Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 01, 2016 | Nov. 02, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EASTERN CO | |
Entity Central Index Key | 31,107 | |
Current Fiscal Year End Date | --01-02 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,254,287 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 1, 2016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Oct. 01, 2016 | Jan. 02, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 21,640,060 | $ 17,814,986 |
Accounts receivable, less allowances: $443,000 - 2016; $450,000 - 2015 | 19,041,481 | 17,502,445 |
Inventories | 34,098,827 | 36,842,413 |
Prepaid expenses and other assets | 1,875,141 | 2,122,215 |
Deferred income taxes | 986,167 | 986,167 |
Total Current Assets | 77,641,676 | 75,268,226 |
Property, Plant and Equipment | 65,123,800 | 63,438,241 |
Accumulated depreciation | (39,018,381) | (36,636,775) |
Net Property, Plant and Equipment | 26,105,419 | 26,801,466 |
Goodwill | 14,842,755 | 14,790,793 |
Trademarks | 163,561 | 164,957 |
Patents, technology, and other intangibles net of accumulated amortization | 1,866,980 | 2,113,576 |
Deferred income taxes | 2,981,919 | 2,599,541 |
Total Other Assets | 19,855,215 | 19,668,867 |
TOTAL ASSETS | 123,602,310 | 121,738,559 |
Current Liabilities | ||
Accounts payable | 8,410,218 | 9,109,394 |
Accrued compensation | 2,668,733 | 2,873,871 |
Other accrued expenses | 1,382,683 | 1,751,052 |
Current portion of long-term debt | 1,071,429 | 1,428,571 |
Total Current Liabilities | 13,533,063 | 15,162,888 |
Other long-term liabilities | 286,920 | 286,920 |
Long-term debt, less current portion | 1,071,428 | 1,785,714 |
Accrued postretirement benefits | 767,620 | 793,055 |
Accrued pension cost | 26,361,144 | 24,304,926 |
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: 8,949,016 shares in 2016 and 8,942,461 shares in 2015 | 29,109,136 | 28,997,050 |
Treasury Stock: 2,694,729 shares in 2016 and 2015 | (19,105,723) | (19,105,723) |
Retained earnings | 93,669,931 | 90,597,041 |
Accumulated other comprehensive income (loss): | ||
Foreign currency translation | (1,465,795) | (1,154,098) |
Unrecognized net pension and postretirement benefit costs, net of tax | (20,625,414) | (19,929,214) |
Accumulated other comprehensive loss | (22,091,209) | (21,083,312) |
Total Shareholders' Equity | 81,582,135 | 79,405,056 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 123,602,310 | $ 121,738,559 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) | Oct. 01, 2016 | Jan. 02, 2016 |
Current Assets | ||
Accounts receivable, allowances | $ 443,000 | $ 450,000 |
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) | 8,949,016 | 8,942,461 |
Treasury Stock, shares (in shares) | 2,694,729 | 2,694,729 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) [Abstract] | ||||||
Net sales | $ 33,478,347 | $ 36,239,500 | $ 103,463,316 | $ 110,154,039 | ||
Cost of products sold | (24,625,469) | (27,205,657) | (79,588,389) | (85,872,857) | ||
Gross margin | 8,852,878 | 9,033,843 | 23,874,927 | 24,281,182 | ||
Selling and administrative expenses | (5,588,764) | (5,584,222) | (16,544,081) | (18,604,056) | ||
Operating profit | 3,264,114 | 3,449,621 | 7,330,846 | 5,677,126 | ||
Interest expense | (28,817) | (45,203) | (97,486) | (145,773) | ||
Other income | 28,169 | 6,573 | 54,687 | 33,540 | ||
Income before income taxes | 3,263,466 | 3,410,991 | 7,288,047 | 5,564,893 | ||
Income taxes | 863,402 | 883,269 | 2,152,073 | 1,578,626 | ||
Net income | $ 2,400,064 | $ 2,527,722 | $ 5,135,974 | $ 3,986,267 | ||
Earnings per Share: | ||||||
Basic (in dollars per share) | $ 0.38 | $ 0.41 | $ 0.82 | $ 0.64 | ||
Diluted (in dollars per share) | 0.38 | 0.41 | 0.82 | 0.64 | ||
Cash dividends per share: (in dollars per share) | $ 0.11 | $ 0.12 | [1] | $ 0.33 | $ 0.34 | [1] |
[1] | Includes $ 0.01 per share redemption for the termination of the 2008 Shareholder Rights Agreement. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) | Oct. 03, 2015$ / shares |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) [Abstract] | |
Redemption price per share (in dollars per share) | $ 0.01 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract] | ||||
Net income | $ 2,400,064 | $ 2,527,722 | $ 5,135,974 | $ 3,986,267 |
Other comprehensive income/(loss): | ||||
Change in foreign currency translation | (231,831) | (994,325) | (311,697) | (1,616,248) |
Change in pension and postretirement benefit costs, net of taxes of: 2016 - $382,378 and $(105,703), respectively 2015 - $559,542 and $186,513, respectively | 192,456 | 339,590 | (696,200) | 1,018,768 |
Total other comprehensive loss | (39,375) | (654,735) | (1,007,897) | (597,480) |
Comprehensive income | $ 2,360,689 | $ 1,872,987 | $ 4,128,077 | $ 3,388,787 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Other comprehensive income/(loss): | ||||
Change in pension and postretirement benefit costs, taxes | $ (105,703) | $ 186,513 | $ 382,378 | $ 559,542 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Operating Activities | ||
Net income | $ 5,135,974 | $ 3,986,267 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,795,699 | 2,885,560 |
Unrecognized pension & postretirement benefits | 952,205 | 1,356,233 |
Loss on sale of equipment and other assets | 45,313 | 62,254 |
