Helios (HLIO) 10-Q 8 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 01, 2017	Jul. 28, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	SUN HYDRAULICS CORPORATION
Entity Central Index Key	1,024,795
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jul. 1, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	SNHY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		27,058,651

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 78,673	$ 74,221
Restricted cash	126	37
Accounts receivable, net of allowance for doubtful accounts of $313 and $101	40,214	25,730
Inventories, net	38,482	30,000
Income taxes receivable		512
Short-term investments	3,846	6,825
Other current assets	4,291	3,943
Total current assets	165,632	141,268
Property, plant and equipment, net	78,250	80,515
Deferred income taxes	4,050	3,705
Goodwill	110,477	103,583
Other intangibles, net	108,206	112,565
Other assets	2,678	3,141
Total assets	469,293	444,777
Current liabilities:
Accounts payable	16,032	10,166
Accrued expenses and other liabilities	8,563	7,456
Current portion of contingent consideration	16,890	10,765
Dividends payable	2,435	2,424
Income taxes payable	1,495	265
Total current liabilities	45,415	31,076
Revolving line of credit	124,000	140,000
Contingent consideration, less current portion	32,692	24,312
Deferred income taxes	6,654	9,501
Other noncurrent liabilities	3,786	3,491
Total liabilities	212,547	208,380
Commitments and contingencies
Shareholders' equity:
Preferred stock, 2,000,000 shares authorized, par value $0.001, no shares outstanding
Common stock, 50,000,000 shares authorized, par value $0.001, 27,050,779 and 26,936,021 shares outstanding	27	27
Capital in excess of par value	92,659	89,718
Retained earnings	174,580	162,485
Accumulated other comprehensive loss	(10,520)	(15,833)
Total shareholders' equity	256,746	236,397
Total liabilities and shareholders' equity	$ 469,293	$ 444,777

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts, accounts receivable	$ 313	$ 101
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	27,050,779	26,936,021

Consolidated Statements of Oper

Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Income Statement [Abstract]
Net sales	$ 89,335	$ 50,809	$ 170,688	$ 101,837
Cost of sales	50,752	31,856	99,311	63,343
Gross profit	38,583	18,953	71,377	38,494
Selling, engineering and administrative expenses	15,843	8,394	30,544	15,862
Amortization of intangible assets	2,039	115	4,348	302
Operating income	20,701	10,444	36,485	22,330
Interest expense (income), net	964	(386)	1,589	(758)
Foreign currency transaction loss (gain), net	7	(151)	(40)	(265)
Miscellaneous expense, net	635	387	702	564
Change in fair value of contingent consideration	8,191	0	8,191	0
Income before income taxes	10,904	10,594	26,043	22,789
Income tax provision	3,620	3,604	8,548	7,591
Net income	$ 7,284	$ 6,990	$ 17,495	$ 15,198
Basic and diluted net income per common share	$ 0.27	$ 0.26	$ 0.65	$ 0.57
Basic and diluted weighted average shares outstanding	27,046	26,908	26,996	26,857
Dividends declared per share	$ 0.09	$ 0.09	$ 0.20	$ 0.22

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 7,284	$ 6,990	$ 17,495	$ 15,198
Other comprehensive income (loss)
Foreign currency translation adjustments, net of tax	3,240	(2,510)	5,191	(2,192)
Unrealized (loss) gain on available-for-sale securities, net of tax	(7)	457	122	653
Total other comprehensive income (loss)	3,233	(2,053)	5,313	(1,539)
Comprehensive income	$ 10,517	$ 4,937	$ 22,808	$ 13,659

Consolidated Statement of Chang

Consolidated Statement of Changes in Shareholders' Equity (unaudited) - 6 months ended Jul. 01, 2017 - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Capital in excess of par value	Retained earnings	Accumulated other comprehensive income (loss)
Beginning Balance at Dec. 31, 2016	$ 236,397	$ 27	$ 89,718	$ 162,485	$ (15,833)
Beginning Balance, Shares at Dec. 31, 2016		26,936
Shares issued, Restricted Stock, Shares		71
Shares issued, other compensation, Shares		13
Shares issued, ESPP	465		465
Shares issued, ESPP, Shares		14
Shares issued, shared distribution	628		628
Shares issued, shared distribution, Shares		17
Stock-based compensation	1,848		1,848
Dividends declared	(5,400)			(5,400)
Net income	17,495			17,495
Other comprehensive income	5,313				5,313
Ending Balance at Jul. 01, 2017	$ 256,746	$ 27	$ 92,659	$ 174,580	$ (10,520)
Ending Balance at Jul. 01, 2017		27,051

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016
Cash flows from operating activities:
Net income	$ 17,495	$ 15,198
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,855	5,034
Loss on disposal of assets	692	316
Stock-based compensation expense	2,038	2,884
Amortization of debt issuance costs	202
Allowance for doubtful accounts	119	34
Provision for slow moving inventory	108
Benefit for deferred income taxes	(3,229)	(131)
Amortization of acquisition related inventory step-up	1,774
Change in fair value of contingent consideration	8,191	0
(Increase) decrease in:
Accounts receivable	(14,191)	(6,254)
Inventories	(10,120)	737
Income taxes receivable	512	123
Other current assets	(303)	249
Other assets	98	(55)
Increase (decrease) in:
Accounts payable	5,796	1,035
Accrued expenses and other liabilities	1,145	1,399
Income taxes payable	1,207	1,634
Other noncurrent liabilities	295	(260)
Net cash provided by operating activities	21,684	21,943
Cash flows from investing activities:
Investment in licensed technology		(850)
Capital expenditures	(3,305)	(2,557)
Proceeds from dispositions of equipment	18	2
Purchases of short-term investments		(9,637)
Proceeds from sale of short-term investments	2,938	15,803
Net cash (used in) provided by investing activities	(349)	2,761
Cash flows from financing activities:
Repayment of borrowings on revolving line of credit	(16,000)
Proceeds from stock issued	465	418
Dividends to shareholders	(5,390)	(5,900)
Change in restricted cash		4
Net cash used in financing activities	(20,925)	(5,478)
Effect of exchange rate changes on cash and cash equivalents	4,042	(1,529)
Net increase in cash and cash equivalents	4,452	17,697
Cash and cash equivalents, beginning of period	74,221	81,932
Cash and cash equivalents, end of period	78,673	99,629
Cash paid:
Income taxes	9,506	5,582
Interest	1,926
Supplemental disclosure of noncash transactions:
Common stock issued for shared distribution through accrued expenses and other liabilities	628	1,679
Unrealized gain on available for sales securities	122	$ 653
Measurement period adjustment to goodwill and contingent consideration	$ 6,314

