Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Mar. 02, 2015 | Jun. 28, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | EASTERN CO | ||
Entity Central Index Key | 31107 | ||
Current Fiscal Year End Date | -2 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $86,116,996 | ||
Entity Common Stock, Shares Outstanding | 6,244,013 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 3-Jan-15 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
Current Assets | ||
Cash and cash equivalents | $15,834,444 | $19,988,361 |
Accounts receivable, less allowances of $414,000 in 2014 and $410,000 in 2013 | 17,064,245 | 16,284,603 |
Inventories: | ||
Raw materials and component parts | 9,219,341 | 8,256,977 |
Work in process | 7,074,950 | 4,925,001 |
Finished goods | 18,107,906 | 17,475,634 |
Inventories | 34,402,197 | 30,657,612 |
Prepaid expenses and other assets | 2,659,737 | 3,244,686 |
Recoverable income taxes receivable | 380,000 | 0 |
Deferred income taxes | 950,024 | 818,662 |
Total Current Assets | 71,290,647 | 70,993,924 |
Property, Plant and Equipment | ||
Land | 1,160,720 | 1,161,343 |
Buildings | 16,216,146 | 15,736,794 |
Machinery and equipment | 45,593,631 | 44,951,717 |
Accumulated depreciation | -34,919,067 | -34,458,096 |
Net Property, Plant and Equipment | 28,051,430 | 27,391,758 |
Other Assets | ||
Goodwill | 14,960,354 | 13,842,047 |
Trademarks | 174,662 | 173,177 |
Patents, technology and other intangibles net of accumulated amortization | 2,498,570 | 1,457,503 |
Deferred income taxes | 4,294,893 | 0 |
Total Other Assets | 21,928,479 | 15,472,727 |
TOTAL ASSETS | 121,270,556 | 113,858,409 |
Current Liabilities | ||
Accounts payable | 8,256,600 | 7,302,368 |
Accrued compensation | 2,916,832 | 3,007,169 |
Other accrued expenses | 1,201,114 | 1,519,338 |
Current portion of long-term debt | 1,071,429 | 1,785,714 |
Total Current Liabilities | 13,445,975 | 13,614,589 |
Deferred income taxes | 0 | 1,111,755 |
Other long-term liabilities | 564,669 | 248,417 |
Long-term debt, less current portion | 3,214,285 | 4,285,714 |
Accrued postretirement benefits | 2,905,908 | 2,232,872 |
Accrued pension cost | 26,164,812 | 10,860,211 |
Commitments and contingencies (See Note 4) | ||
Shareholders' Equity | ||
Voting Preferred Stock, no par value: Authorized and unissued: 1,000,000 shares | ||
Nonvoting Preferred Stock, no par value: Authorized and unissued: 1,000,000 shares | ||
Common Stock, no par value: Authorized: 50,000,000 shares Issued: 8,938,742 shares in 2014 and 8,916,897 shares in 2013 | 28,932,058 | 28,621,582 |
Treasury Stock: 2,694,729 shares in 2014 and 2013 | -19,105,723 | -19,105,723 |
Retained earnings | 87,680,667 | 83,006,671 |
Accumulated other comprehensive income (loss): | ||
Foreign currency translation | 855,179 | 1,983,506 |
Unrecognized net pension and postretirement benefit costs, net of taxes | -23,387,274 | -13,001,185 |
Accumulated other comprehensive loss | -22,532,095 | -11,017,679 |
Total Shareholders' Equity | 74,974,907 | 81,504,851 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $121,270,556 | $113,858,409 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jan. 03, 2015 | Dec. 28, 2013 |
Current Assets | ||
Accounts receivable, allowances | $414,000 | $410,000 |
Shareholders' Equity | ||
Voting Preferred Stock, no par value (in dollars per share) | $0 | $0 |
Voting Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Nonvoting Preferred Stock, no par value (in dollars per share) | $0 | $0 |
Nonvoting Preferred Stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common Stock, no par value (in dollars per share) | $0 | $0 |
Common Stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common Stock, shares issued (in shares) | 8,938,742 | 8,916,897 |
Treasury Stock, shares (in shares) | 2,694,729 | 2,694,729 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Consolidated Statements of Income [Abstract] | |||
Net sales | $140,825,360 | $142,458,279 | $157,509,185 |
Cost of products sold | -108,338,956 | -112,310,759 | -124,156,707 |
Gross margin | 32,486,404 | 30,147,520 | 33,352,478 |
Selling and administrative expenses | -20,767,756 | -19,761,199 | -19,801,055 |
Operating profit | 11,718,648 | 10,386,321 | 13,551,423 |
Interest expense | -254,576 | -322,731 | -369,357 |
Other income | 64,691 | 50,305 | 42,452 |
Income before income taxes | 11,528,763 | 10,113,895 | 13,224,518 |
Income taxes | 3,867,287 | 3,211,974 | 4,598,718 |
Net income | $7,661,476 | $6,901,921 | $8,625,800 |
Earnings per Share: | |||
Basic (in dollars per share) | $1.23 | $1.11 | $1.39 |
Diluted (in dollars per share) | $1.23 | $1.11 | $1.38 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $7,661,476 | $6,901,921 | $8,625,800 |
Other comprehensive (loss)/income - | |||
Change in foreign currency translation | -1,128,327 | -656,972 | 533,291 |
Change in pension and postretirement benefit costs, net of income taxes (expense)/benefit of $5,767,236 in 2014, ($3,437,175) in 2013 and $2,053,255 in 2012 | -10,386,089 | 6,254,558 | -3,712,466 |
Total other comprehensive (loss)/income | -11,514,416 | 5,597,586 | -3,179,175 |
Comprehensive (loss)/income | ($3,852,940) | $12,499,507 | $5,446,625 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Other comprehensive (loss)/income - | |||
Change in pension and postretirement benefit costs, taxes (expense) benefit | $5,767,236 | ($3,437,175) | $2,053,255 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Common Stock [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balances at Dec. 31, 2011 | $28,499,779 | ($19,105,723) | $73,200,362 | ($13,436,090) | $69,158,328 |
Balances (in shares) at Dec. 31, 2011 | 8,908,607 | -2,694,729 | |||
Net income | 8,625,800 | 8,625,800 | |||
Cash dividends declared | -3,108,577 | -3,108,577 | |||
Miscellaneous | 4 | 4 | |||
Currency translation adjustment | 533,291 | 533,291 | |||
Change in pension and postretirement benefit costs, net of tax | -3,712,466 | -3,712,466 | |||
Issuance of Common Stock upon the exercise of stock options | 61,110 | 61,110 | |||
Issuance of Common Stock upon the exercise of stock options (in shares) | 4,500 | ||||
Tax benefit from exercise of non-qualified stock options and disqualifying dispositions of incentive stock options | 0 | ||||
Issuance of Common Stock for directors' fees | 24,609 | 24,609 | |||
Issuance of Common Stock for directors' fees (in shares) | 1,371 | ||||
Balances at Dec. 29, 2012 | 28,585,498 | -19,105,723 | 78,717,589 | -16,615,265 | 71,582,099 |
Balances (in shares) at Dec. 29, 2012 | 8,914,478 | -2,694,729 | |||
Net income | 6,901,921 | 6,901,921 | |||
Cash dividends declared | -2,612,839 | -2,612,839 | |||
Currency translation adjustment | -656,972 | -656,972 | |||
Change in pension and postretirement benefit costs, net of tax | 6,254,558 | 6,254,558 | |||
Issuance of Common Stock upon the exercise of stock options | 13,580 | 13,580 | |||
Issuance of Common Stock upon the exercise of stock options (in shares) | 1,000 | ||||
Tax benefit from exercise of non-qualified stock options and disqualifying dispositions of incentive stock options | 0 | ||||
Issuance of Common Stock for directors' fees | 22,504 | 22,504 | |||
Issuance of Common Stock for directors' fees (in shares) | 1,419 | ||||
Balances at Dec. 28, 2013 | 28,621,582 | -19,105,723 | 83,006,671 | -11,017,679 | 81,504,851 |
Balances (in shares) at Dec. 28, 2013 | 8,916,897 | -2,694,729 | |||
Net income | 7,661,476 | 7,661,476 | |||
Cash dividends declared | -2,987,480 | -2,987,480 | |||
Currency translation adjustment | -1,128,327 | -1,128,327 | |||
Change in pension and postretirement benefit costs, net of tax | -10,386,089 | -10,386,089 | |||
Issuance of Common Stock upon the exercise of stock options | 271,600 | 271,600 | |||
Issuance of Common Stock upon the exercise of stock options (in shares) | 20,000 | ||||
Tax benefit from exercise of non-qualified stock options and disqualifying dispositions of incentive stock options | 8,882 | 8,882 | |||
Issuance of Common Stock for directors' fees | 29,994 | 29,994 | |||
Issuance of Common Stock for directors' fees (in shares) | 1,845 | ||||
Balances at Jan. 03, 2015 | $28,932,058 | ($19,105,723) | $87,680,667 | ($22,532,095) | $74,974,907 |
Balances (in shares) at Jan. 03, 2015 | 8,938,742 | -2,694,729 |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Consolidated Statements of Shareholders' Equity [Abstract] | |||
Cash dividends declared, per share (in dollars per share) | $0.48 | $0.42 | $0.50 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Operating Activities | |||
Net income | $7,661,476 | $6,901,921 | $8,625,800 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 3,486,302 | 3,825,286 | 3,439,800 |
(Gain)/loss on sale of equipment and other assets | 69,258 | 116,327 | -1,500 |
Provision for doubtful accounts | 37,601 | 106,485 | 147,313 |
Deferred income taxes | 229,226 | 531,023 | 1,101,701 |
Issuance of Common Stock for directors' fees | 29,994 | 22,504 | 24,609 |
Changes in operating assets and liabilities: | |||
Accounts receivable | -207,631 | 1,776,744 | 307,524 |
Inventories | -2,825,155 | -1,400,893 | 586,576 |
Prepaid expenses and other | 593,075 | 308,653 | -24,741 |
Prepaid pension cost | -309,034 | -111,945 | -865,831 |
Recoverable taxes receivable | -380,000 | 1,158,632 | -510,683 |
Other assets | -156,164 | -76,426 | -124,598 |
Accounts payable | 998,502 | -253,994 | -889,663 |
Accrued compensation | 185,724 | -626,385 | 439,537 |
Other accrued expenses | -65,990 | -960,896 | 1,389,988 |
Net cash provided by operating activities | 9,347,184 | 11,317,036 | 13,645,832 |
Investing Activities | |||
Purchases of property, plant and equipment | -3,633,165 | -5,523,742 | -4,216,970 |
Proceeds from sale of equipment and other assets | 22,500 | 2,839 | 44,184 |
Business acquisitions | -5,034,289 | 0 | 0 |
Net cash used in investing activities | -8,644,954 | -5,520,903 | -4,172,786 |
Financing Activities | |||
Principal payments on long-term debt | -1,785,714 | -1,428,571 | -1,250,000 |
Proceeds from issuance of long-term debt | 0 | 0 | 5,000,000 |
Principal payments on revolving credit loan | 0 | 0 | -3,000,000 |
Proceeds from sales of Common Stock | 271,600 | 13,580 | 61,110 |
Tax benefit from disqualifying disposition of incentive stock options and exercise of non-qualified stock options | 8,882 | 0 | 0 |
Dividends paid | -2,987,480 | -2,612,839 | -3,108,577 |
Net cash used in financing activities | -4,492,712 | -4,027,830 | -2,297,467 |
Effect of exchange rate changes on cash | -363,435 | -262,086 | 159,268 |
Net change in cash and cash equivalents | -4,153,917 | 1,506,217 | 7,334,847 |
Cash and cash equivalents at beginning of year | 19,988,361 | 18,482,144 | 11,147,297 |
Cash and cash equivalents at end of year | $15,834,444 | $19,988,361 | $18,482,144 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Jan. 03, 2015 | |
DESCRIPTION OF BUSINESS [Abstract] | |
DESCRIPTION OF BUSINESS | 1. Description of Business |
The operations of The Eastern Company (the “Company”) consist of three business segments: industrial hardware, security products, and metal products. The industrial hardware segment produces latching devices for use on industrial equipment and instrumentation, composite panels used primarily in the transportation and electronic white board industries, as well as a broad line of proprietary hardware designed for truck bodies and other vehicular type equipment. The security products segment manufactures and markets a broad range of locks for traditional general purpose security applications as well as specialized locks for soft luggage, coin-operated vending and gaming equipment, and electric and computer peripheral components. This segment also manufactures and markets coin acceptors and metering systems to secure cash used in the commercial laundry industry and produces cashless payment systems utilizing advanced smart card technology. The metal products segment produces anchoring devices used in supporting the roofs of underground coal mines and specialty products, which serve the construction, automotive, railroad and electrical industries. | |
Sales are made to customers primarily in North America. |
ACCOUNTING_POLICIES
ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||||
Jan. 03, 2015 | ||||||||||||||||
ACCOUNTING POLICIES [Abstract] | ||||||||||||||||
ACCOUNTING POLICIES | 2. Accounting Policies | |||||||||||||||
Estimates and Assumptions | ||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||
Fiscal Year | ||||||||||||||||
The Company’s year ends on the Saturday nearest to December 31. Fiscal 2014 was a 53 week year, 2013 and 2012 were 52 weeks. | ||||||||||||||||
Principles of Consolidation | ||||||||||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany accounts and transactions are eliminated. | ||||||||||||||||
Cash Equivalents and Concentrations of Credit Risk | ||||||||||||||||
Highly liquid investments purchased with a maturity of three months or less are considered cash equivalents. The Company has deposits that exceed amounts insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000, but the Company does not consider this a significant concentration of credit risk based on the strength of the financial institution. | ||||||||||||||||
Foreign Currency Translation | ||||||||||||||||
For foreign operations balance sheet accounts are translated at the current year-end exchange rate; income statement accounts are translated at the average exchange rate for the year. Resulting translation adjustments are made directly to a separate component of shareholders’ equity – “Accumulated other comprehensive income (loss) – Foreign currency translation”. Foreign currency exchange transaction gains and losses are not material in any year. | ||||||||||||||||
Recognition of Revenue and Accounts Receivable | ||||||||||||||||
Revenue and accounts receivable are recognized when persuasive evidence of an arrangement exists, the price is fixed and determinable, delivery has occurred, and there is a reasonable assurance of collection of the sales proceeds. The Company obtains written purchase authorizations from its customers for a specified amount of product at a specified price and delivery occurs at the time of shipment. Credit is extended based on an evaluation of each customer’s financial condition; collateral is not required. Accounts receivable are recorded net of applicable allowances. No customer exceeded 10% of total accounts receivable at year end 2014 or 2013. | ||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||
The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company reviews the collectibility of its receivables on an ongoing basis taking into account a combination of factors. The Company reviews potential problems, such as past due accounts, a bankruptcy filing or deterioration in the customer’s financial condition, to ensure the Company is adequately accrued for potential loss. Accounts are considered past due based on when payment was originally due. If a customer’s situation changes, such as a bankruptcy or creditworthiness, or there is a change in the current economic climate, the Company may modify its estimate of the allowance for doubtful accounts. The Company will write off accounts receivable after reasonable collection efforts have been made and the accounts are deemed uncollectible. Write-offs have been within management’s estimates. | ||||||||||||||||
Inventories | ||||||||||||||||
Inventories are valued at the lower of cost or market. Cost is determined by the last-in, first-out (LIFO) method in the U.S. ($28,324,813 for U.S. inventories at January 3, 2015) and by the first-in, first-out (FIFO) method for inventories outside the U.S. ($6,077,384 for inventories outside the U.S. at January 3, 2015). Current cost exceeds the LIFO carrying value by approximately $6,886,000 at January 3, 2015 and $6,689,000 at December 28, 2013. There was no material LIFO quantity liquidation in 2014, 2013 or 2012. | ||||||||||||||||
Property, Plant and Equipment and Related Depreciation | ||||||||||||||||
Property, plant and equipment (including equipment under capital lease) are stated at cost. Depreciation ($3,237,426 in 2014, $3,592,263 in 2013 and $3,210,324 in 2012) is computed generally using the straight-line method based on the following estimated useful lives of the assets: Buildings 10 to 39.5 years; Machinery and equipment 3 to 10 years. | ||||||||||||||||
Goodwill, Intangibles and Impairment of Long-Lived Assets | ||||||||||||||||
Patents are recorded at cost and are amortized using the straight-line method over the lives of the patents. Technology and licenses are recorded at cost and are generally amortized on a straight-line basis over periods ranging from 5 to 17 years. Non-compete agreements and customer relationships are being amortized using the straight-line method over a period of 5 years. Amortization expense in 2014, 2013 and 2012 was $248,876, $233,023 and $229,476, respectively. Total amortization expense for each of the next five years is estimated to be as follows: 2015 - $477,000; 2016 - $476,000; 2017 - $474,000; 2018 - $474,000; and 2019 - $474,000. Trademarks are not amortized as their lives are deemed to be indefinite. | ||||||||||||||||
The gross carrying amount and accumulated amortization of amortizable intangible assets: | ||||||||||||||||
Weighted-Average | ||||||||||||||||
Industrial | Security | Metal | Amortization Period (Years) | |||||||||||||
Hardware | Products | Products | ||||||||||||||
Segment | Segment | Segment | Total | |||||||||||||
2014 Gross Amount | ||||||||||||||||
Patents and developed technology | $ | 2,494,261 | $ | 1,025,303 | $ | — | $ | 3,519,564 | 15.7 | |||||||
Customer relationships | — | 449,706 | — | 449,706 | 5.0 | |||||||||||
Non-compete agreements | — | 407,000 | — | 407,000 | 5.0 | |||||||||||
Intellectual property | — | 307,370 | — | 307,370 | 5.0 | |||||||||||
Total Gross Intangibles | $ | 2,494,261 | $ | 2,189,379 | $ | — | $ | 4,683,640 | 12.7 | |||||||
2014 Accumulated Amortization | ||||||||||||||||
Patents and developed technology | $ | 1,649,655 | $ | 535,415 | $ | — | $ | 2,185,070 | ||||||||
Customer relationships | — | — | — | — | ||||||||||||
Non-compete agreements | — | — | — | — | ||||||||||||
Intellectual property | — | — | — | — | ||||||||||||
Accumulated Amortization | $ | 1,649,655 | $ | 535,415 | $ | — | $ | 2,185,070 | ||||||||
Net 2014 per Balance Sheet | $ | 844,606 | $ | 1,653,964 | $ | — | $ | 2,498,570 | ||||||||
2013 Patents and developed | ||||||||||||||||
technology | ||||||||||||||||
Gross Amount | $ | 2,595,931 | $ | 1,041,250 | $ | — | $ | 3,637,181 | 16 | |||||||
Accumulated amortization | 1,676,440 | 503,238 | — | 2,179,678 | ||||||||||||
Net 2013 per Balance Sheet | $ | 919,491 | $ | 538,012 | $ | — | $ | 1,457,503 | ||||||||
In the event that facts and circumstances indicate that the carrying value of long-lived assets, including definite life intangible assets, may be impaired, an evaluation is performed to determine if a write-down is required. No events or changes in circumstances have occurred to indicate that the carrying amount of such long-lived assets held and used may not be recovered. | ||||||||||||||||
The Company performed qualitative assessments as of the end of fiscal 2014 and fiscal 2013 and determined it is more likely than not that no impairment of goodwill existed at the end of 2014 or 2013. The Company will perform annual qualitative assessments in subsequent years as of the end of each fiscal year. Additionally, the Company will perform interim analysis whenever conditions warrant. | ||||||||||||||||
Goodwill or trademarks would be considered impaired whenever our historical carrying amount exceeds the fair value. Goodwill and trademarks were not impaired in 2014, 2013 or 2012. Should we reach a different conclusion in the future, additional work would be performed to determine the amount of the non-cash impairment charge to be recognized. The maximum future impairment of goodwill or trademarks that could occur is the amount recognized on our balance sheet. | ||||||||||||||||
The following is a roll-forward of goodwill for 2014 and 2013: | ||||||||||||||||
Industrial | Security | Metal | ||||||||||||||
Hardware | Products | Products | ||||||||||||||
Segment | Segment | Segment | Total | |||||||||||||
2014 | ||||||||||||||||
Beginning balance | $ | 2,008,231 | $ | 11,833,816 | $ | — | $ | 13,842,047 | ||||||||
Acquisition of Argo Transdata | — | 1,225,226 | — | 1,225,226 | ||||||||||||
Foreign exchange | (106,919 | ) | — | — | (106,919 | ) | ||||||||||
Ending balance | $ | 1,901,312 | $ | 13,059,042 | $ | — | $ | 14,960,354 | ||||||||
Industrial | Security | Metal | ||||||||||||||
Hardware | Products | Products | ||||||||||||||
Segment | Segment | Segment | Total | |||||||||||||
2013 | ||||||||||||||||
Beginning balance | $ | 2,099,783 | $ | 11,833,816 | $ | — | $ | 13,933,599 | ||||||||
Foreign exchange | (91,552 | ) | — | — | (91,552 | ) | ||||||||||
Ending balance | $ | 2,008,231 | $ | 11,833,816 | $ | — | $ | 13,842,047 | ||||||||
Cost of Goods Sold | ||||||||||||||||
Cost of goods sold reflects the cost of purchasing, manufacturing and preparing a product for sale. These costs generally represent the expenses to acquire or manufacture products for sale (including an allocation of depreciation and amortization) and are primarily comprised of direct materials, direct labor, and overhead, which includes indirect labor, facility and equipment costs, inbound freight, receiving, inspection, purchasing, warehousing and any other costs related to the purchasing, manufacturing or preparation of a product for sale. | ||||||||||||||||
Shipping and Handling Costs | ||||||||||||||||
Shipping and handling costs are included in cost of goods sold. | ||||||||||||||||
Selling, General and Administrative Expenses | ||||||||||||||||
Selling, general and administrative expenses include all operating costs of the Company that are not directly related to the cost of purchasing, manufacturing and preparing a product for sale. These expenses generally represent the cost of selling or distributing the product once it is available for sale, as well as administrative expenses for support functions and related overhead. | ||||||||||||||||
Product Development Costs | ||||||||||||||||
Product development costs, charged to expense as incurred, were $1,079,557 in 2014, $991,286 in 2013 and $814,096 in 2012. | ||||||||||||||||
Advertising Costs | ||||||||||||||||
The Company expenses advertising costs as incurred. Advertising costs were $494,267 in 2014, $486,027 in 2013 and $442,300 in 2012. | ||||||||||||||||