Provision for doubtful accounts | 0 | 44,126 |
Issuance of common stock for directors' fees | 112,086 | 42,487 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,626,625) | (2,991,497) |
Inventories | 2,665,002 | (2,602,651) |
Prepaid expenses and other | 78,914 | 532,981 |
Recoverable income taxes receivable | 0 | 380,000 |
Other assets | (67,324) | (4,616) |
Accounts payable | (366,454) | 269,696 |
Accrued compensation | (215,313) | (186,096) |
Other accrued expenses | (526,930) | (125,439) |
Net cash provided by operating activities | 8,982,547 | 3,649,305 |
Investing Activities | ||
Purchases of property, plant and equipment | (1,819,894) | (2,044,712) |
Net cash used in investing activities | (1,819,894) | (2,044,712) |
Financing Activities | ||
Principal payments on long-term debt | (1,071,428) | (1,071,428) |
Dividends paid | (2,063,085) | (2,123,322) |
Net cash used in financing activities | (3,134,513) | (3,194,750) |
Effect of exchange rate changes on cash | (203,066) | (633,221) |
Net change in cash and cash equivalents | 3,825,074 | (2,223,378) |
Cash and cash equivalents at beginning of period | 17,814,986 | 15,834,444 |
Cash and cash equivalents at end of period | $ 21,640,060 | $ 13,611,066 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 01, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note A – Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. Refer to the Company’s consolidated financial statements and notes thereto included in its Form 10-K for the year ended January 2, 2016 for additional information. The accompanying condensed consolidated financial statements are unaudited. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of operations for interim periods have been reflected therein. All intercompany accounts and transactions are eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year. The condensed consolidated balance sheet as of January 2, 2016 has been derived from the audited consolidated balance sheet at that date. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 01, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note B – Earnings Per Share The denominators used in the earnings per share computations follow: Nine Months Ended Three Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Basic: Weighted average shares outstanding 6,250,185 6,244,534 6,254,287 6,245,099 Diluted: Weighted average shares outstanding 6,250,185 6,244,534 6,254,287 6,245,099 Dilutive stock options - - - - Denominator for diluted earnings per share 6,250,185 6,244,534 6,254,287 6,245,099 |
Inventories
Inventories | 9 Months Ended |
Oct. 01, 2016 | |
Inventories [Abstract] | |
Inventories | Note C – Inventories The components of inventories follow: October 1, 2016 January 2, 2016 Raw material and component parts $ 10,101,095 $ 10,913,827 Work in process 7,109,543 7,681,576 Finished goods 16,888,189 18,247,010 $ 34,098,827 $ 36,842,413 |
Segment Information
Segment Information | 9 Months Ended |
Oct. 01, 2016 | |
Segment Information [Abstract] | |
Segment Information | Note D – Segment Information Segment financial information follows: Nine Months Ended Three Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Revenues: Sales to unaffiliated customers: Industrial Hardware $ 45,689,104 $ 46,234,468 $ 15,210,943 $ 16,327,856 Security Products 43,722,828 43,463,335 13,648,701 13,927,096 Metal Products 14,051,384 20,456,236 4,618,703 5,984,548 $ 103,463,316 $ 110,154,039 $ 33,478,347 $ 36,239,500 Income before income taxes: Industrial Hardware $ 3,769,045 $ 3,112,008 $ 1,574,573 $ 1,742,917 Security Products 4,533,995 2,672,875 1,613,148 1,236,581 Metal Products (972,194 ) (107,757 ) 76,393 470,123 Operating Profit 7,330,846 5,677,126 3,264,114 3,449,621 Interest expense (97,486 ) (145,773 ) (28,817 ) (45,203 ) Other income 54,687 33,540 28,169 6,573 $ 7,288,047 $ 5,564,893 $ 3,263,466 $ 3,410,991 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Oct. 01, 2016 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Note E – Recent Accounting Pronouncements In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date. ASU 2015-14 defers the adoption date of ASU 2014-09, Revenue from Contracts with Customers in which both the FASB and IASB in a joint project will clarify the principles for recognizing revenue and to develop a common revenue standard. The guidance is to be applied using a retrospective approach at the beginning of the earliest comparative period in the financial statements and is effective for years beginning after December 15, 2017. Early adoption is permitted. The Company is still in the process of determining the effect that the adoption of ASU 2015-14 will have on the accompanying financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. ASU 2016-02 requires lessees to present right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements and is effective for years beginning after December 15, 2019. Early adoption is permitted. The Company is still in the process of determining the effect that the adoption of ASU 2016-02 will have on the accompanying financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows - Classification of certain types of cash receipts and cash payments. ASU 2016-15 provides guidance regarding eight specific cash flow issues. The guidance is to be applied using a retrospective approach at the beginning of the earliest comparative period in the financial statements and is effective for years beginning after December 15, 2017. Early adoption is permitted. The Company is still in the process of determining the effect that the adoption of ASU 2016-15 will have on the accompanying financial statements. 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. |
