense relating to this liability of $9 and $10, for the nine month periods ended October 1, 2016 and September 26, 2015, respectively. Phantom stock units vest over a period of three years. The Company did not have any fair value adjustments for assets and liabilities measured at fair value on a nonrecurring basis during the period ended October 1, 2016.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Oct. 01, 2016
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	11. ACCUMULATED OTHER COMPREHENSIVE INCOME Changes in Accumulated Other Comprehensive Income by Component Nine Months Ended October 1, 2016 Unrealized Gains and Losses on Available-for- Sale Securities Foreign Currency Items Total Balance at January 2, 2016 $ (1,262 ) $ (8,781 ) $ (10,043 ) Other comprehensive income (loss) before reclassifications 666 (1,871 ) (1,205 ) Amounts reclassified from accumulated other comprehensive income 186 - 186 Net current period other comprehensive income (loss) 852 (1,871 ) (1,019 ) Balance at October 1, 2016 $ (410 ) $ (10,652 ) $ (11,062 ) Reclassifications out of Accumulated Other Comprehensive Income Nine Months Ended October 1, 2016 Details about Accumulated Other Comprehensive Income Components Nine Months Ended October 1, 2016 Affected Line Item in the Consolidated Statements of Operations Unrealized gains and losses on available-for-sale securities Realized gain/(loss) on sale of securities $ (20 ) Miscellaneous (income) expense, net Other than temporary impairment (276 ) Miscellaneous (income) expense, net (296 ) Total before tax 110 Tax benefit $ (186 ) Net of tax Total reclassifications for the period $ (186 )

New Accounting Pronouncements

New Accounting Pronouncements	9 Months Ended
	Oct. 01, 2016
New Accounting Pronouncements And Changes In Accounting Principles [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	12. NEW ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued guidance on a new credit loss standard that replaces the incurred loss impairment methodology in current GAAP. The new impairment model requires immediate recognition of estimated credit losses expected to occur for most financial assets and certain other instruments. For available-for-sale debt securities with unrealized losses, the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. It is effective for annual reporting periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption for fiscal year beginning after December 15, 2018 is permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first effective reporting period. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued guidance on Compensation-Stock Compensation, Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of accounting for share-based payment awards. The effective date will be the first quarter of fiscal year 2017, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued guidance on Investments-Equity Method and Joint Ventures which eliminates the retroactive adjustments to an investment qualifying for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence by the investor. The effective date will be the first quarter of fiscal year 2017. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued guidance on Derivatives and Hedging which simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by clarifying that an exercise contingency does not need to be evaluated to determine whether it relates to interest rates and credit risk in an embedded derivative analysis. The effective date will be the first quarter of fiscal year 2017, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued guidance on Accounting for Leases, which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The guidance is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. The Company is currently evaluating the effects, if any, adoption of this guidance will have on the Company’s consolidated financial statements. In January 2016, the FASB issued guidance on changes to the accounting for financial instruments that primarily affect equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. This standard is effective in 2018 with certain provisions allowing for early adoption. The Company is currently evaluating the effects, if any, adoption of this guidance will have on the Company’s consolidated financial statements. In November 2015, the FASB issued guidance that requires all deferred tax assets and liabilities, along with any related valuation allowance, to be classified as noncurrent on the Consolidated Statement of Financial Position. Previous guidance requires the deferred taxes for each jurisdiction to be presented as a net current asset or liability and net noncurrent asset or liability. As a result of the new guidance, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The new guidance does not change the existing requirement that only permits offsetting deferred tax assets and liabilities within a single jurisdiction. The new guidance is effective January 1, 2017, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued guidance on Simplifying the Measurement of Inventory. The guidance requires inventory be measured at the lower of cost and net realizable value. Additionally, the guidance defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for reporting periods beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. The guidance should be applied prospectively. The Company does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. In August 2014, the FASB issued guidance on Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. The guidance requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. The guidance applies to all entities and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued guidance on Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. The core principle of the new guidance is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard provides a five-step analysis of transactions to determine when and how revenue is recognized. Additionally, the guidance requires disaggregated disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized. The guidance was originally to be effective for annual and interim periods beginning after December 15, 2016. The FASB has subsequently delayed this standard by one year. Early adoption is permitted as of the original effective date. The Company is currently evaluating the effects, if any, adoption of this guidance will have on the Company’s consolidated financial statements.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 01, 2016
Commitments And Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	13. COMMITMENTS AND CONTINGENCIES 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 Event