Income Taxes | ||||||||||||||||
The Company accounts for uncertain tax positions pursuant to the provisions of FASB Accounting Standards Codification (“ASC”) 740 which clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements. These provisions detail how companies should recognize, measure, present and disclose uncertain tax positions that have or are expected to be taken. As such, the financial statements will reflect expected future tax consequences of uncertain tax positions presuming the taxing authorities’ full knowledge of the position and all relevant facts. See Note 8 Income Taxes. | ||||||||||||||||
The Company and its U.S. subsidiaries file a consolidated federal income tax return. | ||||||||||||||||
Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. | ||||||||||||||||
Earnings per Share | ||||||||||||||||
The denominators used in the earnings per share computations follow: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Basic: | ||||||||||||||||
Weighted average shares outstanding | 6,225,068 | 6,220,928 | 6,216,931 | |||||||||||||
Diluted: | ||||||||||||||||
Weighted average shares outstanding | 6,225,068 | 6,220,928 | 6,216,931 | |||||||||||||
Dilutive stock options | 12,846 | 16,830 | 16,444 | |||||||||||||
Denominator for diluted earnings per share | 6,237,914 | 6,237,758 | 6,233,375 | |||||||||||||
There were no anti-dilutive stock options in 2014, 2013 or 2012. | ||||||||||||||||
Derivatives | ||||||||||||||||
The Company does not maintain any derivatives as of the date of this report. | ||||||||||||||||
Stock Based Compensation | ||||||||||||||||
The Company accounts for stock based compensation pursuant to the fair value recognition provisions of ASC 718. No stock options were granted in 2014, 2013 or 2012, and, since all outstanding options were fully vested in each year presented, there was no impact on the financial statements. | ||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The company utilizes a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The fair value hierarchy has three levels of inputs that may be used to measure fair value: | ||||||||||||||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted | |||||||||||||||
assets or liabilities. | ||||||||||||||||
Level 2 | Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for | |||||||||||||||
substantially the full term of the asset or liability. | ||||||||||||||||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and | |||||||||||||||
unobservable. | ||||||||||||||||
The carrying amounts of financial instruments (cash and cash equivalents, accounts receivable, accounts payable and debt) as of January 3, 2015 and December 28, 2013, approximate fair value. Fair value was based on expected cash flows and current market conditions. |
BUSINESS_ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended | ||
Jan. 03, 2015 | |||
BUSINESS ACQUISITIONS [Abstract] | |||
BUSINESS ACQUISITIONS | 3. BusinessAcquisitions | ||
Effective December 15, 2014 the Company acquired certain assets of Argo Transdata Corporation (“Argo”) including accounts receivable, inventories, furniture, fixtures and equipment, intellectual property rights and rights existing under all sales and purchase agreements. Argo is a contract manufacturer of printed circuit board assemblies and has the ability to manufacture surface mount (SMT), through hole and wire bond assemblies or any combination of the three technologies. Its products are sold to numerous OEM’s in industries such as measurement systems, industrial controls, medical and military. The Argo acquisition further diversified our markets and provides a source for printed circuit boards which are used in several of our current products. Argo is included in the Security Products segment of the Company from the date of the acquisition. The cost of the acquisition of Argo was approximately $5,034,000, inclusive of transaction costs, plus a contingent earn-out of $282,914 based on revenue levels in each of the first two fiscal years following the closing and the assumption of $63,000 in current liabilities. | |||
The above acquisition was accounted for under ASC 805. The acquired business is included in the consolidated operating results of the Company from the date of acquisition. The excess of the cost of Argo over the fair market value of the net assets acquired of $1,225,226 has been recorded as goodwill. | |||
In connection with the above acquisition, the Company recorded the following intangible assets: | |||
Weighted-average Amortization Period in Years | |||
Asset Class/Description | Amount | ||
Patents, technology, and licenses | |||
Customer relationships | $ 449,706 | 5 | |
Intellectual property | 307,370 | 5 | |
Non-compete agreements | 407,000 | 5 | |
$ 1,164,076 | 5 | ||
There is no anticipated residual value relating to these intangible assets. | |||
Neither the actual results nor the pro forma effects of the acquisition of Argo are material to the Company's financial statements. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Jan. 03, 2015 | |
CONTINGENCIES [Abstract] | |
CONTINGENCIES | 4. Contingencies |
The Company is party to various legal proceedings and claims related to its normal business operations. In the opinion of management, the Company has substantial and meritorious defenses for these claims and proceedings in which it is a defendant, and believes these matters will ultimately be resolved without a material adverse effect on the consolidated financial position, results of operations or liquidity of the Company. The aggregate provision for losses related to contingencies arising in the ordinary course of business was not material to operating results for any year presented. | |
During the fourth quarter of 2010, the Company was contacted by the State of Illinois regarding potential ground contamination at our plant in Wheeling, Illinois. The Company signed up with a voluntary remediation program in Illinois and has engaged an environmental clean-up company to perform testing and develop a remediation plan, if needed. No estimate for the cost of remediation was available when this Form 10-K was filed with the SEC. | |
Approximately 26% of the total workforce is subject to negotiated union contracts, and none of the total workforce is covered by such agreements that expire during 2015. |
DEBT
DEBT | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
DEBT [Abstract] | ||||||||
DEBT | 5. Debt | |||||||
On January 29, 2010, the Company signed a secured Loan Agreement (the “Loan Agreement”) with People’s United Bank (“People’s”) which included a $5,000,000 term portion and a $10,000,000 revolving credit portion. The term portion of the loan requires quarterly principal payments of $178,571 for a period of seven (7) years, maturing on January 31, 2017. The revolving credit portion had a quarterly commitment fee of one quarter of one percent (0.25%), and a maturity date of January 31, 2012. The proceeds of the term portion along with the Company’s available cash were used to retire the remaining portion of the debt with our former lender, Bank of America, N.A., which on January 29, 2010 totaled $10,714,286. | ||||||||
On January 25, 2012 the Company amended the Loan Agreement by taking an additional $5,000,000 term loan (the “2012 Term Loan”). The 2012 Term Loan requires quarterly principal payments of $178,571 for a period of seven (7) years, maturing on January 31, 2019. At the same time the maturity date of the revolving credit portion was extended to January 31, 2014 and continued to have a quarterly commitment fee of one quarter of one percent (0.25%). | ||||||||
Interest on the original term portion of the Loan Agreement is fixed at 4.98%. Interest on the 2012 Term Loan is fixed at 3.90%. For the period from January 29, 2010 to January 25, 2012, the interest rate on the revolving credit portion of the Loan Agreement varied based on the LIBOR rate or People’s Prime rate plus a margin spread of 2.25%, with a floor rate of 4.0%. As part of the amendment signed on January 25, 2012, this was changed to the LIBOR rate or People’s Prime rate plus 2.25%, with a floor of 3.25%; additionally the maturity date was extended to January 31, 2014. On January 23, 2014, the Company amended the Loan Agreement with People’s. The amendment renewed and extended the maturity date of the revolving credit portion of the Loan Agreement to July 1, 2016 and changes the interest rate to LIBOR plus 2.25%, and eliminated the 3.25% floor previously in place. The quarterly commitment fee of one quarter of one percent (0.25%) remained unchanged. The Company did not utilize the revolving credit portion of the Loan Agreement at any time during 2013 or 2014. | ||||||||
Debt consists of: | ||||||||
2014 | 2013 | |||||||
Term loans | $ | 4,285,714 | $ | 6,071,428 | ||||
Revolving credit loan | — | — | ||||||
4,285,714 | 6,071,428 | |||||||
Less current portion | 1,071,429 | 1,785,714 | ||||||
$ | 3,214,285 | $ | 4,285,714 | |||||
The Company paid interest of $272,993 in 2014, $319,760 in 2013, and $349,972 in 2012. | ||||||||
The Company’s loan covenants under the Loan Agreement require the Company to maintain a fixed charge coverage ratio of at least 1.1 to 1, a leverage ratio of no more than 1.75 to 1, and minimum tangible net worth of $43 million increasing each year by 50% of consolidated net income. This amount was approximately $52.8 million as of December 28, 2013. As part of an amendment to the Loan Agreement signed on January 23, 2014, the leverage ratio was eliminated, and the minimum tangible net worth covenant was modified to a fixed minimum amount of $55 million, effective with the end of the Company’s first quarter of 2014. In addition, the Company has restrictions on, among other things, new capital leases, purchases or redemptions of its capital stock, mergers and divestitures, and new borrowing. The Company was in compliance with all covenants in 2013 and 2014. | ||||||||
The quarterly payment dates as listed in the Loan Agreement are the first business day of the calendar quarter. As a result, there were five payments in Fiscal 2014 and will be three scheduled payments in Fiscal 2015. As of January 3, 2015, scheduled annual principal maturities of long-term debt for each of the next five years follow: | ||||||||
2015 | $ | 1,071,429 | ||||||
2016 | 1,428,571 | |||||||
2017 | 892,857 | |||||||
2018 | 714,286 | |||||||
2019 | 178,571 | |||||||
Thereafter | — | |||||||
$ | 4,285,714 |
STOCK_RIGHTS
STOCK RIGHTS | 12 Months Ended |
Jan. 03, 2015 | |
STOCK RIGHTS [Abstract] | |
STOCK RIGHTS | 6. Stock Rights |
The Company has a stock rights plan. At January 3, 2015, there were 6,244,013 stock rights outstanding under the plan. Each right may be exercised to purchase one share of the Company’s common stock at an exercise price of $80.00, subject to adjustment to prevent dilution. | |
The rights generally become exercisable ten days after an individual or group acquires 10% or more of the Company’s outstanding common stock, or after the commencement or announcement of an offer to acquire 10% or more of the Company’s common stock. The stock rights, which do not have voting privileges, expire on July 23, 2018, and may be redeemed by the Company at a price of $0.01 per right at any time prior to their expiration at the discretion of the Board of Directors. In the event that the Company were acquired in a merger or other business combination transaction, provision shall be made so that each holder of a right shall have the right to receive, upon exercise of the right at its then current exercise price, that number of shares of common stock of the surviving company which at the time of such transaction would have a market value of two times the exercise price of the right. |
STOCK_OPTIONS_AND_AWARDS
STOCK OPTIONS AND AWARDS | 12 Months Ended | ||||||
Jan. 03, 2015 | |||||||
STOCK OPTIONS AND AWARDS [Abstract] | |||||||
STOCK OPTIONS AND AWARDS | 7. Stock Options and Awards | ||||||
Stock Options | |||||||
At the end of 2014, the Company had one stock option plan, the 2010 plan, for officers, other key employees, and non-employee directors. Incentive stock options granted under the 2010 plan must have exercise prices that are not less than 100% of the fair market value of the stock on the dates the options are granted. Restricted stock awards may also be granted to participants under the 2010 plan with restrictions determined by the Compensation Committee of the Company’s Board of Directors. Under the 2010 plan, non-qualified stock options granted to participants will have exercise prices determined by the Compensation Committee of the Company’s Board of Directors. No options or restricted stock were granted in 2014, 2013 or 2012. | |||||||
As of January 3, 2015, there were 500,000 shares of common stock reserved and available for future grant under the above noted 2010 plan. | |||||||
Information with respect to the Company’s stock option plans is summarized below: | |||||||
Weighted Average | |||||||
Shares | Exercise Price | ||||||
Outstanding at December 31, 2011 | 25,500 | 13.58 | |||||
Exercised | (4,500 | ) | 13.58 | ||||
Outstanding at December 29, 2012 | 21,000 | 13.58 | |||||
Exercised | (1,000 | ) | 13.58 | ||||
Outstanding at December 28, 2013 | 20,000 | 13.58 | |||||
Exercised | (20,000 | ) | 13.58 | ||||
Outstanding at January 3, 2015 | — | ||||||
At January 3, 2015, there were no stock options outstanding or exercisable. The total intrinsic value of stock options exercised in 2014 was $59,125. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||||
Jan. 03, 2015 | ||||||||||||||
INCOME TAXES [Abstract] | ||||||||||||||
INCOME TAXES | 8. Income Taxes | |||||||||||||
Deferred income taxes are provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and those for income tax reporting purposes. Deferred income tax (assets) liabilities relate to: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Property, plant and equipment | $ | 6,503,597 | $ | 6,184,873 | $ | 5,942,048 | ||||||||
Other | 92,531 | 208,938 | — | |||||||||||
Total deferred income tax liabilities | 6,596,128 | 6,393,811 | 5,942,048 | |||||||||||
Other postretirement benefits | (1,030,203 | ) | (787,087 | ) | (885,729 | ) | ||||||||
Inventories | (829,876 | ) | (848,364 | ) | (761,613 | ) | ||||||||
Allowance for doubtful accounts | (105,296 | ) | (104,695 | ) | (104,903 | ) | ||||||||
Intangible assets | (396,541 | ) | (373,482 | ) | (422,443 | ) | ||||||||
Accrued compensation | (203,180 | ) | (158,866 | ) | (197,582 | ) | ||||||||
Pensions | (9,275,949 | ) | (3,828,224 | ) | (7,128,057 | ) | ||||||||
Other | — | — | (116,826 | ) | ||||||||||
Total deferred income tax assets | (11,841,045 | ) | (6,100,718 | ) | (9,617,153 | ) | ||||||||
Net deferred income tax (assets) liabilities | $ | (5,244,917 | ) | $ | 293,093 | $ | (3,675,105 | ) | ||||||
Income before income taxes consists of: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Domestic | $ | 8,087,552 | $ | 7,139,039 | $ | 8,614,664 | ||||||||
Foreign | 3,441,211 | 2,974,856 | 4,609,854 | |||||||||||
$ | 11,528,763 | $ | 10,113,895 | $ | 13,224,518 | |||||||||
The provision for income taxes follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Current: | ||||||||||||||
Federal | $ | 2,339,917 | $ | 1,942,271 | $ | 1,909,172 | ||||||||
Foreign | 991,257 | 871,949 | 1,367,025 | |||||||||||
State | 295,554 | 162,952 | 220,820 | |||||||||||
Deferred: | ||||||||||||||
Federal | 164,830 | 241,821 | 1,022,660 | |||||||||||
Foreign | — | — | — | |||||||||||
State | 75,729 | (7,019 | ) | 79,041 | ||||||||||
$ | 3,867,287 | $ | 3,211,974 | $ | 4,598,718 | |||||||||
A reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||
Income taxes using U.S. federal statutory rate | $3,919,779 | 34 | % | $3,438,724 | 34 | % | $4,496,336 | 34 | % | |||||
State income taxes, net of federal benefit | 249,324 | 2 | 99,245 | 1 | 188,490 | 2 | ||||||||
Impact of foreign subsidiaries on effective tax rate | (76,914 | ) | (1 | ) | (103,878 | ) | (1 | ) | 136,590 | 1 | ||||
Impact of manufacturers deduction on effective tax rate | (185,993 | ) | (1 | ) | (138,127 | ) | (1 | ) | (232,928 | ) | (2 | ) | ||
Other—net | (38,909 | ) | - | (83,990 | ) | (1 | ) | 10,230 | - | |||||
$3,867,287 | 34 | % | $3,211,974 | 32 | % | $4,598,718 | 35 | % | ||||||
Total income taxes paid were $3,989,978 in 2014, $2,568,708 in 2013 and $3,350,283 in 2012. | ||||||||||||||
United States income taxes have been provided on the undistributed earnings of foreign subsidiaries ($13,656,236 at January 3, 2015) only where necessary because such earnings are intended to be reinvested abroad indefinitely or repatriated only when substantially free of such taxes. The Company would be required to accrue and pay United States income taxes to repatriate the funds held by foreign subsidiaries not otherwise provided. | ||||||||||||||
During 2014, 2013 and 2012, the Company received tax benefits of $8,882, $0 and $0, respectively, as a result of the exercise and sale of incentive stock options that resulted in the disqualification of those incentive stock options, and the exercise of non-qualified stock options during the year. The tax benefit associated with the exercise of the incentive and non-qualified stock options has been recorded to common stock. | ||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 220,289 | $ | 499,624 | $ | 486,332 | ||||||||
Increases for positions taken during the current period | 50,735 | 49,636 | 119,893 | |||||||||||
Decreases relating to settlements | — | (263,856 | ) | — | ||||||||||
Decreases resulting from the expiration of the statute of limitations | (22,379 | ) | (65,115 | ) | (106,601 | ) | ||||||||
Balance at end of year | $ | 248,645 | $ | 220,289 | $ | 499,624 | ||||||||
The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2011 and non-U.S. income tax examinations by tax authorities prior to 2008. | ||||||||||||||
Included in the balance at January 3, 2015, are $164,106 of unrecognized tax benefits that would affect the annual effective tax rate. In 2014, the Company recognized accrued interest related to unrecognized tax benefits in income tax expense. The Company had approximately $33,000 of accrued interest at January 3, 2015. | ||||||||||||||
The total amount of unrecognized tax benefits could increase or decrease within the next twelve months for a number of reasons, including the closure of federal, state and foreign tax years by expiration of the statute of limitations and the recognition and measurement considerations under ASC 740. The Company believes that the total amount of unrecognized tax benefits will not increase or decrease significantly over the next twelve months. |
LEASES
LEASES | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
LEASES [Abstract] | |||||
LEASES | 9. Leases | ||||
The Company leases certain equipment and buildings under operating lease arrangements. Most leases are for a fixed term and for a fixed amount; additionally, the Company leases certain buildings under operating leases on a month-to-month basis. The Company is not a party to any leases that have step rent provisions, escalation clauses, capital improvement funding or payment increases based on any index or rate. | |||||
Future minimum payments under non-cancelable operating leases with initial or remaining terms in excess of one year during each of the next five years follow: | |||||
2015 | $ | 1,269,902 | |||
2016 | 498,709 | ||||
2017 | 380,576 | ||||
2018 | 259,270 | ||||
2019 | 119,000 | ||||
$ | 2,527,457 | ||||
Rent expense for all operating leases was $1,151,749 in 2014, $1,093,895 in 2013 and $1,159,913 in 2012. The Company expects future rent expense, including non-cancelable operating leases, leases that are expected to be renewed and buildings leased on a month-to-month basis, for each of the next five years to be in the range of $1,100,000 to $1,300,000. |
RETIREMENT_BENEFIT_PLANS
RETIREMENT BENEFIT PLANS | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
RETIREMENT BENEFIT PLANS [Abstract] | |||||||||||||||||
RETIREMENT BENEFIT PLANS | 10. Retirement Benefit Plans | ||||||||||||||||
The Company has non-contributory defined benefit pension plans covering most U.S. employees. Plan benefits are generally based upon age at retirement, years of service and, for its salaried plan, the level of compensation. The Company also sponsors unfunded non-qualified supplemental retirement plans that provide certain current and former officers with benefits in excess of limits imposed by federal tax law. | |||||||||||||||||
The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements. | |||||||||||||||||
Components of the net periodic benefit cost of the Company’s pension benefit plans were as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 2,837,134 | $ | 3,028,863 | $ | 2,642,373 | |||||||||||
Interest cost | 3,365,194 | 2,840,622 | 2,868,528 | ||||||||||||||
Expected return on plan assets | (4,810,524 | ) | (4,827,393 | ) | (3,930,988 | ) | |||||||||||
Amortization of prior service cost | 218,585 | 256,459 | 221,049 | ||||||||||||||
Amortization of the net loss | 944,130 | 1,844,139 | 1,111,900 | ||||||||||||||
Net periodic benefit cost | $ | 2,554,519 | $ | 3,142,690 | $ | 2,912,862 | |||||||||||
Assumptions used to determine net periodic benefit cost for the Company’s pension benefit plans for the fiscal year indicated were as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.8 | % | 3.9 | % | 4.55 | % | |||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | |||||||||||
Rate of compensation increase | 3.25 | % | 3.25 | % | 3.25 | % | |||||||||||
Components of the net periodic benefit cost of the Company’s postretirement benefit plan were as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 173,902 | $ | 202,568 | $ | 173,613 | |||||||||||
Interest cost | 157,481 | 142,086 | 143,388 | ||||||||||||||
Expected return on plan assets | (22,434 | ) | (73,920 | ) | (46,255 | ) | |||||||||||
Amortization of prior service cost | (23,888 | ) | (23,888 | ) | (23,889 | ) | |||||||||||
Amortization of the net loss | (72,378 | ) | (4,608 | ) | (50,784 | ) | |||||||||||
Net periodic benefit cost | $ | 212,683 | $ | 242,238 | $ | 196,073 | |||||||||||
Assumptions used to determine net periodic benefit cost for the Company’s postretirement plan for the fiscal year indicated were as follows: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.8 | % | 3.9 | % | 4.55 | % | |||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | |||||||||||
As of January 3, 2015 and December 28, 2013, the status of the Company’s pension benefit plans and postretirement benefit plan was as follows: | |||||||||||||||||