Debt
Debt | 9 Months Ended |
Oct. 01, 2016 | |
Debt [Abstract] | |
Debt | Note F – 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 (the “Original Term Loan”) and a $10,000,000 revolving credit portion. On January 25, 2012, the Company amended the loan agreement by taking an additional $5,000,000 term loan (the “2012 Term Loan”). Interest on the Original Term Loan portion of the Loan Agreement is fixed at 4.98%. Interest on the 2012 Term Loan is fixed at 3.90%. 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 3.25% and a maturity date of January 31, 2014. On January 23, 2014, the Company signed a second amendment to its secured Loan Agreement with People’s which extended the maturity date of the $10,000,000 revolver portion of the Loan Agreement to July 1, 2016 and changed the interest rate to LIBOR plus 2.25%, eliminating the floor previously in place. On June 9, 2016, the Company signed a third amendment to its secured Loan Agreement which extended the maturity date of the $10,000,000 revolver portion of the Loan Agreement to July 1, 2018. The Company did not utilize the revolving credit facility during Fiscal 2015 or during the first nine months of 2016. The Company has loan covenants under the Loan Agreement which required the Company to maintain a fixed charge coverage ratio of at least 1.1 to 1, and minimum tangible net worth of $55 million. 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 2015 and for the nine-month period ended October 1, 2016. |
Goodwill
Goodwill | 9 Months Ended |
Oct. 01, 2016 | |
Goodwill [Abstract] | |
Goodwill | Note G – Goodwill The following is a roll-forward of goodwill from year-end 2015 to the end of the third quarter 2016: Industrial Hardware Segment Security Products Segment Metal Products Segment Total Beginning balance $ 1,731,751 $ 13,059,042 $ — $ 14,790,793 Foreign exchange 51,962 — — 51,962 Ending balance $ 1,783,713 $ 13,059,042 $ — $ 14,842,755 |
Intangibles
Intangibles | 9 Months Ended |
Oct. 01, 2016 | |
Intangibles [Abstract] | |
Intangibles | Note H – Intangibles The gross carrying amount and accumulated amortization of amortizable intangible assets: Industrial Hardware Segment Security Products Segment Metal P roducts Segment Total Weighted-Average Amortization Period (Years) 2016 Gross Amount Patents and developed technology $ 2,176,425 $ 1,068,518 $ -- $ 3,244,943 15.9 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 $ 2,176,425 $ 2,232,594 $ -- $ 4,409,019 12.5 2016 Accumulated Amortization Patents and developed technology $ 1,513,977 $ 620,635 $ -- $ 2,134,612 Customer relationships -- 157,397 -- 157,397 Non-compete agreements -- 142,450 -- 142,450 Intellectual property -- 107,580 -- 107,580 Accumulated Amortization $ 1,513,977 $ 1,028,062 $ -- $ 2,542,039 Net October 1, 2016 per Balance Sheet $ 662,448 $ 1,204,532 $ -- $ 1,866,980 2015 Gross Amount Patents and developed technology $ 2,206,852 $ 1,029,181 $ -- $ 3,236,033 15.9 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 $ 2,206,852 $ 2,193,257 $ -- $ 4,400,109 12.6 2015 Accumulated Amortization Patents and developed technology $ 1,478,692 $ 575,026 $ -- $ 2,053,718 Customer relationships -- 89,941 -- 89,941 Non-compete agreements -- 81,400 -- 81,400 Intellectual property -- 61,474 -- 61,474 Accumulated Amortization $ 1,478,692 $ 807,841 $ -- $ 2,286,533 Net January 2, 2016 per Balance Sheet $ 728,160 $ 1,385,416 $ -- $ 2,113,576 |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Oct. 01, 2016 | |
Retirement Benefit Plans [Abstract] | |
Retirement Benefit Plans | Note I – Retirement Benefit Plans The Company has non-contributory defined benefit pension plans covering certain 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 nonqualified 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. On April 5, 2016 the Board of Directors passed a resolution freezing the benefits of The Salaried Employees Retirement Plan of The Eastern Company (the “Salaried Plan”) effective as of May 31, 2016. Under ASC 715, the Company is required to remeasure plan assets and obligations during an interim period whenever a significant event occurs that results in a material change in the net periodic pension cost. The determination of significance is based on judgment and consideration of events and circumstances impacting the pension costs. After consulting with our actuary the freezing of benefits under the Salaried Plan is considered a significant event pursuant to such standard. The Company used April 30, 2016 as the remeasurement date. Assumptions used to determine the projected benefits obligations for the Salaried Plan for the measurement date indicated follows: Measurement Date April 30, 2016 December 31, 2015 Discount rate 3.69 % 4.24 % Expected rate of return 8.0 % 8.0 % Rate of compensation increase -- 3.25 % As a result of the remeasurement, pension benefit obligations increased $3,022,291. The major components of