Subsequent Event	9 Months Ended
	Oct. 01, 2016
Subsequent Events [Abstract]
Subsequent Event	14. SUBSEQUENT EVENT On November 7, 2016, the Company entered into a Unit Purchase Agreement with Murphy Group, Inc., an Oklahoma corporation, and EControls Group, Inc., a Texas corporation, which together own a majority of the outstanding membership units of Enovation Controls, LLC, an Oklahoma-based company, to acquire all of the outstanding membership units of Enovation Controls, LLC and retain its Power Controls (PC) and Vehicle Technologies (VT) lines of business only. The acquisition has a potential value of $250 million, including initial consideration of $200 million and additional earn-out potential of $50 million. We expect to utilize a combination of existing cash and cash equivalents and proceeds from our existing revolving line of credit to effect this transaction. Enovation’s complementary products expand Sun’s complete system solution portfolio while developing product and end market diversification. The acquisition is subject to customary closing conditions and is expected to close in the fourth quarter of 2016. It is not currently practicable, based on the pending status of the acquisition, for us to disclose pro forma results of operations or financial position.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 01, 2016
Accounting Policies [Abstract]
Fair Value of Financial Instruments	The Company applies fair value accounting guidelines for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Under these guidelines, fair value is defined as the price that would be received for the sale of an asset or paid to transfer a liability (i.e. an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. Level 3 - Unobservable inputs that are supported by little, infrequent, or no market activity and reflect the Company’s own assumptions about inputs used in pricing the asset or liability. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s valuation techniques used to measure the fair value of marketable equity securities and mutual funds were derived from quoted prices in active markets for identical assets or liabilities. The valuation techniques used to measure the fair value of all other financial instruments were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data. The Company’s short-term investments have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designation at each balance sheet date. The Company may or may not hold securities with stated maturities greater than 12 months until maturity. As management views these securities as available to support current operations, the Company classifies securities with maturities beyond 12 months as current assets under the caption short-term investments in the accompanying Consolidated Balance Sheets. These investments are carried at fair value, with the unrealized gains and losses reported as a component of shareholder’s equity. Realized gains and losses on sales of investments are generally determined using the specific identification method, and are included in miscellaneous (income) expense in the Consolidated Statements of Operations.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Oct. 01, 2016
Accounting Policies [Abstract]
Computation of basic and diluted earnings per common share	The following table represents the computation of basic and diluted earnings per common share (in thousands, except per share data): Three Months Ended Nine Months Ended October 1, 2016 September 26, 2015 October 1, 2016 September 26, 2015 Net income $ 4,989 $ 8,410 $ 20,186 $ 28,035 Weighted average basic shares outstanding 26,923 26,695 26,879 26,662 Basic net income per common share $ 0.19 $ 0.32 $ 0.75 $ 1.05 Effect of dilutive stock options - - - - Weighted average diluted shares outstanding 26,923 26,695 26,879 26,662 Diluted net income per common share $ 0.19 $ 0.32 $ 0.75 $ 1.05

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Oct. 01, 2016
Share Based Compensation [Abstract]
Summary of restricted stock activity	The following table summarizes restricted stock activity from January 2, 2016, through October 1, 2016: Weighted average Number grant-date of shares (in thousands) fair value Nonvested balance at January 2, 2016 161 33.54 Granted 45 33.22 Vested (16 ) 36.41 Forfeitures (2 ) 34.22 Nonvested balance at October 1, 2016 188 33.21

