The Eastern Company (EML) 10-K 5 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 28, 2019	Feb. 15, 2020	Jun. 29, 2019
Cover [Abstract]
Entity Registrant Name	EASTERN CO
Entity Central Index Key	0000031107
Current Fiscal Year End Date	--12-28
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Public Float			$ 143,544,835
Entity Common Stock, Shares Outstanding		6,240,705
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 28, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Address, State or Province	CT

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 28, 2019	Dec. 29, 2018
Current Assets
Cash and cash equivalents	$ 17,996,505	$ 13,925,765
Marketable securities	34,305	0
Accounts receivable, less allowances of $556,000 in 2019 and $680,000 in 2018	37,941,900	30,285,316
Inventories:
Raw materials and component parts	17,225,469	17,841,166
Work in process	11,009,648	8,960,202
Finished goods	26,364,149	25,971,841
Total inventories	54,599,266	52,773,209
Prepaid expenses and other current assets	4,343,507	3,071,888
Refundable income taxes	0	1,133,847
Total Current Assets	114,915,483	101,190,025
Property, Plant and Equipment
Land	1,341,289	1,159,813
Buildings	21,830,568	16,477,462
Machinery and equipment	65,164,386	56,131,340
Accumulated depreciation	(46,313,630)	(43,915,238)
Property, Plant and Equipment, Net	42,022,613	29,853,377
Other Assets
Goodwill	79,518,012	34,840,376
Trademarks	5,404,283	3,686,063
Patents, technology and other intangibles net of accumulated amortization	26,460,110	10,281,720
Right of Use Assets	12,342,475	0
Deferred income taxes	0	1,396,006
Total other assets	123,724,880	50,204,165
TOTAL ASSETS	280,662,976	181,247,567
Current Liabilities
Accounts payable	19,960,507	18,497,626
Accrued compensation	3,815,186	4,159,808
Other accrued expenses	2,967,961	3,095,666
Contingent liability	0	2,070,000
Current portion of long-term debt	5,187,689	2,325,000
Total Current Liabilities	31,931,343	30,148,100
Deferred income taxes	5,270,465	1,516,012
Other long-term liabilities	2,465,261	353,856
Lease Liability	12,342,475	0
Long-term debt, less current portion	93,577,544	26,350,000
Accrued other postretirement benefits	1,007,146	648,635
Accrued pension cost	28,631,485	25,362,325
Commitments and contingencies (See Note 6)
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: 8,975,434 shares in 2019 and 8,965,987 shares in 2018 Outstanding: 6,240,705 shares in 2019 and 6,231,258 shares in 2018	30,651,815	29,994,890
Treasury Stock: 2,734,729 shares in 2019 and 2,734,729 shares in 2018	(20,169,098)	(20,169,098)
Retained earnings	120,189,111	109,671,362
Accumulated other comprehensive income (loss):
Foreign currency translation	(2,037,952)	(2,106,329)
Unrealized gain/(loss) on interest rate swap, net of tax	167,018	166,444
Unrecognized net pension and other postretirement benefit costs, net of taxes	(23,363,637)	(20,688,630)
Accumulated other comprehensive loss	(25,234,571)	(22,628,515)
Total Shareholders' Equity	105,437,257	96,868,639
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 280,662,976	$ 181,247,567

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 28, 2019	Dec. 29, 2018
Current Assets
Accounts receivable, allowances	$ 556,000	$ 680,000
Shareholders' Equity
Voting Preferred Stock, par value (in dollars per share)	$ 0	$ 0
Voting Preferred Stock, shares authorized (in shares)	1,000,000	1,000,000
Nonvoting Preferred Stock, par value (in dollars per share)	$ 0	$ 0
Nonvoting Preferred Stock, shares authorized (in shares)	1,000,000	1,000,000
Common Stock, 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)	8,975,434	8,965,987
Common Stock, shares outstanding (in shares)	6,240,705	6,231,258
Treasury Stock, shares (in shares)	2,734,729	2,734,729

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Consolidated Statements of Income [Abstract]
Net sales	$ 251,742,619	$ 234,275,463
Cost of products sold	(189,890,070)	(175,550,418)
Gross margin	61,852,549	58,725,045
Product development expenses	(6,024,567)	(6,950,969)
Selling and administrative expenses	(35,719,188)	(33,914,735)
Restructuring costs	(2,650,940)	0
Operating profit	17,457,854	17,859,341
Interest expense	(1,857,961)	(1,202,272)
Other income	606,078	933,260
Income before income taxes	16,205,971	17,590,329
Income taxes	2,939,829	3,084,392
Net income	$ 13,266,142	$ 14,505,937
Earnings per Share:
Basic (in dollars per share)	$ 2.13	$ 2.32
Diluted (in dollars per share)	$ 2.12	$ 2.31

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 13,266,142	$ 14,505,937
Other comprehensive income/(loss)
Change in foreign currency translation	68,377	(1,163,136)
Change in fair value of interest rate swap, net of tax benefit of: $26 in 2019 and $26,969 in 2018	574	124,687
Change in pension and other postretirement benefit costs, net of income taxes (expense)/benefit of: $664,279 in 2019 and $578,090 in 2018	(2,675,007)	(203,353)
Total other comprehensive income/(loss)	(2,606,056)	(1,241,802)
Comprehensive income/(loss)	$ 10,660,086	$ 13,264,135

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Other comprehensive income/(loss)
Change in fair value of interest rate swap, taxes benefit	$ 26	$ 26,969
Change in pension and postretirement benefit costs, income taxes (expense)/ benefit	$ 664,279	$ 578,090

Consolidated Statements of Shar

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. 30, 2017	$ 29,501,123	$ (19,105,723)	$ 97,921,903	$ (21,386,713)	$ 86,930,590
Balances (in shares) at Dec. 30, 2017	8,957,974	(2,694,729)
Net income			14,505,937		14,505,937
Cash dividends declared			(2,756,478)		(2,756,478)
Currency translation adjustment				(1,163,136)	(1,163,136)
Change in fair value of interest rate swap				124,687	124,687
Change in pension and other postretirement benefit costs, net of tax				(203,353)	(203,353)
Treasury stock purchases		$ (1,063,375)			(1,063,375)
Treasury stock purchases (in shares)		(40,000)
Issuance of SARS	$ 276,777				276,777
Issuance of SARS (in shares)	151
Issuance of Common Stock for directors' fees	$ 216,990				216,990
Issuance of Common Stock for directors' fees (in shares)	7,862
Balances at Dec. 29, 2018	$ 29,994,890	$ (20,169,098)	109,671,362	(22,628,515)	96,868,639
Balances (in shares) at Dec. 29, 2018	8,965,987	(2,734,729)
Net income			13,266,142		13,266,142
Cash dividends declared			(2,748,393)		(2,748,393)
Currency translation adjustment				68,377	68,377
Change in fair value of interest rate swap				574	574
Change in pension and other postretirement benefit costs, net of tax				(2,675,007)	(2,675,007)
Issuance of SARS	$ 397,250				397,250
Issuance of SARS (in shares)	151
Issuance of Common Stock for directors' fees	$ 259,675				259,675
Issuance of Common Stock for directors' fees (in shares)	9,296
Balances at Dec. 28, 2019	$ 30,651,815	$ (20,169,098)	$ 120,189,111	$ (25,234,571)	$ 105,437,257
Balances (in shares) at Dec. 28, 2019	8,975,434	(2,734,729)

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Consolidated Statements of Shareholders' Equity [Abstract]
Cash dividends declared, per share (in dollars per share)	$ 0.44	$ 0.44

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Operating Activities
Net income	$ 13,266,142	$ 14,505,937
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,454,881	5,329,208
Unrecognized pension & other postretirement benefits	1,844,814	(2,226,083)
(Gain) Loss on sale of equipment and other assets	(568,956)	(413,333)
Non cash restructuring charges	2,641,890	0
Provision for doubtful accounts	63,564	185,136
Deferred Taxes	(2,093,654)	947,851
Stock compensation expense	656,925	493,767
Changes in operating assets and liabilities:
Accounts receivable	5,982,435	(3,483,484)
Inventories	1,463,409	(5,356,646)
Prepaid expenses	860,607	(761,135)
Other assets	(499,010)	102,068
Accounts payable	(2,337,146)	4,106,130
Accrued compensation	(1,462,262)	(165,828)
Other accrued expenses	(3,315,476)	(387,526)
Net cash provided by operating activities	22,958,164	12,876,062
Investing Activities
Purchases of property, plant and equipment	(5,440,488)	(3,596,572)
Capitalized software	0	(1,813,973)
Proceeds from sale of equipment and other assets	857,967	0
Marketable securities	(34,305)	0
Business acquisitions, net of cash acquired	(81,155,753)	(4,994,685)
Net cash used in investing activities	(85,772,579)	(10,405,230)
Financing Activities
Proceeds from issuance of long-term debt	100,000,000	0
Principal payments on long-term debt	(30,285,146)	(1,550,000)
Proceeds from short-term borrowing (Revolver)	0	7,000,000
Payments on Revolving Credit Note	0	(12,000,000)
Purchase Common Stock for Treasury	0	(1,063,375)
Dividends paid	(2,743,993)	(2,756,478)
Net cash used in financing activities	66,970,861	(10,369,853)
Effect of exchange rate changes on cash	(85,704)	(450,691)
Net change in cash and cash equivalents	4,070,740	(8,349,712)
Cash and cash equivalents at beginning of year	13,925,765	22,275,477
Cash and cash equivalents at end of year	$ 17,996,505	$ 13,925,765