Company Background

Company Background	6 Months Ended
	Jul. 01, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
COMPANY BACKGROUND	1. COMPANY BACKGROUND Sun Hydraulics Corporation (“Sun”, “we”, “our”, “us” or the “Company”), together with its wholly-owned subsidiaries, is an industrial technology leader that develops and manufactures solutions for both the hydraulics and electronics markets. Sun operates in two business segments: Hydraulics and Electronics. The Hydraulics segment consists of all of the global, historical Sun Hydraulics companies and serves the hydraulics market as a leading manufacturer of high-performance screw-in hydraulic cartridge valves, electro-hydraulics, manifolds, and integrated package solutions for the worldwide industrial and mobile hydraulics markets. The Electronics segment is served by two of Sun’s wholly-owned subsidiaries: Enovation Controls, LLC, (“Enovation Controls”) and High Country Tek (“HCT”). Enovation Controls is a global provider of innovative electronic control, display and instrumentation solutions for both recreational and off-highway vehicles, as well as stationary and power generation equipment. HCT is an independent designer and producer of modular, robust, reliable digital and analog electronic controller products for the fluid power industry. 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 December 31, 2016, filed by Sun Hydraulics Corporation with the Securities and Exchange Commission on February 28, 2017. 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 six month period ended July 1, 2017, are not necessarily indicative of the results that may be expected for the period ending December 30, 2017.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jul. 01, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reclassifications Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current period presentation. Recently Adopted Accounting Standards In July 2015, the FASB issued ASU 2015-11, Inventory Simplifying the Measurement of Inventory In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Shared-Based Payment Accounting. Recently Issued Accounting Standard In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of credit losses on Financial Instruments. In February 2016, the FASB issued ASU 2016-02, Leases In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. Among other things, this new guidance requires certain equity investments to be measured at fair value with changes in fair value recognized in net income. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company currently anticipates adopting the standard for the annual and interim periods beginning on December 31, 2017, using the cumulative catch-up transition method. Management’s evaluation of the directional impacts of adopting the new standard on the timing of revenue recognition is in progress, and is expected to be complete during the quarter ended September 30, 2017. The detailed analysis of the impact on the timing of revenue recognition and the cumulative catch-up adjustment will be completed prior to the end of the 2017 fiscal year. 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 Six Months Ended July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Net income $ 7,284 $ 6,990 $ 17,495 $ 15,198 Basic and diluted weighted average shares outstanding 27,046 26,908 26,996 26,857 Basic and diluted net income per common share $ 0.27 $ 0.26 $ 0.65 $ 0.57

Business Acquisition

Business Acquisition	6 Months Ended
	Jul. 01, 2017
Business Combinations [Abstract]
BUSINESS ACQUISITION	3. BUSINESS ACQUISITION On December 5, 2016 (the “Acquisition Date”), the Company completed the acquisition of Enovation Controls, LLC, a global provider of electronic control, display and instrumentation solutions. Historically Enovation Controls sold products to four customer markets: natural gas production controls (NGPC), engine controls and fuel systems (ECFS), power controls (PC) and vehicle technologies (VT). Prior to the closing date, and pursuant to an Asset Transfer Agreement, Enovation Controls transferred the assets and liabilities of their lines of business associated with the NGPC and ECFS customer markets to a separate legal entity, leaving Enovation Controls with only the lines of business associated with the PC and VT customer markets and the related agreed upon assets and liabilities to be acquired by Sun. Pursuant to a Unit Purchase Agreement, Sun acquired all of the outstanding membership units of Enovation Controls for initial cash consideration of $201,020 and additional cash earn-out potential of $50,000. Total consideration for the acquisition was subject to a post-closing adjustment for working capital in accordance with the terms of the Purchase Agreement. During the first quarter of 2017 the Company recognized an additional $500 of consideration for the post-closing working capital adjustment. The contingent consideration arrangement requires the Company to pay up to $50,000 of additional consideration to Enovation Controls’ former owners based on defined revenue and EBITDA targets. The potential payments are due in three installments, to be paid during the 9, 18 and 27 month periods after closing. See Note 4 to the Financial Statements for a summary of the changes in estimated fair value of the contingent consideration liability. The purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values. The fair value of identifiable intangible assets acquired was based on estimates and assumptions made by management at the time of the acquisition. Management is currently awaiting additional information to complete the valuation of identified intangible assets and related deferred income taxes. As additional information, as of the acquisition date, becomes available and as management completes its evaluation, the preliminary purchase price allocation may be revised during the remainder of the measurement period (which will not exceed 12 months from the Acquisition Date). Any such revisions or changes may be material as the fair values are finalized. The fair value of total purchase consideration consisted of the following: Cash $ 201,020 Fair value of contingent consideration 41,391 Post closing adjustment for working capital 500 Total purchase consideration 242,911 Less: cash acquired (964 ) Total purchase consideration, net of cash acquired $ 241,947 The preliminary allocation of the total purchase price, net of cash acquired, is as follows: Accounts receivable $ 9,502 Inventories 16,979 Other current assets 176 Property, plant and equipment 10,546 Goodwill 105,481 Intangible assets 108,070 Other assets 8 Total assets acquired 250,762 Accounts payable (3,260 ) Accrued expenses and other liabilities (3,745 ) Deferred income taxes (1,810 ) Total liabilities assumed (8,815 ) Fair value of net assets acquired $ 241,947 Unaudited Pro Forma Information The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, as if Enovation Controls had been acquired as of the beginning of 2016. The financial results of Enovation Controls included in the pro forma information provided below reflect net sales and direct costs and operating expenses related to the acquired lines of business only. The PC and VT lines of business were not separate legal entities and were never operated as stand-alone businesses, divisions or subsidiaries and Enovation Controls had never maintained the distinct and separate accounts necessary to prepare full carve out financial statements. Due to the impracticability of obtaining full financial information for the carve-out operations, certain costs of Enovation Controls, primarily related to corporate overhead, foreign currency translation gains and losses and interest expense are not included in the pro forma results prior to the Acquisition Date. The pro forma information includes adjustments to interest expense, income tax provision, amortization and depreciation for intangible assets and property, plant and equipment acquired and net sales and cost of sales for the effects of the supply agreement entered into at the Acquisition Date. The pro forma information does not reflect any operating efficiencies or potential cost savings that may result from the acquisition. Accordingly, the pro forma information is for illustrative purposes only and is not intended to present or be indicative of the actual results of operations of the combined company that may have been achieved had the acquisition actually occurred at the beginning of 2016, nor is it intended to represent or be indicative of future results of operations of the combined business. Consequently, actual results will differ from the unaudited pro forma information presented below: Three months ended Six months ended July 2, 2016 July 2, 2016 Net sales $ 70,499 $ 141,354 Operating income 12,732 26,497 Net income 7,973 17,078 Basic and diluted net income per common share 0.30 0.64