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Oct. 01, 2016
Inventory Disclosure [Abstract]
Summary of inventories	October 1, 2016 January 2, 2016 Raw materials $ 5,129 $ 5,555 Work in process 4,429 4,478 Finished goods 3,461 3,464 Provision for slow moving inventory (489 ) (450 ) Total $ 12,530 $ 13,047

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Oct. 01, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of changes in goodwill	A summary of changes in goodwill at October 1, 2016 is as follows: Balance at January 2, 2016 $ 4,988 Acquisitions - Currency translation (76 ) Balance at October 1, 2016 $ 4,912
Schedule of intangible assets	At October 1, 2016 and January 2, 2016, intangible assets consisted of the following: October 1, 2016 January 2, 2016 Gross carrying amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Definite-lived intangibles: Trade Name $ 774 $ (397 ) $ 377 $ 774 $ (340 ) $ 434 Non-compete Agreement 11 (11 ) - 11 (11 ) - Technology 935 (427 ) 508 935 (304 ) 631 Customer Relationships 1,751 (433 ) 1,318 1,751 (363 ) 1,388 Licensing Agreement 3,350 (315 ) 3,035 2,500 (140 ) 2,360 $ 6,821 $ (1,583 ) $ 5,238 $ 5,971 $ (1,158 ) $ 4,813
Schedule of estimated amortization expense	Total estimated amortization expense for the years 2017 through 2021 is presented below. The remaining amortization for 2016 is approximately $114. Year: 2017 486 2018 486 2019 486 2020 486 2021 486 Total $ 2,430

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Oct. 01, 2016
Segment Reporting [Abstract]
Schedule of segment information	Long-lived assets primarily include net property, plant and equipment: Three months ended October 1, 2016 September 26, 2015 Net sales Americas 21,425 23,678 Europe/Africa/ME 13,960 15,578 Asia/Pacific 9,847 8,780 Total 45,232 48,036 YTD 2016 YTD 2015 Net sales Americas 69,541 75,507 Europe/Africa/ME 45,440 48,493 Asia/Pacific 32,088 32,438 Total 147,069 156,438 October 1, 2016 January 2, 2016 Total assets Americas 188,193 168,662 Europe/Africa/ME 56,458 56,720 Asia/Pacific 16,851 16,158 Total 261,502 241,540 Long-lived assets Americas 71,676 72,529 Europe/Africa/ME 6,671 7,923 Asia/Pacific 4,630 4,070 Total 82,977 84,522

Fair Value of Financial Instr28

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Oct. 01, 2016
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 October 1, 2016 and January 2, 2016. October 1, 2016 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Assets Level 1: Equity securities - - - - Mutual funds 1,483 - (185 ) 1,298 Subtotal 1,483 - (185 ) 1,298 Level 2: Corporate fixed income 26,613 75 (478 ) 26,210 Municipal bonds 6,412 - (62 ) 6,350 Certificates of deposit and time deposits - - - - Asset backed securities - - - - Subtotal 33,025 75 (540 ) 32,560 Total 34,508 75 (725 ) 33,858 Liabilities Level 2: Phantom stock units $ 26 - - 26 Total $ 26 - - 26 January 2, 2016 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Assets Level 1: Equity securities 1,318 28 (36 ) 1,310 Mutual funds 2,611 1 (238 ) 2,374 Subtotal 3,929 29 (274 ) 3,684 Level 2: Corporate fixed income 35,936 8 (1,682 ) 34,262 Municipal bonds 2,897 - (94 ) 2,803 Certificates of deposit and time deposits 2,947 - - 2,947 Asset backed securities 498 - (20 ) 478 Subtotal 42,278 8 (1,796 ) 40,490 Total 46,207 37 (2,070 ) 44,174 Liabilities Level 2: Phantom stock units 17 - - 17 Total 17 - - 17
Summary of maturities of marketable securities	Maturities of investments at October 1, 2016 are as follows: Adjusted Cost Fair Value Due in less than one year $ 18,199 $ 18,122 Due after one year but within five years 11,691 11,410 Due after five years but within ten years 1,801 1,758 Due after ten years 1,334 1,270 Total $ 33,025 $ 32,560