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 28, 2019
DESCRIPTION OF BUSINESS [Abstract]
DESCRIPTION OF BUSINESS	1. Description of Business The Eastern Company (the “Company”) includes nine separate operating businesses located within the United States, two wholly-owned Canadian subsidiaries (one located in Tillsonburg, Ontario, Canada, and one in Kelowna, British Columbia, Canada), a wholly-owned Taiwanese subsidiary located in Taipei, Taiwan, a wholly-owned subsidiary in Hong Kong, two wholly-owned Chinese subsidiaries (one located in Shanghai, China, and one located in Dongguan, China), two wholly-owned subsidiaries in Mexico (one located in Lerma, Mexico and one located in Reynosa, Mexico) and a wholly owned subsidiary in Wrexham, United Kingdom. The operations of the Company consist of three business segments: industrial hardware, security products, and metal products. Industrial Hardware The Industrial Hardware segment consists of Big 3 Precision, including Big 3 Products and Big 3 Mold; Eberhard Manufacturing Company, Eberhard Hardware Manufacturing Ltd., and Eastern Industrial Ltd; Velvac Holdings; Canadian Commercial Vehicles Corporation; and Sesamee Mexicana, S.A. de C.V. These businesses design, manufacture and market a diverse product line of custom and standard vehicular and industrial hardware, including turnkey returnable packaging solutions; passenger restraint and vehicular locks, latches, hinges; mirrors, mirror-cameras; and light-weight sleeper boxes and truck bodies. The segment also designs and manufactures a wide selection of fasteners and other closure devices used to secure access doors on various types of industrial equipment such as metal cabinets, machinery housings and electronic instruments. Big 3 Products and Big 3 Mold’s turnkey returnable packaging solutions are used in the assembly process for vehicles, aircraft, and durable goods and in the production process of plastic packaging products, packaged consumer goods and pharmaceuticals. Big 3 Products works with leading manufacturers to design and produce custom returnable packaging to integrate with their assembly processes. Other products are found on tractor-trailer trucks, specialty commercial vehicles, recreational vehicles, fire and rescue vehicles, school buses, military vehicles and other vehicles. In addition, through Big 3 Precision Products and Big 3 Precision Mold Services, Big 3 Precision serves diverse markets including truck, automotive, plastic packaging products, consumer packaged goods and pharmaceuticals. The segment sells directly to “OEM’s” and to distributors through in-house sales personnel and outside sales representatives. Sales, customer engineering and customer service are primarily provided through in-house sales personnel and engineering staff. Security Products The Security Products segment consists of Illinois Lock Company/CCL Security Products, World Lock Company Ltd., Dongguan Reeworld Security Products Ltd., and World Security Industries Ltd.; Greenwald Industries (“Greenwald”); and Argo EMS (formerly Argo Transdata). Illinois Lock Company/CCL Security Products, known in the market as ILC, is a global leader in the design and manufacture of engineered security and access solutions in the form of mechanical, electronic and wireless products. ILC focuses on the industrial, vehicle accessory, outdoor recreational equipment, medical, and point of sale and vending segments. These products and solutions are specified and sold to OEM’s, contract equipment manufacturers, and industrial distributors globally. Greenwald designs, manufactures and markets payment systems and coin security products used primarily in the commercial laundry market. Greenwald’s products include timers, drop meters, coin chutes, money boxes, meter cases, mobile payment apps, smart cards, value transfer stations, smart card readers, card management software, and access control units. Argo EMS supplies printed circuit boards and other electronic assemblies to original equipment manufacturers in various industries, including measurement systems, semiconductor equipment manufacturing, and industrial controls, medical and military products. Metal Products The Metal Products segment consists of Frazer & Jones, The Frazer & Jones Company, designs and manufactures high quality ductile and malleable iron castings. Products include valves, rings, torque screws, bean clamps, and concrete anchors. These products are sold to a wide range of industrial markets, including oil, water, gas; truck/automotive rail, and military/aerospace. In addition, the Company believes that its Metal Products segment, is the largest and most efficient producer of expansion shells for use in supporting the roofs of underground mines in North America. Sales are made to customers primarily in North America.

BUSINESS ACQUISITIONS

BUSINESS ACQUISITIONS	12 Months Ended
	Dec. 28, 2019
BUSINESS ACQUISITIONS [Abstract]
BUSINESS ACQUISITIONS	2. B usiness Acquisitions Load N Lock Systems, Inc. Effective June 1, 2018 the Company acquired certain assets of Load N Lock Systems, Inc. (“Load N Lock”), including accounts receivable, inventories, furniture, fixtures and equipment, intellectual property rights, and assumed certain liabilities and rights existing under all sales and purchase agreements. Load N Lock provides innovative truck cap and tonneau cover locks that keep truck contents safe and secure. Load N Lock developed and patented the first integrated power lock for the automotive industry and has developed numerous truck cap and tonneau cover lock related products. Load N Lock provides its innovative products and solutions to the automotive industry’s leading manufacturers of truck and automotive accessories in the United States and Asia. The above acquisition was accounted for under ASC 805 – Business Combinations. Load N Lock has been included in the Security Products segment of the Company from the date of the acquisition. The cost of the acquisition of Load N Lock was approximately $4,995,000. The excess of the cost of Load N Lock over the fair market value of the net definitive tangible and intangible assets acquired was $2,694,700, which has been recorded as goodwill. In connection with the above acquisition, the Company recorded the following intangible assets: Asset Class/Description Amount Weighted-average Life in Years Patents, technology, and licenses Customer relationships $ 689,675 8.3 Intellectual property 586,762 8.3 Non-compete agreements 52,570 8.3 $ 1,329,007 8.3 Big 3 Precision Products On August 30, 2019, the Company and its newly-formed wholly-owned subsidiary, Eastern Engineered Systems, Inc., a Delaware corporation (“EES”) entered into a Stock Purchase Agreement (the “Stock Purchase Agreement”) with Big 3 Holdings, LLC, a Delaware limited liability company (“Seller”), Big 3 Precision Mold Services, Inc., a Delaware corporation and wholly-owned subsidiary of Seller (“Big 3 Mold”), Big 3 Precision Products, Inc., a Delaware corporation and wholly owned subsidiary of Seller (“Big 3 Products”), Industrial Design Innovations, LLC, a Delaware limited liability company and wholly-owned subsidiary of Big 3 Products (“Design Innovations”), Sur-Form, LLC, a Delaware limited liability company and wholly-owned subsidiary of Big 3 Products (“Sur-Form”), Associated Toolmakers Limited, a limited company formed under the laws of England and Wales and wholly-owned subsidiary of Big 3 Mold (“Associated” and together with Big 3 Mold, Big 3 Products, Design Innovations and Sur-Form, collectively “Big 3 Precision”), TVV Capital Partners III, L.P., a Delaware limited partnership, TVV Capital Partners III-A, L.P., a Delaware limited partnership, Alan Scheidt, Todd Riley, Clinton Hyde, and Big 3 Holdings, LLC, a Delaware limited liability company, as the initial Seller Representative (the “Seller Representative”). On August 30, 2019, pursuant to the Stock Purchase Agreement, the Company, through EES, acquired all of the outstanding equity interests of Big 3 Precision Products and Big 3 Mold Services, and indirectly through them, all of the outstanding equity interests in Design The Innovations, Sur-Form and Associated, for an adjusted purchase cash price of $81.2 million. The Big acquisition was financed with a combination of of cash on hand, a and a revolving credit line. In connection with the Credit Agreement, the Company also used its cash to repay the remaining balance (approximately ) of its then outstanding term loan with People’s United Bank National Association. The following table summarizes the consideration paid for Big 3 Precision and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date, as well as the fair value at the acquisition date. At August 30, 2019: Consideration Cash $ 338,714 Cash proceeds from debt 80,817,039 $ 81,155,753 Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable $ 13,649,937 Inventory 3,240,382 Prepaid and other assets 32,268 Property plant and equipment 13,770,170 Other noncurrent assets 1,337,337 Other intangible assets 21,054,000 Current liabilities (4,910,384 ) Deferred revenue (1,585,709 ) Income tax payable (2,039,117 ) Note payable (375,379 ) Deferred tax liabilities (7,114,732 ) Total identifiable net assets 37,058,773 Goodwill 44,096,980 $ 81,155,753 Accounts Receivable Acquired receivables are amounts due from customers, and are stated at net realizable value. Inventories The estimated fair value of inventories acquired, which is at net realizable value based upon third party valuation specialist. Property, Plant and Equipment The property plant and equipment are estimated at net realizable value at the time of the acquisition based upon third party valuation specialist. Intangible Assets The estimated fair value of identifiable intangible assets is determined primarily using the Income Approach method which is a valuation technique that provides an estimate of the fair value of an asset based on the market participant’s expectations of the cash flows that an asset would generate over its remaining useful life. Some of the more significant assumption inherent in the development of the identifiable intangible assets valuation, from the perspective of a market participant, include the estimate net cash flows for each year for each project or product, the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, competitive trends impacting the asset and each cash flow stream as well as other factors. Goodwill Allocation Goodwill of $44,096,980 arising from the acquisition consists of the difference between the consideration paid and the fair value of the assets and liabilities acquired. None of the goodwill recognized is expected to be deductible for income tax purposes. Current Liabilities Acquired current liabilities are amounts owed to vendors or accrued expenses. Deferred Revenue Deferred revenue is the amount of customers deposits at the time of the acquisition. Income taxes Income taxes are the estimated amount of state and federal taxes to settle certain tax positions prior to the acquisition. Deferred Tax Liability The deferred tax liability is stated at estimated tax liability due to the difference in the book basis of assets compared to the tax basis of those assets at the time of acquisition. Acquisition Related Expenses Included in general and administrative expenses in the consolidated statements of operations for the three and twelve month periods ended December 28, 2019 were $765,000 and $1,184,000, respectively, for acquisition expenses.