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jul. 01, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	4. 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 were derived from quoted prices in active markets for identical assets or liabilities. Contingent consideration and newly acquired intangible assets are measured at fair value using level 3 inputs. 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. The Company’s short-term investments are carried at fair value, with the unrealized gains and losses, net of tax, reported as a component of shareholder’s equity. Realized gains and losses on sales of short-term investments are generally determined using the specific identification method, and are included in miscellaneous expense, net 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 July 1, 2017 and December 31, 2016. The fair value of cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued expenses and other liabilities approximates their carrying value, due to their short-term nature. July 1, 2017 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Assets Level 1: Equity securities $ — $ 21 $ — $ 21 Mutual funds 1,483 — (149 ) 1,334 Subtotal 1,483 21 (149 ) 1,355 Level 2: Corporate fixed income 1,455 2 (228 ) 1,229 Municipal bonds 1,336 $ — (74 ) 1,262 Subtotal 2,791 2 (302 ) 2,491 Total $ 4,274 $ 23 $ (451 ) $ 3,846 Liabilities Level 3: Contingent consideration $ 49,582 Total $ 49,582 December 31, 2016 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Assets Level 1: Equity securities $ — $ 31 $ — $ 31 Mutual funds 1,483 $ — (159 ) 1,324 Subtotal 1,483 31 (159 ) 1,355 Level 2: Corporate fixed income 4,288 9 (408 ) 3,889 Municipal bonds 1,675 $ — (94 ) 1,581 Subtotal 5,963 9 (502 ) 5,470 Total $ 7,446 $ 40 $ (661 ) $ 6,825 Liabilities Level 3: Contingent consideration $ 35,077 Total $ 35,077 The Company recognized a net realized loss on investments during the six months ended July 1, 2017 of $259 and a net realized loss of $309 during the six months ended July 2, 2016. As of July 1, 2017, 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 six months ended July 1, 2017 and July 2, 2016, the Company recognized impairment charges of $220 and $276, respectively, which are included in the net realized losses for the period. Maturities of investments at July 1, 2017 are as follows: Adjusted Cost Fair Value Due in less than one year $ 401 $ 278 Due after one year but within five years 1,214 1,169 Due after five years but within ten years 469 394 Due after ten years 707 650 Total $ 2,791 $ 2,491 A summary of the changes in the estimated fair value of contingent consideration at July 1, 2017 is as follows: Balance at December 31, 2016 $ 35,077 Measurement period adjustment 6,314 Change in estimated fair value 7,563 Accretion in value 628 Balance at July 1, 2017 $ 49,582 The fair value of the contingent consideration arrangement was estimated using a risk-adjusted probability analysis. During the second quarter of 2017 management completed the valuation of the acquisition date fair value of contingent consideration resulting in a measurement period adjustment which increased the fair value of the liability and goodwill by $6,314. Also during the second quarter of 2017, an adjustment to the fair value of contingent consideration was recorded based on Enovation Controls’ results of operations during the period and managements revision of revenue and EBITDA forecasts. The adjustment was not considered a measurement period adjustment and was therefore recognized in current period earnings.

Inventories

Inventories	6 Months Ended
	Jul. 01, 2017
Inventory Disclosure [Abstract]
INVENTORIES	5. INVENTORIES July 1, 2017 December 31, 2016 Raw materials $ 24,242 $ 16,864 Work in process 6,035 5,641 Finished goods 9,323 8,069 Provision for slow moving inventory (1,118 ) (574 ) Total $ 38,482 $ 30,000

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jul. 01, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	6. GOODWILL AND INTANGIBLE ASSETS A summary of changes in goodwill at July 1, 2017 is as follows: Hydraulics Electronics Total Balance at December 31, 2016 $ 2,214 $ 101,369 $ 103,583 Working capital adjustment — 500 500 Measurement period adjustment — 6,314 6,314 Currency translation 80 — 80 Balance at July 1, 2017 $ 2,294 $ 108,183 $ 110,477 As of July 1, 2017, no At July 1, 2017 and December 31, 2016, intangible assets consisted of the following: July 1, 2017 December 31, 2016 Gross carrying amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Definite-lived intangibles: Trade Name and Brands $ 30,774 $ (1,330 ) $ 29,444 $ 30,774 $ (541 ) $ 30,233 Non-compete Agreements 950 (111 ) 839 950 (16 ) 934 Technology 18,435 (1,645 ) 16,790 18,435 (620 ) 17,815 Supply Agreement 21,000 (1,225 ) 19,775 21,000 (175 ) 20,825 Sales Order Backlog 620 (620 ) — 620 (347 ) 273 Customer Relationships 39,751 (1,610 ) 38,141 39,751 (614 ) 39,137 Licensing Agreement 3,727 (510 ) 3,217 3,727 (379 ) 3,348 $ 115,257 $ (7,051 ) $ 108,206 $ 115,257 $ (2,692 ) $ 112,565 Amortization expense of intangible assets for the six months ended July 1, 2017, and July 2, 2016 was approximately $4,348 and $302, respectively. Total estimated amortization expense of intangible assets for the years 2018 through 2022 is presented below. The remaining amortization for 2017 is approximately $4,074. Year: 2018 $ 8,148 2019 8,148 2020 8,148 2021 8,117 2022 7,839 Total $ 40,400 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 six months ended July 1, 2017.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jul. 01, 2017
Long Term Debt [Abstract]
LONG-TERM DEBT	7. LONG-TERM DEBT The Company has a revolving line of credit that provides November 22, 2021. At July 1, 2017 and December 31, 2016, the balance on the revolving line was $124,000 and $140,000, respectively, with $176,000 and $160,000 of additional credit available, respectively, subject to pro forma compliance with debt covenants. The interest rate in effect at July 1, 2017 was 2.92%.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 01, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	8. INCOME TAXES At July 1, 2017, the Company had an unrecognized tax benefit of $3,786 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 July 1, 2017, 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.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jul. 01, 2017
Share Based Compensation [Abstract]
STOCK-BASED COMPENSATION	9. STOCK-BASED COMPENSATION 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 July 1, 2017, 453,737 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 six months ended July 1, 2017 and July 2, 2016, totaled $1,397 and $2,316, respectively. The following table summarizes restricted stock activity from December 31, 2016, through July 1, 2017: Weighted average Number of shares grant-date (in thousands) fair value Nonvested balance at December 31, 2016 104 $ 32.42 Granted 74 35.45 Vested (35 ) 33.75 Forfeitures (2 ) 31.85 Nonvested balance at July 1, 2017 141 $ 33.81 The Company had $3,102 of total unrecognized compensation cost related to restricted stock awards granted under the 2011 Plan as of July 1, 2017. That cost is expected to be recognized over a weighted average period of 1.15 years. The Company maintains an Employee Stock Purchase Plan (“ESPP”) in which only Sun Hydraulics US 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 the Company’s common stock at market value, on the first or last day of the quarterly purchase period, whichever is lower, with the Company issuing one additional free share of common stock for each six shares purchased by the employee under the plan. The ESPP and U.K. plans authorize 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 15,090 shares at a weighted average price of $30.90, and 25,896 shares at a weighted average price of $25.89, under the ESPP and U.K. plans during the six months ended July 1, 2017 and July 2, 2016, respectively. The Company recognized $131 and $137 of compensation expense during the six months ended July 1, 2017 and July 2, 2016, respectively. At July 1, 2017, 563,202 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, Nonemployee Directors are compensated for their Board service solely in shares of Common Stock. In February 2015, the Board adopted amendments to the 2012 Directors Plan which revised the compensation for Nonemployee Directors. Each Nonemployee Director 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 under the 2012 Directors Plan, 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 July 1, 2017, 162,124 shares remained available for issuance under the 2012 Directors Plan. Directors were granted 12,750 shares for the six months ended July 1, 2017 and July 2, 2016, respectively. The Company recognized director stock compensation expense of $501 and $407 for the six months ended July 1, 2017 and July 2, 2016, respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jul. 01, 2017
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	10. ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in Accumulated Other Comprehensive Loss by Component Six Months Ended July 1, 2017 Unrealized Gains and Losses on Available-for- Sale Securities Foreign Currency Items Total Balance at December 31, 2016 $ (391 ) $ (15,442 ) $ (15,833 ) Other comprehensive (loss) income before reclassifications (41 ) 5,191 5,150 Amounts reclassified from accumulated other comprehensive loss 163 — 163 Net current period other comprehensive income 122 5,191 5,313 Balance at July 1, 2017 $ (269 ) $ (10,251 ) $ (10,520 ) Reclassifications out of Accumulated Other Comprehensive Loss Six Months Ended July 1, 2017 Details about Accumulated Other Comprehensive Income Components Six Months Ended July 1, 2017 Affected Line Item in the Consolidated Statement of Operations Unrealized gains and losses on available-for-sale securities Realized gain/(loss) on sale of securities $ (39 ) Miscellaneous expense, net Other than temporary impairment (220 ) Miscellaneous expense, net (259 ) Total before tax 96 Tax benefit (163 ) Net of tax Total reclassifications for the period $ (163 )