Accumulated Other Comprehensi29

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Oct. 01, 2016
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Changes in Accumulated Other Comprehensive Income by Component	Changes in Accumulated Other Comprehensive Income by Component Nine Months Ended October 1, 2016 Unrealized Gains and Losses on Available-for- Sale Securities Foreign Currency Items Total Balance at January 2, 2016 $ (1,262 ) $ (8,781 ) $ (10,043 ) Other comprehensive income (loss) before reclassifications 666 (1,871 ) (1,205 ) Amounts reclassified from accumulated other comprehensive income 186 - 186 Net current period other comprehensive income (loss) 852 (1,871 ) (1,019 ) Balance at October 1, 2016 $ (410 ) $ (10,652 ) $ (11,062 )
Summary of reclassifications out of Accumulated Other Comprehensive Income	Reclassifications out of Accumulated Other Comprehensive Income Nine Months Ended October 1, 2016 Details about Accumulated Other Comprehensive Income Components Nine Months Ended October 1, 2016 Affected Line Item in the Consolidated Statements of Operations Unrealized gains and losses on available-for-sale securities Realized gain/(loss) on sale of securities $ (20 ) Miscellaneous (income) expense, net Other than temporary impairment (276 ) Miscellaneous (income) expense, net (296 ) Total before tax 110 Tax benefit $ (186 ) Net of tax Total reclassifications for the period $ (186 )

Basis of Presentation and Sum30

Basis of Presentation and Summary of Business (Details Textual)	Apr. 01, 2013
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Percentage of Common Stock Purchased	60.00%

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Sep. 26, 2015	Oct. 01, 2016	Sep. 26, 2015
Computation of basic and diluted earnings per common share
Net income	$ 4,989	$ 8,410	$ 20,186	$ 28,035
Weighted average basic shares outstanding	26,923	26,695	26,879	26,662
Basic net income per common share (in dollars per share)	$ 0.19	$ 0.32	$ 0.75	$ 1.05
Effect of dilutive stock options	0	0	0	0
Weighted average diluted shares outstanding	26,923	26,695	26,879	26,662
Diluted net income per common share (in dollars per share)	$ 0.19	$ 0.32	$ 0.75	$ 1.05

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Textual)	Jun. 01, 2015shares	Mar. 31, 2012shares	Oct. 01, 2016USD ($)Award$ / sharesshares	Oct. 01, 2016USD ($)$ / sharesshares	Oct. 01, 2016GBP (£)shares	Sep. 26, 2015USD ($)$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate shares of restricted stock grant				45,000	45,000
Total unrecognized compensation | $			$ 2,655,000	$ 2,655,000
Recognized weighted average period (in years)				11 months 27 days	11 months 27 days
Share-based compensation expenses | $				$ 221,000		$ 159,000
Ratio for additional common stock shares issued, under ESPP				600.00%	600.00%
Director Equity Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for issuance			35,000	35,000
Remaining number of shares to be issued			270,000	270,000
Common stock shares for each nonemployee director	250	500
Fee for the chairs of each Board committee	150.00%	125.00%
Share-based Goods and Nonemployee Services Transaction, Shares Approved for Issuance	2,000
Stock option granted, shares				18,625	18,625	17,500
Share-based compensation expenses under Director's plan | $				$ 588,000		$ 617,000
Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate shares of restricted stock grant				1,096,875	1,096,875
Rate of common stock at market value				85.00%	85.00%
Number of shares purchased by employees				26,575	26,575	23,607
Weighted average price | $ / shares			$ 25.99	$ 25.99		$ 32.71
Employee Stock Purchase Plan and U.K. Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Remaining number of shares to be issued			592,765	592,765
Minimum [Member] | Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Allowable purchase rate of common stock based on annual salary				10.00%	10.00%
Minimum [Member] | Employee Stock Purchase Plan [Member] | United States [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares allowed to be purchased by U.S. employees and U.K. employees | $				$ 25,000
Minimum [Member] | Employee Stock Purchase Plan [Member] | United Kingdom [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares allowed to be purchased by U.S. employees and U.K. employees | £					£ 1,500
2006 Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for issuance			1,125,000	1,125,000
Exercise price per share not less than fair value percent			110.00%
Minimum voting stock percentage for incentive stock			10.00%
Number of awards granted under 2006 plan | Award			0
2006 Stock Option Plan [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options maximum term (in years)			10 years
Equity Incentive Plan (2011 Plan) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate shares of restricted stock grant			1,000,000
Remaining number of shares to be issued			522,212	522,212
2001 Restricted Stock Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock expense | $				$ 3,051,000		$ 2,159,000
Nonemployee Director Equity and Deferred Compensation Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for issuance			180,749	180,749