ACCOUNTING POLICIES

ACCOUNTING POLICIES	12 Months Ended
	Dec. 28, 2019
ACCOUNTING POLICIES [Abstract]
ACCOUNTING POLICIES	3. A ccounting P olicies Fiscal Year The Company’s year ends on the Saturday nearest to December 31. Fiscal years, 2019 and 2018, were 52 weeks each. 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. Reclassification Commencing with the first quarter of 2018, pension service costs have been broken out and reclassified from the gains and losses associated with the pension assets. The reclassification of these expenses does not affect the net income reported. Product development expense is not necessarily a cost of product sold. Rather, these expenses are related to product development. The reclassification of these expenses does not affect the net income reported. Use of Estimates 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. On an ongoing basis the Company evaluates its estimates, including those related to product returns, bad debts, carrying value of inventories, intangible and other long-lived assets, income taxes, pensions and other postretirement benefits. Actual results could differ from those estimates. Foreign Currency For foreign operations asset and liability accounts are translated with an exchange rate at the respective balance sheet dates; income statement accounts are translated at the average exchange rate for the years. 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. Cash Equivalents 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. Approximately 50% of available cash is located outside of the United States in our foreign subsidiaries. Accounts Receivable Accounts receivable are stated at their net realizable value. 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 collectability 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. Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined by the last-in, first-out (LIFO) method in the U.S. ($31,011,130 for U.S. inventories at December 28, 2019, excluding Big 3 and Velvac) and by the first-in, first-out (FIFO) method for inventories outside the U.S. ($7,295,793 for inventories outside the U.S. at December 28, 2019). Cost exceeds the LIFO carrying value by approximately $6,712,162 at December 28, 2019 and $6,957,972 at December 29, 2018. There was no material LIFO quantity liquidation in 2019 or 2018. In addition, as of the balance sheet dates, the Company has recorded reserves for excess/obsolete inventory. Property, Plant and Equipment and Related Depreciation Property, plant and equipment (including equipment under capital lease) are stated at cost. Depreciation ($4,722,758 in 2019, $4,329,136 in 2018) 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. Impairment of Long-Lived Assets In accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long Lived Assets, Goodwill The Company performed qualitative assessments of goodwill as of the end of fiscal 2019 and fiscal 2018 and determined it is more likely than not that no impairment of goodwill existed at the end of 2019 or 2018. 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 would be considered impaired whenever the historical carrying amount exceeds the fair value. Pursuant to the qualitative assessment performed, goodwill was not impaired in 2019 or 2018. 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 that could occur is the amount recognized on our balance sheet. Intangible 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. Generally, non-compete agreements and customer relationships are being amortized using the straight-line method over a period of 5 years. Amortization expense in 2019 and 2018 was $1,726,539 and $1,452,084, respectively. In the event that facts and circumstances indicate that the carrying value of the intangible assets, including definite life intangible assets, may be impaired, an evaluation is performed to determine if a write-down is required. 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 Company’s financial instruments are primarily investments in pension assets, see footnote 11, and consists of an interest rate swap. The Company’s interest rate swap is not an exchange-traded instrument. However, it is valued based on observable inputs for similar liabilities and accordingly is classified as Level 2. The amount of the interest rate swap is included in other accrued liabilities. The carrying amounts of other financial instruments (cash and cash equivalents, accounts receivable, accounts payable and debt) as of December 28, 2019 and December 29, 2018, approximate fair value based on the expected future cash flows of the related instruments. Right of Use Assets In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (“Topic 842”). ASU 2016-02 requires lessees to present right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. See Note 13 – Recent Accounting Pronouncements. In calculating the effect of ASU 2016-02, the Company elected the transition method thereby not restating comparable periods. The Company elected to account for non-lease components as part of the lease component to which they relate. Lease accounting involves significant judgments, including making estimates related to the lease term, lease payments, and discount rate. In accordance with the guidance, the Company recognized ROU assets and lease liabilities for all leases with a term greater than 12 months. The Company has operating leases for buildings, warehouses and office equipment. Currently, the Company has 45 operating leases with a ROU asset and lease liability totaling $12,342,000 as of December 28, 2019. The basis, terms and conditions of the leases are determined by the individual agreements. The Company’s option to extend certain leases ranges from 12 – 140 months. All options to extend have been included in the calculation of the ROU asset and lease liability. The leases do not contain residual value guarantees, restrictions, or covenants that could incur additional financial obligations to the Company. There are no subleases, sale-leaseback, or related party transactions. Revenue Recognition The Company recognizes revenue in accordance with ASC 606 when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company generates wholesale revenues primarily from the sale of products to original equipment manufacturers and distributers in the United States. The Company recognizes revenue upon shipment or transfer of title to the customer as that is when the customer obtains control of the promised goods. The Company typically extends credit terms to its customers based on their creditworthiness and generally does not receive advance payments. As such, the Company records accounts receivable at the time of shipment, when the Company’s right to the consideration becomes unconditional. Accounts receivable from the Company’s customers are typically due within 30 days of invoicing. An allowance for doubtful accounts is provided based on a periodic analysis of individual account balances, including an evaluation of days outstanding, payment history, recent payment trends and the Company’s assessment of the customer’s credit worthiness. As of December 28, 2019 and December 29, 2018, the Company’s allowance for doubtful accounts total was $556,000 and $680,000, respectively. As of December 28, 2019 and December 29, 2018, the Company’s bad debt expense was $64,000 and $220,000, respectively. The Company considers several factors in determining that control transfers to the customer upon shipment of products. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risk and rewards of ownership at the time of shipment. Big 3 Mold division may employ the efforts expended method for the percentage of completion for revenue recognition for certain transactions. The efforts expended method calculates the proportion of effort expended to date in comparison to the total effort expected to be expended for the contract. The amount of revenue recognized employing the percentage of completion method was $576,000 for the year ended December 28, 2019. No revenue was recognized employing the percentage of completion method for the year ended December 29, 2018. Based on historical experience, the Company does not accrue a reserve for product returns. For the years ended December 28, 2019 and December 29, 2018, the Company recorded sales returns of $613,000 and $725,000, respectively, as a reduction of revenue. Greenwald Industries generates subscription services revenue from access provided to customers to the division’s specific online databases. For the years ended December 28, 2019 and December 29, 2018, Greenwald Industries subscription services revenue was $567,000 and $448,000, respectively. Sales and similar taxes that are imposed on the Company’s sales and collected from the customer are excluded from revenues. Costs for shipping and handling activities, including those activities that occur subsequent to transfer of control to the customer, are recorded as cost of sales and are expensed as incurred. For the years ended December 28, 2019 and December 29, 2018, the Company recorded no revenues related to performance obligations satisfied in prior periods. As part of the Company’s adoption of the new revenue standard, the Company has elected to use the practical expedient to exclude disclosure of transaction prices allocated to remaining performance obligations, and when the Company expects to recognize such revenue, for all periods prior to the date of initial application of the standard. There was no subscription services revenue from remaining performance obligations as of December 28, 2019. See footnote 12 regarding the Company’s revenue disaggregated by reporting segment, intersegment sales by reporting segment and geography. 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. Product Development Costs Product development costs, charged to expense as incurred, were $6,024,567 in 2019, $6,950,969 in 2018. Selling and Administrative Expenses Selling 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 administrative expenses for support functions and related overhead. Advertising Costs The Company expenses advertising costs as incurred. Advertising costs were $462,911 in 2019, $501,615 in 2018. Software Development Costs Software development costs, are primarily costs to develop software sold, leased, or otherwise marketed, that are incurred subsequent to the establishment of technological feasibility are capitalized if significant. Capitalized software development costs are amortized using the straight-line amortization method over the estimated useful life of the applicable software. There were no capitalized software development costs in the 2019. For the year ended December 29, 2018 capitalized software development costs were $1,813,973. Stock Based Compensation The Company accounts for its stock based awards in accordance with Accounting Standards Codification subtopic 718-10, Compensation (“ASC 718-10”), which requires a fair value measurement and recognition of compensation expense for all share-based payment awards made to its employees and Directors, including employee stock options and restricted stock awards. The Company estimates the fair value of granted stock options using the Black-Scholes valuation model. This model requires the Company to make estimates and assumptions including, without limitation, estimates regarding the length of time an employee will retain vested stock options before exercising them, the estimated volatility of the Company’s common stock price and the number of options that will be forfeited prior to vesting. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Changes in these estimates and assumptions can materially affect the determination of the fair value of stock-based compensation and consequently, the related amount recognized in the Company’s consolidated statements of operations. For the year ended December 28, 2019, there were 96,000 SARs granted under the 2010 Plan. Under the terms of the Director’s Fee Program, the directors can elect to receive their Director’s fees in cash or in common shares of the Company. This election is made at the beginning of each fiscal year and remains in effect for the entire year. 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. On December, 22, 2017, SAB 118 was issued due to the complexities involved in accounting for the enacted Tax Act. SAB 118 requires the company to include in its financial statements a reasonable estimate of the impact of the Tax Act on earnings to the extent such estimate has been determined. Accordingly, the U.S. provision for income tax for 2017 was based on the reasonable estimate guidance provided by SAB 118. The company has assessed the impact from the Tax Act and recorded the impact in the fourth quarter of 2018. 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 7 Income Taxes.