Segment Reporting

Segment Reporting	6 Months Ended
	Jul. 01, 2017
Segment Reporting [Abstract]
SEGMENT REPORTING	11. SEGMENT REPORTING For the six months ended July 2, 2016, the Company’s individual subsidiaries operated 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 was managed, the Company determined that it had only one operating and reporting segment for both internal and external reporting purposes. With the acquisition of Enovation Controls on December 5, 2016, the Company re-evaluated the reportable operating segment presentation. As of the date of the acquisition, the Company has two reportable segments: Hydraulics and Electronics. These segments are organized primarily based on the similar nature of products offered for sale, the types of customers served and the methods of distribution and are consistent with how the segments are managed, how resources are allocated and how information is used by the chief operating decision makers. As a result of the re-evaluation of reportable operating segments, financial information for HCT is presented in the Electronics segment as of the beginning of the 2016 fiscal year. The Company evaluates performance and allocates resources based primarily on segment operating income. Certain costs were not allocated to the business segments as they are not used in evaluating the results of, or in allocating resources to, Sun’s segments. These costs are presented in the Corporate and other line item below. For the six months ended July 1, 2017, the unallocated costs included certain corporate costs not deemed to be allocable to all segments of $300 and acquisition-related costs including charges related to inventory step-up to fair value of $1,774 and amortization of acquisition-related intangible assets of $4,227. The accounting policies of Sun’s operating segments are the same as those used to prepare the accompanying consolidated financial statements. The following table presents financial information by reportable segment: Three months ended Six months ended July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Net sales Hydraulics $ 60,818 $ 49,915 $ 114,940 $ 100,098 Electronics 28,517 894 55,748 1,739 $ 89,335 $ 50,809 $ 170,688 $ 101,837 Operating Income: Hydraulics $ 16,359 $ 10,642 $ 30,131 $ 22,568 Electronics 6,419 (198 ) 12,655 (238 ) Corporate and other (2,077 ) — (6,301 ) — $ 20,701 $ 10,444 $ 36,485 $ 22,330 Depreciation and Amortization: Hydraulics $ 2,241 $ 2,386 $ 4,529 $ 4,780 Electronics 2,523 121 5,326 254 $ 4,764 $ 2,507 $ 9,855 $ 5,034 Capital Expenditures: Hydraulics $ 1,465 $ 1,493 $ 2,076 $ 2,435 Electronics 1,082 65 1,229 122 $ 2,547 $ 1,558 $ 3,305 $ 2,557 July 1, 2017 December 31, 2016 Total Assets: Hydraulics $ 198,887 $ 193,722 Electronics 270,406 251,055 Total $ 469,293 $ 444,777 Geographic Region Information Net sales are measured based on the geographic destination of sales. Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment: Three months ended Six months ended July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Net sales Americas $ 52,705 $ 23,402 $ 99,993 $ 48,117 Europe/Middle East/Africa 19,229 15,803 39,329 31,480 Asia/Pacific 17,401 11,604 31,366 22,240 Total $ 89,335 $ 50,809 $ 170,688 $ 101,837 July 1, 2017 December 31, 2016 Tangible long-lived assets Americas $ 69,007 $ 71,802 Europe/Middle East/Africa 7,340 7,116 Asia/Pacific 1,903 1,597 Total $ 78,250 $ 80,515

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jul. 01, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	12. RELATED PARTY TRANSACTIONS Enovation Controls purchases and sells inventory to an entity partially owned by one of its officers. For the six months ended July 1, 2017, sales to, and purchases from, the entity for inventory totaled $1,299 and $5,805, respectively. At July 1, 2017, amounts due from, and due to, the entity for inventory sales and purchases totaled $548 and $723, respectively. In addition to these inventory transactions, Enovation Controls entered into a transition services agreement with the related party to provide, and receive, certain transition services for a period of up to one year for specified services. For the six months ended July 1, 2017, sales and cost of sales recognized by Enovation Controls under the agreement totaled $1,217 and $968, respectively, and are included in miscellaneous expense, net in the Consolidated Statement of Operations. For the six months ended July 1, 2017, purchases from the related party under the agreement totaled $856. At July 1, 2017, amounts due from, and due to, the related party under the transition services agreement totaled $238 and $192, respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 01, 2017
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.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 01, 2017
Accounting Policies [Abstract]
Reclassifications	Reclassifications Certain reclassifications have been made to the prior period consolidated financial statements to conform to the current period presentation.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In July 2015, the FASB issued ASU 2015-11, Inventory Simplifying the Measurement of Inventory In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Shared-Based Payment Accounting.
Recently Issued Accounting Standard	Recently Issued Accounting Standard In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of credit losses on Financial Instruments. In February 2016, the FASB issued ASU 2016-02, Leases In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. Among other things, this new guidance requires certain equity investments to be measured at fair value with changes in fair value recognized in net income. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company currently anticipates adopting the standard for the annual and interim periods beginning on December 31, 2017, using the cumulative catch-up transition method. Management’s evaluation of the directional impacts of adopting the new standard on the timing of revenue recognition is in progress, and is expected to be complete during the quarter ended September 30, 2017. The detailed analysis of the impact on the timing of revenue recognition and the cumulative catch-up adjustment will be completed prior to the end of the 2017 fiscal year.
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 were derived from quoted prices in active markets for identical assets or liabilities. Contingent consideration and newly acquired intangible assets are measured at fair value using level 3 inputs. 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. The Company’s short-term investments are carried at fair value, with the unrealized gains and losses, net of tax, reported as a component of shareholder’s equity. Realized gains and losses on sales of short-term investments are generally determined using the specific identification method, and are included in miscellaneous expense, net in the Consolidated Statements of Operations.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jul. 01, 2017
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 Six Months Ended July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Net income $ 7,284 $ 6,990 $ 17,495 $ 15,198 Basic and diluted weighted average shares outstanding 27,046 26,908 26,996 26,857 Basic and diluted net income per common share $ 0.27 $ 0.26 $ 0.65 $ 0.57