Stock-Based Compensation (Det33

Stock-Based Compensation (Details) - $ / shares shares in Thousands	9 Months Ended
	Oct. 01, 2016
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	161
Granted, Number of shares	45
Vested, Number of shares	(16)
Forfeitures, Number of shares	(2)
Nonvested Ending balance Number of shares	188
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	$ 33.54
Granted, Weighted average grant-date fair value	33.22
Vested, Weighted average grant-date fair value	36.41
Forfeitures, Weighted average grant-date fair value	34.22
Nonvested Ending balance, Weighted average grant-date fair value	$ 33.21

Restricted Cash (Details)

Restricted Cash (Details) $ in Thousands	9 Months Ended
	Oct. 01, 2016USD ($)
Restricted Cash and Cash Equivalents Items [Line Items]
Estimated period of restricted cash amount	2 months
United Kingdom [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted Cash and Cash Equivalents	$ 39

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Summary of inventories
Raw materials	$ 5,129	$ 5,555
Work in process	4,429	4,478
Finished goods	3,461	3,464
Provision for slow moving inventory	(489)	(450)
Total	$ 12,530	$ 13,047

Goodwill and Intangible Asset36

Goodwill and Intangible Assets (Details) $ in Thousands	9 Months Ended
	Oct. 01, 2016USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill, Beginning Balance	$ 4,988
Acquisitions	0
Currency translation	(76)
Goodwill, Ending Balance	$ 4,912

Goodwill and Intangible Asset37

Goodwill and Intangible Assets (Details Textual) - USD ($)	9 Months Ended			12 Months Ended
	Oct. 01, 2016	Sep. 26, 2015	Sep. 27, 2014	Jan. 02, 2016
Finite-Lived Intangible Assets [Line Items]
Remaining amortization	$ 114,000
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	850,000	$ 1,425,000	$ 1,075,000
Subsidiaries [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of carrying value of goodwill				$ 0
HCT [Member]
Finite-Lived Intangible Assets [Line Items]
Impairment of carrying value of goodwill	0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	2,658,000
WhiteOak [Member]
Finite-Lived Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 746,000

Goodwill and Intangible Asset38

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 6,821	$ 5,971
Accumulated amortization	(1,583)	(1,158)
Net carrying amount	5,238	4,813
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	774	774
Accumulated amortization	(397)	(340)
Net carrying amount	377	434
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	11	11
Accumulated amortization	(11)	(11)
Net carrying amount	0	0
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	935	935
Accumulated amortization	(427)	(304)
Net carrying amount	508	631
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	1,751	1,751
Accumulated amortization	(433)	(363)
Net carrying amount	1,318	1,388
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	3,350	2,500
Accumulated amortization	(315)	(140)
Net carrying amount	$ 3,035	$ 2,360