GOODWILL

GOODWILL	12 Months Ended
	Dec. 28, 2019
Goodwill [Abstract]
GOODWILL	4. G oodwill The following is a roll-forward of goodwill for 2019 and 2018: Industrial Hardware Segment Security Products Segment Metal Products Segment Total 2019 Beginning balance $ 19,086,634 $ 15,753,742 $ — $ 34,840,376 Investment in Big 3 44,636,744 — — 44,636,744 Foreign exchange 40,892 — — 40,892 Ending balance $ 63,764,270 $ 15,753,742 $ — $ 79,518,012 Industrial Hardware Segment Security Products Segment Metal Products Segment Total 2018 Beginning balance $ 19,169,849 $ 13,059,042 $ — $ 32,228,891 Investment in Load N Lock — 2,694,700 — 2,694,700 Foreign exchange (83,215 ) — — (83,215 ) Ending balance $ 19,086,634 $ 15,753,742 $ — $ 34,840,376

INTANGIBLES

INTANGIBLES	12 Months Ended
	Dec. 28, 2019
INTANGIBLES [Abstract]
INTANGIBLES	5. Intangibles Trademarks are not amortized as their lives are deemed to be indefinite. Total amortization expense for each of the next five years is estimated to be as follows: 2020 - $4,082,000; 2021 - $4,062,000; 2022 - $4,055,000; 2023 - $4,055,000 and 2024 - $3,372,000. Industrial Hardware Segment Security Products Segment Metal Products Segment Total Weighted-Average Amortization Period (Years) 2019 Gross Amount Patents and developed technology $ 5,375,680 $ 1,618,950 $ — $ 6,994,630 10.2 Customer relationships 22,899,000 1,139,381 — 24,038,381 9.6 Non-compete agreements 12,000 459,570 — 471,570 1.9 Intellectual property — 307,370 — 307,370 2.0 Total Gross Intangibles $ 28,286,680 $ 3,525,271 $ — $ 31,811,951 9.5 2019 Accumulated Amortization Patents and developed technology $ 1,505,097 $ 789,056 $ — $ 2,294,153 Customer relationships 1,751,225 581,262 — 2,332,487 Non-compete agreements 800 417,032 — 417,832 Intellectual property — 307,369 — 307,369 Accumulated Amortization $ 3,257,122 $ 2,094,719 $ — $ 5,351,841 Net per Balance Sheet $ 25,029,558 $ 1,430,552 $ — $ 26,460,110 2018 Gross Amount Patents and developed technology $ 7,884,498 $ 1,648,731 $ — $ 9,533,229 10.2 Customer relationships 3,650,000 1,139,381 — 4,789,381 8.1 Non-compete agreements — 459,570 — 459,570 4.4 Intellectual property — 307,370 — 307,370 5.0 Total Gross Intangibles $ 11,534,498 $ 3,555,052 $ — $ 15,089,550 9.2 2018 Accumulated Amortization Patents and developed technology $ 2,448,380 $ 737,276 $ — $ 3,185,656 Customer relationships 638,750 408,233 — 1,046,983 Non-compete agreements — 329,296 — 329,296 Intellectual property — 245,895 — 245,895 Accumulated Amortization $ 3,087,130 $ 1,720,700 $ — $ 4,807,830 Net per Balance Sheet $ 8,447,368 $ 1,834,352 $ — $ 10,281,720

DEBT

DEBT	12 Months Ended
	Dec. 28, 2019
DEBT [Abstract]
DEBT	6. D ebt On August 30, 2019, the Company entered into the Credit Agreement with Santander Bank, N.A., for itself, People’s United Bank, National Association. and TD Bank, N.A. as lenders, that included a $100 million term portion and a $20 million revolving commitment portion. Proceeds of the term loan were used to repay the Company’s remaining outstanding term loan (and to terminate its existing credit facility) with People’s United Bank, N.A. (approximately $19 million) and to acquire Big 3 Precision. The term portion of the loan requires quarterly principal payments of $1,250,000 for an 18-month period beginning December 31, 2019. The repayment amount then increases to $1,875,000 per quarter beginning September 30, 2021 and continues through June 30, 2023. The repayment amount then increases to $2,500,000 per quarter beginning September 30, 2023 and continues through June 30, 2024. The term loan is a 5-year loan with the remaining balance due on August 30, 2024. The revolving commitment portion has an annual commitment fee of 0.25% based on the unused portion of the revolver. The revolving commitment portion has a maturity date of August 30, 2024. During 2019, the Company did not borrow any funds on the revolving commitment portion of the facility. The interest rates on the term and revolving credit portion of the Credit Agreement vary. The interest rates may vary based on the LIBOR rate plus a margin spread of 1.25% to 2.25%. The Company’s obligations under the Credit Agreement are secured by a lien on certain of the Company’s and its subsidiaries’ assets pursuant to a Pledge and Security Agreement, dated August 30, 2019 with Santander Bank, N.A., as administrative agent. The Company’s loan covenants under the Credit Agreement require the Company to maintain a senior net leverage ratio not to exceed 4.25 to 1. In addition, the Company will be required to maintain a fixed charge coverage ratio to be not less than 1.25 to 1. On August 30, 2019, the Company entered into an interest rate swap contract with Santander Bank, N.A., with an original notational amount of $50,000,000, which was equal to 50% of the outstanding balance of the term loan on that date. The Company has a fixed interest rate of 1.44% on the swap contract and will pay the difference between the fixed rate and LIBOR when LIBOR is below 1.44% and will receive interest when the LIBOR rate exceeds 1.44%. On December 28, 2019, the interest rate for half ($50 million) of the term portion was 3.44%, using a one month LIBOR rate, and 3.19% one the remaining balance ($50 million) of the term loan based on a one month LIBOR rate. The interest rates on the Credit Agreement, and interest rate swap contract are susceptible to changes to the method that LIBOR rates are determined and to the potential phasing out of LIBOR after 2021. Information regarding the potential phasing out of LIBOR is provided below. On July 27, 2017, the U.K. Financial Conduct Authority announced that it intends to stop persuading or compelling banks to submit LIBOR rates after 2021. In the United States, efforts to identify a set of alternative U.S. Dollar reference interest rates have been initiated by the Alternative Reference Rates Committee of the Federal Reserve Board and the Federal Reserve Bank of New York. At this time, it is not possible to predict whether any such changes will occur, whether LIBOR will be phased out or any such alternative reference rates or other reforms to LIBOR will be enacted in the United Kingdom, the United States or elsewhere or the effect that any such changes, phase-out, alternative reference rates or other reforms, if they occur, would have on the amount of interest paid on the Company’s LIBOR-based borrowings. Uncertainty as to the nature of such potential changes, phase-out, alternative reference rates or other reforms may materially adversely affect interest rates paid by the Company on its borrowings. Reform of, or the replacement or phasing out of, LIBOR and proposed regulation of LIBOR and other “benchmarks” may materially adversely affect the amount of interest paid on the Company’s LIBOR-based borrowings and could have a material adverse effect on the Company’s business, financial condition and results of operations. Debt consists of: 2019 2018 Term loans $ 98,765,233 $ 28,675,000 Revolving credit loan — — 98,765,233 28,675,000 Less current portion 5,187,689 2,325,000 $ 93,577,544 $ 26,350,000 1 The Company paid interest of $1,857,961 in 2019, $1,202,272 in 2018. The Company’s loan covenants under the Credit Agreement require the Company to maintain a consolidated fixed charge coverage ratio of at least 1.25 to 1, which is to be tested quarterly on a twelve-month trailing basis. In addition, the Company will be required to show a senior net leverage ratio of 4.25 to 1. The Company was in compliance with all covenants as of December 28, 2019. 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 2018 and 2019. As of December 29, 2019, scheduled annual principal maturities of long-term debt for each of the next five years follow: 2020 $ 5,187,689 2021 6,437,689 2022 7,500,000 2023 8,750,000 2024 70,889,855 Thereafter — $ 98,765,233