Business Acquisition (Tables)

Business Acquisition (Tables)	6 Months Ended
	Jul. 01, 2017
Business Combinations [Abstract]
Components of Fair Value of Total Purchase Consideration	The fair value of total purchase consideration consisted of the following: Cash $ 201,020 Fair value of contingent consideration 41,391 Post closing adjustment for working capital 500 Total purchase consideration 242,911 Less: cash acquired (964 ) Total purchase consideration, net of cash acquired $ 241,947
Schedule of Preliminary Allocation of Total Purchase Price, Net of Cash Acquired	The preliminary allocation of the total purchase price, net of cash acquired, is as follows: Accounts receivable $ 9,502 Inventories 16,979 Other current assets 176 Property, plant and equipment 10,546 Goodwill 105,481 Intangible assets 108,070 Other assets 8 Total assets acquired 250,762 Accounts payable (3,260 ) Accrued expenses and other liabilities (3,745 ) Deferred income taxes (1,810 ) Total liabilities assumed (8,815 ) Fair value of net assets acquired $ 241,947
Summary of Pro forma Financial Information	Consequently, actual results will differ from the unaudited pro forma information presented below: Three months ended Six months ended July 2, 2016 July 2, 2016 Net sales $ 70,499 $ 141,354 Operating income 12,732 26,497 Net income 7,973 17,078 Basic and diluted net income per common share 0.30 0.64

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jul. 01, 2017
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 July 1, 2017 and December 31, 2016. The fair value of cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued expenses and other liabilities approximates their carrying value, due to their short-term nature. July 1, 2017 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Assets Level 1: Equity securities $ — $ 21 $ — $ 21 Mutual funds 1,483 — (149 ) 1,334 Subtotal 1,483 21 (149 ) 1,355 Level 2: Corporate fixed income 1,455 2 (228 ) 1,229 Municipal bonds 1,336 $ — (74 ) 1,262 Subtotal 2,791 2 (302 ) 2,491 Total $ 4,274 $ 23 $ (451 ) $ 3,846 Liabilities Level 3: Contingent consideration $ 49,582 Total $ 49,582 December 31, 2016 Adjusted Cost Unrealized Gains Unrealized Losses Fair Value Assets Level 1: Equity securities $ — $ 31 $ — $ 31 Mutual funds 1,483 $ — (159 ) 1,324 Subtotal 1,483 31 (159 ) 1,355 Level 2: Corporate fixed income 4,288 9 (408 ) 3,889 Municipal bonds 1,675 $ — (94 ) 1,581 Subtotal 5,963 9 (502 ) 5,470 Total $ 7,446 $ 40 $ (661 ) $ 6,825 Liabilities Level 3: Contingent consideration $ 35,077 Total $ 35,077
Summary of maturities of marketable securities	Maturities of investments at July 1, 2017 are as follows: Adjusted Cost Fair Value Due in less than one year $ 401 $ 278 Due after one year but within five years 1,214 1,169 Due after five years but within ten years 469 394 Due after ten years 707 650 Total $ 2,791 $ 2,491
Summary of changes in estimated fair value of contingent consideration	A summary of the changes in the estimated fair value of contingent consideration at July 1, 2017 is as follows: Balance at December 31, 2016 $ 35,077 Measurement period adjustment 6,314 Change in estimated fair value 7,563 Accretion in value 628 Balance at July 1, 2017 $ 49,582

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jul. 01, 2017
Inventory Disclosure [Abstract]
Summary of inventories	July 1, 2017 December 31, 2016 Raw materials $ 24,242 $ 16,864 Work in process 6,035 5,641 Finished goods 9,323 8,069 Provision for slow moving inventory (1,118 ) (574 ) Total $ 38,482 $ 30,000

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jul. 01, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of changes in goodwill	A summary of changes in goodwill at July 1, 2017 is as follows: Hydraulics Electronics Total Balance at December 31, 2016 $ 2,214 $ 101,369 $ 103,583 Working capital adjustment — 500 500 Measurement period adjustment — 6,314 6,314 Currency translation 80 — 80 Balance at July 1, 2017 $ 2,294 $ 108,183 $ 110,477
Schedule of intangible assets	At July 1, 2017 and December 31, 2016, intangible assets consisted of the following: July 1, 2017 December 31, 2016 Gross carrying amount Accumulated amortization Net amount Gross amount Accumulated amortization Net amount Definite-lived intangibles: Trade Name and Brands $ 30,774 $ (1,330 ) $ 29,444 $ 30,774 $ (541 ) $ 30,233 Non-compete Agreements 950 (111 ) 839 950 (16 ) 934 Technology 18,435 (1,645 ) 16,790 18,435 (620 ) 17,815 Supply Agreement 21,000 (1,225 ) 19,775 21,000 (175 ) 20,825 Sales Order Backlog 620 (620 ) — 620 (347 ) 273 Customer Relationships 39,751 (1,610 ) 38,141 39,751 (614 ) 39,137 Licensing Agreement 3,727 (510 ) 3,217 3,727 (379 ) 3,348 $ 115,257 $ (7,051 ) $ 108,206 $ 115,257 $ (2,692 ) $ 112,565
Schedule of estimated amortization expense of intangible assets	Amortization expense of intangible assets for the six months ended July 1, 2017, and July 2, 2016 was approximately $4,348 and $302, respectively. Total estimated amortization expense of intangible assets for the years 2018 through 2022 is presented below. The remaining amortization for 2017 is approximately $4,074. Year: 2018 $ 8,148 2019 8,148 2020 8,148 2021 8,117 2022 7,839 Total $ 40,400

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jul. 01, 2017
Share Based Compensation [Abstract]
Summary of restricted stock activity	The following table summarizes restricted stock activity from December 31, 2016, through July 1, 2017: Weighted average Number of shares grant-date (in thousands) fair value Nonvested balance at December 31, 2016 104 $ 32.42 Granted 74 35.45 Vested (35 ) 33.75 Forfeitures (2 ) 31.85 Nonvested balance at July 1, 2017 141 $ 33.81

Accumulated Other Comprehensi28

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jul. 01, 2017
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract]
Changes in Accumulated Other Comprehensive Loss by Component	Changes in Accumulated Other Comprehensive Loss by Component Six Months Ended July 1, 2017 Unrealized Gains and Losses on Available-for- Sale Securities Foreign Currency Items Total Balance at December 31, 2016 $ (391 ) $ (15,442 ) $ (15,833 ) Other comprehensive (loss) income before reclassifications (41 ) 5,191 5,150 Amounts reclassified from accumulated other comprehensive loss 163 — 163 Net current period other comprehensive income 122 5,191 5,313 Balance at July 1, 2017 $ (269 ) $ (10,251 ) $ (10,520 )
Summary of Reclassifications Out of Accumulated Other Comprehensive Loss	Reclassifications out of Accumulated Other Comprehensive Loss Six Months Ended July 1, 2017 Details about Accumulated Other Comprehensive Income Components Six Months Ended July 1, 2017 Affected Line Item in the Consolidated Statement of Operations Unrealized gains and losses on available-for-sale securities Realized gain/(loss) on sale of securities $ (39 ) Miscellaneous expense, net Other than temporary impairment (220 ) Miscellaneous expense, net (259 ) Total before tax 96 Tax benefit (163 ) Net of tax Total reclassifications for the period $ (163 )