this change are as follows: April 30, 2016 Discount rate $ 4,383,159 Service cost 770,361 Interest cost 818,565 Actuarial loss 611,693 Benefits paid (1,026,898 ) Additional recognition due to significant event (2,534,589 ) Net increase in pension benefit obligation $ 3,022,291 In accordance with ASC 715, the Company performed curtailment accounting procedures in relation to the freezing of benefits of the Salaried Plan. The Company did not recognize any gain or loss related to the freeze of benefits accrued under the Salaried Plan, since there were no unrecognized prior service costs for the Salaried Plan, and the calculated $2.5 million gain from the reduction of accumulated plan benefits was more than offset by other actuarial losses in Other Comprehensive Income, there were no curtailment accounting adjustments required. Significant disclosures relating to these benefit plans for the third quarter and first nine months of fiscal 2016 and 2015 follow: Pension Benefits Nine Months Ended Three Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Service cost $ 1,612,278 $ 2,894,960 $ 270,721 $ 964,985 Interest cost 2,541,968 2,577,715 767,625 859,239 Expected return on plan assets (3,603,483 ) (3,863,742 ) (1,121,311 ) (1,287,914 ) Amortization of prior service cost 150,427 163,940 50,143 54,647 Amortization of the net loss 1,319,617 1,418,182 277,469 472,726 Net periodic benefit cost $ 2,020,807 $ 3,191,055 $ 244,647 $ 1,063,683 Postretirement Benefits Nine Months Ended Three Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Service cost $ 21,975 $ 163,178 $ 7,325 $ 54,393 Interest cost 71,154 116,186 23,718 38,728 Expected return on plan assets (35,649 ) (68,952 ) (11,883 ) (22,984 ) Amortization of prior service cost (17,918 ) (17,916 ) (5,973 ) (5,972 ) Amortization of the net loss (70,441 ) 14,103 (23,480 ) 4,701 Net periodic benefit cost $ (30,879 ) $ 206,599 $ (10,293 ) $ 68,866 The Company reduced pension expense as a result of the significant event. Pension expense for the third quarter and first nine months of 2016 were reduced by approximately $917,000 and $1,529,000, respectively, related to the significant event. Prior to April 30, 2016, the Company used a corridor approach to amortize actuarial gains and losses. We are applying the 10% threshold set forth in ASC 715. In addition, since all accrued benefits under the Salaried Plan are frozen, we are amortizing the unrecognized gains and losses outside of the corridor by the average life expectancy of the plan participants. Our defined pension plans for hourly rated employees will continue to amortize the unrecognized gains and losses outside the corridor by the average remaining service of the active employees. The Company’s funding policy with respect to its qualified plans is to contribute at least the minimum amount required by applicable laws and regulations. In 2016, the minimum required contribution is $594,000. For the past several years, the Company has also made discretionary contributions in order to improve funding ratios. As of October 1, 2016, the Company has made contributions to its qualified plans totaling $799,000, of which $594,000 was required. The Company expects to contribute approximately $155,000 into its post-retirement plan. As of October 1, 2016 the Company has contributed $116,000. The Company has a contributory savings plan under Section 401(k) of the Internal Revenue Code covering substantially all U.S. non-union employees. This 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. In December 2015, the Company approved a 50% match on the first 4% of employee contributions. The Company amended the Eastern Company Savings and Investment Plan (“401(k) Plan Amendment”) effective June 1, 2016. The 401(k) Plan Amendment increased this match to 50% of the first 6% of contributions for the remainder of Fiscal 2016. The 401(k) Plan Amendment also provided for an additional non-discretionary contribution for certain non-union U.S. employees who were eligible to participate in the Salaried Plan. The amount of this non-discretionary contribution ranges from 0% to 4% of wages, based on the age of the individual on June 1, 2016. Also in December 2015, the Company approved a non-discretionary profit sharing contribution of 2.5% for the benefit of all non-union U.S. employees who were not eligible for the Company’s Salaried Plan. The 401(k) Plan Amendment increased the non-discretionary contribution to 3%, and changed the eligibility to all non-union U.S. employees. This contribution is payable in January 2017. The Company has accrued approximately $193,000 for this non-discretionary contribution as of October 1, 2016. The Company made contributions of $189,000 and $363,000 in the third quarter and first nine months of 2016, respectively, and $49,000 and $157,000 in the third quarter and first nine months of 2015, respectively. The matching contribution increased approximately $126,000 in the third quarter of 2016 and $181,000 for the first nine months of 2016 as a result of the 401(k) Plan Amendment. |
Stock Based Compensation and St
Stock Based Compensation and Stock Options | 9 Months Ended |
Oct. 01, 2016 | |
Stock Based Compensation and Stock Options [Abstract] | |