STOCK OPTIONS AND AWARDS

STOCK OPTIONS AND AWARDS	12 Months Ended
	Dec. 28, 2019
Stock Options and Awards [Abstract]
Stock Options and Awards	7. S tock O ptions and A wards Stock Options As of December 28, 2019, the Company had one stock option plan, The Eastern Company 2010 Executive Stock Incentive 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 Company’s common stock on the dates the stock 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. During 2019 and 2018, no stock options or restricted stock were granted that were subject to the meeting of performance measurements. For the period of 2019, the Company used several assumptions which included an expected term of 3.5 to 4 years, volatility deviation of 28.88% and 32.33% and a risk free rate of 1.42% to 2.48%. For the period of 2018, the Company used several assumptions which included an expected term of 3.5 years, volatility deviation of 29.5% and a risk free rate of 2.33%. The 2010 Plan also permits the issuance of Stock Appreciation Rights (“SARs”). The SARs are in the form of an option with a cashless exercise price equal to the difference between the fair value of the Company’s common stock at the date of grant and the fair value as of the exercise date resulting in the issuance of the Company’s common stock. During 2019, the Company issued 96,000 SARs and during 2018 51,000 SARs were issued. Stock-based compensation expense in connection with SARs granted to employees during fiscal year 2019 was $397,250 and for 2018 was $276,778. As of December 28, 2019, there were 178,500 shares of common stock reserved and available for future grant under the above noted 2010 Plan. The following tables set forth the outstanding SARs for the period specified: Year Ended December Year Ended December 29, 2018 Units Weighted - Average Exercise Price Units Weighted - Average Exercise Price Outstanding at beginning of period 189,167 $ 21.46 141,500 $ 20.36 Issued 96,000 23.65 51,000 24.90 Exercised (1,667 ) 19.10 — — Forfeited (7,500 ) 21.20 (3,333 ) 19.10 Outstanding at end of period 276,000 22.30 189,167 21.46 SARs Outstanding and Exercisable Range of Exercise Prices Outstanding as of December Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Exercisable as of December 2019 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price $ 19.10-26.30 276,000 3.3 $ 22.30 38,003 2.3 19.10 The following tables set forth the outstanding stock grants for the period specified: Year Ended December Year Ended December 29, 2018 Shares Weighted - Average Exercise Price Shares Weighted - Average Exercise Price Outstanding at beginning of period 25,000 $ — 25,000 $ — Issued — — — — Forfeited — — — — Outstanding at end of period 25,000 — 25,000 — Stock Grants Outstanding and Exercisable Range of Exercise Prices Outstanding as of December 2019 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Exercisable as of December 2019 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price $ 0.00 25,000 2.3 — — — — As of December 28, 2019, outstanding SARs and options had an intrinsic value of $2,898,945.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 28, 2019
Income Taxes [Abstract]
INCOME TAXES	8. I ncome T axes 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: 2019 2018 Property, plant and equipment $ 4,638,141 $ 2,582,792 Right of Use Asset 2,933,189 -- Intangible assets 9,236,711 4,710,052 Other 380,336 218,710 Foreign Withholding Tax 315,747 540,761 Total deferred income tax liabilities 17,504,124 8,052,315 Other postretirement benefits (239,348 ) (156,710 ) Inventories (1,422,472 ) (1,133,427 ) Allowance for doubtful accounts (123,172 ) (146,576 ) Accrued compensation (311,125 ) (200,232 ) Lease Obligation (2,933,189 ) -- Pensions (6,804,275 ) (6,127,538 ) Foreign Tax Credit (400,078 ) (167,826 ) Total deferred income tax assets (12,233,659 ) (7,932,309 ) Net deferred income tax (assets) liabilities $ 5,270,465 $ 120,006 Income before income taxes consists of: 2019 2018 Domestic $ 12,537,168 $ 12,431,889 Foreign 3,668,803 5,158,440 $ 16,205,971 $ 17,590,329 The provision for income taxes follows: 2019 2018 Current: Federal $ 2,783,481 $ 484,451 Foreign 1,001,270 753,521 State 489,921 347,199 Deferred: Federal (756,206 ) 815,858 Foreign (225,014 ) 153,726 State (353,623 ) 529,637 $ 2,939,829 $ 3,084,392 A reconciliation of income taxes computed using the U.S. federal statutory rate to that reflected in operations follows: 2019 2018 Amount Percent Amount Percent Income taxes using U.S. federal statutory rate $ 3,403,254 21 % $ 3,693,968 21 % State income taxes, net of federal benefit 117,276 1 692,698 4 Impact on Foreign Repatriation Tax Reform -- 0 (83,479 ) (1 ) Impact of foreign subsidiaries on effective tax rate (239,823 ) (2 ) (401,992 ) (2 ) Impact of New Tax Law -- 0 (507,847 ) (2 ) Impact of Research & Development tax credit (411,090 ) (3 ) (216,675 ) (1 ) Impact of manufacturers deduction on effective tax rate 0 0 0 0 Other—net 70,212 1 (92,281 ) (1 ) 2,939,829 18 % 3,084,392 18 % Total income taxes paid were $3,197,984 in 2019 and $3,741,021 in 2018. Pursuant to the SAB118, the company is allowed a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts and as such has adjusted for the finalization of the tax impacts in the fourth quarter of 2018. The change primarily related to deferred taxes. Under accounting standards (ASC 740) a deferred tax liability is not recorded for the excess of the financial reporting (book) basis over the tax basis of an investment in a foreign subsidiary if the indefinite reinvestment criteria is met. Effective for foreign earnings after December 30, 2017, if such earnings are distributed in the form of cash dividends, the Company would not be subject to additional U.S. income taxes but could be subject to foreign income and withholding taxes. A provision has not been made for additional U.S. federal and foreign taxes at December 28, 2019 on approximately $7,460,584 of undistributed earnings of foreign subsidiaries because the Company intends to reinvest these funds indefinitely. It is not practicable to estimate the unrecognized deferred tax liability for withholding taxes on these undistributed earnings. In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes. The list of changes is comprehensive. The changes include removing exceptions to incremental intraperiod tax allocation of losses and gains from different financial statement components, exceptions to the method of recognizing income taxes on interim period losses and exceptions to deferred tax liability recognition related to foreign subsidiary investments. In addition, ASU 2019-12 requires that entities recognize franchise tax based on an incremental method, requires an entity to evaluate the accounting for step-ups in the tax basis of Goodwill as inside or outside of a business combination, and removes the requirement to allocate the current and deferred tax provision among entities in standalone financial statement reporting. The ASU also now requires that an entity reflect enacted changes in tax laws in the annual effective rate, and other Codification adjustments have been made to employee stock ownership plans. For public business entities, the amendments in ASU 2019-12 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of ASU 2019-12 is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company is currently evaluating whether to early adopt ASU 2019-12 in the first interim period of 2020. A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows: 2018 Balance at beginning of year $ 299,722 $ 299,734 Increases for positions taken during the current period 137,927 0 Increases for positions taken during the prior period 2,039,117 74,219 Decreases resulting from the expiration of the statute of limitations (69,384 ) (74,231 ) Balance at end of year $ 2,407,382 $ 299,722 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 2015 and non-U.S. income tax examinations by tax authorities prior to 2013. Included in the balance at December 28, 2019, are $1,640,609 of unrecognized tax benefits that would affect the annual effective tax rate. In 2019, the Company recognized accrued interest related to unrecognized tax benefits in income tax expense. The Company had approximately $57,879 of accrued interest at December 28, 2019. 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
	Dec. 28, 2019
LEASES [Abstract]
LEASES	9. L eases The Company leases certain equipment and buildings under operating lease arrangements. Most leases are for a fixed term and for a fixed amount. 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: 2020 $ 4,721,598 2021 2,935,895 2022 1,743,488 2023 955,255 2024 647,597 $ 11,003,833 Rent expense for all operating leases was $3,106,630 in 2019 and $2,552,887 in 2018. The weighted average lease term for all operating leases is five years. The weighted average discount rate for all operating leases is 5%.