Pension Benefit | Postretirement Benefit | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Benefit obligation at beginning of year | $ | 71,211,198 | $ | 74,825,969 | $ | 3,420,475 | $ | 3,712,505 | |||||||||
Change due to availability of final actual assets and census data | — | — | (56,516 | ) | — | ||||||||||||
Plan amendment | — | 132,378 | — | — | |||||||||||||
Service cost | 2,837,134 | 3,028,863 | 173,902 | 202,568 | |||||||||||||
Interest cost | 3,365,194 | 2,840,622 | 157,481 | 142,086 | |||||||||||||
Actuarial (gain)/loss | 15,697,087 | (7,187,997 | ) | 497,488 | (498,446 | ) | |||||||||||
Benefits paid | (2,593,691 | ) | (2,428,637 | ) | (137,718 | ) | (138,238 | ) | |||||||||
Benefit obligation at end of year | $ | 90,516,922 | $ | 71,211,198 | $ | 4,055,112 | $ | 3,420,475 | |||||||||
Pension Benefit | Postretirement Benefit | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Fair value of plan assets at beginning of year | $ | 60,350,987 | $ | 54,644,608 | $ | 1,187,603 | $ | 1,204,779 | |||||||||
Change due to availability of final actual assets and census data | — | — | (2,451 | ) | 12,577 | ||||||||||||
Actual return on plan assets | 3,731,262 | 4,880,381 | 22,434 | 73,920 | |||||||||||||
Employer contributions | 2,863,552 | 3,254,635 | 79,336 | 34,565 | |||||||||||||
Benefits paid | (2,593,691 | ) | (2,428,637 | ) | (137,718 | ) | (138,238 | ) | |||||||||
Fair value of plan assets at end of year | $ | 64,352,110 | $ | 60,350,987 | $ | 1,149,204 | $ | 1,187,603 | |||||||||
Pension Benefit | Postretirement Benefit | ||||||||||||||||
Funded Status | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net amount recognized in the balance sheet | $ | (26,164,812 | ) | $ | (10,860,211 | ) | $ | (2,905,908 | ) | $ | (2,232,872 | ) | |||||
Amounts recognized in accumulated other comprehensive income consist of: | |||||||||||||||||
Pension Benefit | Postretirement Benefit | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss | $ | (35,093,871 | ) | $ | (19,261,651 | ) | $ | (630,853 | ) | $ | (115,052 | ) | |||||
Prior service (cost) credit | (595,270 | ) | (813,855 | ) | 87,620 | 111,508 | |||||||||||
$ | (35,689,141 | ) | $ | (20,075,506 | ) | $ | (543,233 | ) | $ | (3,544 | ) | ||||||
Change in the components of accumulated other comprehensive income consist of: | |||||||||||||||||
Pension Benefit | Postretirement Benefit | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance at beginning of period | $ | (20,075,506 | ) | $ | (29,284,712 | ) | $ | (3,544 | ) | $ | (486,071 | ) | |||||
Change due to availability of final actual assets and census data | — | — | 54,065 | 12,577 | |||||||||||||
Charged to net periodic benefit cost | |||||||||||||||||
Prior service cost | 218,585 | 256,459 | (23,888 | ) | (23,888 | ) | |||||||||||
Net loss (gain) | 944,130 | 1,844,139 | (72,378 | ) | (4,608 | ) | |||||||||||
Other changes | |||||||||||||||||
Liability (gains)/losses | (16,776,350 | ) | 7,108,608 | (497,488 | ) | 498,446 | |||||||||||
Balance at end of period | $ | (35,689,141 | ) | $ | (20,075,506 | ) | $ | (543,233 | ) | $ | (3,544 | ) | |||||
In 2015, the net periodic pension benefit cost will include $2,011,179 of net loss and $218,585 of prior service cost and the net periodic postretirement benefit cost will include $19,426 of net gain and $23,888 of prior service credit. | |||||||||||||||||
Assumptions used to determine the projected benefit obligations for the Company’s pension benefit plans and postretirement benefit plan for the fiscal year indicated were as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Discount rate | 3.9 | % | 4.8 | % | |||||||||||||
Expected return on plan assets | 8 | % | 8 | % | |||||||||||||
Rate of compensation increase | 3.25 | % | 3.25 | % | |||||||||||||
In 2014 and 2013, the accumulated benefit obligation for all qualified and nonqualified defined benefit pension plans was $84,714,136 and $71,403,778, respectively. | |||||||||||||||||
Information for the under-funded pension plans with a projected benefit obligation and an accumulated benefit obligation in excess of plan assets: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Number of plans | 6 | 5 | * | ||||||||||||||
Projected benefit obligation | $ | 90,516,922 | $ | 68,781,752 | |||||||||||||
Accumulated benefit obligation | 84,714,136 | 68,974,332 | |||||||||||||||
Fair value of plan assets | 64,352,110 | 57,850,937 | |||||||||||||||
Net amount recognized in accrued benefit liability | (26,164,812 | ) | (10,930,815 | ) | |||||||||||||
* Information relating to one of the Company’s pension plans is excluded from the above table as this plan was over-funded by approximately $70,000 at December 28, 2013. | |||||||||||||||||
Estimated future benefit payments to participants of the Company’s pension plans are $3.1 million in 2015, $3.4 million in 2016, $3.5 million in 2017, $3.8 million in 2018, $4.1 million in 2019 and a total of $24.6 million from 2020 through 2024. | |||||||||||||||||
Estimated future benefit payments to participants of the Company’s postretirement plan are $175,000 in 2015, $188,000 in 2016, $197,000 in 2017, $207,000 in 2018, $220,000 in 2019 and a total of $1,259,000 from 2020 through 2024. | |||||||||||||||||
The Company expects to make cash contributions to its qualified pension plans of approximately $3.0 million and to its postretirement plan of approximately $150,000 in 2015. | |||||||||||||||||
We consider a number of factors in determining and selecting assumptions for the overall expected long-term rate of return on plan assets. We consider the historical long-term return experience of our assets, the current and expected allocation of our plan assets, and expected long-term rates of return. We derive these expected long-term rates of return with the assistance of our investment advisors and generally base these rates on a 10-year horizon for various asset classes and consider the expected positive impact of active investment management. We base our expected allocation of plan assets on a diversified portfolio consisting of domestic and international equity securities and fixed income securities. | |||||||||||||||||
We consider a variety of factors in determining and selecting our assumptions for the discount rate at the end of the year. We develop a single equivalent discount rate derived with the assistance of our actuaries by matching expected future benefit payments in each year to the corresponding spot rates from the Citigroup Pension Liability Yield Curve, comprised of high quality (rated AA or better) corporate bonds. | |||||||||||||||||
The fair values of the company’s pension plans assets at January 3, 2015 and December 28, 2013, utilizing the fair value hierarchy discussed in Note 2, follow: | |||||||||||||||||
3-Jan-15 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and Equivalents: | |||||||||||||||||
Common/collective trust funds | $ | — | $ | 1,201,073 | $ | — | $ | 1,201,073 | |||||||||
Equities: | |||||||||||||||||
The Eastern Company Common Stock | 3,473,938 | — | — | 3,473,938 | |||||||||||||
Common/collective trust funds | |||||||||||||||||
U.S. Large Cap (a) | — | 6,936,880 | — | 6,936,880 | |||||||||||||
U.S. Small Cap (b) | — | 4,632,485 | — | 4,632,485 | |||||||||||||
Concentrated Equity (c) | — | 5,788,864 | — | 5,788,864 | |||||||||||||
International Large Cap with Active Currency (d) | — | 7,606,489 | — | 7,606,489 | |||||||||||||
Emerging Market (e) | — | 3,188,672 | — | 3,188,672 | |||||||||||||
3-Jan-15 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Fixed Income: | |||||||||||||||||
Common/collective trust funds | |||||||||||||||||
Intermediate Bond (f) | — | 17,013,171 | — | 17,013,171 | |||||||||||||
Target Duration LDI Fixed Income Funds (g) | |||||||||||||||||
— | 226,826 | — | 226,826 | ||||||||||||||
· 6 Year LDI Fund | |||||||||||||||||
— | 227,960 | — | 227,960 | ||||||||||||||
· 8 Year LDI Fund | |||||||||||||||||
— | 343,712 | — | 343,712 | ||||||||||||||
· 10 Year LDI Fund | |||||||||||||||||
— | 919,538 | — | 919,538 | ||||||||||||||
· 12 Year LDI Fund | |||||||||||||||||
— | 1,212,739 | — | 1,212,739 | ||||||||||||||
· 14 Year LDI Fund | |||||||||||||||||
— | 520,522 | — | 520,522 | ||||||||||||||
· 16 Year LDI Fund | |||||||||||||||||
Long Duration Fixed Credit (h) | — | 8,112,746 | — | 8,112,746 | |||||||||||||
Insurance contracts | — | 2,946,495 | — | 2,946,495 | |||||||||||||
Total | $ | 3,473,938 | $ | 60,878,172 | $ | — | $ | 64,352,110 | |||||||||
28-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and Equivalents: | |||||||||||||||||
Common/collective trust funds | $ | — | $ | 204,874 | $ | — | $ | 204,874 | |||||||||
Equities: | |||||||||||||||||
The Eastern Company Common Stock | 3,082,494 | — | — | 3,082,494 | |||||||||||||
Common/collective trust funds | |||||||||||||||||
U.S. Large Cap | — | 6,643,640 | — | 6,643,640 | |||||||||||||
U.S. Small Cap | — | 4,485,040 | — | 4,485,040 | |||||||||||||
Concentrated Equity | — | 5,578,600 | — | 5,578,600 | |||||||||||||
International Large Cap with Active Currency | — | 7,788,246 | — | 7,788,246 | |||||||||||||
Emerging Market | — | 3,231,355 | — | 3,231,355 | |||||||||||||
Fixed Income: | |||||||||||||||||
Common/collective trust funds | |||||||||||||||||
Intermediate Bond | — | 15,817,474 | — | 15,817,474 | |||||||||||||
Target Duration LDI Fixed Income Funds | |||||||||||||||||
— | 211,661 | — | 211,661 | ||||||||||||||
· 6 Year LDI Fund | |||||||||||||||||
— | 211,101 | — | 211,101 | ||||||||||||||
· 8 Year LDI Fund | |||||||||||||||||
— | 316,556 | — | 316,556 | ||||||||||||||
· 10 Year LDI Fund | |||||||||||||||||
— | 845,278 | — | 845,278 | ||||||||||||||
· 12 Year LDI Fund | |||||||||||||||||
— | 1,108,960 | — | 1,108,960 | ||||||||||||||
· 14 Year LDI Fund | |||||||||||||||||
— | 475,035 | — | 475,035 | ||||||||||||||
· 16 Year LDI Fund | |||||||||||||||||
Long Duration Fixed Credit | — | 7,363,673 | — | 7,363,673 | |||||||||||||
Insurance contracts | — | 2,987,000 | — | 2,987,000 | |||||||||||||
Total | $ | 3,082,494 | $ | 57,268,493 | $ | — | $ | 60,350,987 | |||||||||
Equity common funds primarily hold publicly traded common stock of both U.S and international companies selected for purposes of total return and to maintain equity exposure consistent with policy allocations. The level 1 investment is made up of shares of The Eastern Company Common Stock and is valued at market price. Level 2 investments include commingled funds valued at unit values provided by the investment managers, which are based on the fair value of the underlying publicly traded securities. | |||||||||||||||||
(a) | The investment objective of the large cap fund is to outperform the Russell 1000® Index. The fund is designed to provide for long-term growth of capital by utilizing a diversified group of quantitative investment strategies that seek to identify securities that have exposure to factors that the underlying advisors’ research has found to be predictive of future excess returns. The advisors’ portfolios are quantitatively structured to gain exposure to these predictive characteristics while minimizing unintended risk exposures. | ||||||||||||||||
(b) | The small cap fund has an objective to outperform the Russell 2500® Index The fund is designed to achieve consistency by combining advisors whose complementary disciplined processes employ distinct methods for identifying small capitalization U.S. stocks with strong return potential. Advisors in the fund use a wide range of criteria and disciplines in their stock selection, focusing on factors such as: undervalued or under-researched companies, special situations, emerging growth, asset plays or turnarounds. | ||||||||||||||||
(c) | The investment objective of the concentrated equity fund is to outperform the Russell 1000® Index. The fund is designed to achieve this by combining strategies with different payoffs over different phases of an economic and stock market cycle. To help achieve this objective, multiple advisors and strategies are employed to reduce “scenario risk.” These multiple strategies are in the form of multiple investment styles (e.g., growth, market oriented, and value), multiple sub-styles, and different ways of identifying undervalued securities. | ||||||||||||||||
(d) | The international fund with active currency has an investment objective of outperforming the Russell Development ex-U.S. Large Cap Index Net. The fund is designed to provide the potential for long-term growth of capital by utilizing a diversified group of investment advisors that the Trustee’s manager’s research indicates will outperform over a full market cycle. The investment advisors’ portfolios are combined to form a fund that emphasizes their strengths while minimizing unintended risk exposures. | ||||||||||||||||
(e) | The emerging market fund seeks to outperform the Russell Emerging Markets Index Net. The fund is designed to provide the potential for long-term growth of capital by utilizing a diversified market group of investment advisors that the Trustee’s manager’s research indicates will outperform over a full market cycle. The investment advisors’ portfolios are combined to form a fund that emphasizes their strengths while minimizing unintended risk exposures. | ||||||||||||||||
All equity funds have an objective to beat their respective indices with above-average consistency while maintaining volatility and diversification similar to the index they are being compared to over a full market cycle. | |||||||||||||||||
Fixed income common funds primarily hold government and corporate debt securities selected for purposes of total return and managing fixed income exposure to policy allocations. Investments include fixed commingled funds valued at unit values provided by the investment managers, which are based on the fair value of the underlying publicly traded securities. | |||||||||||||||||
(f) | Fixed income common fund investments have an investment objective of outperforming the Barclays Capital U.S. Aggregate Bond Index over a full market cycle. The fund is designed to provide current income, and as a secondary objective, capital appreciation through a variety of diversified strategies including sector rotation, modest interest rate timing, security selection and tactical use of high yield and emerging market bonds. The portfolio diversification provides protection against a single security or class of securities having a disproportionate impact on aggregate performance. To help achieve the objective, the fund is actively managed by multiple advisors who use a variety of investment strategies to create a broad market exposure. The fund’s advisors have distinct but complementary investment styles. These advisors generally have similar universes of investable securities but have different areas of specialization and expertise within intermediate duration securities. | ||||||||||||||||
(g) | The Target Duration LDI Fixed Income Funds seek to outperform their respective Barclays-Russell LDI Indexes over a full market cycle. These Funds seek to provide current income, and as a secondary objective, capital appreciation through diversified strategies including sector rotation, modest interest rate timing, security selection and tactical use of high yield and emerging market bonds. The Funds will generally be used in combination with other bond funds to enable the plans to gain additional credit exposure within their asset portfolio, with the goal of reducing the mismatch between a plan’s assets and liabilities. | ||||||||||||||||
(h) | The long duration fixed credit fund seeks to outperform the Barclays Capital Long Credit Index over a full market cycle. The fund seeks to provide current income, and as a secondary objective, capital appreciation through diversified strategies including sector rotation, modest interest rate timing, security selection and tactical use of high yield and emerging market bonds. The fund will generally be used in combination with other bond funds, with the goal of reducing the mismatch between a plan’s assets and liabilities. | ||||||||||||||||
The investment portfolio contains a diversified blend of common stocks, bonds, cash equivalents, and other investments, which may reflect varying rates of return. The investments are further diversified within each asset classification. The portfolio diversification provides protection against a single security or class of securities having a disproportionate impact on aggregate performance. The Company has elected to change its investment strategy to better match the assets with the underlying plan liabilities. Currently, the long-term target allocations for plan assets are 50% in equities and 50% in fixed income although the actual plan asset allocations may be within a range around these targets. The actual asset allocations are reviewed and rebalanced on a periodic basis to maintain the target allocations. It is expected that, as the funded status of the plans improves, more assets will be invested in long-duration fixed income instruments. | |||||||||||||||||
The plans’ assets include 202,562 and 193,624 shares of the common stock of the Company having a market value of $3,473,938 and $3,082,494 at January 3, 2015 and December 28, 2013, respectively. During 2014, The Salaried Pension Plan purchased 8,938 shares of common stock at a cost of $146,712. No shares were sold in this period. No shares were purchased or sold in 2013. Dividends received during 2014 and 2013 on the common stock of the Company were $93,507 and $81,322 respectively. | |||||||||||||||||
The fair values of the Company’s postretirement plan assets at January 3, 2015 and December 28, 2013, utilizing the fair value hierarchy discussed in Note 2, follow: | |||||||||||||||||
3-Jan-15 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Fixed Income: | |||||||||||||||||
Insurance contracts | $ | — | $ | — | $ | 1,149,204 | $ | 1,149,204 | |||||||||
Total | $ | — | $ | — | $ | 1,149,204 | $ | 1,149,204 | |||||||||
28-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Fixed Income: | |||||||||||||||||
Insurance contracts | $ | — | $ | — | $ | 1,187,603 | $ | 1,187,603 | |||||||||
Total | $ | — | $ | — | $ | 1,187,603 | $ | 1,187,603 | |||||||||
The level 3 asset consists of an insurance contract with The Prudential Life Insurance Company of America. It is designed to provide life insurance benefits for eligible retirees of the Company. The contract is valued annually by the insurance company, based on activity in the account. An analysis of the Level 3 asset of the Company’s postretirement plan is as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Fair value of Level 3 assets at beginning of year | $ | 1,187,603 | $ | 1,204,779 | |||||||||||||
Change due to availability of final actual assets and census data | (2,451 | ) | 12,577 | ||||||||||||||
Actual return on plan assets | 22,434 | 46,013 | |||||||||||||||
Employer contributions | 19,639 | — | |||||||||||||||
Benefits paid | (78,021 | ) | (75,766 | ) | |||||||||||||
Fair value of Level 3 assets at end of year | $ | 1,149,204 | $ | 1,187,603 | |||||||||||||
The Level 3 assets described above are the only assets of the postretirement plan, and thus have no impact on any Level 1 or Level 2 assets. | |||||||||||||||||
For measurement purposes relating to the postretirement benefit plan, the life insurance cost trend rate is 1%. The health care cost trend rate for participants retiring after January 1, 1991 is nil; no increase in that rate is expected because of caps placed on benefits. The health care cost trend rate is expected to remain at 4.5% for participants after the year 2000. | |||||||||||||||||
A one-percentage-point change in assumed health care cost trend rates would have the following effects on the postretirement benefit plan: | |||||||||||||||||
1-Percentage Point | |||||||||||||||||
Increase | Decrease | ||||||||||||||||
Effect on total of service and interest cost components | $ | 55,785 | $ | (45,328 | ) | ||||||||||||
Effect on postretirement benefit obligation | $ | 645,868 | $ | (52,432 | ) | ||||||||||||
U.S. salaried employees and most employees of the Company’s Canadian subsidiaries are covered by defined contribution plans. | |||||||||||||||||
The Company has a contributory savings plan under Section 401(k) of the Internal Revenue Code covering substantially all U.S. non-union employees. The plan allows participants to make voluntary contributions of up to 100% of their annual compensation on a pretax basis, subject to IRS limitations. The plan provides for contributions by the Company at its discretion. The Company made contributions of $186,545 in 2014, $194,068 in 2013, and $187,531in 2012. |
REPORTABLE_SEGMENTS
REPORTABLE SEGMENTS | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
REPORTABLE SEGMENTS [Abstract] | |||||||||||||
REPORTABLE SEGMENTS | 11. Reportable Segments | ||||||||||||
The accounting policies of the segments are the same as those described in Note 2. Operating profit is total revenue less operating expenses, excluding interest and miscellaneous non-operating income and expenses. Inter-segment revenue, which is eliminated, is recorded on the same basis as sales to unaffiliated customers. Identifiable assets by reportable segment consist of those directly identified with the segment’s operations. | |||||||||||||
One customer of the Metal Products segment, Jennmar Corporation, accounted for 10.5% of total sales in 2014 and 11.5% of total sales in 2013. No other customer exceeded 10% of total revenue in 2014, 2013 or 2012. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
Sales to unaffiliated customers: | |||||||||||||
Industrial Hardware | $ | 58,666,229 | $ | 60,367,209 | $ | 72,268,559 | |||||||
Security Products | 49,381,553 | 48,751,688 | 50,138,121 | ||||||||||
Metal Products | 32,777,578 | 33,339,382 | 35,102,505 | ||||||||||
$ | 140,825,360 | $ | 142,458,279 | $ | 157,509,185 | ||||||||
Inter-segment Revenue: | |||||||||||||
Industrial Hardware | $ | 984,192 | $ | 373,797 | $ | 270,911 | |||||||
Security Products | 2,565,733 | 2,558,127 | 2,914,667 | ||||||||||
Metal Products | — | 11,540 | — | ||||||||||
$ | 3,549,925 | $ | 2,943,464 | $ | 3,185,578 | ||||||||
Income Before Income Taxes: | |||||||||||||
Industrial Hardware | $ | 5,063,786 | $ | 4,797,254 | $ | 7,566,512 | |||||||
Security Products | 4,058,554 | 2,780,403 | 4,113,661 | ||||||||||
Metal Products | 2,596,308 | 2,808,664 | 1,871,250 | ||||||||||
Operating Profit | 11,718,648 | 10,386,321 | 13,551,423 | ||||||||||