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jul. 01, 2017
Segment Reporting [Abstract]
Schedule of financial information by reportable segment	The following table presents financial information by reportable segment: Three months ended Six months ended July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Net sales Hydraulics $ 60,818 $ 49,915 $ 114,940 $ 100,098 Electronics 28,517 894 55,748 1,739 $ 89,335 $ 50,809 $ 170,688 $ 101,837 Operating Income: Hydraulics $ 16,359 $ 10,642 $ 30,131 $ 22,568 Electronics 6,419 (198 ) 12,655 (238 ) Corporate and other (2,077 ) — (6,301 ) — $ 20,701 $ 10,444 $ 36,485 $ 22,330 Depreciation and Amortization: Hydraulics $ 2,241 $ 2,386 $ 4,529 $ 4,780 Electronics 2,523 121 5,326 254 $ 4,764 $ 2,507 $ 9,855 $ 5,034 Capital Expenditures: Hydraulics $ 1,465 $ 1,493 $ 2,076 $ 2,435 Electronics 1,082 65 1,229 122 $ 2,547 $ 1,558 $ 3,305 $ 2,557 July 1, 2017 December 31, 2016 Total Assets: Hydraulics $ 198,887 $ 193,722 Electronics 270,406 251,055 Total $ 469,293 $ 444,777
Schedule of geographic region information	Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment: Three months ended Six months ended July 1, 2017 July 2, 2016 July 1, 2017 July 2, 2016 Net sales Americas $ 52,705 $ 23,402 $ 99,993 $ 48,117 Europe/Middle East/Africa 19,229 15,803 39,329 31,480 Asia/Pacific 17,401 11,604 31,366 22,240 Total $ 89,335 $ 50,809 $ 170,688 $ 101,837 July 1, 2017 December 31, 2016 Tangible long-lived assets Americas $ 69,007 $ 71,802 Europe/Middle East/Africa 7,340 7,116 Asia/Pacific 1,903 1,597 Total $ 78,250 $ 80,515

Company Background (Details Tex

Company Background (Details Textual)	6 Months Ended
	Jul. 01, 2017SegmentSubsidiary	Jul. 02, 2016Segment
Number of operating segments | Segment	2	1
Electronics [Member]
Number of subsidiaries | Subsidiary	2

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Earnings Per Share [Abstract]
Net income	$ 7,284	$ 6,990	$ 17,495	$ 15,198
Basic and diluted weighted average shares outstanding	27,046	26,908	26,996	26,857
Basic and diluted net income per common share	$ 0.27	$ 0.26	$ 0.65	$ 0.57

Business Acquisition (Details T

Business Acquisition (Details Textual) $ in Thousands	Dec. 05, 2016USD ($)Installment	Apr. 01, 2017USD ($)	Jul. 01, 2017USD ($)
Business Acquisition [Line Items]
Post closing adjustment for working capital			$ 500
Enovation Controls, LLC [Member]
Business Acquisition [Line Items]
Business acquisition, date of acquisition	Dec. 5, 2016
Cash consideration transferred	$ 201,020
Fair value of contingent consideration	41,391
Post closing adjustment for working capital	$ 500	$ 500
Number of potential installment payment | Installment	3
Enovation Controls, LLC [Member] | Installment One [Member]
Business Acquisition [Line Items]
Potential installment payment during the period	9 months
Enovation Controls, LLC [Member] | Installment Two [Member]
Business Acquisition [Line Items]
Potential installment payment during the period	18 months
Enovation Controls, LLC [Member] | Installment Three [Member]
Business Acquisition [Line Items]
Potential installment payment during the period	27 months
Enovation Controls, LLC [Member] | Maximum [Member]
Business Acquisition [Line Items]
Fair value of contingent consideration	$ 50,000
Purchase price allocation revise period from the acquisition date			12 months

Business Acquisition (Details)

Business Acquisition (Details) - USD ($) $ in Thousands	Dec. 05, 2016	Apr. 01, 2017	Jul. 01, 2017
Business Acquisition [Line Items]
Post closing adjustment for working capital			$ 500
Enovation Controls, LLC [Member]
Business Acquisition [Line Items]
Cash	$ 201,020
Fair value of contingent consideration	41,391
Post closing adjustment for working capital	500	$ 500
Total purchase consideration	242,911
Less: cash acquired	(964)
Total purchase consideration, net of cash acquired	$ 241,947

Business Acquisition (Details 1

Business Acquisition (Details 1) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill	$ 110,477	$ 103,583
Enovation Controls, LLC [Member]
Business Acquisition [Line Items]
Accounts receivable	9,502
Inventories	16,979
Other current assets	176
Property, plant and equipment	10,546
Goodwill	105,481
Intangible assets	108,070
Other assets	8
Total assets acquired	250,762
Accounts payable	(3,260)
Accrued expenses and other liabilities	(3,745)
Deferred income taxes	(1,810)
Total liabilities assumed	(8,815)
Fair value of net assets acquired	$ 241,947

Business Acquisition (Details 2

Business Acquisition (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 02, 2016	Jul. 02, 2016
Business Combinations [Abstract]
Net sales	$ 70,499	$ 141,354
Operating income	12,732	26,497
Net income	$ 7,973	$ 17,078
Basic and diluted net income per common share	$ 0.30	$ 0.64