RETIREMENT BENEFIT PLANS

RETIREMENT BENEFIT PLANS	12 Months Ended
	Dec. 28, 2019
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 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. Effective for October 31, 2018, as a result of the collective bargaining agreement between the Frazer and Jones Company, Division of the Eastern Company and the International Union of Electronic, Electrical, Salaried (Machine and Furniture Workers) CWA-AFL-CIO pension accruals for the covered employees have been frozen. 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 affecting the pension costs. After consulting with our actuary, although the freezing of benefits under the Frazer and Jones Plan would normally be considered a significant event pursuant to such standard, there was no remaining unrecognized Prior Service Cost as of the date of the freeze, thus, Eastern Company did not increase the expense. In addition, the freezing of benefit accruals did not impact the pension benefit obligation. Thus there was no additional recognition required and a remeasurement was not necessary. Effective for January 1, 2018, as a result of the collective bargaining agreement between the Illinois Lock Company and the Service Employees International Union Local, 1 C.L.C. pension accruals for the covered employees have been frozen. 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 affecting the pension costs. After consulting with our actuary, the freezing of benefits under the Illinois Lock Plan was considered a significant event pursuant to such standard. As a result, the Company expensed the previously unrecognized Prior Service Cost. The Eastern Company increased the expense by $14,928. The freezing of benefit accruals did not impact the pension benefit obligation. The additional recognition occurred as of the beginning of the fiscal year; thus, a remeasurement was not necessary. Components of the net periodic benefit cost of the Company’s pension benefit plans for the fiscal year indicated were as follows: 2019 2018 Service cost $ 1,055,410 $ 1,319,841 Interest cost 3,510,618 3,107,164 Expected return on plan assets (4,761,320 ) (5,219,515 ) Amortization of prior service cost 99,380 114,822 Amortization of the net loss 1,162,196 1,110,111 Net periodic benefit cost $ 1,071,984 $ 432,423 Assumptions used to determine net periodic benefit cost for the Company’s pension benefit plans for the fiscal year indicated were as follows: 2019 2018 Discount rate - Pension plans 4.20% - 3.54% - 3.57% - Supplemental pension plans 3.81% 3.10% Expected return on plan assets 7.5% 7.5% Rate of compensation increase 0% 0% Components of the net periodic benefit cost of the Company’s other postretirement benefit plan were as follows: 2019 2018 Service cost $ 33,287 $ 37,024 Interest cost 56,755 77,161 Expected return on plan assets (28,033 ) (55,650 ) Amortization of prior service cost (5,072 ) (5,072 ) Amortization of the net loss (47,272 ) (65,591 ) Net periodic benefit cost $ 9,665 $ (12,128 ) Assumptions used to determine net periodic benefit cost for the Company’s other postretirement plan for the fiscal year indicated were as follows: 2019 2018 Discount rate 4.26% 3.60% Expected return on plan assets 4.0% 4.0% As of December 28, 2019 and December 29, 2018, the status of the Company’s pension benefit plans and other postretirement benefit plan was as follows: Pension Benefit Other Postretirement Benefit 2019 2018 2019 2018 Benefit obligation at beginning of year $ 91,533,200 $ 98,522,201 $ 2,096,761 $ 2,423,410 Change in discount rate 12,313,831 (8,319,874 ) 239,138 (217,539 ) Service cost 1,055,410 1,319,841 33,287 37,024 Interest cost 3,516,318 3,107,164 56,755 77,161 Actuarial (gain)/loss (1,508,935 ) 531,799 77,813 (89,664 ) Significant Event -- -- (902,719 ) -- Benefits paid (3,918,781 ) (3,627,931 ) (35,016 ) (133,631 ) Benefit obligation at end of year $ 102,991,043 $ 91,533,200 $ 1,566,019 $ 2,096,761 2019 2018 2019 2018 Fair value of plan assets at beginning of year $ 66,170,875 $ 72,098,772 $ 1,448,126 $ 1,391,239 Actual return on plan assets 11,803,359 (4,827,641 ) 13,466 56,887 Employer contributions 304,105 2,527,675 35,016 133,631 Significant Event -- -- (902,719 ) -- Benefits paid (3,918,781 ) (3,627,931 ) (35,016 ) (133,631 ) Fair value of plan assets at end of year $ 74,359,558 $ 66,170,875 $ 558,873 $ 1,448,126 Pension Benefit Other Postretirement Benefit Funded Status 2019 2018 2019 2018 Net amount recognized in the balance sheet $ (28,631,485 ) $ (25,362,325 ) $ (1,007,146 ) $ (648,635 ) Amounts recognized in accumulated other comprehensive income consist of: Pension Benefit Other Postretirement Benefit 2019 2018 2019 2018 Net (loss)/gain $ (36,315,245 ) $ (33,714,584 ) $ 499,701 $ 1,332,634 Prior service (cost) credit (265,012 ) (364,392 ) 8,253 13,325 $ (36,580,257 ) $ (34,078,976 ) $ 507,954 $ 1,345,959 Change in the components of accumulated other comprehensive income consist of: Pension Benefit Other Postretirement Benefit 2019 2018 2019 2018 Balance at beginning of period $ (34,078,976 ) $ (33,059,756 ) $ 1,345,959 $ 1,108,182 Change due to availability of final actual assets and census data --- --- -- -- Charged to net periodic benefit cost Prior service cost 99,380 114,822 (5,072 ) (5,072 ) Net loss (gain) 1,162,196 1,110,111 (47,272 ) (65,591 ) Liability (gains)/losses Discount rate (12,313,831 ) 8,319,874 (239,138 ) 217,539 Asset (gains)/losses deferred 7,724,649 (9,531,647 ) (14,567 ) 1,237 Significant Event -- -- (454,143 ) -- Additional recognition due to plan amendment -- 14,928 — — Other 826,325 (1,047,308 ) (77,813 ) 89,664 Balance at end of period $ (36,580,257 ) $ (34,078,976 ) $ 507,954 $ 1,345,959 In 2019, the net periodic pension benefit cost included $1,300,134 of net loss and $99,380 of prior service cost and the net periodic other postretirement benefit cost included $25,509 of net gain and $5,072 of prior service credit. During 2019, the Company bought out certain Retiree Life Insurance benefits for a gain of $454,143. Assumptions used to determine the projected benefit obligations for the Company’s pension benefit plans and other postretirement benefit plan for the fiscal year indicated were as follows: 2019 2018 Discount rate - Pension plans 3.18% - 4.20% - 4.22% - Supplemental pension plans 2.61% 3.81% - Other postretirement plan 3.35% 4.26% At December 28, 2019 and December 29 2018, the accumulated benefit obligation for all qualified and nonqualified defined benefit pension plans was $102,991,053 and $91,533,200, respectively. Information for the under-funded pension plans with a projected benefit obligation and an accumulated benefit obligation in excess of plan assets: 2019 2018 Number of plans 5 5 Projected benefit obligation $ 102,991,043 $ 91,533,200 Accumulated benefit obligation 102,991,043 91,533,200 Fair value of plan assets 74,359,558 66,170,875 Net amount recognized in accrued benefit liability (28,631,485 ) (25,362,325 ) Estimated future benefit payments to participants of the Company’s pension plans are $4.3 million in 2020, $4.5 million in 2021, $4.7 million in 2022, $4.9 million in 2023, $5.1 million in 2024 and a total of $28.0 million from 2025 through 2029. Estimated future benefit payments to participants of the Company’s other postretirement plan are $50,000 in 2020, $49,000 in 2021, $50,000 in 2022, $51,000 in 2023, $52,000 in 2024 and a total of $293,000 from 2025 through 2029. The Company expects to make cash contributions to its qualified pension plans of approximately $2,700,000 and to its other postretirement plan of approximately $50,000 in 2020. 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. In 2019, as in 2018, we developed each plan’s discount rate with the assistance of our actuaries by matching expected future benefit payments in each year to the corresponding spot rates from the FTSE 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 December 28, 2019 and December 29, 2018, utilizing the fair value hierarchy discussed in Note 2, follow: December Level Level Level Total Cash and Equivalents: Common/collective trust funds $ — $ 334,138 $ — $ 334,138 Equities: The Eastern Company Common Stock 6,625,560 — 6,625,560 Common/collective trust funds Russell Multi Asset Core Plus Fund (a) — 33,413,819 — 33,413,819 Fixed Income: Common/collective trust funds Target Duration LDI Fixed Income Funds (b) • Russell 8 Year LDI Fixed Income Fund — 12,796,482 — 12,796,482 • Russell 14 Year LDI Fixed Income Fund — 11,387,626 — 11,387,626 STRIPS Fixed Income Funds (c) • Russell 15 Year STRIPS Fixed Income Fund — 3,050,389 — 3,050,389 • Russell 10 Year STRIPS Fixed Income Fund — 4,616,924 — 4,616,924 • Russell 28 to 29 Year STRIPS Fixed Income Fund — 2,134,620 — 2,134,620 Total $ 6,625,560 $ 67,733,998 $ — $ 74,359,558 December 29, 2018 Level 1 Level 2 Level 3 Total Cash and Equivalents: Common/collective trust funds $ — $ 306,882 $ — $ 306,882 Equities: The Eastern Company Common Stock 5,247,495 — 5,247,495 Common/collective trust funds Russell Multi Asset Core Plus Fund (a) — 30,611,519 — 30,611,519 Fixed Income: Common/collective trust funds Target Duration LDI Fixed Income Funds (b) • Russell 8 Year LDI Fixed Income Fund — 5,735,993 — 5,735,993 • Russell 14 Year LDI Fixed Income Fund — 17,044,596 — 17,044,596 STRIPS Fixed Income Funds (c) • Russell 15 Year STRIPS Fixed Income Fund — 1,811,436 — 1,811,436 • Russell 10 Year STRIPS Fixed Income Fund — 3,408,879 — 3,408,879 • Russell 28 to 29 Year STRIPS Fixed Income Fund — 2,004,075 — 2,004,075 Total $ 5,247,495 $ 60,923,380 $ — $ 66,170,875 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 RITC (formerly Russell) Multi-Asset Core Plus Fund seeks to provide long-term growth of capital over a market cycle by offering a diversified portfolio of funds and separate accounts investing in global stock, return seeking fixed income, commodities, global real estate and opportunistic investments. They hold a dynamic mix of underlying Russell Investments funds and/or separate accounts. Russell Investments is a strong proponent of disciplined strategic asset allocation and rebalancing strategies, and believes that unstable movements in the market have the potential to create opportunities. By identifying short-term mispricing, and making small tactical adjustments to the Multi-Asset Core Plus Fund, they believe there is potential to enhance returns while continuing to manage risks. (b) The Target Duration LDI Fixed Income Funds seek to outperform their respective Barclays-Russell LDI Indexes over a full market cycle. These Funds invest primarily in investment grade corporate bonds that closely match those found in discount curves used to value U.S. pension liabilities. They seek to provide additional incremental return through modest interest rate timing, security selection and tactical use of non-credit sectors. Generally, for use in combination with other bond funds to gain additional credit exposure, with the goal of reducing the mismatch between a plan’s assets and liabilities. (c) The STRIPS (Separate Trading of Registered Interest and Principal of Securities) Funds seek to provide duration and Treasury exposure by investing in an optimized subset of the STRIPS universe with a similar duration profile as the Barclays U.S. Treasury STRIPS 10-11 year, 16-16 year or 28-29 year Index. These passively managed funds are generally used with other bond funds to add additional duration to the asset portfolio. This will help reduce 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 217,018 shares of the common stock of the Company having a market value of $6,625,560 and $5,247,495 at December 28, 2019 and December 29, 2018, respectively. No shares were purchased in 2019 or 2018 nor were and shares sold in either period. Dividends received during 2019 and 2018 on the common stock of the Company were $95,488 and $95,488 respectively. U.S. salaried and non-union hourly 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. 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. 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 (the “transitional credit”) 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. The 401(k) Plan Amendment increased the non-discretionary safe harbor contribution to 3%, and changed the eligibility to all non-union U.S. employees. The Company made contributions to the plan as follows: 2019 2018 Regular matching contributions $ 540,693 $ 551,046 Transitional credit contributions 305,226 349,062 Non-discretionary contributions 638,745 578,373 Total contributions made for the period $ 1,484,664 $ 1,478,481 At December 28, 2019, the Company had accrued $550,286 for the non-discretionary safe harbor contribution this amount was expensed in 2019 and was contributed to the plan in January 2020. At December 29, 2018, the Company had accrued $565,748 for the non-discretionary safe harbor contribution. This amount was contributed to the Plan in January 2019 and was expensed in 2018.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 28, 2019
Earning Per Share [Abstract]
Earning Per Share	11. Earnings per Share The denominators used in the earnings per share computations follow: 2019 2018 Basic: Weighted average shares outstanding 6,235,098 6,258,277 Diluted: Weighted average shares outstanding 6,235,098 6,258,277 Dilutive stock options 34,910 15,697 Denominator for diluted earnings per share 6,270,008 6,273,974 There were no anti-dilutive stock equivalents in 2019 or 2018.