Interest expense | (254,576 | ) | (322,731 | ) | (369,357 | ) | |||||||
Other income | 64,691 | 50,305 | 42,452 | ||||||||||
$ | 11,528,763 | $ | 10,113,895 | $ | 13,224,518 | ||||||||
Geographic Information: | |||||||||||||
Net Sales: | |||||||||||||
United States | $ | 117,478,557 | $ | 114,085,322 | $ | 120,604,363 | |||||||
Foreign | 23,346,803 | 28,372,957 | 36,904,822 | ||||||||||
$ | 140,825,360 | $ | 142,458,279 | $ | 157,509,185 | ||||||||
Foreign sales are primarily to customers in North America. | |||||||||||||
Identifiable Assets: | |||||||||||||
United States | $ | 105,771,961 | $ | 96,289,200 | $ | 95,441,029 | |||||||
Foreign | 15,498,595 | 17,569,209 | 20,413,121 | ||||||||||
$ | 121,270,556 | $ | 113,858,409 | $ | 115,854,150 | ||||||||
Industrial Hardware | $ | 29,660,695 | $ | 31,820,269 | $ | 34,425,594 | |||||||
Security Products | 51,573,251 | 43,582,088 | 41,857,156 | ||||||||||
Metal Products | 21,037,058 | 19,282,393 | 18,281,619 | ||||||||||
102,271,004 | 94,684,750 | 94,564,369 | |||||||||||
General corporate | 18,999,552 | 19,173,659 | 21,289,781 | ||||||||||
$ | 121,270,556 | $ | 113,858,409 | $ | 115,854,150 | ||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and Amortization: | |||||||||||||
Industrial Hardware | $ | 1,631,521 | $ | 2,085,618 | $ | 1,769,097 | |||||||
Security Products | 621,501 | 592,555 | 628,652 | ||||||||||
Metal Products | 1,233,280 | 1,147,113 | 1,042,051 | ||||||||||
$ | 3,486,302 | $ | 3,825,286 | $ | 3,439,800 | ||||||||
Capital Expenditures: | |||||||||||||
Industrial Hardware | $ | 1,929,022 | $ | 1,967,335 | $ | 1,552,147 | |||||||
Security Products | 973,365 | 469,669 | 260,692 | ||||||||||
Metal Products | 664,851 | 3,002,556 | 2,337,104 | ||||||||||
3,567,238 | 5,439,560 | 4,149,943 | |||||||||||
Currency translation adjustment | 10,347 | (245 | ) | (2,730 | ) | ||||||||
General corporate | 55,580 | 84,427 | 69,757 | ||||||||||
$ | 3,633,165 | $ | 5,523,742 | $ | 4,216,970 |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Jan. 03, 2015 | |
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 12. Recent Accounting Pronouncements |
In July 2012, the FASB issued authoritative guidance to amend previous guidance on the annual and interim testing of indefinite-lived intangible assets for impairment. The guidance provides entities with the option of first assessing qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount. If it is determined, on the basis of qualitative factors, that the fair value of the indefinite-lived intangible asset is more likely than not less than the carrying amount, a quantitative impairment test would still be required. The Company adopted this guidance effective December 30, 2012 and it had no impact on the consolidated financial statements of the Company. | |
In February 2013, the FASB issued authoritative guidance which adds new disclosure requirements for items reclassified out of Accumulated Other Comprehensive Income. The guidance requires that an entity present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of Accumulated Other Comprehensive Income based on its source and the income statement line items affected by the reclassification. The guidance is effective for interim and annual reporting periods beginning on or after December 15, 2012. The Company adopted this guidance effective December 30, 2012 and it had no impact on the consolidated financial statements of the Company. | |
In July 2013, the FASB issued authoritative guidance that requires an entity to net its liability for unrecognized tax positions against a net operating loss carryforward, a similar tax loss or a tax credit carryforward when settlement in this manner is available under the tax law. The guidance is effective for interim and annual reporting periods beginning on or after December 15, 2013. The Company adopted this guidance effective December 29, 2013 and it had no impact on the consolidated financial statements of the Company. | |
In April 2014, the FASB issued authoritative guidance which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. To qualify as a discontinued operation the standard requires a disposal to represent a strategic shift that has, or will have, a major effect on an entity's operations and financial results. The standard also expands the disclosures for discontinued operations and requires new disclosures related to individually material dispositions that do not qualify as discontinued operations. The guidance is effective for fiscal years beginning after December 15, 2014, with early adoption permitted. The Company adopted this guidance with its fiscal year effective January 4, 2015 and does not expect any impact on the consolidated financial statements of the Company. This guidance will impact the reporting of any future dispositions. | |
In May 2014, the FASB issued authoritative guidance which impacts virtually all aspects of an entity's revenue recognition. The core principle of the new standard is that revenue should be recognized 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 or services. The standard is effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company has not determined the impact of the adoption of this guidance on the consolidated financial statements of the Company. | |
The Company has implemented all new accounting pronouncements that are in effect and that could impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued, but are not yet effective, that might have a material impact on the consolidated financial statements of the Company. |
FINANCIAL_INSTRUMENTS_AND_FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Jan. 03, 2015 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 13. Financial Instruments and Fair Value Measurements |
Financial Risk Management Objectives and Policies | |
The Company is exposed primarily to credit, interest rate and currency exchange rate risks which arise in the normal course of business. | |
Credit Risk | |
Credit risk is the potential financial loss resulting from the failure of a customer or counterparty to settle its financial and contractual obligations to the Company, as and when they become due. The primary credit risk for the Company is its receivable accounts. The Company has established credit limits for customers and monitors their balances to mitigate its risk of loss. At January 3, 2015 and December 28, 2013, there were no significant concentrations of credit risk. No customer represented more than 10% of total accounts receivable at January 3, 2015 and December 28, 2013. The maximum exposure to credit risk is primarily represented by the carrying amount of the Company’s accounts receivable. | |
Interest Rate Risk | |
As of January 3, 2015 the Company currently has a fixed rate of 4.98% and 3.90% on its term debt. On January 3, 2015 the interest rate on the Company’s revolver was a variable rate based on LIBOR plus 2.25%. See Note 5, Debt for additional details concerning the Loan Agreement. As the revolver is short term in nature, the Company does not consider this as a material risk to the financial statements. | |
Currency Exchange Rate Risk | |
The Company’s currency exposure is concentrated in the Canadian dollar, Mexican peso, New Taiwan dollar, Chinese RMB and the Hong Kong dollar. Because of the Company’s limited exposure to any single foreign market, any exchange gains or losses have not been material and are not expected to be material in the future. As a result, the Company does not attempt to mitigate its foreign currency exposure through the acquisition of any speculative or leveraged financial instruments. | |
Fair Value Measurements | |
Assets and liabilities that require fair value measurement are recorded at fair value using market and income valuation approaches and considering the Company’s and counterparty’s credit risk. The Company uses the market approach and the income approach to value assets and liabilities as appropriate. There were no assets or liabilities requiring fair value measurement on January 3, 2015. |
SELECTED_QUARTERLY_FINANCIAL_I
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 14. Selected Quarterly Financial Information (Unaudited) | ||||||||||||||||||||
Selected quarterly financial information (unaudited) follows: | |||||||||||||||||||||
2014 | |||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Net sales | $ | 35,849,126 | $ | 34,779,773 | $ | 35,803,405 | $ | 34,393,056 | $ | 140,825,360 | |||||||||||
Gross margin | 7,513,406 | 7,776,304 | 8,641,473 | 8,555,221 | 32,486,404 | ||||||||||||||||
Selling and administrative | 5,216,289 | 4,988,364 | 4,892,600 | 5,670,503 | 20,767,756 | ||||||||||||||||
expenses | |||||||||||||||||||||
Net income | 1,502,885 | 1,693,503 | 2,431,817 | 2,033,271 | 7,661,476 | ||||||||||||||||
Net income per share: | |||||||||||||||||||||
Basic | $ | 0.24 | $ | 0.27 | $ | 0.39 | $ | 0.33 | $ | 1.23 | |||||||||||
Diluted | $ | 0.24 | $ | 0.27 | $ | 0.39 | $ | 0.33 | $ | 1.23 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 6,222,213 | 6,222,676 | 6,223,140 | 6,231,729 | 6,225,068 | ||||||||||||||||
Diluted | 6,239,149 | 6,239,866 | 6,240,396 | 6,231,729 | 6,237,914 | ||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Net sales | $ | 34,692,174 | $ | 39,247,980 | $ | 34,256,086 | $ | 34,262,039 | $ | 142,458,279 | |||||||||||
Gross margin | 6,266,580 | 8,530,842 | 7,224,409 | 8,125,689 | 30,147,520 | ||||||||||||||||
Selling and administrative | 4,681,296 | 5,223,185 | 4,767,505 | 5,089,213 | 19,761,199 | ||||||||||||||||
expenses | |||||||||||||||||||||
Net (loss)/income | 1,005,248 | 2,174,294 | 1,798,783 | 1,923,596 | 6,901,921 | ||||||||||||||||
Net (loss)/income per share: | |||||||||||||||||||||
Basic | $ | 0.16 | $ | 0.35 | $ | 0.29 | $ | 0.31 | $ | 1.11 | |||||||||||
Diluted | $ | 0.16 | $ | 0.35 | $ | 0.29 | $ | 0.31 | $ | 1.11 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 6,219,775 | 6,220,569 | 6,221,515 | 6,221,851 | 6,220,928 | ||||||||||||||||
Diluted | 6,236,842 | 6,238,025 | 6,238,074 | 6,238,089 | 6,237,758 | ||||||||||||||||
Fiscal 2014 consisted of 13 weeks for the first, second and third quarters, with the fourth quarter being 14 weeks, totaling 53 weeks for the year. Fiscal 2013 consisted of four 13 week quarters totaling 52 weeks for the year. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying accounts | 12 Months Ended | |||||||||||||||||
Jan. 03, 2015 | ||||||||||||||||||
Schedule II - Valuation and Qualifying accounts [Abstract] | ||||||||||||||||||
Schedule II - Valuation and Qualifying accounts | The Eastern Company and Subsidiaries | |||||||||||||||||
Schedule II – Valuation and Qualifying accounts | ||||||||||||||||||
COL. A | COL. B | COL. C | COL. D | COL. E | ||||||||||||||
ADDITIONS | ||||||||||||||||||
Description | Balance at Beginning | -1 | -2 | Deductions – | Balance at End | |||||||||||||
of Period | Charged to Costs | Describe | of Period | |||||||||||||||
and Expenses | Charged to Other | |||||||||||||||||
Accounts-Describe | ||||||||||||||||||
$ | 410,000 | $ | 71,927 | $ | 67,927 | (a) | $ | 414,000 | ||||||||||
Fiscal year ended January 3, 2015: | ||||||||||||||||||
Deducted from asset accounts: | ||||||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||
Fiscal year ended December 28, 2013: | $ | 487,000 | $ | 106,485 | $ | 183,485 | (a) | $ | 410,000 | |||||||||
Deducted from asset accounts: | ||||||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||
Fiscal year ended December 29, 2012: | $ | 423,000 | $ | 147,313 | $ | 83,313 | (a) | $ | 487,000 | |||||||||
Deducted from asset accounts: | ||||||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||
(a) Uncollectible accounts written off, net of recoveries. |
ACCOUNTING_POLICIES_Policies
ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||||||||
Jan. 03, 2015 | ||||||||||||||||
ACCOUNTING POLICIES [Abstract] | ||||||||||||||||
Estimates and Assumptions | Estimates and Assumptions | |||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||
Fiscal Year | Fiscal Year | |||||||||||||||
The Company’s year ends on the Saturday nearest to December 31. Fiscal 2014 was a 53 week year, 2013 and 2012 were 52 weeks. | ||||||||||||||||
Principles of Consolidation | Principles of Consolidation | |||||||||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany accounts and transactions are eliminated. | ||||||||||||||||
Cash Equivalents and Concentrations of Credit Risk | Cash Equivalents and Concentrations of Credit Risk | |||||||||||||||
Highly liquid investments purchased with a maturity of three months or less are considered cash equivalents. The Company has deposits that exceed amounts insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000, but the Company does not consider this a significant concentration of credit risk based on the strength of the financial institution. | ||||||||||||||||
Foreign Currency Translation | Foreign Currency Translation | |||||||||||||||
For foreign operations balance sheet accounts are translated at the current year-end exchange rate; income statement accounts are translated at the average exchange rate for the year. Resulting translation adjustments are made directly to a separate component of shareholders’ equity – “Accumulated other comprehensive income (loss) – Foreign currency translation”. Foreign currency exchange transaction gains and losses are not material in any year. | ||||||||||||||||
Recognition of Revenue and Accounts Receivable | Recognition of Revenue and Accounts Receivable | |||||||||||||||
Revenue and accounts receivable are recognized when persuasive evidence of an arrangement exists, the price is fixed and determinable, delivery has occurred, and there is a reasonable assurance of collection of the sales proceeds. The Company obtains written purchase authorizations from its customers for a specified amount of product at a specified price and delivery occurs at the time of shipment. Credit is extended based on an evaluation of each customer’s financial condition; collateral is not required. Accounts receivable are recorded net of applicable allowances. No customer exceeded 10% of total accounts receivable at year end 2014 or 2013. | ||||||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | |||||||||||||||
The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company reviews the collectibility of its receivables on an ongoing basis taking into account a combination of factors. The Company reviews potential problems, such as past due accounts, a bankruptcy filing or deterioration in the customer’s financial condition, to ensure the Company is adequately accrued for potential loss. Accounts are considered past due based on when payment was originally due. If a customer’s situation changes, such as a bankruptcy or creditworthiness, or there is a change in the current economic climate, the Company may modify its estimate of the allowance for doubtful accounts. The Company will write off accounts receivable after reasonable collection efforts have been made and the accounts are deemed uncollectible. Write-offs have been within management’s estimates. | ||||||||||||||||
Inventories | Inventories | |||||||||||||||
Inventories are valued at the lower of cost or market. Cost is determined by the last-in, first-out (LIFO) method in the U.S. ($28,324,813 for U.S. inventories at January 3, 2015) and by the first-in, first-out (FIFO) method for inventories outside the U.S. ($6,077,384 for inventories outside the U.S. at January 3, 2015). Current cost exceeds the LIFO carrying value by approximately $6,886,000 at January 3, 2015 and $6,689,000 at December 28, 2013. There was no material LIFO quantity liquidation in 2014, 2013 or 2012. | ||||||||||||||||
Property, Plant and Equipment and Related Depreciation | Property, Plant and Equipment and Related Depreciation | |||||||||||||||
Property, plant and equipment (including equipment under capital lease) are stated at cost. Depreciation ($3,237,426 in 2014, $3,592,263 in 2013 and $3,210,324 in 2012) is computed generally using the straight-line method based on the following estimated useful lives of the assets: Buildings 10 to 39.5 years; Machinery and equipment 3 to 10 years. | ||||||||||||||||
Goodwill, Intangibles and Impairment of Long-Lived Assets | Goodwill, Intangibles and Impairment of Long-Lived Assets | |||||||||||||||
Patents are recorded at cost and are amortized using the straight-line method over the lives of the patents. Technology and licenses are recorded at cost and are generally amortized on a straight-line basis over periods ranging from 5 to 17 years. Non-compete agreements and customer relationships are being amortized using the straight-line method over a period of 5 years. Amortization expense in 2014, 2013 and 2012 was $248,876, $233,023 and $229,476, respectively. Total amortization expense for each of the next five years is estimated to be as follows: 2015 - $477,000; 2016 - $476,000; 2017 - $474,000; 2018 - $474,000; and 2019 - $474,000. Trademarks are not amortized as their lives are deemed to be indefinite. | ||||||||||||||||
The gross carrying amount and accumulated amortization of amortizable intangible assets: | ||||||||||||||||
Weighted-Average | ||||||||||||||||
Industrial | Security | Metal | Amortization Period (Years) | |||||||||||||
Hardware | Products | Products | ||||||||||||||
Segment | Segment | Segment | Total | |||||||||||||
2014 Gross Amount | ||||||||||||||||
Patents and developed technology | $ | 2,494,261 | $ | 1,025,303 | $ | — | $ | 3,519,564 | 15.7 | |||||||
Customer relationships | — | 449,706 | — | 449,706 | 5.0 | |||||||||||
Non-compete agreements | — | 407,000 | — | 407,000 | 5.0 | |||||||||||
Intellectual property | — | 307,370 | — | 307,370 | 5.0 | |||||||||||
Total Gross Intangibles | $ | 2,494,261 | $ | 2,189,379 | $ | — | $ | 4,683,640 | 12.7 | |||||||
2014 Accumulated Amortization | ||||||||||||||||
Patents and developed technology | $ | 1,649,655 | $ | 535,415 | $ | — | $ | 2,185,070 | ||||||||
Customer relationships | — | — | — | — | ||||||||||||
Non-compete agreements | — | — | — | — | ||||||||||||
Intellectual property | — | — | — | — | ||||||||||||
Accumulated Amortization | $ | 1,649,655 | $ | 535,415 | $ | — | $ | 2,185,070 | ||||||||
Net 2014 per Balance Sheet | $ | 844,606 | $ | 1,653,964 | $ | — | $ | 2,498,570 | ||||||||
2013 Patents and developed | ||||||||||||||||
technology | ||||||||||||||||
Gross Amount | $ | 2,595,931 | $ | 1,041,250 | $ | — | $ | 3,637,181 | 16 | |||||||
Accumulated amortization | 1,676,440 | 503,238 | — | 2,179,678 | ||||||||||||
Net 2013 per Balance Sheet | $ | 919,491 | $ | 538,012 | $ | — | $ | 1,457,503 | ||||||||
In the event that facts and circumstances indicate that the carrying value of long-lived assets, including definite life intangible assets, may be impaired, an evaluation is performed to determine if a write-down is required. No events or changes in circumstances have occurred to indicate that the carrying amount of such long-lived assets held and used may not be recovered. | ||||||||||||||||
The Company performed qualitative assessments as of the end of fiscal 2014 and fiscal 2013 and determined it is more likely than not that no impairment of goodwill existed at the end of 2014 or 2013. The Company will perform annual qualitative assessments in subsequent years as of the end of each fiscal year. Additionally, the Company will perform interim analysis whenever conditions warrant. | ||||||||||||||||
Goodwill or trademarks would be considered impaired whenever our historical carrying amount exceeds the fair value. Goodwill and trademarks were not impaired in 2014, 2013 or 2012. Should we reach a different conclusion in the future, additional work would be performed to determine the amount of the non-cash impairment charge to be recognized. The maximum future impairment of goodwill or trademarks that could occur is the amount recognized on our balance sheet. | ||||||||||||||||
The following is a roll-forward of goodwill for 2014 and 2013: | ||||||||||||||||
Industrial | Security | Metal | ||||||||||||||
Hardware | Products | Products | ||||||||||||||
Segment | Segment | Segment | Total | |||||||||||||
2014 | ||||||||||||||||
Beginning balance | $ | 2,008,231 | $ | 11,833,816 | $ | — | $ | 13,842,047 | ||||||||
Acquisition of Argo Transdata | — | 1,225,226 | — | 1,225,226 | ||||||||||||
Foreign exchange | (106,919 | ) | — | — | (106,919 | ) | ||||||||||
Ending balance | $ | 1,901,312 | $ | 13,059,042 | $ | — | $ | 14,960,354 | ||||||||
Industrial | Security | Metal | ||||||||||||||
Hardware | Products | Products | ||||||||||||||
Segment | Segment | Segment | Total | |||||||||||||
2013 | ||||||||||||||||
Beginning balance | $ | 2,099,783 | $ | 11,833,816 | $ | — | $ | 13,933,599 | ||||||||
Foreign exchange | (91,552 | ) | — | — | (91,552 | ) | ||||||||||
Ending balance | $ | 2,008,231 | $ | 11,833,816 | $ | — | $ | 13,842,047 | ||||||||
Cost of Goods Sold | Cost of Goods Sold | |||||||||||||||
Cost of goods sold reflects the cost of purchasing, manufacturing and preparing a product for sale. These costs generally represent the expenses to acquire or manufacture products for sale (including an allocation of depreciation and amortization) and are primarily comprised of direct materials, direct labor, and overhead, which includes indirect labor, facility and equipment costs, inbound freight, receiving, inspection, purchasing, warehousing and any other costs related to the purchasing, manufacturing or preparation of a product for sale. | ||||||||||||||||
Shipping and Handling Costs | Shipping and Handling Costs | |||||||||||||||
Shipping and handling costs are included in cost of goods sold. | ||||||||||||||||
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses | |||||||||||||||
Selling, general and administrative expenses include all operating costs of the Company that are not directly related to the cost of purchasing, manufacturing and preparing a product for sale. These expenses generally represent the cost of selling or distributing the product once it is available for sale, as well as administrative expenses for support functions and related overhead. | ||||||||||||||||
Product Development Costs | Product Development Costs | |||||||||||||||
Product development costs, charged to expense as incurred, were $1,079,557 in 2014, $991,286 in 2013 and $814,096 in 2012. | ||||||||||||||||
Advertising Costs | Advertising Costs | |||||||||||||||
The Company expenses advertising costs as incurred. Advertising costs were $494,267 in 2014, $486,027 in 2013 and $442,300 in 2012. | ||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||