Fair Value of Financial Instr36

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Assets
Asset measured at, fair value	$ 2,491
Recurring [Member]
Assets
Assets measured at fair value, Adjusted cost	4,274	$ 7,446
Assets measured at fair value, Unrealized gains	23	40
Assets measured at fair value, Unrealized losses	(451)	(661)
Asset measured at, fair value	3,846	6,825
Recurring [Member] | Level 1 [Member]
Assets
Assets measured at fair value, Adjusted cost	1,483	1,483
Assets measured at fair value, Unrealized gains	21	31
Assets measured at fair value, Unrealized losses	(149)	(159)
Asset measured at, fair value	1,355	1,355
Recurring [Member] | Level 1 [Member] | Equity securities [Member]
Assets
Assets measured at fair value, Adjusted cost	0	0
Assets measured at fair value, Unrealized gains	21	31
Assets measured at fair value, Unrealized losses	0	0
Asset measured at, fair value	21	31
Recurring [Member] | Level 1 [Member] | Mutual funds [Member]
Assets
Assets measured at fair value, Adjusted cost	1,483	1,483
Assets measured at fair value, Unrealized gains	0	0
Assets measured at fair value, Unrealized losses	(149)	(159)
Asset measured at, fair value	1,334	1,324
Recurring [Member] | Level 2 [Member]
Assets
Assets measured at fair value, Adjusted cost	2,791	5,963
Assets measured at fair value, Unrealized gains	2	9
Assets measured at fair value, Unrealized losses	(302)	(502)
Asset measured at, fair value	2,491	5,470
Recurring [Member] | Level 2 [Member] | Corporate fixed income [Member]
Assets
Assets measured at fair value, Adjusted cost	1,455	4,288
Assets measured at fair value, Unrealized gains	2	9
Assets measured at fair value, Unrealized losses	(228)	(408)
Asset measured at, fair value	1,229	3,889
Recurring [Member] | Level 2 [Member] | Municipal bonds [Member]
Assets
Assets measured at fair value, Adjusted cost	1,336	1,675
Assets measured at fair value, Unrealized gains	0	0
Assets measured at fair value, Unrealized losses	(74)	(94)
Asset measured at, fair value	1,262	1,581
Recurring [Member] | Level 3 [Member]
Liabilities
Liabilities Measured at Fair Value Adjusted Cost	0	0
Liabilities measured at fair value, Unrealized gains	0	0
Liabilities measured at fair value, Unrealized losses	0	0
Liabilities measured at fair value	49,582	35,077
Recurring [Member] | Level 3 [Member] | Contingent consideration [Member]
Liabilities
Liabilities Measured at Fair Value Adjusted Cost	0	0
Liabilities measured at fair value, Unrealized gains	0	0
Liabilities measured at fair value, Unrealized losses	0	0
Liabilities measured at fair value	$ 49,582	$ 35,077

Fair Value of Financial Instr37

Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016
Fair Value Disclosures [Abstract]
Realized gain (loss) on available for sale securities	$ (259)	$ (309)
Impairment charges	220	$ 276
Change in acquisition date fair value of contingent consideration	$ 6,314

Fair Value of Financial Instr38

Fair Value of Financial Instruments (Details 1) $ in Thousands	Jul. 01, 2017USD ($)
Summary of maturities of marketable securities
Due in less than one year, adjusted cost	$ 401
Due after one year but within five years, adjusted cost	1,214
Due after five years but within ten years, adjusted cost	469
Due after ten years, adjusted cost	707
Available-for-sale Debt Securities, Amortized Cost Basis	2,791
Due in less than one year, fair value	278
Due after one year but within five years, fair value	1,169
Due after five years but within ten years, fair value	394
Due after ten years, fair value	650
Asset measured at, fair value	$ 2,491

Fair Value of Financial Instr39

Fair Value of Financial Instruments (Details 2) $ in Thousands	6 Months Ended
	Jul. 01, 2017USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Measurement period adjustment	$ 6,314
Contingent consideration [Member]
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	35,077
Measurement period adjustment	6,314
Change in estimated fair value	7,563
Accretion in value	628
Ending Balance	$ 49,582

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Summary of inventories
Raw materials	$ 24,242	$ 16,864
Work in process	6,035	5,641
Finished goods	9,323	8,069
Provision for slow moving inventory	(1,118)	(574)
Total	$ 38,482	$ 30,000

Goodwill and Intangible Asset41

Goodwill and Intangible Assets (Details) $ in Thousands	6 Months Ended
	Jul. 01, 2017USD ($)
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 103,583
Working capital adjustment	500
Measurement period adjustment	6,314
Currency translation	80
Goodwill, Ending Balance	110,477
Hydraulics [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	2,214
Working capital adjustment	0
Measurement period adjustment	0
Currency translation	80
Goodwill, Ending Balance	2,294
Electronics [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	101,369
Working capital adjustment	500
Measurement period adjustment	6,314
Currency translation	0
Goodwill, Ending Balance	$ 108,183

Goodwill and Intangible Asset42

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands	Jul. 01, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 115,257	$ 115,257
Accumulated amortization	(7,051)	(2,692)
Net carrying amount	108,206	112,565
Trade Name and Brands [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	30,774	30,774
Accumulated amortization	(1,330)	(541)
Net carrying amount	29,444	30,233
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	950	950
Accumulated amortization	(111)	(16)
Net carrying amount	839	934
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	18,435	18,435
Accumulated amortization	(1,645)	(620)
Net carrying amount	16,790	17,815
Supply Agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	21,000	21,000
Accumulated amortization	(1,225)	(175)
Net carrying amount	19,775	20,825
Sales Order Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	620	620
Accumulated amortization	(620)	(347)
Net carrying amount	0	273
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	39,751	39,751
Accumulated amortization	(1,610)	(614)
Net carrying amount	38,141	39,137
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	3,727	3,727
Accumulated amortization	(510)	(379)
Net carrying amount	$ 3,217	$ 3,348

Goodwill and Intangible Asset43

Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense of intangible assets	$ 2,039	$ 115	$ 4,348	$ 302
Amortization expense for the remainder of 2017	$ 4,074		$ 4,074

Goodwill and Intangible Asset44

Goodwill and Intangible Assets (Details 2) $ in Thousands	Oct. 01, 2016USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2,018	$ 8,148
2,019	8,148
2,020	8,148
2,021	8,117
2,022	7,839
Total	$ 40,400

Long-Term Debt (Details Textual

Long-Term Debt (Details Textual) - USD ($)	6 Months Ended
	Jul. 01, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Revolving line of credit	$ 124,000,000	$ 140,000,000
Interest expense recognized	1,778,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facilities, maximum capacity	300,000,000
Revolving line of credit	124,000,000	140,000,000
Additional credit available subject to pro forma compliance with debt covenant	$ 176,000,000	$ 160,000,000
Interest rate in effect	2.92%

Income Taxes (Details Textual)

Income Taxes (Details Textual) $ in Thousands	6 Months Ended
	Jul. 01, 2017USD ($)
Income Tax Disclosure [Abstract]
Unrecognized tax benefit	$ 3,786
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

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Textual)	Jun. 01, 2015shares	Jul. 01, 2017USD ($)$ / sharesshares	Jul. 01, 2017GBP (£)shares	Jul. 02, 2016USD ($)$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate shares of restricted stock grant		74,000	74,000
Ratio for additional common stock shares issued, under ESPP		16.67%	16.67%
2012 Director Equity Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate shares of restricted stock grant		270,000
Common stock shares for each nonemployee director	250
Fee for the chairs of each Board committee	150.00%
Annual retainer of common stock received by non employee directors		2,000	2,000
Stock option granted, shares		12,750	12,750	12,750
Share-based compensation expenses under Director's plan | $		$ 501,000		$ 407,000
Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Rate of common stock at market value		85.00%	85.00%
Employee Stock Purchase Plan and U.K. Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for issuance		563,202
Aggregate shares of restricted stock grant		1,096,875
Number of shares purchased by employees		15,090	15,090	25,896
Weighted average price | $ / shares		$ 30.90		$ 25.89
Share-based compensation expenses | $		$ 131,000		$ 137,000
Maximum [Member] | 2012 Director Equity Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum number of share issuable to non employee directors per year		35,000
Minimum [Member] | Employee Stock Purchase Plan and U.K. Plan [Member] | United States [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares allowed to be purchased by employees | $		$ 25,000
Minimum [Member] | Employee Stock Purchase Plan and U.K. Plan [Member] | United Kingdom [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares allowed to be purchased by employees | £			£ 1,500
Allowable employees purchase rate of common stock based on annual salary		10.00%	10.00%
Equity Incentive Plan (2011 Plan) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for issuance		453,737
Restricted stock expense | $		$ 1,397,000		$ 2,316,000
Total unrecognized compensation | $		$ 3,102,000
Recognized weighted average period (in years)		1 year 1 month 24 days	1 year 1 month 24 days
Equity Incentive Plan (2011 Plan) [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Aggregate shares of restricted stock grant		1,000,000	1,000,000
Nonemployee Director Equity and Deferred Compensation Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for issuance		162,124