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS	12 Months Ended
	Dec. 28, 2019
REPORTABLE SEGMENTS [Abstract]
REPORTABLE SEGMENTS	12. Reportable Segments 2019 2018 Sales: Sales to unaffiliated customers: Industrial Hardware $ 164,505,888 $ 140,293,409 Security Products 58,324,085 64,897,871 Metal Products 28,912,646 29,084,183 $ 251,742,619 $ 234,275,463 Inter-segment Sales: Industrial Hardware $ 61,557 $ 366,381 Security Products 3,382,791 3,365,695 Metal Products 11,731 13,421 $ 3,456,079 $ 3,745,497 Income Before Income Taxes: Industrial Hardware $ 11,067,011 $ 9,588,185 Security Products 5,389,612 7,122,640 Metal Products 1,001,231 1,148,516 Operating Profit 17,457,854 17,859,341 Interest expense (1,857,961 ) (1,202,272 ) Other income 606,078 933,260 $ 16,205,971 $ 17,590,329 Geographic Information: Net Sales: United States $ 230,920,619 $ 207,789,058 Foreign 20,822,000 26,486,405 $ 251,742,619 $ 234,275,463 Foreign sales are primarily to customers in North America. Identifiable Assets: United States $ 263,295,787 $ 166,665,767 Foreign 17,367,189 14,581,800 $ 280,662,976 $ 181,247,567 Industrial Hardware $ 66,008,663 $ 47,600,805 Security Products 54,804,360 54,593,837 Metal Products 19,439,404 19,909,256 140,252,427 122,103,898 General corporate 140,410,549 59,143,669 $ 280,662,976 $ 181,247,567 2019 2018 Depreciation and Amortization: Industrial Hardware $ 4,015,017 $ 2,978,324 Security Products 1,281,008 1,135,811 Metal Products 1,158,856 1,215,073 $ 6,454,881 $ 5,329,208 Capital Expenditures: Industrial Hardware $ 3,603,863 $ 3,029,406 Security Products 935,722 1,482,267 Metal Products 897,573 901,400 5,437,158 5,413,073 Currency translation adjustment 3,330 (9,014 ) General corporate — 6,486 $ 5,440,488 $ 5,410,545

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	12 Months Ended
	Dec. 28, 2019
RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	13. Recent Accounting Pronouncements Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (“Topic 842”). 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 at the beginning of the earliest comparative period in the financial statements and is effective for years beginning after December 15, 2018. Early adoption was permitted. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842 - Leases. ASU 2018-10 clarifies and increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. The guidance is to be applied upon adoption of Topic 842 and is effective for years beginning after December 15, 2018. Also in July 2018, the FASB issued ASU No. 2018-11, Leases. ASU 2018-11 provides clarification and an additional (and optional) transition method to adopt the new leases standard. The guidance is to be applied upon adoption of Topic 842 and is effective for years beginning after December 15, 2018. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements. ASU No. 2019-01 aligns the new leases guidance with existing guidance for the fair value of the underlying asset by lessors that are not manufacturers or dealers and clarifies an exemption for lessors and lessees from a certain interim disclosure requirement associated with adopting the FASB’s new lease accounting standard. The guidance is to be applied upon adoption of Topic 842 and is effective for years beginning after December 15, 2018. See Note 3 – Right-of-Use Assets. Upcoming In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. Early adoption of the amendments is permitted. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of this amendment will not have a material impact 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.

CONTINGENCIES

CONTINGENCIES	12 Months Ended
	Dec. 28, 2019
CONTINGENCIES [Abstract]
CONTINGENCIES	14. C ontingencies The Company is party to various legal proceedings from time to time related to its normal business operations. Currently, the Company is not involved in any legal proceedings. In 2010, the Company was contacted by the State of Illinois regarding potential ground contamination at its plant in Wheeling, Illinois. The Company entered into a voluntary remediation program in Illinois and engaged an environmental clean-up company to perform testing and develop a remediation plan. Since 2010, the environmental company completed a number of tests and the design of a final remediation system was approved in the second quarter of 2018. As of the end of the of 2019, the remediation plan was completed. The State of Illinois has received the documentation related to the remediation and is in the process of approving the final documentation. The total estimated cost for the remediation system is anticipated to be approximately $50,000, which the Company previously accrued for and expensed in prior years. In 2016, the Company created a plan to remediate a landfill of spent foundry sand maintained at the Company’s metal casting facility in New York. This plan was agreed to by the New York Department of Environmental Conservation (the “DEC”) on March 27, 2018. Based on estimates provided by the Company’s environmental engineers, the anticipated cost to remediate and monitor the landfill was $430,000. The Company accrued for and expensed the entire $430,000 in the first quarter of 2018 and fiscal 2017. In the Fall of 2018, detailed construction drawings were prepared by an outside consultant in conjunction with informal progress reviews by the New York State Department of Environmental Conservation (the “NYSDEC”). Long-term groundwater monitoring commenced in April of 2019. Verbal approval for the closure plan was received from the NYSDEC in May of 2019. Written approval is anticipated in the first quarter of 2020. Construction of the closure remedies, including improved drainage system, regrading, and installation of a low permeability cap, is anticipated in spring of 2020. In the Summer of 2020, following the completion of construction work, a closure report and maintenance plan will be prepared for the NYSDEC. This closure report and maintenance plan will document the work done and request acknowledgment of satisfactory completion of the Order on Consent between Frazer and Jones, and the NYSDEC.