Goodwill and Intangible Asset39

Goodwill and Intangible Assets (Details 2) $ in Thousands	Oct. 01, 2016USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2,017	$ 486
2,018	486
2,019	486
2,020	486
2,021	486
Total	$ 2,430

Long-Term Debt (Details Textual

Long-Term Debt (Details Textual)	Oct. 01, 2016USD ($)CreditFacility	Jul. 29, 2016USD ($)	Aug. 01, 2011USD ($)CreditFacility	Oct. 01, 2016USD ($)	Sep. 26, 2015USD ($)
Debt Instrument [Line Items]
Credit facilities, maximum capacity			$ 50,000,000
Line of Credit Amortization				$ 0	$ 0
Effective date			Aug. 1, 2011
Number Of Credit Facilities | CreditFacility	0		3
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facilities, maximum capacity	$ 35,000,000			35,000,000
Unsecured Revolving Line of Credit [Member]
Debt Instrument [Line Items]
Credit facilities, maximum capacity	15,000,000			15,000,000
Secured Revolving Line of Credit [Member]
Debt Instrument [Line Items]
Credit facilities, maximum capacity	15,000,000			$ 15,000,000
Line of Credit [Member]
Debt Instrument [Line Items]
Line of Credit Amortization	$ 0
Line of Credit [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facilities, maximum capacity		$ 100,000,000
Accordion feature to increase maximum capacity		$ 75,000,000
Interest coverage ratio (percent)		3.00%
Leverage ratio (percent)		3.5
Line of Credit [Member] | Swing Loans [Member]
Debt Instrument [Line Items]
Credit facilities, maximum capacity		$ 15,000,000
Line of Credit [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Credit facilities, maximum capacity		$ 5,000,000
Line of Credit [Member] | Minimum [Member] | Euro Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Variable interest rate (percent)		1.25%
Line of Credit [Member] | Minimum [Member] | Base Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Variable interest rate (percent)		0.25%
Line of Credit [Member] | Maximum [Member] | Euro Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Variable interest rate (percent)		2.00%
Line of Credit [Member] | Maximum [Member] | Base Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Variable interest rate (percent)		1.00%

Income Taxes (Details)

Income Taxes (Details) $ in Thousands	9 Months Ended
	Oct. 01, 2016USD ($)
Income Tax Disclosure [Abstract]
Unrecognized tax benefit	$ 328
Federal returns currently under examination	The Company’s federal returns are currently under examination by the Internal Revenue Service (IRS) in the United States for the periods 2007 through 2012

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Sep. 26, 2015	Oct. 01, 2016	Sep. 26, 2015	Jan. 02, 2016
Net sales
Net sales	$ 45,232	$ 48,036	$ 147,069	$ 156,438
Total assets
Total assets	261,502		261,502		$ 241,540
Long-lived assets
Long-lived assets	82,977		82,977		84,522
Americas [Member]
Net sales
Net sales	21,425	23,678	69,541	75,507
Total assets
Total assets	188,193		188,193		168,662
Long-lived assets
Long-lived assets	71,676		71,676		72,529
EMEA [Member]
Net sales
Net sales	13,960	15,578	45,440	48,493
Total assets
Total assets	56,458		56,458		56,720
Long-lived assets
Long-lived assets	6,671		6,671		7,923
Asia/Pacific [Member]
Net sales
Net sales	9,847	$ 8,780	32,088	$ 32,438
Total assets
Total assets	16,851		16,851		16,158
Long-lived assets
Long-lived assets	$ 4,630		$ 4,630		$ 4,070