The Company accounts for uncertain tax positions pursuant to the provisions of FASB Accounting Standards Codification (“ASC”) 740 which clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements. These provisions detail how companies should recognize, measure, present and disclose uncertain tax positions that have or are expected to be taken. As such, the financial statements will reflect expected future tax consequences of uncertain tax positions presuming the taxing authorities’ full knowledge of the position and all relevant facts. See Note 8 Income Taxes. | ||||||||||||||||
The Company and its U.S. subsidiaries file a consolidated federal income tax return. | ||||||||||||||||
Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. | ||||||||||||||||
Earnings per Share | Earnings per Share | |||||||||||||||
The denominators used in the earnings per share computations follow: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Basic: | ||||||||||||||||
Weighted average shares outstanding | 6,225,068 | 6,220,928 | 6,216,931 | |||||||||||||
Diluted: | ||||||||||||||||
Weighted average shares outstanding | 6,225,068 | 6,220,928 | 6,216,931 | |||||||||||||
Dilutive stock options | 12,846 | 16,830 | 16,444 | |||||||||||||
Denominator for diluted earnings per share | 6,237,914 | 6,237,758 | 6,233,375 | |||||||||||||
There were no anti-dilutive stock options in 2014, 2013 or 2012. | ||||||||||||||||
Derivatives | Derivatives | |||||||||||||||
The Company does not maintain any derivatives as of the date of this report. | ||||||||||||||||
Stock Based Compensation | Stock Based Compensation | |||||||||||||||
The Company accounts for stock based compensation pursuant to the fair value recognition provisions of ASC 718. No stock options were granted in 2014, 2013 or 2012, and, since all outstanding options were fully vested in each year presented, there was no impact on the financial statements. | ||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The company utilizes a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The fair value hierarchy has three levels of inputs that may be used to measure fair value: | ||||||||||||||||
Level 1 | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted | |||||||||||||||
assets or liabilities. | ||||||||||||||||
Level 2 | Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for | |||||||||||||||
substantially the full term of the asset or liability. | ||||||||||||||||
Level 3 | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and | |||||||||||||||
unobservable. | ||||||||||||||||
The carrying amounts of financial instruments (cash and cash equivalents, accounts receivable, accounts payable and debt) as of January 3, 2015 and December 28, 2013, approximate fair value. Fair value was based on expected cash flows and current market conditions. |
ACCOUNTING_POLICIES_Tables
ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||||
Jan. 03, 2015 | ||||||||||||||||
ACCOUNTING POLICIES [Abstract] | ||||||||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets | The gross carrying amount and accumulated amortization of amortizable intangible assets: | |||||||||||||||
Weighted-Average | ||||||||||||||||
Industrial | Security | Metal | Amortization Period (Years) | |||||||||||||
Hardware | Products | Products | ||||||||||||||
Segment | Segment | Segment | Total | |||||||||||||
2014 Gross Amount | ||||||||||||||||
Patents and developed technology | $ | 2,494,261 | $ | 1,025,303 | $ | — | $ | 3,519,564 | 15.7 | |||||||
Customer relationships | — | 449,706 | — | 449,706 | 5.0 | |||||||||||
Non-compete agreements | — | 407,000 | — | 407,000 | 5.0 | |||||||||||
Intellectual property | — | 307,370 | — | 307,370 | 5.0 | |||||||||||
Total Gross Intangibles | $ | 2,494,261 | $ | 2,189,379 | $ | — | $ | 4,683,640 | 12.7 | |||||||
2014 Accumulated Amortization | ||||||||||||||||
Patents and developed technology | $ | 1,649,655 | $ | 535,415 | $ | — | $ | 2,185,070 | ||||||||
Customer relationships | — | — | — | — | ||||||||||||
Non-compete agreements | — | — | — | — | ||||||||||||
Intellectual property | — | — | — | — | ||||||||||||
Accumulated Amortization | $ | 1,649,655 | $ | 535,415 | $ | — | $ | 2,185,070 | ||||||||
Net 2014 per Balance Sheet | $ | 844,606 | $ | 1,653,964 | $ | — | $ | 2,498,570 | ||||||||
2013 Patents and developed | ||||||||||||||||
technology | ||||||||||||||||
Gross Amount | $ | 2,595,931 | $ | 1,041,250 | $ | — | $ | 3,637,181 | 16 | |||||||
Accumulated amortization | 1,676,440 | 503,238 | — | 2,179,678 | ||||||||||||
Net 2013 per Balance Sheet | $ | 919,491 | $ | 538,012 | $ | — | $ | 1,457,503 | ||||||||
Roll-forward of goodwill | The following is a roll-forward of goodwill for 2014 and 2013: | |||||||||||||||
Industrial | Security | Metal | ||||||||||||||
Hardware | Products | Products | ||||||||||||||
Segment | Segment | Segment | Total | |||||||||||||
2014 | ||||||||||||||||
Beginning balance | $ | 2,008,231 | $ | 11,833,816 | $ | — | $ | 13,842,047 | ||||||||
Acquisition of Argo Transdata | — | 1,225,226 | — | 1,225,226 | ||||||||||||
Foreign exchange | (106,919 | ) | — | — | (106,919 | ) | ||||||||||
Ending balance | $ | 1,901,312 | $ | 13,059,042 | $ | — | $ | 14,960,354 | ||||||||
Industrial | Security | Metal | ||||||||||||||
Hardware | Products | Products | ||||||||||||||
Segment | Segment | Segment | Total | |||||||||||||
2013 | ||||||||||||||||
Beginning balance | $ | 2,099,783 | $ | 11,833,816 | $ | — | $ | 13,933,599 | ||||||||
Foreign exchange | (91,552 | ) | — | — | (91,552 | ) | ||||||||||
Ending balance | $ | 2,008,231 | $ | 11,833,816 | $ | — | $ | 13,842,047 | ||||||||
Denominators used in the earnings per share computations | The denominators used in the earnings per share computations follow: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Basic: | ||||||||||||||||
Weighted average shares outstanding | 6,225,068 | 6,220,928 | 6,216,931 | |||||||||||||
Diluted: | ||||||||||||||||
Weighted average shares outstanding | 6,225,068 | 6,220,928 | 6,216,931 | |||||||||||||
Dilutive stock options | 12,846 | 16,830 | 16,444 | |||||||||||||
Denominator for diluted earnings per share | 6,237,914 | 6,237,758 | 6,233,375 |
BUSINESS_ACQUISITIONS_Tables
BUSINESS ACQUISITIONS (Tables) | 12 Months Ended | ||
Jan. 03, 2015 | |||
BUSINESS ACQUISITIONS [Abstract] | |||
Business acquisition intangible assets | In connection with the above acquisition, the Company recorded the following intangible assets: | ||
Weighted-average Amortization Period in Years | |||
Asset Class/Description | Amount | ||
Patents, technology, and licenses | |||
Customer relationships | $ 449,706 | 5 | |
Intellectual property | 307,370 | 5 | |
Non-compete agreements | 407,000 | 5 | |
$ 1,164,076 | 5 |
DEBT_Tables
DEBT (Tables) | 12 Months Ended | |||||||
Jan. 03, 2015 | ||||||||
DEBT [Abstract] | ||||||||
Schedule of debt | Debt consists of: | |||||||
2014 | 2013 | |||||||
Term loans | $ | 4,285,714 | $ | 6,071,428 | ||||
Revolving credit loan | — | — | ||||||
4,285,714 | 6,071,428 | |||||||
Less current portion | 1,071,429 | 1,785,714 | ||||||
$ | 3,214,285 | $ | 4,285,714 | |||||
Scheduled annual principal maturities of long-term debt | The quarterly payment dates as listed in the Loan Agreement are the first business day of the calendar quarter. As a result, there were five payments in Fiscal 2014 and will be three scheduled payments in Fiscal 2015. As of January 3, 2015, scheduled annual principal maturities of long-term debt for each of the next five years follow: | |||||||
2015 | $ | 1,071,429 | ||||||
2016 | 1,428,571 | |||||||
2017 | 892,857 | |||||||
2018 | 714,286 | |||||||
2019 | 178,571 | |||||||
Thereafter | — | |||||||
$ | 4,285,714 |
STOCK_OPTIONS_AND_AWARDS_Table
STOCK OPTIONS AND AWARDS (Tables) | 12 Months Ended | ||||||
Jan. 03, 2015 | |||||||
STOCK OPTIONS AND AWARDS [Abstract] | |||||||
Stock option activity | Information with respect to the Company’s stock option plans is summarized below: | ||||||
Weighted Average | |||||||
Shares | Exercise Price | ||||||
Outstanding at December 31, 2011 | 25,500 | 13.58 | |||||
Exercised | (4,500 | ) | 13.58 | ||||
Outstanding at December 29, 2012 | 21,000 | 13.58 | |||||
Exercised | (1,000 | ) | 13.58 | ||||
Outstanding at December 28, 2013 | 20,000 | 13.58 | |||||
Exercised | (20,000 | ) | 13.58 | ||||
Outstanding at January 3, 2015 | — |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||||
Jan. 03, 2015 | ||||||||||||||
INCOME TAXES [Abstract] | ||||||||||||||
Deferred income tax (assets) liabilities | Deferred income taxes are provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and those for income tax reporting purposes. Deferred income tax (assets) liabilities relate to: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Property, plant and equipment | $ | 6,503,597 | $ | 6,184,873 | $ | 5,942,048 | ||||||||
Other | 92,531 | 208,938 | — | |||||||||||
Total deferred income tax liabilities | 6,596,128 | 6,393,811 | 5,942,048 | |||||||||||
Other postretirement benefits | (1,030,203 | ) | (787,087 | ) | (885,729 | ) | ||||||||
Inventories | (829,876 | ) | (848,364 | ) | (761,613 | ) | ||||||||
Allowance for doubtful accounts | (105,296 | ) | (104,695 | ) | (104,903 | ) | ||||||||
Intangible assets | (396,541 | ) | (373,482 | ) | (422,443 | ) | ||||||||
Accrued compensation | (203,180 | ) | (158,866 | ) | (197,582 | ) | ||||||||
Pensions | (9,275,949 | ) | (3,828,224 | ) | (7,128,057 | ) | ||||||||
Other | — | — | (116,826 | ) | ||||||||||
Total deferred income tax assets | (11,841,045 | ) | (6,100,718 | ) | (9,617,153 | ) | ||||||||
Net deferred income tax (assets) liabilities | $ | (5,244,917 | ) | $ | 293,093 | $ | (3,675,105 | ) | ||||||
Income before income taxes | Income before income taxes consists of: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Domestic | $ | 8,087,552 | $ | 7,139,039 | $ | 8,614,664 | ||||||||
Foreign | 3,441,211 | 2,974,856 | 4,609,854 | |||||||||||
$ | 11,528,763 | $ | 10,113,895 | $ | 13,224,518 | |||||||||
Provision for income taxes | The provision for income taxes follows: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Current: | ||||||||||||||
Federal | $ | 2,339,917 | $ | 1,942,271 | $ | 1,909,172 | ||||||||
Foreign | 991,257 | 871,949 | 1,367,025 | |||||||||||
State | 295,554 | 162,952 | 220,820 | |||||||||||
Deferred: | ||||||||||||||
Federal | 164,830 | 241,821 | 1,022,660 | |||||||||||
Foreign | — | — | — | |||||||||||
State | 75,729 | (7,019 | ) | 79,041 | ||||||||||
$ | 3,867,287 | $ | 3,211,974 | $ | 4,598,718 | |||||||||
Reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations | A reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations follows: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | |||||||||
Income taxes using U.S. federal statutory rate | $3,919,779 | 34 | % | $3,438,724 | 34 | % | $4,496,336 | 34 | % | |||||
State income taxes, net of federal benefit | 249,324 | 2 | 99,245 | 1 | 188,490 | 2 | ||||||||
Impact of foreign subsidiaries on effective tax rate | (76,914 | ) | (1 | ) | (103,878 | ) | (1 | ) | 136,590 | 1 | ||||
Impact of manufacturers deduction on effective tax rate | (185,993 | ) | (1 | ) | (138,127 | ) | (1 | ) | (232,928 | ) | (2 | ) | ||
Other—net | (38,909 | ) | - | (83,990 | ) | (1 | ) | 10,230 | - | |||||
$3,867,287 | 34 | % | $3,211,974 | 32 | % | $4,598,718 | 35 | % | ||||||
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 220,289 | $ | 499,624 | $ | 486,332 | ||||||||
Increases for positions taken during the current period | 50,735 | 49,636 | 119,893 | |||||||||||
Decreases relating to settlements | — | (263,856 | ) | — | ||||||||||
Decreases resulting from the expiration of the statute of limitations | (22,379 | ) | (65,115 | ) | (106,601 | ) | ||||||||
Balance at end of year | $ | 248,645 | $ | 220,289 | $ | 499,624 |
LEASES_Tables
LEASES (Tables) | 12 Months Ended | ||||
Jan. 03, 2015 | |||||
LEASES [Abstract] | |||||
Future minimum payments under non-cancelable operating leases | Future minimum payments under non-cancelable operating leases with initial or remaining terms in excess of one year during each of the next five years follow: | ||||
2015 | $ | 1,269,902 | |||
2016 | 498,709 | ||||
2017 | 380,576 | ||||
2018 | 259,270 | ||||
2019 | 119,000 | ||||
$ | 2,527,457 |
RETIREMENT_BENEFIT_PLANS_Table
RETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||||||||||||
Funded status of pension benefit plans and postretirement benefit plan | As of January 3, 2015 and December 28, 2013, the status of the Company’s pension benefit plans and postretirement benefit plan was as follows: | ||||||||||||||||
Pension Benefit | Postretirement Benefit | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Benefit obligation at beginning of year | $ | 71,211,198 | $ | 74,825,969 | $ | 3,420,475 | $ | 3,712,505 | |||||||||
Change due to availability of final actual assets and census data | — | — | (56,516 | ) | — | ||||||||||||
Plan amendment | — | 132,378 | — | — | |||||||||||||
Service cost | 2,837,134 | 3,028,863 | 173,902 | 202,568 | |||||||||||||
Interest cost | 3,365,194 | 2,840,622 | 157,481 | 142,086 | |||||||||||||
Actuarial (gain)/loss | 15,697,087 | (7,187,997 | ) | 497,488 | (498,446 | ) | |||||||||||
Benefits paid | (2,593,691 | ) | (2,428,637 | ) | (137,718 | ) | (138,238 | ) | |||||||||
Benefit obligation at end of year | $ | 90,516,922 | $ | 71,211,198 | $ | 4,055,112 | $ | 3,420,475 | |||||||||
Pension Benefit | Postretirement Benefit | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Fair value of plan assets at beginning of year | $ | 60,350,987 | $ | 54,644,608 | $ | 1,187,603 | $ | 1,204,779 | |||||||||
Change due to availability of final actual assets and census data | — | — | (2,451 | ) | 12,577 | ||||||||||||
Actual return on plan assets | 3,731,262 | 4,880,381 | 22,434 | 73,920 | |||||||||||||
Employer contributions | 2,863,552 | 3,254,635 | 79,336 | 34,565 | |||||||||||||
Benefits paid | (2,593,691 | ) | (2,428,637 | ) | (137,718 | ) | (138,238 | ) | |||||||||
Fair value of plan assets at end of year | $ | 64,352,110 | $ | 60,350,987 | $ | 1,149,204 | $ | 1,187,603 | |||||||||
Pension Benefit | Postretirement Benefit | ||||||||||||||||
Funded Status | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net amount recognized in the balance sheet | $ | (26,164,812 | ) | $ | (10,860,211 | ) | $ | (2,905,908 | ) | $ | (2,232,872 | ) | |||||
Amounts recognized in accumulated other comprehensive income | Amounts recognized in accumulated other comprehensive income consist of: | ||||||||||||||||
Pension Benefit | Postretirement Benefit | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net loss | $ | (35,093,871 | ) | $ | (19,261,651 | ) | $ | (630,853 | ) | $ | (115,052 | ) | |||||
Prior service (cost) credit | (595,270 | ) | (813,855 | ) | 87,620 | 111,508 | |||||||||||
$ | (35,689,141 | ) | $ | (20,075,506 | ) | $ | (543,233 | ) | $ | (3,544 | ) | ||||||
Change in the components of accumulated other comprehensive income | Change in the components of accumulated other comprehensive income consist of: | ||||||||||||||||
Pension Benefit | Postretirement Benefit | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance at beginning of period | $ | (20,075,506 | ) | $ | (29,284,712 | ) | $ | (3,544 | ) | $ | (486,071 | ) | |||||
Change due to availability of final actual assets and census data | — | — | 54,065 | 12,577 | |||||||||||||
Charged to net periodic benefit cost | |||||||||||||||||
Prior service cost | 218,585 | 256,459 | (23,888 | ) | (23,888 | ) | |||||||||||
Net loss (gain) | 944,130 | 1,844,139 | (72,378 | ) | (4,608 | ) | |||||||||||
Other changes | |||||||||||||||||
Liability (gains)/losses | (16,776,350 | ) | 7,108,608 | (497,488 | ) | 498,446 | |||||||||||
Balance at end of period | $ | (35,689,141 | ) | $ | (20,075,506 | ) | $ | (543,233 | ) | $ | (3,544 | ) | |||||
Schedule of assumptions used to determine projected benefit obligations for benefit plans | Assumptions used to determine the projected benefit obligations for the Company’s pension benefit plans and postretirement benefit plan for the fiscal year indicated were as follows: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Discount rate | 3.9 | % | 4.8 | % | |||||||||||||
Expected return on plan assets | 8 | % | 8 | % | |||||||||||||
Rate of compensation increase | 3.25 | % | 3.25 | % | |||||||||||||
Projected benefit obligation and accumulated benefit obligation in excess of plan assets | Information for the under-funded pension plans with a projected benefit obligation and an accumulated benefit obligation in excess of plan assets: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Number of plans | 6 | 5 | * | ||||||||||||||
Projected benefit obligation | $ | 90,516,922 | $ | 68,781,752 | |||||||||||||
Accumulated benefit obligation | 84,714,136 | 68,974,332 | |||||||||||||||
Fair value of plan assets | 64,352,110 | 57,850,937 | |||||||||||||||
Net amount recognized in accrued benefit liability | (26,164,812 | ) | (10,930,815 | ) | |||||||||||||
* Information relating to one of the Company’s pension plans is excluded from the above table as this plan was over-funded by approximately $70,000 at December 28, 2013. | |||||||||||||||||
Pension Benefits [Member] | |||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||||||||||||
Components of the net periodic benefit cost | Components of the net periodic benefit cost of the Company’s pension benefit plans were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 2,837,134 | $ | 3,028,863 | $ | 2,642,373 | |||||||||||
Interest cost | 3,365,194 | 2,840,622 | 2,868,528 | ||||||||||||||
Expected return on plan assets | (4,810,524 | ) | (4,827,393 | ) | (3,930,988 | ) | |||||||||||
Amortization of prior service cost | 218,585 | 256,459 | 221,049 | ||||||||||||||
Amortization of the net loss | 944,130 | 1,844,139 | 1,111,900 | ||||||||||||||
Net periodic benefit cost | $ | 2,554,519 | $ | 3,142,690 | $ | 2,912,862 | |||||||||||
Schedule of assumptions used to determine net periodic benefit cost for benefit plans | Assumptions used to determine net periodic benefit cost for the Company’s pension benefit plans for the fiscal year indicated were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.8 | % | 3.9 | % | 4.55 | % | |||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | |||||||||||
Rate of compensation increase | 3.25 | % | 3.25 | % | 3.25 | % | |||||||||||
Fair values of plans assets utilizing fair value hierarchy | The fair values of the company’s pension plans assets at January 3, 2015 and December 28, 2013, utilizing the fair value hierarchy discussed in Note 2, follow: | ||||||||||||||||
3-Jan-15 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and Equivalents: | |||||||||||||||||
Common/collective trust funds | $ | — | $ | 1,201,073 | $ | — | $ | 1,201,073 | |||||||||
Equities: | |||||||||||||||||
The Eastern Company Common Stock | 3,473,938 | — | — | 3,473,938 | |||||||||||||
Common/collective trust funds | |||||||||||||||||
U.S. Large Cap (a) | — | 6,936,880 | — | 6,936,880 | |||||||||||||
U.S. Small Cap (b) | — | 4,632,485 | — | 4,632,485 | |||||||||||||
Concentrated Equity (c) | — | 5,788,864 | — | 5,788,864 | |||||||||||||
International Large Cap with Active Currency (d) | — | 7,606,489 | — | 7,606,489 | |||||||||||||
Emerging Market (e) | — | 3,188,672 | — | 3,188,672 | |||||||||||||
3-Jan-15 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Fixed Income: | |||||||||||||||||
Common/collective trust funds | |||||||||||||||||
Intermediate Bond (f) | — | 17,013,171 | — | 17,013,171 | |||||||||||||
Target Duration LDI Fixed Income Funds (g) | |||||||||||||||||
— | 226,826 | — | 226,826 | ||||||||||||||
· 6 Year LDI Fund | |||||||||||||||||
— | 227,960 | — | 227,960 | ||||||||||||||
· 8 Year LDI Fund | |||||||||||||||||
— | 343,712 | — | 343,712 | ||||||||||||||
· 10 Year LDI Fund | |||||||||||||||||
— | 919,538 | — | 919,538 | ||||||||||||||
· 12 Year LDI Fund | |||||||||||||||||
— | 1,212,739 | — | 1,212,739 | ||||||||||||||
· 14 Year LDI Fund | |||||||||||||||||
— | 520,522 | — | 520,522 | ||||||||||||||
· 16 Year LDI Fund | |||||||||||||||||
Long Duration Fixed Credit (h) | — | 8,112,746 | — | 8,112,746 | |||||||||||||
Insurance contracts | — | 2,946,495 | — | 2,946,495 | |||||||||||||
Total | $ | 3,473,938 | $ | 60,878,172 | $ | — | $ | 64,352,110 | |||||||||
28-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and Equivalents: | |||||||||||||||||
Common/collective trust funds | $ | — | $ | 204,874 | $ | — | $ | 204,874 | |||||||||
Equities: | |||||||||||||||||
The Eastern Company Common Stock | 3,082,494 | — | — | 3,082,494 | |||||||||||||
Common/collective trust funds | |||||||||||||||||
U.S. Large Cap | — | 6,643,640 | — | 6,643,640 | |||||||||||||
U.S. Small Cap | — | 4,485,040 | — | 4,485,040 | |||||||||||||
Concentrated Equity | — | 5,578,600 | — | 5,578,600 | |||||||||||||
International Large Cap with Active Currency | — | 7,788,246 | — | 7,788,246 | |||||||||||||
Emerging Market | — | 3,231,355 | — | 3,231,355 | |||||||||||||
Fixed Income: | |||||||||||||||||
Common/collective trust funds | |||||||||||||||||
Intermediate Bond | — | 15,817,474 | — | 15,817,474 | |||||||||||||
Target Duration LDI Fixed Income Funds | |||||||||||||||||
— | 211,661 | — | 211,661 | ||||||||||||||
· 6 Year LDI Fund | |||||||||||||||||
— | 211,101 | — | 211,101 | ||||||||||||||
· 8 Year LDI Fund | |||||||||||||||||
— | 316,556 | — | 316,556 | ||||||||||||||
· 10 Year LDI Fund | |||||||||||||||||
— | 845,278 | — | 845,278 | ||||||||||||||
· 12 Year LDI Fund | |||||||||||||||||
— | 1,108,960 | — | 1,108,960 | ||||||||||||||
· 14 Year LDI Fund | |||||||||||||||||
— | 475,035 | — | 475,035 | ||||||||||||||
· 16 Year LDI Fund | |||||||||||||||||
Long Duration Fixed Credit | — | 7,363,673 | — | 7,363,673 | |||||||||||||
Insurance contracts | — | 2,987,000 | — | 2,987,000 | |||||||||||||
Total | $ | 3,082,494 | $ | 57,268,493 | $ | — | $ | 60,350,987 | |||||||||
Equity common funds primarily hold publicly traded common stock of both U.S and international companies selected for purposes of total return and to maintain equity exposure consistent with policy allocations. The level 1 investment is made up of shares of The Eastern Company Common Stock and is valued at market price. Level 2 investments include commingled funds valued at unit values provided by the investment managers, which are based on the fair value of the underlying publicly traded securities. | |||||||||||||||||