Stock-Based Compensation (Det48

Stock-Based Compensation (Details) shares in Thousands	6 Months Ended
	Jul. 01, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested Beginning balance Number of shares | shares	104
Granted, Number of shares | shares	74
Vested, Number of shares | shares	(35)
Forfeitures, Number of shares | shares	(2)
Nonvested Ending balance Number of shares | shares	141
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Nonvested Beginning balance, Weighted average grant-date fair value | $ / shares	$ 32.42
Granted, Weighted average grant-date fair value | $ / shares	35.45
Vested, Weighted average grant-date fair value | $ / shares	33.75
Forfeitures, Weighted average grant-date fair value | $ / shares	31.85
Nonvested Ending balance, Weighted average grant-date fair value | $ / shares	$ 33.81

Accumulated Other Comprehensi49

Accumulated Other Comprehensive Loss - Changes in AOCI (Details) $ in Thousands	6 Months Ended
	Jul. 01, 2017USD ($)
Changes in Accumulated Other Comprehensive Income, by Component
Beginning Balance	$ 236,397
Amounts reclassified from accumulated other comprehensive loss	163
Ending Balance	256,746
Unrealized Gains and Losses on Available-for-Sale Securities [Member]
Changes in Accumulated Other Comprehensive Income, by Component
Beginning Balance	(391)
Other comprehensive (loss) income before reclassifications	(41)
Amounts reclassified from accumulated other comprehensive loss	163
Net current period other comprehensive income	122
Ending Balance	(269)
Foreign Currency Items [Member]
Changes in Accumulated Other Comprehensive Income, by Component
Beginning Balance	(15,442)
Other comprehensive (loss) income before reclassifications	5,191
Amounts reclassified from accumulated other comprehensive loss	0
Net current period other comprehensive income	5,191
Ending Balance	(10,251)
Accumulated other comprehensive income (loss) [Member]
Changes in Accumulated Other Comprehensive Income, by Component
Beginning Balance	(15,833)
Other comprehensive (loss) income before reclassifications	5,150
Amounts reclassified from accumulated other comprehensive loss	163
Net current period other comprehensive income	5,313
Ending Balance	$ (10,520)

Accumulated Other Comprehensi50

Accumulated Other Comprehensive Loss (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Other than temporary impairment			$ (220)	$ (276)
Income before income taxes	$ 10,904	$ 10,594	26,043	22,789
Tax benefit	(3,620)	(3,604)	(8,548)	(7,591)
Net income	$ 7,284	$ 6,990	17,495	$ 15,198
Total reclassifications for the period			(163)
Unrealized Gains and Losses on Available-for-Sale Securities [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period			(163)
Reclassifications out of Accumulated Other Comprehensive Loss [Member] | Unrealized Gains and Losses on Available-for-Sale Securities [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Realized gain/(loss) on sale of securities			(39)
Other than temporary impairment			(220)
Income before income taxes			(259)
Tax benefit			96
Net income			$ (163)

Segment Reporting (Details Text

Segment Reporting (Details Textual) $ in Thousands	Dec. 05, 2016Segment	Jul. 01, 2017USD ($)Segment	Jul. 02, 2016Segment
Segment Reporting Information [Line Items]
Number of operating segments | Segment		2	1
Number of reportable segments | Segment	2		1
Acquisition-related costs including inventory step-up to fair value		$ 1,774
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Unallocated costs		300
Acquisition-related costs including inventory step-up to fair value		1,774
Amortization of Acquisition-related intangible assets		$ 4,227

Segment Reporting (Details 1)

Segment Reporting (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Net sales	$ 89,335	$ 50,809	$ 170,688	$ 101,837
Operating income	20,701	10,444	36,485	22,330
Depreciation and amortization	4,764	2,507	9,855	5,034
Capital expenditures	2,547	1,558	3,305	2,557
Total assets	469,293		469,293		$ 444,777
Operating Segments [Member] | Hydraulics [Member]
Segment Reporting Information [Line Items]
Net sales	60,818	49,915	114,940	100,098
Operating income	16,359	10,642	30,131	22,568
Depreciation and amortization	2,241	2,386	4,529	4,780
Capital expenditures	1,465	1,493	2,076	2,435
Total assets	198,887		198,887		193,722
Operating Segments [Member] | Electronics [Member]
Segment Reporting Information [Line Items]
Net sales	28,517	894	55,748	1,739
Operating income	6,419	(198)	12,655	(238)
Depreciation and amortization	2,523	121	5,326	254
Capital expenditures	1,082	$ 65	1,229	$ 122
Total assets	270,406		270,406		$ 251,055
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Operating income	$ (2,077)		$ (6,301)

Segment Reporting (Details 2)

Segment Reporting (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2017	Jul. 02, 2016	Jul. 01, 2017	Jul. 02, 2016	Dec. 31, 2016
Net sales
Net sales	$ 89,335	$ 50,809	$ 170,688	$ 101,837
Tangible long-lived assets
Tangible long-lived assets	78,250		78,250		$ 80,515
Americas [Member]
Net sales
Net sales	52,705	23,402	99,993	48,117
Tangible long-lived assets
Tangible long-lived assets	69,007		69,007		71,802
Asia/Pacific [Member]
Net sales
Net sales	17,401	11,604	31,366	22,240
Tangible long-lived assets
Tangible long-lived assets	1,903		1,903		1,597
Europe/Middle East/Africa [Member]
Net sales
Net sales	19,229	$ 15,803	39,329	$ 31,480
Tangible long-lived assets
Tangible long-lived assets	$ 7,340		$ 7,340		$ 7,116

Related Party Transactions (Det

Related Party Transactions (Details Textual) - Enovation Controls [Member] $ in Thousands	6 Months Ended
	Jul. 01, 2017USD ($)Officer
Inventory Transactions [Member]
Related Party Transaction [Line Items]
Number of officers purchasing and selling inventory | Officer	1
Total sales to entity	$ 1,299
Total purchases from entity/related party	5,805
Due from entity/related party	548
Due to entity/related party	723
Transition Services Agreement [Member]
Related Party Transaction [Line Items]
Total purchases from entity/related party	856
Due from entity/related party	238
Due to entity/related party	$ 192
Maximum transition services period for specified services	1 year
Transition Services Agreement [Member] | Miscellaneous Expense, Net [Member]
Related Party Transaction [Line Items]
Sales	$ 1,217
Cost of sales	$ 968