Fair Value of Financial Instr43

Fair Value of Financial Instruments (Details Textual) - USD ($)	9 Months Ended
	Oct. 01, 2016	Sep. 26, 2015
Fair Value of Financial Instruments (Textual) [Abstract]
Securities held with stated maturities	12 months
Securities classifies as current assets under caption marketable securities maturities	12 months
Realized loss on available for sale securities	$ 296,000	$ 241,000
Impairment charges	276,000
Other than Temporary Impairment Losses, Investments		0
Nonrecurring [Member]
Fair Value of Financial Instruments (Textual) [Abstract]
Fair value adjustments for assets measured at fair value	0
Fair value adjustments for liabilities measured at fair value	0
Phantom Share Units (PSUs) [Member]
Fair Value of Financial Instruments (Textual) [Abstract]
Recognized expense related to deferred director stock units and phantom stock units liability	$ 9,000	$ 10,000
Vesting period	3 years

Fair Value of Financial Instr44

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Assets
Asset measured at, fair value	$ 32,560
Recurring [Member]
Assets
Assets measured at fair value, Adjusted cost	34,508	$ 46,207
Assets measured at fair value, Unrealized gains	75	37
Assets measured at fair value, Unrealized losses	(725)	(2,070)
Asset measured at, fair value	33,858	44,174
Recurring [Member] | Level 1 [Member]
Assets
Assets measured at fair value, Adjusted cost	1,483	3,929
Assets measured at fair value, Unrealized gains	0	29
Assets measured at fair value, Unrealized losses	(185)	(274)
Asset measured at, fair value	1,298	3,684
Recurring [Member] | Level 1 [Member] | Equity securities [Member]
Assets
Assets measured at fair value, Adjusted cost	0	1,318
Assets measured at fair value, Unrealized gains	0	28
Assets measured at fair value, Unrealized losses	0	(36)
Asset measured at, fair value	0	1,310
Recurring [Member] | Level 1 [Member] | Mutual funds [Member]
Assets
Assets measured at fair value, Adjusted cost	1,483	2,611
Assets measured at fair value, Unrealized gains	0	1
Assets measured at fair value, Unrealized losses	(185)	(238)
Asset measured at, fair value	1,298	2,374
Recurring [Member] | Level 2 [Member]
Assets
Assets measured at fair value, Adjusted cost	33,025	42,278
Assets measured at fair value, Unrealized gains	75	8
Assets measured at fair value, Unrealized losses	(540)	(1,796)
Asset measured at, fair value	32,560	40,490
Liabilities
Liabilities Measured at Fair Value Adjusted Cost	26	17
Liabilities measured at fair value, Unrealized gains	0	0
Liabilities measured at fair value, Unrealized losses	0	0
Liabilities measured at fair value	26	17
Recurring [Member] | Level 2 [Member] | Phantom Share Units (PSUs) [Member]
Liabilities
Liabilities Measured at Fair Value Adjusted Cost	26	17
Liabilities measured at fair value, Unrealized gains	0	0
Liabilities measured at fair value, Unrealized losses	0	0
Liabilities measured at fair value	26	17
Recurring [Member] | Level 2 [Member] | Corporate fixed income [Member]
Assets
Assets measured at fair value, Adjusted cost	26,613	35,936
Assets measured at fair value, Unrealized gains	75	8
Assets measured at fair value, Unrealized losses	(478)	(1,682)
Asset measured at, fair value	26,210	34,262
Recurring [Member] | Level 2 [Member] | Certificates of deposit [Member]
Assets
Assets measured at fair value, Adjusted cost	0	2,947
Assets measured at fair value, Unrealized gains	0	0
Assets measured at fair value, Unrealized losses	0	0
Asset measured at, fair value	0	2,947
Recurring [Member] | Level 2 [Member] | Municipal bonds [Member]
Assets
Assets measured at fair value, Adjusted cost	6,412	2,897
Assets measured at fair value, Unrealized gains	0	0
Assets measured at fair value, Unrealized losses	(62)	(94)
Asset measured at, fair value	6,350	2,803
Recurring [Member] | Level 2 [Member] | Asset backed securities [Member]
Assets
Assets measured at fair value, Adjusted cost	0	498
Assets measured at fair value, Unrealized gains	0	0
Assets measured at fair value, Unrealized losses	0	(20)
Asset measured at, fair value	$ 0	$ 478