(a) | The investment objective of the large cap fund is to outperform the Russell 1000® Index. The fund is designed to provide for long-term growth of capital by utilizing a diversified group of quantitative investment strategies that seek to identify securities that have exposure to factors that the underlying advisors’ research has found to be predictive of future excess returns. The advisors’ portfolios are quantitatively structured to gain exposure to these predictive characteristics while minimizing unintended risk exposures. | ||||||||||||||||
(b) | The small cap fund has an objective to outperform the Russell 2500® Index The fund is designed to achieve consistency by combining advisors whose complementary disciplined processes employ distinct methods for identifying small capitalization U.S. stocks with strong return potential. Advisors in the fund use a wide range of criteria and disciplines in their stock selection, focusing on factors such as: undervalued or under-researched companies, special situations, emerging growth, asset plays or turnarounds. | ||||||||||||||||
(c) | The investment objective of the concentrated equity fund is to outperform the Russell 1000® Index. The fund is designed to achieve this by combining strategies with different payoffs over different phases of an economic and stock market cycle. To help achieve this objective, multiple advisors and strategies are employed to reduce “scenario risk.” These multiple strategies are in the form of multiple investment styles (e.g., growth, market oriented, and value), multiple sub-styles, and different ways of identifying undervalued securities. | ||||||||||||||||
(d) | The international fund with active currency has an investment objective of outperforming the Russell Development ex-U.S. Large Cap Index Net. The fund is designed to provide the potential for long-term growth of capital by utilizing a diversified group of investment advisors that the Trustee’s manager’s research indicates will outperform over a full market cycle. The investment advisors’ portfolios are combined to form a fund that emphasizes their strengths while minimizing unintended risk exposures. | ||||||||||||||||
(e) | The emerging market fund seeks to outperform the Russell Emerging Markets Index Net. The fund is designed to provide the potential for long-term growth of capital by utilizing a diversified market group of investment advisors that the Trustee’s manager’s research indicates will outperform over a full market cycle. The investment advisors’ portfolios are combined to form a fund that emphasizes their strengths while minimizing unintended risk exposures. | ||||||||||||||||
All equity funds have an objective to beat their respective indices with above-average consistency while maintaining volatility and diversification similar to the index they are being compared to over a full market cycle. | |||||||||||||||||
Fixed income common funds primarily hold government and corporate debt securities selected for purposes of total return and managing fixed income exposure to policy allocations. Investments include fixed commingled funds valued at unit values provided by the investment managers, which are based on the fair value of the underlying publicly traded securities. | |||||||||||||||||
(f) | Fixed income common fund investments have an investment objective of outperforming the Barclays Capital U.S. Aggregate Bond Index over a full market cycle. The fund is designed to provide current income, and as a secondary objective, capital appreciation through a variety of diversified strategies including sector rotation, modest interest rate timing, security selection and tactical use of high yield and emerging market bonds. The portfolio diversification provides protection against a single security or class of securities having a disproportionate impact on aggregate performance. To help achieve the objective, the fund is actively managed by multiple advisors who use a variety of investment strategies to create a broad market exposure. The fund’s advisors have distinct but complementary investment styles. These advisors generally have similar universes of investable securities but have different areas of specialization and expertise within intermediate duration securities. | ||||||||||||||||
(g) | The Target Duration LDI Fixed Income Funds seek to outperform their respective Barclays-Russell LDI Indexes over a full market cycle. These Funds seek to provide current income, and as a secondary objective, capital appreciation through diversified strategies including sector rotation, modest interest rate timing, security selection and tactical use of high yield and emerging market bonds. The Funds will generally be used in combination with other bond funds to enable the plans to gain additional credit exposure within their asset portfolio, with the goal of reducing the mismatch between a plan’s assets and liabilities. | ||||||||||||||||
(h) | The long duration fixed credit fund seeks to outperform the Barclays Capital Long Credit Index over a full market cycle. The fund seeks to provide current income, and as a secondary objective, capital appreciation through diversified strategies including sector rotation, modest interest rate timing, security selection and tactical use of high yield and emerging market bonds. The fund will generally be used in combination with other bond funds, with the goal of reducing the mismatch between a plan’s assets and liabilities. | ||||||||||||||||
Postretirement Benefits [Member] | |||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||||||||||||||||
Components of the net periodic benefit cost | Components of the net periodic benefit cost of the Company’s postretirement benefit plan were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 173,902 | $ | 202,568 | $ | 173,613 | |||||||||||
Interest cost | 157,481 | 142,086 | 143,388 | ||||||||||||||
Expected return on plan assets | (22,434 | ) | (73,920 | ) | (46,255 | ) | |||||||||||
Amortization of prior service cost | (23,888 | ) | (23,888 | ) | (23,889 | ) | |||||||||||
Amortization of the net loss | (72,378 | ) | (4,608 | ) | (50,784 | ) | |||||||||||
Net periodic benefit cost | $ | 212,683 | $ | 242,238 | $ | 196,073 | |||||||||||
Schedule of assumptions used to determine net periodic benefit cost for benefit plans | Assumptions used to determine net periodic benefit cost for the Company’s postretirement plan for the fiscal year indicated were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.8 | % | 3.9 | % | 4.55 | % | |||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | |||||||||||
Fair values of plans assets utilizing fair value hierarchy | The fair values of the Company’s postretirement plan assets at January 3, 2015 and December 28, 2013, utilizing the fair value hierarchy discussed in Note 2, follow: | ||||||||||||||||
3-Jan-15 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Fixed Income: | |||||||||||||||||
Insurance contracts | $ | — | $ | — | $ | 1,149,204 | $ | 1,149,204 | |||||||||
Total | $ | — | $ | — | $ | 1,149,204 | $ | 1,149,204 | |||||||||
28-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Fixed Income: | |||||||||||||||||
Insurance contracts | $ | — | $ | — | $ | 1,187,603 | $ | 1,187,603 | |||||||||
Total | $ | — | $ | — | $ | 1,187,603 | $ | 1,187,603 | |||||||||
Analysis of the Level 3 assets of the Company's postretirement plan | An analysis of the Level 3 asset of the Company’s postretirement plan is as follows: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Fair value of Level 3 assets at beginning of year | $ | 1,187,603 | $ | 1,204,779 | |||||||||||||
Change due to availability of final actual assets and census data | (2,451 | ) | 12,577 | ||||||||||||||
Actual return on plan assets | 22,434 | 46,013 | |||||||||||||||
Employer contributions | 19,639 | — | |||||||||||||||
Benefits paid | (78,021 | ) | (75,766 | ) | |||||||||||||
Fair value of Level 3 assets at end of year | $ | 1,149,204 | $ | 1,187,603 | |||||||||||||
Effect of one-percentage-point change in assumed health care cost trend rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects on the postretirement benefit plan: | ||||||||||||||||
1-Percentage Point | |||||||||||||||||
Increase | Decrease | ||||||||||||||||
Effect on total of service and interest cost components | $ | 55,785 | $ | (45,328 | ) | ||||||||||||
Effect on postretirement benefit obligation | $ | 645,868 | $ | (52,432 | ) |
REPORTABLE_SEGMENTS_Tables
REPORTABLE SEGMENTS (Tables) | 12 Months Ended | ||||||||||||
Jan. 03, 2015 | |||||||||||||
REPORTABLE SEGMENTS [Abstract] | |||||||||||||
Segment financial information | No other customer exceeded 10% of total revenue in 2014, 2013 or 2012. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
Sales to unaffiliated customers: | |||||||||||||
Industrial Hardware | $ | 58,666,229 | $ | 60,367,209 | $ | 72,268,559 | |||||||
Security Products | 49,381,553 | 48,751,688 | 50,138,121 | ||||||||||
Metal Products | 32,777,578 | 33,339,382 | 35,102,505 | ||||||||||
$ | 140,825,360 | $ | 142,458,279 | $ | 157,509,185 | ||||||||
Inter-segment Revenue: | |||||||||||||
Industrial Hardware | $ | 984,192 | $ | 373,797 | $ | 270,911 | |||||||
Security Products | 2,565,733 | 2,558,127 | 2,914,667 | ||||||||||
Metal Products | — | 11,540 | — | ||||||||||
$ | 3,549,925 | $ | 2,943,464 | $ | 3,185,578 | ||||||||
Income Before Income Taxes: | |||||||||||||
Industrial Hardware | $ | 5,063,786 | $ | 4,797,254 | $ | 7,566,512 | |||||||
Security Products | 4,058,554 | 2,780,403 | 4,113,661 | ||||||||||
Metal Products | 2,596,308 | 2,808,664 | 1,871,250 | ||||||||||
Operating Profit | 11,718,648 | 10,386,321 | 13,551,423 | ||||||||||
Interest expense | (254,576 | ) | (322,731 | ) | (369,357 | ) | |||||||
Other income | 64,691 | 50,305 | 42,452 | ||||||||||
$ | 11,528,763 | $ | 10,113,895 | $ | 13,224,518 | ||||||||
Geographic Information: | |||||||||||||
Net Sales: | |||||||||||||
United States | $ | 117,478,557 | $ | 114,085,322 | $ | 120,604,363 | |||||||
Foreign | 23,346,803 | 28,372,957 | 36,904,822 | ||||||||||
$ | 140,825,360 | $ | 142,458,279 | $ | 157,509,185 | ||||||||
Foreign sales are primarily to customers in North America. | |||||||||||||
Identifiable Assets: | |||||||||||||
United States | $ | 105,771,961 | $ | 96,289,200 | $ | 95,441,029 | |||||||
Foreign | 15,498,595 | 17,569,209 | 20,413,121 | ||||||||||
$ | 121,270,556 | $ | 113,858,409 | $ | 115,854,150 | ||||||||
Industrial Hardware | $ | 29,660,695 | $ | 31,820,269 | $ | 34,425,594 | |||||||
Security Products | 51,573,251 | 43,582,088 | 41,857,156 | ||||||||||
Metal Products | 21,037,058 | 19,282,393 | 18,281,619 | ||||||||||
102,271,004 | 94,684,750 | 94,564,369 | |||||||||||
General corporate | 18,999,552 | 19,173,659 | 21,289,781 | ||||||||||
$ | 121,270,556 | $ | 113,858,409 | $ | 115,854,150 | ||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and Amortization: | |||||||||||||
Industrial Hardware | $ | 1,631,521 | $ | 2,085,618 | $ | 1,769,097 | |||||||
Security Products | 621,501 | 592,555 | 628,652 | ||||||||||
Metal Products | 1,233,280 | 1,147,113 | 1,042,051 | ||||||||||
$ | 3,486,302 | $ | 3,825,286 | $ | 3,439,800 | ||||||||
Capital Expenditures: | |||||||||||||
Industrial Hardware | $ | 1,929,022 | $ | 1,967,335 | $ | 1,552,147 | |||||||
Security Products | 973,365 | 469,669 | 260,692 | ||||||||||
Metal Products | 664,851 | 3,002,556 | 2,337,104 | ||||||||||
3,567,238 | 5,439,560 | 4,149,943 | |||||||||||
Currency translation adjustment | 10,347 | (245 | ) | (2,730 | ) | ||||||||
General corporate | 55,580 | 84,427 | 69,757 | ||||||||||
$ | 3,633,165 | $ | 5,523,742 | $ | 4,216,970 |
SELECTED_QUARTERLY_FINANCIAL_I1
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||
Jan. 03, 2015 | |||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |||||||||||||||||||||
Selected quarterly financial information (unaudited) | Selected quarterly financial information (unaudited) follows: | ||||||||||||||||||||
2014 | |||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Net sales | $ | 35,849,126 | $ | 34,779,773 | $ | 35,803,405 | $ | 34,393,056 | $ | 140,825,360 | |||||||||||
Gross margin | 7,513,406 | 7,776,304 | 8,641,473 | 8,555,221 | 32,486,404 | ||||||||||||||||
Selling and administrative | 5,216,289 | 4,988,364 | 4,892,600 | 5,670,503 | 20,767,756 | ||||||||||||||||
expenses | |||||||||||||||||||||
Net income | 1,502,885 | 1,693,503 | 2,431,817 | 2,033,271 | 7,661,476 | ||||||||||||||||
Net income per share: | |||||||||||||||||||||
Basic | $ | 0.24 | $ | 0.27 | $ | 0.39 | $ | 0.33 | $ | 1.23 | |||||||||||
Diluted | $ | 0.24 | $ | 0.27 | $ | 0.39 | $ | 0.33 | $ | 1.23 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 6,222,213 | 6,222,676 | 6,223,140 | 6,231,729 | 6,225,068 | ||||||||||||||||
Diluted | 6,239,149 | 6,239,866 | 6,240,396 | 6,231,729 | 6,237,914 | ||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||||||
Net sales | $ | 34,692,174 | $ | 39,247,980 | $ | 34,256,086 | $ | 34,262,039 | $ | 142,458,279 | |||||||||||
Gross margin | 6,266,580 | 8,530,842 | 7,224,409 | 8,125,689 | 30,147,520 | ||||||||||||||||
Selling and administrative | 4,681,296 | 5,223,185 | 4,767,505 | 5,089,213 | 19,761,199 | ||||||||||||||||
expenses | |||||||||||||||||||||
Net (loss)/income | 1,005,248 | 2,174,294 | 1,798,783 | 1,923,596 | 6,901,921 | ||||||||||||||||
Net (loss)/income per share: | |||||||||||||||||||||
Basic | $ | 0.16 | $ | 0.35 | $ | 0.29 | $ | 0.31 | $ | 1.11 | |||||||||||
Diluted | $ | 0.16 | $ | 0.35 | $ | 0.29 | $ | 0.31 | $ | 1.11 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Basic | 6,219,775 | 6,220,569 | 6,221,515 | 6,221,851 | 6,220,928 | ||||||||||||||||
Diluted | 6,236,842 | 6,238,025 | 6,238,074 | 6,238,089 | 6,237,758 |
DESCRIPTION_OF_BUSINESS_Detail
DESCRIPTION OF BUSINESS (Details) | 12 Months Ended |
Jan. 03, 2015 | |
Segment | |
DESCRIPTION OF BUSINESS [Abstract] | |
Number of operating segments | 3 |
ACCOUNTING_POLICIES_Details
ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Cash Equivalents and Concentrations of Credit Risk [Abstract] | |||||||||||
Amount of deposits insured by Federal Deposit Insurance Corporation (FDIC) | $250,000 | ||||||||||
Inventories [Abstract] | |||||||||||
LIFO inventory amount | 28,324,813 | ||||||||||
FIFO inventory amount | 6,077,384 | ||||||||||
Excess of current cost over LIFO carrying value | 6,689,000 | 6,886,000 | 6,689,000 | ||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation | 3,237,426 | 3,592,263 | 3,210,324 | ||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Amortization expense | 248,876 | 233,023 | 229,476 | ||||||||
Amortization expense fiscal year maturity [Abstract] | |||||||||||
2015 | 477,000 | ||||||||||
2016 | 476,000 | ||||||||||
2017 | 474,000 | ||||||||||
2018 | 474,000 | ||||||||||
2019 | 474,000 | ||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 3,637,181 | 4,683,640 | 3,637,181 | ||||||||
Accumulated Amortization | 2,179,678 | 2,185,070 | 2,179,678 | ||||||||
Net per Balance Sheet | 1,457,503 | 2,498,570 | 1,457,503 | ||||||||
Weighted-Average Amortization Period | 12 years 8 months 12 days | 16 years | |||||||||
Goodwill [Roll Forward] | |||||||||||
Beginning balance | 13,842,047 | 13,933,599 | 13,842,047 | 13,933,599 | |||||||
Acquisition of Argo Transdata | 1,225,226 | ||||||||||
Foreign exchange | -106,919 | -91,552 | |||||||||
Ending balance | 13,842,047 | 14,960,354 | 13,842,047 | 13,933,599 | |||||||
Product Development Costs [Abstract] | |||||||||||
Product development costs | 1,079,557 | 991,286 | 814,096 | ||||||||
Advertising Costs [Abstract] | |||||||||||
Advertising costs | 494,267 | 486,027 | 442,300 | ||||||||
Basic [Abstract] | |||||||||||
Weighted average shares outstanding (in shares) | 6,231,729 | 6,223,140 | 6,222,676 | 6,222,213 | 6,221,851 | 6,221,515 | 6,220,569 | 6,219,775 | 6,225,068 | 6,220,928 | 6,216,931 |
Diluted [Abstract] | |||||||||||
Weighted average shares outstanding (in shares) | 6,231,729 | 6,223,140 | 6,222,676 | 6,222,213 | 6,221,851 | 6,221,515 | 6,220,569 | 6,219,775 | 6,225,068 | 6,220,928 | 6,216,931 |
Dilutive stock options (in shares) | 12,846 | 16,830 | 16,444 | ||||||||
Denominator for diluted earnings per share (in shares) | 6,231,729 | 6,240,396 | 6,239,866 | 6,239,149 | 6,238,089 | 6,238,074 | 6,238,025 | 6,236,842 | 6,237,914 | 6,237,758 | 6,233,375 |
Anti-dilutive stock options (in shares) | 0 | 0 | 0 | ||||||||
Stock Options [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options granted (in shares) | 0 | 0 | 0 | ||||||||
Industrial Hardware Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 2,595,931 | 2,494,261 | 2,595,931 | ||||||||
Accumulated Amortization | 1,676,440 | 1,649,655 | 1,676,440 | ||||||||
Net per Balance Sheet | 919,491 | 844,606 | 919,491 | ||||||||
Goodwill [Roll Forward] | |||||||||||
Beginning balance | 2,008,231 | 2,099,783 | 2,008,231 | 2,099,783 | |||||||
Acquisition of Argo Transdata | 0 | ||||||||||
Foreign exchange | -106,919 | -91,552 | |||||||||
Ending balance | 2,008,231 | 1,901,312 | 2,008,231 | ||||||||
Security Products Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 1,041,250 | 2,189,379 | 1,041,250 | ||||||||
Accumulated Amortization | 503,238 | 535,415 | 503,238 | ||||||||
Net per Balance Sheet | 538,012 | 1,653,964 | 538,012 | ||||||||
Goodwill [Roll Forward] | |||||||||||
Beginning balance | 11,833,816 | 11,833,816 | 11,833,816 | 11,833,816 | |||||||
Acquisition of Argo Transdata | 1,225,226 | ||||||||||
Foreign exchange | 0 | 0 | |||||||||
Ending balance | 11,833,816 | 13,059,042 | 11,833,816 | ||||||||
Metal Products Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 0 | 0 | 0 | ||||||||
Accumulated Amortization | 0 | 0 | 0 | ||||||||
Net per Balance Sheet | 0 | 0 | 0 | ||||||||
Goodwill [Roll Forward] | |||||||||||
Beginning balance | 0 | 0 | 0 | 0 | |||||||
Acquisition of Argo Transdata | 0 | ||||||||||
Foreign exchange | 0 | 0 | |||||||||
Ending balance | 0 | 0 | 0 | ||||||||
Patents and Developed Technology [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 3,519,564 | ||||||||||
Accumulated Amortization | 2,185,070 | ||||||||||
Weighted-Average Amortization Period | 15 years 8 months 12 days | ||||||||||
Patents and Developed Technology [Member] | Industrial Hardware Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 2,494,261 | ||||||||||
Accumulated Amortization | 1,649,655 | ||||||||||
Patents and Developed Technology [Member] | Security Products Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 1,025,303 | ||||||||||
Accumulated Amortization | 535,415 | ||||||||||
Patents and Developed Technology [Member] | Metal Products Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 0 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Customer Relationships [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 449,706 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Weighted-Average Amortization Period | 5 years | ||||||||||
Customer Relationships [Member] | Industrial Hardware Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 0 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Customer Relationships [Member] | Security Products Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 449,706 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Customer Relationships [Member] | Metal Products Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 0 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Intellectual Property [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 307,370 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Weighted-Average Amortization Period | 5 years | ||||||||||
Intellectual Property [Member] | Industrial Hardware Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 0 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Intellectual Property [Member] | Security Products Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 307,370 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Intellectual Property [Member] | Metal Products Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 0 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Non-Compete Agreements [Member] | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Useful lives of intangible assets | 5 years | ||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 407,000 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Weighted-Average Amortization Period | 5 years | ||||||||||
Non-Compete Agreements [Member] | Industrial Hardware Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 0 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Non-Compete Agreements [Member] | Security Products Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 407,000 | ||||||||||
Accumulated Amortization | 0 | ||||||||||
Non-Compete Agreements [Member] | Metal Products Segment [Member] | |||||||||||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | |||||||||||
Gross Amount | 0 | ||||||||||
Accumulated Amortization | $0 | ||||||||||
Minimum [Member] | Technology and Licenses [Member] | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Useful lives of intangible assets | 5 years | ||||||||||
Maximum [Member] | Technology and Licenses [Member] | |||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||
Useful lives of intangible assets | 17 years | ||||||||||
Building [Member] | Minimum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Estimated useful lives of the assets | 10 years | ||||||||||
Building [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Estimated useful lives of the assets | 39 years 6 months | ||||||||||
Machinery and Equipment [Member] | Minimum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Estimated useful lives of the assets | 3 years | ||||||||||
Machinery and Equipment [Member] | Maximum [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Estimated useful lives of the assets | 10 years | ||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Number of major customers | 0 | 0 | |||||||||
Threshold percentage of concentration risk (in hundredths) | 10.00% | 10.00% |
BUSINESS_ACQUISITIONS_Details
BUSINESS ACQUISITIONS (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Technology | |||
Business Acquisition [Line Items] | |||
Number of technologies combination | 3 | ||
Goodwill | $14,960,354 | $13,842,047 | $13,933,599 |
Intangible Assets Acquired [Abstract] | |||
Assets acquired | 1,164,076 | ||
Weighted-average amortization period (in Years) | 5 years | ||
Argo Transdata Corporation [Member] | |||
Business Acquisition [Line Items] | |||
Cost of the acquisition | 5,034,000 | ||
Contingent earn-out | 282,914 | ||
Business acquisition, current liabilities | 63,000 | ||
Goodwill | 1,225,226 | ||
Customer Relationships [Member] | |||
Intangible Assets Acquired [Abstract] | |||
Assets acquired | 449,706 | ||