Stock Based Compensation and Stock Options | Note J – Stock Based Compensation and Stock Options The Company has a stock option plan, the 2010 plan, for officers, other key employees, and non-employee directors. As of October 1, 2016 the 2010 plan had 500,000 shares of common stock reserved and available for future grant and issuance. 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, nonqualified 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 the first nine months of 2016 or 2015. At October 1, 2016, there were no outstanding or exercisable options. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 01, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note K – Income Taxes 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 2013 and non-U.S. income tax examinations by tax authorities prior to 2011. The Company repatriated approximately $1.2 million in cash from its foreign subsidiaries in the first nine months of 2015. The impact on the effective tax rate was less than 1% in 2015. No cash was repatriated in the first nine months of 2016. 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 FASB Accounting Standards Codification (“ASC”) 740. There have been no significant changes to the amount of unrecognized tax benefits during the nine months ended October 1, 2016. The Company believes that it is reasonably possible that the total amount of unrecognized tax benefits will not increase or decrease significantly over the next twelve months. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Oct. 01, 2016 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | Note L - 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 with customers. The Company has established credit limits for customers and monitors their balances to mitigate the risk of loss. At October 1, 2016 and January 2, 2016, there were no significant concentrations of credit risk. No one customer represented more than 10% of the Company’s net trade receivables at October 1, 2016 or at January 2, 2016. The maximum exposure to credit risk is primarily represented by the carrying amount of the Company’s accounts receivable. Interest Rate Risk On October 1, 2016, the Company has no exposure to the risk of changes in market interest rates as the interest rate on the outstanding debt is fixed at 4.98% and 3.90%. 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 are no assets or liabilities requiring fair value measurements on October 1, 2016 or January 2, 2016. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Earnings Per Share [Abstract] | |
Denominators used in the earnings per share computations | The denominators used in the earnings per share computations follow: Nine Months Ended Three Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Basic: Weighted average shares outstanding 6,250,185 6,244,534 6,254,287 6,245,099 Diluted: Weighted average shares outstanding 6,250,185 6,244,534 6,254,287 6,245,099 Dilutive stock options - - - - Denominator for diluted earnings per share 6,250,185 6,244,534 6,254,287 6,245,099 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Inventories [Abstract] | |
Components of inventories | The components of inventories follow: October 1, 2016 January 2, 2016 Raw material and component parts $ 10,101,095 $ 10,913,827 Work in process 7,109,543 7,681,576 Finished goods 16,888,189 18,247,010 $ 34,098,827 $ 36,842,413 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Segment Information [Abstract] | |
Segment financial information | Segment financial information follows: Nine Months Ended Three Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Revenues: Sales to unaffiliated customers: Industrial Hardware $ 45,689,104 $ 46,234,468 $ 15,210,943 $ 16,327,856 Security Products 43,722,828 43,463,335 13,648,701 13,927,096 Metal Products 14,051,384 20,456,236 4,618,703 5,984,548 $ 103,463,316 $ 110,154,039 $ 33,478,347 $ 36,239,500 Income before income taxes: Industrial Hardware $ 3,769,045 $ 3,112,008 $ 1,574,573 $ 1,742,917 Security Products 4,533,995 2,672,875 1,613,148 1,236,581 Metal Products (972,194 ) (107,757 ) 76,393 470,123 Operating Profit 7,330,846 5,677,126 3,264,114 3,449,621 Interest expense (97,486 ) (145,773 ) (28,817 ) (45,203 ) Other income 54,687 33,540 28,169 6,573 $ 7,288,047 $ 5,564,893 $ 3,263,466 $ 3,410,991 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Goodwill [Abstract] | |
Roll-forward of goodwill | The following is a roll-forward of goodwill from year-end 2015 to the end of the third quarter 2016: Industrial Hardware Segment Security Products Segment Metal Products Segment Total Beginning balance $ 1,731,751 $ 13,059,042 $ — $ 14,790,793 Foreign exchange 51,962 — — 51,962 Ending balance $ 1,783,713 $ 13,059,042 $ — $ 14,842,755 |
Intangibles (Tables)
Intangibles (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Intangibles [Abstract] | |