Fair Value of Financial Instr45

Fair Value of Financial Instruments (Details 1) $ in Thousands	Oct. 01, 2016USD ($)
Summary of maturities of marketable securities
Due in less than one year, adjusted cost	$ 18,199
Due after one year but within five years, adjusted cost	11,691
Due after five years but within ten years, adjusted cost	1,801
Due after ten years, adjusted cost	1,334
Available-for-sale Debt Securities, Amortized Cost Basis	33,025
Due in less than one year, fair value	18,122
Due after one year but within five years, fair value	11,410
Due after five years but within ten years, fair value	1,758
Due after ten years, fair value	1,270
Asset measured at, fair value	$ 32,560

Accumulated Other Comprehensi46

Accumulated Other Comprehensive Income - Changes in AOCI (Details) $ in Thousands	9 Months Ended
	Oct. 01, 2016USD ($)
Changes in Accumulated Other Comprehensive Income, by Component
Beginning Balance	$ 222,187
Ending Balance	239,420
Unrealized Gains and Losses on Available-for-Sale Securities [Member]
Changes in Accumulated Other Comprehensive Income, by Component
Beginning Balance	(1,262)
Other comprehensive income (loss) before reclassifications	666
Amounts reclassified from accumulated other comprehensive income	186
Net current period other comprehensive income (loss)	852
Ending Balance	(410)
Foreign Currency Items [Member]
Changes in Accumulated Other Comprehensive Income, by Component
Beginning Balance	(8,781)
Other comprehensive income (loss) before reclassifications	(1,871)
Amounts reclassified from accumulated other comprehensive income	0
Net current period other comprehensive income (loss)	(1,871)
Ending Balance	(10,652)
Accumulated other comprehensive income (loss) [Member]
Changes in Accumulated Other Comprehensive Income, by Component
Beginning Balance	(10,043)
Other comprehensive income (loss) before reclassifications	(1,205)
Amounts reclassified from accumulated other comprehensive income	186
Net current period other comprehensive income (loss)	(1,019)
Ending Balance	$ (11,062)

Accumulated Other Comprehensi47

Accumulated Other Comprehensive Income (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Sep. 26, 2015	Oct. 01, 2016	Sep. 26, 2015
Summary of reclassifications out of Accumulated Other Comprehensive Income
Amount Reclassified from AOCI, Unrealized gains and losses on available-for-sale securities, Total before tax	$ 7,557	$ 12,543	$ 30,346	$ 41,874
Amount Reclassified from AOCI, Unrealized gains and losses on available-for-sale securities, Tax benefit	(2,568)	(4,133)	(10,160)	(13,839)
Net income	$ 4,989	$ 8,410	20,186	$ 28,035
Reclassification out of Accumulated Other Comprehensive Income [Member]
Summary of reclassifications out of Accumulated Other Comprehensive Income
Net income			(186)
Unrealized gains and losses on available-for-sale securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Summary of reclassifications out of Accumulated Other Comprehensive Income
Amount Reclassified from AOCI, Unrealized gains and losses on available-for-sale securities, Total before tax			(296)
Amount Reclassified from AOCI, Unrealized gains and losses on available-for-sale securities, Tax benefit			110
Net income			(186)
Accumulated Other-than-Temporary Impairment [Member] | Unrealized gains and losses on available-for-sale securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Summary of reclassifications out of Accumulated Other Comprehensive Income
Amount Reclassified from AOCI, Unrealized gains and losses on available-for-sale securities, Realized gain/(loss) on sale of securities			(20)
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, before Tax			$ (276)

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event $ in Millions	Nov. 07, 2016USD ($)
Subsequent Event [Line Items]
Business acquisition, date of acquisition agreement	Nov. 7, 2016
Business combination, recognized identifiable assets acquired and liabilities assumed, net	$ 250
Business combination, consideration transferred	200
Business combination, additional earn-out potential	$ 50