Weighted-average amortization period (in Years) | 5 years | ||
Intellectual Property [Member] | |||
Intangible Assets Acquired [Abstract] | |||
Assets acquired | 307,370 | ||
Weighted-average amortization period (in Years) | 5 years | ||
Non-Compete Agreements [Member] | |||
Intangible Assets Acquired [Abstract] | |||
Assets acquired | $407,000 | ||
Weighted-average amortization period (in Years) | 5 years |
CONTINGENCIES_Details
CONTINGENCIES (Details) | Jan. 03, 2015 |
CONTINGENCIES [Abstract] | |
Total workforce subject to negotiated union contracts (in hundredths) | 26.00% |
DEBT_Details
DEBT (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||
Jan. 29, 2010 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | Jan. 25, 2012 | |
Debt Instrument [Line Items] | |||||
Extinguishment of debt | $10,714,286 | ||||
Schedule of debt [Abstract] | |||||
Term loans | 4,285,714 | 6,071,428 | |||
Revolving credit loan | 0 | 0 | |||
Total debt | 4,285,714 | 6,071,428 | |||
Less current portion | 1,071,429 | 1,785,714 | |||
Long term debt, less current portion | 3,214,285 | 4,285,714 | |||
Debt instrument covenant minimum tangible net worth | 55,000,000 | ||||
Interest paid | 272,993 | 319,760 | 349,972 | ||
Tangible net worth | 52,800,000 | ||||
Tangible net worth (in hundredths) | 50.00% | ||||
Scheduled annual principal maturities of long-term debt [Abstract] | |||||
2015 | 1,071,429 | ||||
2016 | 1,428,571 | ||||
2017 | 892,857 | ||||
2018 | 714,286 | ||||
2019 | 178,571 | ||||
Thereafter | 0 | ||||
Long term debt | 4,285,714 | 6,071,428 | |||
Minimum [Member] | |||||
Schedule of debt [Abstract] | |||||
Tangible net worth | 43,000,000 | ||||
Revolving Credit Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 10,000,000 | ||||
Maturity date of loan | 31-Jan-12 | ||||
Description of variable rate basis | LIBOR | LIBOR rate or People's Prime rate | |||
Basis spread on variable rate (in hundredths) | 2.25% | 2.25% | |||
Floor rate of loan (in hundredths) | 3.25% | ||||
Revolving Credit Loan [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Floor rate of loan (in hundredths) | 4.00% | ||||
Loan Agreement [Member] | |||||
Schedule of debt [Abstract] | |||||
Fixed charge coverage ratio as multiple, minimum | 1.1 | ||||
Leverage coverage ratio as multiple maximum | 1.75 | ||||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 5,000,000 | ||||
Periodic payment of loan | 178,571 | ||||
Term of loan | 7 years | ||||
Maturity date of loan | 31-Jan-17 | ||||
Revolving credit portion commitment fee (in hundredths) | 0.25% | ||||
Fixed rate of interest (in hundredths) | 4.98% | ||||
2012 Term Loan Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 5,000,000 | ||||
Periodic payment of loan | 178,571 | ||||
Term of loan | 7 years | ||||
Maturity date of loan | 31-Jan-19 | ||||
Revolving credit portion commitment fee (in hundredths) | 0.25% | ||||
Fixed rate of interest (in hundredths) | 3.90% |
STOCK_RIGHTS_Details
STOCK RIGHTS (Details) (USD $) | 12 Months Ended |
Jan. 03, 2015 | |
STOCK RIGHTS [Abstract] | |
Stock rights outstanding (in shares) | 6,244,013 |
Stock rights, exercise price (in dollars per share) | $80 |
Period after which rights become exercisable upon acquisition of 10 percent or more of common stock | 10 days |
Threshold percentage of common stock to be acquired for rights to become exercisable (in hundredths) | 10.00% |
Stock rights, expiration date | 23-Jul-18 |
Stock rights, redemption price per share (in dollars per share) | $0.01 |
Ratio of market value of common stock of surviving company to current exercise price of rights in the event of acquisition | 2 |
STOCK_OPTIONS_AND_AWARDS_Detai
STOCK OPTIONS AND AWARDS (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of plans that have shares reserved for further issuance | 1 | ||
Percentage of fair market value of stock on grant date for exercise price, minimum (in hundredths) | 100.00% | ||
2010 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grant (in shares) | 500,000 | ||
Stock Options [Member] | |||
Stock option activity [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 20,000 | 21,000 | 25,500 |
Exercised (in shares) | -20,000 | -1,000 | -4,500 |
Outstanding at end of period (in shares) | 0 | 20,000 | 21,000 |
Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at beginning of period (in dollars per share) | $13.58 | $13.58 | $13.58 |
Exercised (in dollars per share) | $13.58 | $13.58 | $13.58 |
Outstanding at end of period (in dollars per share) | $13.58 | $13.58 | |
Total intrinsic value of stock options exercised | $59,125 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Components of Deferred Tax Assets and Liabilities [Abstract] | |||
Property, plant and equipment | $6,503,597 | $6,184,873 | $5,942,048 |
Other | 92,531 | 208,938 | 0 |
Total deferred income tax liabilities | 6,596,128 | 6,393,811 | 5,942,048 |
Other postretirement benefits | -1,030,203 | -787,087 | -885,729 |
Inventories | -829,876 | -848,364 | -761,613 |
Allowance for doubtful accounts | -105,296 | -104,695 | -104,903 |
Intangible assets | -396,541 | -373,482 | -422,443 |
Accrued compensation | -203,180 | -158,866 | -197,582 |
Pensions | -9,275,949 | -3,828,224 | -7,128,057 |
Other | 0 | 0 | -116,826 |
Total deferred income tax assets | -11,841,045 | -6,100,718 | -9,617,153 |
Net deferred income tax (assets) liabilities | -5,244,917 | 293,093 | -3,675,105 |
Income before income taxes [Abstract] | |||
Domestic | 8,087,552 | 7,139,039 | 8,614,664 |
Foreign | 3,441,211 | 2,974,856 | 4,609,854 |
Income before income taxes | 11,528,763 | 10,113,895 | 13,224,518 |
Current: | |||
Federal | 2,339,917 | 1,942,271 | 1,909,172 |
Foreign | 991,257 | 871,949 | 1,367,025 |
State | 295,554 | 162,952 | 220,820 |
Deferred: | |||
Federal | 164,830 | 241,821 | 1,022,660 |
Foreign | 0 | 0 | 0 |
State | 75,729 | -7,019 | 79,041 |
Provision for income taxes | 3,867,287 | 3,211,974 | 4,598,718 |
Reconciliation of income taxes computed using U.S. federal statutory rate to that reflected in operations [Abstract] | |||
Income taxes using U.S. federal statutory rate | 3,919,779 | 3,438,724 | 4,496,336 |
State income taxes, net of federal benefit | 249,324 | 99,245 | 188,490 |
Impact of foreign subsidiaries on effective tax rate | -76,914 | -103,878 | 136,590 |
Impact of manufacturers deduction on effective tax rate | -185,993 | -138,127 | -232,928 |
Other-net | -38,909 | -83,990 | 10,230 |
Provision for income taxes | 3,867,287 | 3,211,974 | 4,598,718 |
Income taxes using U.S. federal statutory rate (in hundredths) | 34.00% | 34.00% | 34.00% |
State income taxes, net of federal benefit (in hundredths) | 2.00% | 1.00% | 2.00% |
Impact of foreign subsidiaries on effective tax rate (in hundredths) | -1.00% | -1.00% | 1.00% |
Impact of manufacturers deduction on effective tax rate (in hundredths) | -1.00% | -1.00% | -2.00% |
Other-net (in hundredths) | 0.00% | -1.00% | 0.00% |
Effective income tax rate (in hundredths) | 34.00% | 32.00% | 35.00% |
Total income taxes paid | 3,989,978 | 2,568,708 | 3,350,283 |
Undistributed earnings of foreign subsidiaries | 13,656,236 | ||
Tax benefit from exercise of non-qualified stock options and disqualifying dispositions of incentive stock options | 8,882 | 0 | 0 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits [Roll Forward] | |||
Balance at beginning of year | 220,289 | 499,624 | 486,332 |
Increases for positions taken during the current period | 50,735 | 49,636 | 119,893 |
Decreases relating to settlements | 0 | -263,856 | 0 |
Decreases resulting from the expiration of the statute of limitations | -22,379 | -65,115 | -106,601 |
Balance at end of year | 248,645 | 220,289 | 499,624 |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits that would affect the annual effective tax rate | 164,106 | ||
Accrued interest related to unrecognized tax benefits | $33,000 | ||
U.S. federal [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax year | 2011 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax year | 2011 | ||
Foreign Jurisdiction [Member] | |||
Income Tax Contingency [Line Items] | |||
Open tax year | 2008 |
LEASES_Details
LEASES (Details) (USD $) | 12 Months Ended | ||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Future minimum payments under non-cancelable operating leases [Abstract] | |||
Rent expense for all operating leases | $1,151,749 | $1,093,895 | $1,159,913 |
Non-Cancelable Leases [Member] | |||
Future minimum payments under non-cancelable operating leases [Abstract] | |||
2015 | 1,269,902 | ||
2016 | 498,709 | ||
2017 | 380,576 | ||
2018 | 259,270 | ||
2019 | 119,000 | ||
Total | 2,527,457 | ||
All Leases of All Kinds [Member] | Minimum [Member] | |||
Future minimum payments under non-cancelable operating leases [Abstract] | |||
2015 | 1,100,000 | ||
2016 | 1,100,000 | ||
2017 | 1,100,000 | ||
2018 | 1,100,000 | ||
2019 | 1,100,000 | ||
All Leases of All Kinds [Member] | Maximum [Member] | |||
Future minimum payments under non-cancelable operating leases [Abstract] | |||
2015 | 1,300,000 | ||
2016 | 1,300,000 | ||
2017 | 1,300,000 | ||
2018 | 1,300,000 | ||
2019 | $1,300,000 |
RETIREMENT_BENEFIT_PLANS_Detai
RETIREMENT BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |||
Plan | Plan | ||||
Funded status [Abstract] | |||||
Net amount recognized in the balance sheet | ($26,164,812) | ($10,930,815) | |||
Amounts recognized in accumulated other comprehensive income [Abstract] | |||||
Total | 23,387,274 | 13,001,185 | |||
Defined Benefit Plan, Change in components of accumulated other comprehensive income [Abstract] | |||||
Balance at beginning of period | 13,001,185 | ||||
Other changes [Abstract] | |||||
Balance at end of period | 23,387,274 | 13,001,185 | |||
Assumptions used to determine the projected benefit obligations [Abstract] | |||||
Discount rate (in hundredths) | 3.90% | 4.80% | |||
Expected return on plan assets (in hundredths) | 8.00% | 8.00% | |||
Rate of compensation increase (in hundredths) | 3.25% | 3.25% | |||
Accumulated benefit obligation for all qualified and nonqualified defined benefit pension plans | 84,714,136 | 71,403,778 | |||
Pension plans with projected benefit obligation and accumulated benefit obligation in excess of plan assets [Abstract] | |||||
Number of plans | 6 | 5 | [1] | ||
Projected benefit obligation | 90,516,922 | 68,781,752 | |||
Accumulated benefit obligation | 84,714,136 | 68,974,332 | |||
Fair value of plan assets | 64,352,110 | 57,850,937 | |||
Net amount recognized in accrued benefit liability | -26,164,812 | -10,930,815 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Period of horizon for various asset classes used in calculating expected long term rates of return | 10 years | ||||
Number of shares of employer common stock included plan assets (in shares) | 202,562 | 193,624 | |||
Value of employer common stock included plan assets | 3,473,938 | 3,082,494 | |||
Dividends received from employer common stock | 93,507 | 81,322 | |||
Health care cost trend rate for participants after January 1, 1991 (in hundredths) | 0.00% | ||||
Ultimate health care cost trend rate (in hundredths) | 4.50% | ||||
Effect of one-percentage-point change in assumed health care cost trend rates on postretirement benefit plan [Abstract] | |||||
Percentage of voluntary contributions allowed to participants, maximum (in hundredths) | 100.00% | ||||
Employer contributions made | 186,545 | 194,068 | 187,531 | ||
Equity Securities [Member] | |||||
Estimated future benefit payments to participants [Abstract] | |||||
Long-term target allocations for plan assets (in hundredths) | 50.00% | ||||
Fixed income [Member] | |||||
Estimated future benefit payments to participants [Abstract] | |||||
Long-term target allocations for plan assets (in hundredths) | 50.00% | ||||
Pension Benefits [Member] | |||||
Components of the net periodic benefit cost [Abstract] | |||||
Service cost | 2,837,134 | 3,028,863 | 2,642,373 | ||
Interest cost | 3,365,194 | 2,840,622 | 2,868,528 | ||
Expected return on plan assets | -4,810,524 | -4,827,393 | -3,930,988 | ||
Amortization of prior service cost | 218,585 | 256,459 | 221,049 | ||
Amortization of the net loss | 944,130 | 1,844,139 | 1,111,900 | ||
Net periodic benefit cost | 2,554,519 | 3,142,690 | 2,912,862 | ||
Assumptions used to determine net periodic benefit cost [Abstract] | |||||
Discount rate (in hundredths) | 4.80% | 3.90% | 4.55% | ||
Expected return on plan assets (in hundredths) | 8.00% | 8.00% | 8.00% | ||
Rate of compensation increase (in hundredths) | 3.25% | 3.25% | 3.25% | ||
Change in benefit obligation [Roll Forward] | |||||
Benefit obligation at beginning of year | 71,211,198 | 74,825,969 | |||
Change due to availability of final actual assets and census data | 0 | 0 | |||
Plan amendment | 0 | 132,378 | |||
Service cost | 2,837,134 | 3,028,863 | 2,642,373 | ||
Interest cost | 3,365,194 | 2,840,622 | 2,868,528 | ||
Actuarial (gain)/loss | 15,697,087 | -7,187,997 | |||
Benefits paid | -2,593,691 | -2,428,637 | |||
Benefit obligation at end of year | 90,516,922 | 71,211,198 | 74,825,969 | ||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 60,350,987 | 54,644,608 | |||
Change due to availability of final actual assets and census data | 0 | 0 | |||
Actual return on plan assets | 3,731,262 | 4,880,381 | |||
Employer contributions | 2,863,552 | 3,254,635 | |||
Benefits paid | -2,593,691 | -2,428,637 | |||
Fair value of plan assets at end of year | 64,352,110 | 60,350,987 | 54,644,608 | ||
Funded status [Abstract] | |||||
Net amount recognized in the balance sheet | -26,164,812 | -10,860,211 | |||
Amounts recognized in accumulated other comprehensive income [Abstract] | |||||
Net loss | -35,093,871 | -19,261,651 | |||
Prior service (cost) credit | -595,270 | -813,855 | |||
Total | -35,689,141 | -20,075,506 | -29,284,712 | ||
Defined Benefit Plan, Change in components of accumulated other comprehensive income [Abstract] | |||||
Balance at beginning of period | -20,075,506 | -29,284,712 | |||
Change due to availability of final actual assets and census data | 0 | 0 | |||
Charged to net periodic benefit cost [Abstract] | |||||
Prior service cost | 218,585 | 256,459 | 221,049 | ||
Net loss (gain) | 944,130 | 1,844,139 | 1,111,900 | ||
Other changes [Abstract] | |||||
Liability (gains)/losses | -16,776,350 | 7,108,608 | |||
Balance at end of period | -35,689,141 | -20,075,506 | -29,284,712 | ||
Amounts that will be amortized from accumulated other comprehensive income in next fiscal year [Abstract] | |||||
Net (loss) gain | 2,011,179 | ||||
Prior service cost (credit) | 218,585 | ||||
Pension plans with projected benefit obligation and accumulated benefit obligation in excess of plan assets [Abstract] | |||||
Net amount recognized in accrued benefit liability | -26,164,812 | -10,860,211 | |||
Estimated future benefit payments to participants [Abstract] | |||||
2015 | 3,100,000 | ||||
2016 | 3,400,000 | ||||
2017 | 3,500,000 | ||||
2018 | 3,800,000 | ||||
2019 | 4,100,000 | ||||
2020 through 2024 | 24,600,000 | ||||
Contributions expected to be made by Company in next fiscal year | 3,000,000 | ||||
Fair value of plan assets | 64,352,110 | 60,350,987 | 54,644,608 | ||
Number of shares of employer common stock included plan assets (in shares) | 8,938 | ||||
Value of employer common stock included plan assets | 146,712 | ||||
Number of plans excluded | 1 | ||||
Over-funded amount | 70,000 | ||||
Pension Benefits [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 3,473,938 | 3,082,494 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 3,473,938 | 3,082,494 | |||
Pension Benefits [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 60,878,172 | 57,268,493 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 60,878,172 | 57,268,493 | |||
Pension Benefits [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | 0 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Benefits [Member] | Common/Collective Trust Funds [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 1,201,073 | 204,874 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 1,201,073 | 204,874 | |||
Pension Benefits [Member] | Common/Collective Trust Funds [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | 0 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Benefits [Member] | Common/Collective Trust Funds [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 1,201,073 | 204,874 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 1,201,073 | 204,874 | |||
Pension Benefits [Member] | Common/Collective Trust Funds [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | 0 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Benefits [Member] | The Eastern Company Common Stock [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 3,473,938 | 3,082,494 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 3,473,938 | 3,082,494 | |||
Pension Benefits [Member] | The Eastern Company Common Stock [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 3,473,938 | 3,082,494 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 3,473,938 | 3,082,494 | |||
Pension Benefits [Member] | The Eastern Company Common Stock [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | 0 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Benefits [Member] | The Eastern Company Common Stock [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | 0 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Benefits [Member] | U.S. Large Cap [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 6,936,880 | [2] | 6,643,640 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 6,936,880 | [2] | 6,643,640 | ||
Pension Benefits [Member] | U.S. Large Cap [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [2] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [2] | 0 | ||
Pension Benefits [Member] | U.S. Large Cap [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 6,936,880 | [2] | 6,643,640 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 6,936,880 | [2] | 6,643,640 | ||
Pension Benefits [Member] | U.S. Large Cap [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [2] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [2] | 0 | ||
Pension Benefits [Member] | U.S. Small Cap [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 4,632,485 | [3] | 4,485,040 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 4,632,485 | [3] | 4,485,040 | ||
Pension Benefits [Member] | U.S. Small Cap [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [3] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [3] | 0 | ||
Pension Benefits [Member] | U.S. Small Cap [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 4,632,485 | [3] | 4,485,040 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 4,632,485 | [3] | 4,485,040 | ||
Pension Benefits [Member] | U.S. Small Cap [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [3] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [3] | 0 | ||
Pension Benefits [Member] | Concentrated Equity [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 5,788,864 | [4] | 5,578,600 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 5,788,864 | [4] | 5,578,600 | ||
Pension Benefits [Member] | Concentrated Equity [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [4] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [4] | 0 | ||
Pension Benefits [Member] | Concentrated Equity [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 5,788,864 | [4] | 5,578,600 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 5,788,864 | [4] | 5,578,600 | ||
Pension Benefits [Member] | Concentrated Equity [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [4] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [4] | 0 | ||
Pension Benefits [Member] | International Large Cap with Active Currency [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 7,606,489 | [5] | 7,788,246 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 7,606,489 | [5] | 7,788,246 | ||
Pension Benefits [Member] | International Large Cap with Active Currency [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [5] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [5] | 0 | ||
Pension Benefits [Member] | International Large Cap with Active Currency [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 7,606,489 | [5] | 7,788,246 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 7,606,489 | [5] | 7,788,246 | ||
Pension Benefits [Member] | International Large Cap with Active Currency [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [5] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [5] | 0 | ||
Pension Benefits [Member] | Emerging Market [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 3,188,672 | [6] | 3,231,355 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 3,188,672 | [6] | 3,231,355 | ||
Pension Benefits [Member] | Emerging Market [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [6] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [6] | 0 | ||
Pension Benefits [Member] | Emerging Market [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 3,188,672 | [6] | 3,231,355 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 3,188,672 | [6] | 3,231,355 | ||
Pension Benefits [Member] | Emerging Market [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [6] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [6] | 0 | ||
Pension Benefits [Member] | Intermediate Bond [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 17,013,171 | [7] | 15,817,474 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 17,013,171 | [7] | 15,817,474 | ||
Pension Benefits [Member] | Intermediate Bond [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [7] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [7] | 0 | ||
Pension Benefits [Member] | Intermediate Bond [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 17,013,171 | [7] | 15,817,474 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 17,013,171 | [7] | 15,817,474 | ||
Pension Benefits [Member] | Intermediate Bond [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [7] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [7] | 0 | ||
Pension Benefits [Member] | 6 Year Target Duration LDI Fixed Income Fund [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 226,826 | [8] | 211,661 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 226,826 | [8] | 211,661 | ||
Pension Benefits [Member] | 6 Year Target Duration LDI Fixed Income Fund [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | 6 Year Target Duration LDI Fixed Income Fund [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 226,826 | [8] | 211,661 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 226,826 | [8] | 211,661 | ||