Gross carrying amount and accumulated amortization of amortizable intangible assets | The gross carrying amount and accumulated amortization of amortizable intangible assets: Industrial Hardware Segment Security Products Segment Metal P roducts Segment Total Weighted-Average Amortization Period (Years) 2016 Gross Amount Patents and developed technology $ 2,176,425 $ 1,068,518 $ -- $ 3,244,943 15.9 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 $ 2,176,425 $ 2,232,594 $ -- $ 4,409,019 12.5 2016 Accumulated Amortization Patents and developed technology $ 1,513,977 $ 620,635 $ -- $ 2,134,612 Customer relationships -- 157,397 -- 157,397 Non-compete agreements -- 142,450 -- 142,450 Intellectual property -- 107,580 -- 107,580 Accumulated Amortization $ 1,513,977 $ 1,028,062 $ -- $ 2,542,039 Net October 1, 2016 per Balance Sheet $ 662,448 $ 1,204,532 $ -- $ 1,866,980 2015 Gross Amount Patents and developed technology $ 2,206,852 $ 1,029,181 $ -- $ 3,236,033 15.9 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 $ 2,206,852 $ 2,193,257 $ -- $ 4,400,109 12.6 2015 Accumulated Amortization Patents and developed technology $ 1,478,692 $ 575,026 $ -- $ 2,053,718 Customer relationships -- 89,941 -- 89,941 Non-compete agreements -- 81,400 -- 81,400 Intellectual property -- 61,474 -- 61,474 Accumulated Amortization $ 1,478,692 $ 807,841 $ -- $ 2,286,533 Net January 2, 2016 per Balance Sheet $ 728,160 $ 1,385,416 $ -- $ 2,113,576 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Retirement Benefit Plans [Abstract] | |
Schedule of assumptions used to determine net periodic benefit cost for benefit plans | The Company used April 30, 2016 as the remeasurement date. Assumptions used to determine the projected benefits obligations for the Salaried Plan for the measurement date indicated follows: Measurement Date April 30, 2016 December 31, 2015 Discount rate 3.69 % 4.24 % Expected rate of return 8.0 % 8.0 % Rate of compensation increase -- 3.25 % |
Funded status of pension benefit plans | The major components of this change are as follows: April 30, 2016 Discount rate $ 4,383,159 Service cost 770,361 Interest cost 818,565 Actuarial loss 611,693 Benefits paid (1,026,898 ) Additional recognition due to significant event (2,534,589 ) Net increase in pension benefit obligation $ 3,022,291 |
Significant disclosures relating to benefit plans | Significant disclosures relating to these benefit plans for the third quarter and first nine months of fiscal 2016 and 2015 follow: Pension Benefits Nine Months Ended Three Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Service cost $ 1,612,278 $ 2,894,960 $ 270,721 $ 964,985 Interest cost 2,541,968 2,577,715 767,625 859,239 Expected return on plan assets (3,603,483 ) (3,863,742 ) (1,121,311 ) (1,287,914 ) Amortization of prior service cost 150,427 163,940 50,143 54,647 Amortization of the net loss 1,319,617 1,418,182 277,469 472,726 Net periodic benefit cost $ 2,020,807 $ 3,191,055 $ 244,647 $ 1,063,683 Postretirement Benefits Nine Months Ended Three Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Service cost $ 21,975 $ 163,178 $ 7,325 $ 54,393 Interest cost 71,154 116,186 23,718 38,728 Expected return on plan assets (35,649 ) (68,952 ) (11,883 ) (22,984 ) Amortization of prior service cost (17,918 ) (17,916 ) (5,973 ) (5,972 ) Amortization of the net loss (70,441 ) 14,103 (23,480 ) 4,701 Net periodic benefit cost $ (30,879 ) $ 206,599 $ (10,293 ) $ 68,866 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Basic [Abstract] | ||||
Weighted average shares outstanding (in shares) | 6,254,287 | 6,245,099 | 6,250,185 | 6,244,534 |
Diluted [Abstract] | ||||
Weighted average shares outstanding (in shares) | 6,254,287 | 6,245,099 | 6,250,185 | 6,244,534 |
Dilutive stock options (in shares) | 0 | 0 | 0 | 0 |
Denominator for diluted earnings per share (in shares) | 6,254,287 | 6,245,099 | 6,250,185 | 6,244,534 |
Inventories (Details)
Inventories (Details) - USD ($) | Oct. 01, 2016 | Jan. 02, 2016 |
Components of inventories [Abstract] | ||
Raw material and component parts | $ 10,101,095 | $ 10,913,827 |
Work in process | 7,109,543 | 7,681,576 |
Finished goods | 16,888,189 | 18,247,010 |
Inventories, net | $ 34,098,827 | $ 36,842,413 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenues, sales to unaffiliated customers | $ 33,478,347 | $ 36,239,500 | $ 103,463,316 | $ 110,154,039 |
Operating Profit | 3,264,114 | 3,449,621 | 7,330,846 | 5,677,126 |
Interest expense | (28,817) | (45,203) | (97,486) | (145,773) |
Other income | 28,169 | 6,573 | 54,687 | 33,540 |
Income before income taxes | 3,263,466 | 3,410,991 | 7,288,047 | 5,564,893 |
Industrial Hardware [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, sales to unaffiliated customers | 15,210,943 | 16,327,856 | 45,689,104 | 46,234,468 |
Operating Profit | 1,574,573 | 1,742,917 | 3,769,045 | 3,112,008 |
Security Products [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, sales to unaffiliated customers | 13,648,701 | 13,927,096 | 43,722,828 | 43,463,335 |
Operating Profit | 1,613,148 | 1,236,581 | 4,533,995 | 2,672,875 |
Metal Products [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues, sales to unaffiliated customers | 4,618,703 | 5,984,548 | 14,051,384 | 20,456,236 |
Operating Profit | $ 76,393 | $ 470,123 | $ (972,194) | $ (107,757) |
Debt (Details)
Debt (Details) - USD ($) | 9 Months Ended | ||
Oct. 01, 2016 | Jan. 25, 2012 | Jan. 29, 2010 | |
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Tangible net worth | $ 55,000,000 | ||
Term Loan 2012 [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 5,000,000 | ||
Fixed rate of interest | 3.90% | ||
Revolving Credit Loan [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 10,000,000 | $ 10,000,000 | |
Maturity date of loan | Jul. 1, 2018 | ||
Revolving Credit Loan [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