Pension Benefits [Member] | 6 Year Target Duration LDI Fixed Income Fund [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | 8 Year Target Duration LDI Fixed Income Fund [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 227,960 | [8] | 211,101 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 227,960 | [8] | 211,101 | ||
Pension Benefits [Member] | 8 Year Target Duration LDI Fixed Income Fund [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | 8 Year Target Duration LDI Fixed Income Fund [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 227,960 | [8] | 211,101 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 227,960 | [8] | 211,101 | ||
Pension Benefits [Member] | 8 Year Target Duration LDI Fixed Income Fund [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | 10 Year Target Duration LDI Fixed Income Fund [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 343,712 | [8] | 316,556 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 343,712 | [8] | 316,556 | ||
Pension Benefits [Member] | 10 Year Target Duration LDI Fixed Income Fund [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | 10 Year Target Duration LDI Fixed Income Fund [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 343,712 | [8] | 316,556 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 343,712 | [8] | 316,556 | ||
Pension Benefits [Member] | 10 Year Target Duration LDI Fixed Income Fund [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | 12 Year Target Duration LDI Fixed Income Fund [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 919,538 | [8] | 845,278 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 919,538 | [8] | 845,278 | ||
Pension Benefits [Member] | 12 Year Target Duration LDI Fixed Income Fund [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | 12 Year Target Duration LDI Fixed Income Fund [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 919,538 | [8] | 845,278 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 919,538 | [8] | 845,278 | ||
Pension Benefits [Member] | 12 Year Target Duration LDI Fixed Income Fund [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | 14 Year Target Duration LDI Fixed Income Fund [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 1,212,739 | [8] | 1,108,960 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 1,212,739 | [8] | 1,108,960 | ||
Pension Benefits [Member] | 14 Year Target Duration LDI Fixed Income Fund [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | 14 Year Target Duration LDI Fixed Income Fund [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 1,212,739 | [8] | 1,108,960 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 1,212,739 | [8] | 1,108,960 | ||
Pension Benefits [Member] | 14 Year Target Duration LDI Fixed Income Fund [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | 16 Year Target Duration LDI Fixed Income Fund [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 520,522 | [8] | 475,035 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 520,522 | [8] | 475,035 | ||
Pension Benefits [Member] | 16 Year Target Duration LDI Fixed Income Fund [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | 16 Year Target Duration LDI Fixed Income Fund [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 520,522 | [8] | 475,035 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 520,522 | [8] | 475,035 | ||
Pension Benefits [Member] | 16 Year Target Duration LDI Fixed Income Fund [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [8] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [8] | 0 | ||
Pension Benefits [Member] | Long Duration Fixed Credit [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 8,112,746 | [9] | 7,363,673 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 8,112,746 | [9] | 7,363,673 | ||
Pension Benefits [Member] | Long Duration Fixed Credit [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [9] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [9] | 0 | ||
Pension Benefits [Member] | Long Duration Fixed Credit [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 8,112,746 | [9] | 7,363,673 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 8,112,746 | [9] | 7,363,673 | ||
Pension Benefits [Member] | Long Duration Fixed Credit [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | [9] | 0 | ||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | [9] | 0 | ||
Pension Benefits [Member] | Insurance Contracts [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 2,946,495 | 2,987,000 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 2,946,495 | 2,987,000 | |||
Pension Benefits [Member] | Insurance Contracts [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | 0 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | 0 | |||
Pension Benefits [Member] | Insurance Contracts [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 2,946,495 | 2,987,000 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 2,946,495 | 2,987,000 | |||
Pension Benefits [Member] | Insurance Contracts [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | 0 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | 0 | |||
Postretirement Benefits [Member] | |||||
Components of the net periodic benefit cost [Abstract] | |||||
Service cost | 173,902 | 202,568 | 173,613 | ||
Interest cost | 157,481 | 142,086 | 143,388 | ||
Expected return on plan assets | -22,434 | -73,920 | -46,255 | ||
Amortization of prior service cost | -23,888 | -23,888 | -23,889 | ||
Amortization of the net loss | -72,378 | -4,608 | -50,784 | ||
Net periodic benefit cost | 212,683 | 242,238 | 196,073 | ||
Assumptions used to determine net periodic benefit cost [Abstract] | |||||
Discount rate (in hundredths) | 4.80% | 3.90% | 4.55% | ||
Expected return on plan assets (in hundredths) | 8.00% | 8.00% | 8.00% | ||
Change in benefit obligation [Roll Forward] | |||||
Benefit obligation at beginning of year | 3,420,475 | 3,712,505 | |||
Change due to availability of final actual assets and census data | -56,516 | 0 | |||
Plan amendment | 0 | 0 | |||
Service cost | 173,902 | 202,568 | 173,613 | ||
Interest cost | 157,481 | 142,086 | 143,388 | ||
Actuarial (gain)/loss | 497,488 | -498,446 | |||
Benefits paid | -137,718 | -138,238 | |||
Benefit obligation at end of year | 4,055,112 | 3,420,475 | 3,712,505 | ||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 1,187,603 | 1,204,779 | |||
Change due to availability of final actual assets and census data | -2,451 | 12,577 | |||
Actual return on plan assets | 22,434 | 73,920 | |||
Employer contributions | 79,336 | 34,565 | |||
Benefits paid | -137,718 | -138,238 | |||
Fair value of plan assets at end of year | 1,149,204 | 1,187,603 | 1,204,779 | ||
Funded status [Abstract] | |||||
Net amount recognized in the balance sheet | -2,905,908 | -2,232,872 | |||
Amounts recognized in accumulated other comprehensive income [Abstract] | |||||
Net loss | -630,853 | -115,052 | |||
Prior service (cost) credit | 87,620 | 111,508 | |||
Total | -543,233 | -3,544 | -486,071 | ||
Defined Benefit Plan, Change in components of accumulated other comprehensive income [Abstract] | |||||
Balance at beginning of period | -3,544 | -486,071 | |||
Change due to availability of final actual assets and census data | 54,065 | 12,577 | |||
Charged to net periodic benefit cost [Abstract] | |||||
Prior service cost | -23,888 | -23,888 | -23,889 | ||
Net loss (gain) | -72,378 | -4,608 | -50,784 | ||
Other changes [Abstract] | |||||
Liability (gains)/losses | -497,488 | 498,446 | |||
Balance at end of period | -543,233 | -3,544 | -486,071 | ||
Amounts that will be amortized from accumulated other comprehensive income in next fiscal year [Abstract] | |||||
Net (loss) gain | 19,426 | ||||
Prior service cost (credit) | 23,888 | ||||
Pension plans with projected benefit obligation and accumulated benefit obligation in excess of plan assets [Abstract] | |||||
Net amount recognized in accrued benefit liability | -2,905,908 | -2,232,872 | |||
Estimated future benefit payments to participants [Abstract] | |||||
2015 | 175,000 | ||||
2016 | 188,000 | ||||
2017 | 197,000 | ||||
2018 | 207,000 | ||||
2019 | 220,000 | ||||
2020 through 2024 | 1,259,000 | ||||
Contributions expected to be made by Company in next fiscal year | 150,000 | ||||
Fair value of plan assets | 1,149,204 | 1,187,603 | 1,204,779 | ||
Life insurance cost trend rate (in hundredths) | 1.00% | ||||
Effect of one-percentage-point change in assumed health care cost trend rates on postretirement benefit plan [Abstract] | |||||
Effect of 1-percentage point increase on total of service and interest cost components | 55,785 | ||||
Effect of 1-percentage point decrease on total of service and interest cost components | -45,328 | ||||
Effect of 1-percentage point increase on postretirement benefit obligation | 645,868 | ||||
Effect of 1-percentage point decrease on postretirement benefit obligation | -52,432 | ||||
Postretirement Benefits [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | 0 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | 0 | |||
Postretirement Benefits [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | 0 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | 0 | |||
Postretirement Benefits [Member] | Level 3 [Member] | |||||
Change in benefit obligation [Roll Forward] | |||||
Benefits paid | -78,021 | -75,766 | |||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at beginning of year | 1,187,603 | 1,204,779 | |||
Change due to availability of final actual assets and census data | -2,451 | 12,577 | |||
Actual return on plan assets | 22,434 | 46,013 | |||
Employer contributions | 19,639 | 0 | |||
Benefits paid | -78,021 | -75,766 | |||
Fair value of plan assets at end of year | 1,149,204 | 1,187,603 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 1,149,204 | 1,187,603 | |||
Postretirement Benefits [Member] | Insurance Contracts [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 1,149,204 | 1,187,603 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 1,149,204 | 1,187,603 | |||
Postretirement Benefits [Member] | Insurance Contracts [Member] | Level 1 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | 0 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | 0 | |||
Postretirement Benefits [Member] | Insurance Contracts [Member] | Level 2 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 0 | 0 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | 0 | 0 | |||
Postretirement Benefits [Member] | Insurance Contracts [Member] | Level 3 [Member] | |||||
Change in fair value of plan assets [Roll Forward] | |||||
Fair value of plan assets at end of year | 1,149,204 | 1,187,603 | |||
Estimated future benefit payments to participants [Abstract] | |||||
Fair value of plan assets | $1,149,204 | $1,187,603 | |||
[1] | Information relating to one of the Company's pension plans is excluded from the above table as this plan was over-funded by approximately $70,000 at December 28, 2013. | ||||
[2] | The investment objective of the large cap fund is to outperform the Russell 1000 Index. The fund is designed to provide for long-term growth of capital by utilizing a diversified group of quantitative investment strategies that seek to identify securities that have exposure to factors that the underlying advisors' research has found to be predictive of future excess returns. The advisors' portfolios are quantitatively structured to gain exposure to these predictive characteristics while minimizing unintended risk exposures. | ||||
[3] | The small cap fund has an objective to outperform the Russell 2500 Index The fund is designed to achieve consistency by combining advisors whose complementary disciplined processes employ distinct methods for identifying small capitalization U.S. stocks with strong return potential. Advisors in the fund use a wide range of criteria and disciplines in their stock selection, focusing on factors such as: undervalued or under-researched companies, special situations, emerging growth, asset plays or turnarounds. | ||||
[4] | The investment objective of the concentrated equity fund is to outperform the Russell 1000 Index. The fund is designed to achieve this by combining strategies with different payoffs over different phases of an economic and stock market cycle. To help achieve this objective, multiple advisors and strategies are employed to reduce "scenario risk." These multiple strategies are in the form of multiple investment styles (e.g., growth, market oriented, and value), multiple sub-styles, and different ways of identifying undervalued securities. | ||||
[5] | The international fund with active currency has an investment objective of outperforming the Russell Development ex-U.S. Large Cap Index Net. The fund is designed to provide the potential for long-term growth of capital by utilizing a diversified group of investment advisors that the Trustee's manager's research indicates will outperform over a full market cycle. The investment advisors' portfolios are combined to form a fund that emphasizes their strengths while minimizing unintended risk exposures. | ||||
[6] | The emerging market fund seeks to outperform the Russell Emerging Markets Index Net. The fund is designed to provide the potential for long-term growth of capital by utilizing a diversified market group of investment advisors that the Trustee's manager's research indicates will outperform over a full market cycle. The investment advisors' portfolios are combined to form a fund that emphasizes their strengths while minimizing unintended risk exposures. | ||||
[7] | Fixed income common fund investments have an investment objective of outperforming the Barclays Capital U.S. Aggregate Bond Index over a full market cycle. The fund is designed to provide current income, and as a secondary objective, capital appreciation through a variety of diversified strategies including sector rotation, modest interest rate timing, security selection and tactical use of high yield and emerging market bonds. The portfolio diversification provides protection against a single security or class of securities having a disproportionate impact on aggregate performance. To help achieve the objective, the fund is actively managed by multiple advisors who use a variety of investment strategies to create a broad market exposure. The fund's advisors have distinct but complementary investment styles. These advisors generally have similar universes of investable securities but have different areas of specialization and expertise within intermediate duration securities. | ||||
[8] | The Target Duration LDI Fixed Income Funds seek to outperform their respective Barclays-Russell LDI Indexes over a full market cycle. These Funds seek to provide current income, and as a secondary objective, capital appreciation through diversified strategies including sector rotation, modest interest rate timing, security selection and tactical use of high yield and emerging market bonds. The Funds will generally be used in combination with other bond funds to enable the plans to gain additional credit exposure within their asset portfolio, with the goal of reducing the mismatch between a plan's assets and liabilities. | ||||
[9] | The long duration fixed credit fund seeks to outperform the Barclays Capital Long Credit Index over a full market cycle. The fund seeks to provide current income, and as a secondary objective, capital appreciation through diversified strategies including sector rotation, modest interest rate timing, security selection and tactical use of high yield and emerging market bonds. The fund will generally be used in combination with other bond funds, with the goal of reducing the mismatch between a plan's assets and liabilities. |
REPORTABLE_SEGMENTS_Details
REPORTABLE SEGMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $34,393,056 | $35,803,405 | $34,779,773 | $35,849,126 | $34,262,039 | $34,256,086 | $39,247,980 | $34,692,174 | $140,825,360 | $142,458,279 | $157,509,185 |
Operating profit | 11,718,648 | 10,386,321 | 13,551,423 | ||||||||
Interest expense | -254,576 | -322,731 | -369,357 | ||||||||
Other income | 64,691 | 50,305 | 42,452 | ||||||||
Income before income taxes | 11,528,763 | 10,113,895 | 13,224,518 | ||||||||
Assets | 113,858,409 | 121,270,556 | 113,858,409 | ||||||||
Depreciation and amortization | 3,486,302 | 3,825,286 | 3,439,800 | ||||||||
Capital expenditures before currency translation adjustment | 3,567,238 | 5,439,560 | 4,149,943 | ||||||||
Currency translation adjustment | 10,347 | -245 | -2,730 | ||||||||
Total capital expenditures | 3,633,165 | 5,523,742 | 4,216,970 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 140,825,360 | 142,458,279 | 157,509,185 | ||||||||
Operating profit | 11,718,648 | 10,386,321 | 13,551,423 | ||||||||
Assets | 94,684,750 | 102,271,004 | 94,684,750 | 94,564,369 | |||||||
Depreciation and amortization | 3,486,302 | 3,825,286 | 3,439,800 | ||||||||
Operating Segments [Member] | Industrial Hardware [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 58,666,229 | 60,367,209 | 72,268,559 | ||||||||
Operating profit | 5,063,786 | 4,797,254 | 7,566,512 | ||||||||
Assets | 31,820,269 | 29,660,695 | 31,820,269 | 34,425,594 | |||||||
Depreciation and amortization | 1,631,521 | 2,085,618 | 1,769,097 | ||||||||
Capital expenditures before currency translation adjustment | 1,929,022 | 1,967,335 | 1,552,147 | ||||||||
Operating Segments [Member] | Security Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 49,381,553 | 48,751,688 | 50,138,121 | ||||||||
Operating profit | 4,058,554 | 2,780,403 | 4,113,661 | ||||||||
Assets | 43,582,088 | 51,573,251 | 43,582,088 | 41,857,156 | |||||||
Depreciation and amortization | 621,501 | 592,555 | 628,652 | ||||||||
Capital expenditures before currency translation adjustment | 973,365 | 469,669 | 260,692 | ||||||||
Operating Segments [Member] | Metal Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 32,777,578 | 33,339,382 | 35,102,505 | ||||||||
Operating profit | 2,596,308 | 2,808,664 | 1,871,250 | ||||||||
Assets | 19,282,393 | 21,037,058 | 19,282,393 | 18,281,619 | |||||||
Depreciation and amortization | 1,233,280 | 1,147,113 | 1,042,051 | ||||||||
Capital expenditures before currency translation adjustment | 664,851 | 3,002,556 | 2,337,104 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 3,549,925 | 2,943,464 | 3,185,578 | ||||||||
Intersegment Eliminations [Member] | Industrial Hardware [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 984,192 | 373,797 | 270,911 | ||||||||
Intersegment Eliminations [Member] | Security Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 2,565,733 | 2,558,127 | 2,914,667 | ||||||||
Intersegment Eliminations [Member] | Metal Products [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 11,540 | 0 | ||||||||
General Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 19,173,659 | 18,999,552 | 19,173,659 | 21,289,781 | |||||||
Total capital expenditures | 55,580 | 84,427 | 69,757 | ||||||||
Reportable Geographical Components [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 140,825,360 | 142,458,279 | 157,509,185 | ||||||||
Assets | 113,858,409 | 121,270,556 | 113,858,409 | 115,854,150 | |||||||
Reportable Geographical Components [Member] | United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 117,478,557 | 114,085,322 | 120,604,363 | ||||||||
Assets | 96,289,200 | 105,771,961 | 96,289,200 | 95,441,029 | |||||||
Reportable Geographical Components [Member] | Foreign [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 23,346,803 | 28,372,957 | 36,904,822 | ||||||||
Assets | $17,569,209 | $15,498,595 | $17,569,209 | $20,413,121 | |||||||
Sales Revenue [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Number of major customers | 1 | 1 | |||||||||
Threshold percentage of customer exceeded 10% of total revenue (in hundredths) | 10.50% | 11.50% |
FINANCIAL_INSTRUMENTS_AND_FAIR1
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Details) | 0 Months Ended | 12 Months Ended | |
Jan. 25, 2012 | Jan. 03, 2015 | Dec. 28, 2013 | |
Customer | |||
Term Loan [Member] | |||
Interest Rate Risk [Abstract] | |||
Fixed rate of interest (in hundredths) | 4.98% | ||
2012 Term Loan Member] | |||
Interest Rate Risk [Abstract] | |||
Fixed rate of interest (in hundredths) | 3.90% | ||
Revolving Credit Loan [Member] | |||
Interest Rate Risk [Abstract] | |||
Description of variable rate basis | LIBOR rate or People's Prime rate | LIBOR | |
Basis spread on variable rate (in hundredths) | 2.25% | 2.25% | |
Credit Concentration Risk [Member] | |||
Credit Risk [Abstract] | |||
Number of customers that represented more than 10% of trade receivables | 0 | 0 |
SELECTED_QUARTERLY_FINANCIAL_I2
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | |
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract] | |||||||||||
Net sales | $34,393,056 | $35,803,405 | $34,779,773 | $35,849,126 | $34,262,039 | $34,256,086 | $39,247,980 | $34,692,174 | $140,825,360 | $142,458,279 | $157,509,185 |
Gross margin | 8,555,221 | 8,641,473 | 7,776,304 | 7,513,406 | 8,125,689 | 7,224,409 | 8,530,842 | 6,266,580 | 32,486,404 | 30,147,520 | 33,352,478 |
Selling and administrative expenses | 5,670,503 | 4,892,600 | 4,988,364 | 5,216,289 | 5,089,213 | 4,767,505 | 5,223,185 | 4,681,296 | 20,767,756 | 19,761,199 | 19,801,055 |
Net (loss)/income | $2,033,271 | $2,431,817 | $1,693,503 | $1,502,885 | $1,923,596 | $1,798,783 | $2,174,294 | $1,005,248 | $7,661,476 | $6,901,921 | $8,625,800 |
Net (loss)/income per share [Abstract] | |||||||||||
Basic (in dollars per share) | $0.33 | $0.39 | $0.27 | $0.24 | $0.31 | $0.29 | $0.35 | $0.16 | $1.23 | $1.11 | $1.39 |
Diluted (in dollars per share) | $0.33 | $0.39 | $0.27 | $0.24 | $0.31 | $0.29 | $0.35 | $0.16 | $1.23 | $1.11 | $1.38 |
Weighted average shares outstanding [Abstract] | |||||||||||
Basic (in shares) | 6,231,729 | 6,223,140 | 6,222,676 | 6,222,213 | 6,221,851 | 6,221,515 | 6,220,569 | 6,219,775 | 6,225,068 | 6,220,928 | 6,216,931 |
Diluted (in shares) | 6,231,729 | 6,240,396 | 6,239,866 | 6,239,149 | 6,238,089 | 6,238,074 | 6,238,025 | 6,236,842 | 6,237,914 | 6,237,758 | 6,233,375 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying accounts (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | |||||
Jan. 03, 2015 | Dec. 28, 2013 | Dec. 29, 2012 | ||||
Allowance for Doubtful Accounts [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | $410,000 | $487,000 | $423,000 | |||
Charged to Costs and Expenses | 71,927 | 106,485 | 147,313 | |||
Deductions | 67,927 | [1] | 183,485 | [1] | 83,313 | [1] |
Balance at End of Period | $414,000 | $410,000 | $487,000 | |||
[1] | Uncollectible accounts written off, net of recoveries. |