Revolving Credit Loan [Member] | People's Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
Revolving Credit Loan [Member] | Floor Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Floor rate of loan | 3.25% | ||
Loan Agreement [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed charge coverage ratio as multiple | 1.1 | ||
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 5,000,000 | ||
Fixed rate of interest | 4.98% | 4.98% |
Goodwill (Details)
Goodwill (Details) | 9 Months Ended |
Oct. 01, 2016USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 14,790,793 |
Foreign exchange | 51,962 |
Ending balance | 14,842,755 |
Industrial Hardware Segment [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 1,731,751 |
Foreign exchange | 51,962 |
Ending balance | 1,783,713 |
Security Products Segment [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 13,059,042 |
Foreign exchange | 0 |
Ending balance | 13,059,042 |
Metal Products Segment [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 0 |
Foreign exchange | 0 |
Ending balance | $ 0 |
Intangibles (Details)
Intangibles (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Oct. 01, 2016 | Jan. 02, 2016 | |
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 4,409,019 | $ 4,400,109 |
Accumulated Amortization | 2,542,039 | 2,286,533 |
Net as per Balance Sheet | $ 1,866,980 | $ 2,113,576 |
Weighted Average Amortization Period | 12 years 6 months | 12 years 7 months 6 days |
Industrial Hardware Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 2,176,425 | $ 2,206,852 |
Accumulated Amortization | 1,513,977 | 1,478,692 |
Net as per Balance Sheet | 662,448 | 728,160 |
Security Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 2,232,594 | 2,193,257 |
Accumulated Amortization | 1,028,062 | 807,841 |
Net as per Balance Sheet | 1,204,532 | 1,385,416 |
Metal Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 0 | 0 |
Accumulated Amortization | 0 | 0 |
Net as per Balance Sheet | 0 | 0 |
Patents and Developed Technology [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 3,244,943 | 3,236,033 |
Accumulated Amortization | $ 2,134,612 | $ 2,053,718 |
Weighted Average Amortization Period | 15 years 10 months 24 days | 15 years 10 months 24 days |
Patents and Developed Technology [Member] | Industrial Hardware Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 2,176,425 | $ 2,206,852 |
Accumulated Amortization | 1,513,977 | 1,478,692 |
Patents and Developed Technology [Member] | Security Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 1,068,518 | 1,029,181 |
Accumulated Amortization | 620,635 | 575,026 |
Patents and Developed Technology [Member] | Metal Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 0 | 0 |
Accumulated Amortization | 0 | 0 |
Customer Relationships [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 449,706 | 449,706 |
Accumulated Amortization | $ 157,397 | $ 89,941 |
Weighted Average Amortization Period | 5 years | 5 years |
Customer Relationships [Member] | Industrial Hardware Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 0 | $ 0 |
Accumulated Amortization | 0 | 0 |
Customer Relationships [Member] | Security Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 449,706 | 449,706 |
Accumulated Amortization | 157,397 | 89,941 |
Customer Relationships [Member] | Metal Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 0 | 0 |
Accumulated Amortization | 0 | 0 |
Non-compete Agreements [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 407,000 | 407,000 |
Accumulated Amortization | $ 142,450 | $ 81,400 |
Weighted Average Amortization Period | 5 years | 5 years |
Non-compete Agreements [Member] | Industrial Hardware Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 0 | $ 0 |
Accumulated Amortization | 0 | 0 |
Non-compete Agreements [Member] | Security Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 407,000 | 407,000 |
Accumulated Amortization | 142,450 | 81,400 |
Non-compete Agreements [Member] | Metal Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 0 | 0 |
Accumulated Amortization | 0 | 0 |
Intellectual Property [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 307,370 | 307,370 |
Accumulated Amortization | $ 107,580 | $ 61,474 |
Weighted Average Amortization Period | 5 years | 5 years |
Intellectual Property [Member] | Industrial Hardware Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | $ 0 | $ 0 |
Accumulated Amortization | 0 | 0 |
Intellectual Property [Member] | Security Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 307,370 | 307,370 |
Accumulated Amortization | 107,580 | 61,474 |
Intellectual Property [Member] | Metal Products Segment [Member] | ||
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract] | ||
Gross Amount | 0 | 0 |
Accumulated Amortization | $ 0 | $ 0 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) | Apr. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | Oct. 03, 2015 |
Additional information [Abstract] | |||||||
Gain from reduction of accumulated plan benefits | $ 2,500,000 | $ 2,500,000 | |||||
Reduction in pension expense | 917,000 | 1,529,000 | |||||
Employer contributions made | 799,000 | ||||||
Contributions required by the Company in defined benefit plan | 594,000 | ||||||
Minimum [Member] | |||||||
Additional information [Abstract] | |||||||
Contributions required by the Company in defined benefit plan | $ 594,000 | ||||||
Plan 401K Plan Original [Member] | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Employer matching contribution percentage | 50.00% | ||||||
Employer matching contribution on first of total employee contributions, percentage | 4.00% | ||||||
Non-discretionary contribution percentage for employees who were not eligible to participate in the salaried plan | 2.50% | ||||||
Plan 401 K Plan Amendment [Member] | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Percentage of voluntary contributions allowed to participants, maximum | 100.00% | ||||||
Increase in employer matching contribution on first of total employee contributions, percentage | 6.00% | ||||||
Non-discretionary contribution percentage for employees who were not eligible to participate in the salaried plan | 3.00% | ||||||
Accrued non-discretionary contribution | 193,000 | $ 193,000 | |||||
Contributions made by the Company under Section 401(k) | 189,000 | $ 49,000 | 363,000 | $ 157,000 | |||
Increase in contributions made by the employer | 126,000 | $ 181,000 | |||||
U.S. Non Union Employees [Member] | Minimum [Member] | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Non-discretionary contribution percentage for certain employees who were eligible to participate in the salaried plan | 0.00% | ||||||
U.S. Non Union Employees [Member] | Maximum [Member] | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Non-discretionary contribution percentage for certain employees who were eligible to participate in the salaried plan | 4.00% | ||||||
Pension Benefits [Member] | |||||||
Assumptions used to determine net periodic benefit cost [Abstract] | |||||||
Discount rate | 3.69% | 4.24% | 4.24% | ||||
Expected rate of return | 8.00% | 8.00% | |||||
Rate of compensation increase | 0.00% | 3.25% | |||||
Change in benefit obligation [Roll Forward] | |||||||
Discount rate | $ 4,383,159 | ||||||
Service cost | 770,361 | 270,721 | 964,985 | $ 1,612,278 | 2,894,960 | ||
Interest cost | 818,565 | 767,625 | 859,239 | 2,541,968 | 2,577,715 | ||
Actuarial loss | 611,693 | ||||||
Benefits paid | (1,026,898) | ||||||
Additional recognition due to significant event | (2,534,589) | ||||||
Net increase in pension benefit obligation | 3,022,291 | ||||||
Components of the net periodic benefit cost [Abstract] | |||||||
Service cost | 770,361 | 270,721 | 964,985 | 1,612,278 | 2,894,960 | ||
Interest cost | $ 818,565 | 767,625 | 859,239 | 2,541,968 | 2,577,715 | ||
Expected return on plan assets | (1,121,311) | (1,287,914) | (3,603,483) | (3,863,742) | |||
Amortization of prior service cost | 50,143 | 54,647 | 150,427 | 163,940 | |||
Amortization of the net loss | 277,469 | 472,726 | 1,319,617 | 1,418,182 | |||
Net periodic benefit cost | 244,647 | 1,063,683 | 2,020,807 | 3,191,055 | |||
Postretirement Benefits [Member] | |||||||
Change in benefit obligation [Roll Forward] | |||||||
Service cost | 7,325 | 54,393 | 21,975 | 163,178 | |||
Interest cost | 23,718 | 38,728 | 71,154 | 116,186 | |||
Components of the net periodic benefit cost [Abstract] | |||||||
Service cost | 7,325 | 54,393 | 21,975 | 163,178 | |||
Interest cost | 23,718 | 38,728 | 71,154 | 116,186 | |||
Expected return on plan assets | (11,883) | (22,984) | (35,649) | (68,952) | |||
Amortization of prior service cost | (5,973) | (5,972) | (17,918) | (17,916) | |||
Amortization of the net loss | (23,480) | 4,701 | (70,441) | 14,103 | |||
Net periodic benefit cost | $ (10,293) | $ 68,866 | (30,879) | $ 206,599 | |||
Additional information [Abstract] | |||||||
Employer contributions made | 116,000 | ||||||
Contributions required by the Company in defined benefit plan | $ 155,000 |
Stock Based Compensation and 34
Stock Based Compensation and Stock Options (Details) - shares | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 0 | 0 |
Options outstanding (in shares) | 0 | |
Options exercisable (in shares) | 0 | |
Stock Options [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of fair market value of stock on grant date for exercise price | 100.00% | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock granted (in shares) | 0 | 0 |
2010 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future grant (in shares) | 500,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 9 Months Ended | |
Oct. 01, 2016 | Oct. 03, 2015 | |
Income Taxes [Abstract] | ||
Repatriated amount from its foreign subsidiaries | $ 0 | $ 1,200,000 |
Impact on effective tax rate, minimum | 1.00% | |
Significant changes to the amount of unrecognized tax benefits | $ 0 |
Financial Instruments and Fai36
Financial Instruments and Fair Value Measurements (Details) | Oct. 01, 2016AssetsLiabilities | Jan. 02, 2016AssetsLiabilities | Jan. 29, 2010 |
Liabilities [Member] | |||
Fair Value Measurements [Abstract] | |||
Number of assets and liabilities requiring fair value measurements | Liabilities | 0 | 0 | |
Term Loan [Member] | |||
Interest Rate Risk [Abstract] | |||
Fixed rate of interest | 4.98% | 4.98% | |
2012 Term Loan [Member] | |||
Interest Rate Risk [Abstract] | |||
Fixed rate of interest | 3.90% | ||
Assets [Member] | |||
Fair Value Measurements [Abstract] | |||
Number of assets and liabilities requiring fair value measurements | Assets | 0 | 0 |