CONCENTRATION OF RISK

CONCENTRATION OF RISK	12 Months Ended
	Dec. 28, 2019
CONCENTRATION OF RISK [Abstract]
CONCENTRATION OF RISK	15. Concentration of risk 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 accounts receivable due from customers. The Company has established credit limits for customers and monitors their balances to mitigate the risk of loss. As of December 28, 2019 and December 29, 2018, there were no significant concentrations of credit risk. One customer exceeded 10% of total accounts receivable for 2019. No customer exceeded 10% of total accounts receivable for 2018. The maximum exposure to credit risk is primarily represented by the carrying amount of the Company’s accounts receivable. Interest Rate Risk The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt, which bears interest at variable rates based on the LIBOR rate plus a margin spread of 1.25% to 2.25%. The Company has an interest rate swap with a notional amount of $50,000,000 on December 28, 2019 to convert a portion of its 2019 Credit Agreement from variable to fixed rates. The valuation of this swap is determined using the three month LIBOR rate index and mitigates the Company’s exposure to interest rate risk. Additionally, interest rates on the Company’s debt are susceptible to changes to the method that LIBOR rates are determined and to the potential phasing out of LIBOR after 2021. More information regarding the potential phasing out of LIBOR is discussed in greater detail under Note 7 to Consolidated Financial Statements. Currency Exchange Rate Risk The Company’s currency exposure is concentrated in the Canadian dollar, Mexican peso, New Taiwan dollar, Chinese RMB, Hong Kong dollar and United Kingdom pound sterling. 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.

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying accounts	12 Months Ended
	Dec. 28, 2019
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 of Period (1) Charged to Costs and Expenses (2) Charged to Other Accounts-Describe Deductions – Describe Balance at End of Period Fiscal year ended December 28, 2019: Deducted from asset accounts: Allowance for doubtful accounts $ 680,000 $ 202,000 $ 78,000 (b) $ 0 (a) $ 556,000 Fiscal year ended December 29, 2018: Deducted from asset accounts: Allowance for doubtful accounts $ 470,000 $ 220,000 $ 0 $ 10,000 (a) $ 680,000 (a) Uncollectible accounts written off, net of recoveries. (b) Acquired company opening balance.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 28, 2019
ACCOUNTING POLICIES [Abstract]
Fiscal Year	Fiscal Year The Company’s year ends on the Saturday nearest to December 31. Fiscal years, 2019 and 2018, were 52 weeks each.
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.
Reclassification	Reclassification Commencing with the first quarter of 2018, pension service costs have been broken out and reclassified from the gains and losses associated with the pension assets. The reclassification of these expenses does not affect the net income reported. Product development expense is not necessarily a cost of product sold. Rather, these expenses are related to product development. The reclassification of these expenses does not affect the net income reported.
Use of Estimates	Use of Estimates 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. On an ongoing basis the Company evaluates its estimates, including those related to product returns, bad debts, carrying value of inventories, intangible and other long-lived assets, income taxes, pensions and other postretirement benefits. Actual results could differ from those estimates.
Foreign Currency	Foreign Currency For foreign operations asset and liability accounts are translated with an exchange rate at the respective balance sheet dates; income statement accounts are translated at the average exchange rate for the years. 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.
Cash Equivalents	Cash Equivalents 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. Approximately 50% of available cash is located outside of the United States in our foreign subsidiaries.
Accounts Receivable	Accounts Receivable Accounts receivable are stated at their net realizable value. 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 collectability 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.
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined by the last-in, first-out (LIFO) method in the U.S. ($31,011,130 for U.S. inventories at December 28, 2019, excluding Big 3 and Velvac) and by the first-in, first-out (FIFO) method for inventories outside the U.S. ($7,295,793 for inventories outside the U.S. at December 28, 2019). Cost exceeds the LIFO carrying value by approximately $6,712,162 at December 28, 2019 and $6,957,972 at December 29, 2018. There was no material LIFO quantity liquidation in 2019 or 2018. In addition, as of the balance sheet dates, the Company has recorded reserves for excess/obsolete inventory.
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 ($4,722,758 in 2019, $4,329,136 in 2018) 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. Impairment of Long-Lived Assets In accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long Lived Assets,
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets In accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long Lived Assets,
Goodwill	Goodwill The Company performed qualitative assessments of goodwill as of the end of fiscal 2019 and fiscal 2018 and determined it is more likely than not that no impairment of goodwill existed at the end of 2019 or 2018. 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 would be considered impaired whenever the historical carrying amount exceeds the fair value. Pursuant to the qualitative assessment performed, goodwill was not impaired in 2019 or 2018. 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 that could occur is the amount recognized on our balance sheet.
Intangible Assets	Intangible 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. Generally, non-compete agreements and customer relationships are being amortized using the straight-line method over a period of 5 years. Amortization expense in 2019 and 2018 was $1,726,539 and $1,452,084, respectively. In the event that facts and circumstances indicate that the carrying value of the intangible assets, including definite life intangible assets, may be impaired, an evaluation is performed to determine if a write-down is required.
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 Company’s financial instruments are primarily investments in pension assets, see footnote 11, and consists of an interest rate swap. The Company’s interest rate swap is not an exchange-traded instrument. However, it is valued based on observable inputs for similar liabilities and accordingly is classified as Level 2. The amount of the interest rate swap is included in other accrued liabilities. The carrying amounts of other financial instruments (cash and cash equivalents, accounts receivable, accounts payable and debt) as of December 28, 2019 and December 29, 2018, approximate fair value based on the expected future cash flows of the related instruments.
Right of Use Assets	Right of Use Assets In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (“Topic 842”). ASU 2016-02 requires lessees to present right-of-use (“ROU”) assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. See Note 13 – Recent Accounting Pronouncements. In calculating the effect of ASU 2016-02, the Company elected the transition method thereby not restating comparable periods. The Company elected to account for non-lease components as part of the lease component to which they relate. Lease accounting involves significant judgments, including making estimates related to the lease term, lease payments, and discount rate. In accordance with the guidance, the Company recognized ROU assets and lease liabilities for all leases with a term greater than 12 months. The Company has operating leases for buildings, warehouses and office equipment. Currently, the Company has 45 operating leases with a ROU asset and lease liability totaling $12,342,000 as of December 28, 2019. The basis, terms and conditions of the leases are determined by the individual agreements. The Company’s option to extend certain leases ranges from 12 – 140 months. All options to extend have been included in the calculation of the ROU asset and lease liability. The leases do not contain residual value guarantees, restrictions, or covenants that could incur additional financial obligations to the Company. There are no subleases, sale-leaseback, or related party transactions.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with ASC 606 when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company generates wholesale revenues primarily from the sale of products to original equipment manufacturers and distributers in the United States. The Company recognizes revenue upon shipment or transfer of title to the customer as that is when the customer obtains control of the promised goods. The Company typically extends credit terms to its customers based on their creditworthiness and generally does not receive advance payments. As such, the Company records accounts receivable at the time of shipment, when the Company’s right to the consideration becomes unconditional. Accounts receivable from the Company’s customers are typically due within 30 days of invoicing. An allowance for doubtful accounts is provided based on a periodic analysis of individual account balances, including an evaluation of days outstanding, payment history, recent payment trends and the Company’s assessment of the customer’s credit worthiness. As of December 28, 2019 and December 29, 2018, the Company’s allowance for doubtful accounts total was $556,000 and $680,000, respectively. As of December 28, 2019 and December 29, 2018, the Company’s bad debt expense was $64,000 and $220,000, respectively. The Company considers several factors in determining that control transfers to the customer upon shipment of products. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risk and rewards of ownership at the time of shipment. Big 3 Mold division may employ the efforts expended method for the percentage of completion for revenue recognition for certain transactions. The efforts expended method calculates the proportion of effort expended to date in comparison to the total effort expected to be expended for the contract. The amount of revenue recognized employing the percentage of completion method was $576,000 for the year ended December 28, 2019. No revenue was recognized employing the percentage of completion method for the year ended December 29, 2018. Based on historical experience, the Company does not accrue a reserve for product returns. For the years ended December 28, 2019 and December 29, 2018, the Company recorded sales returns of $613,000 and $725,000, respectively, as a reduction of revenue. Greenwald Industries generates subscription services revenue from access provided to customers to the division’s specific online databases. For the years ended December 28, 2019 and December 29, 2018, Greenwald Industries subscription services revenue was $567,000 and $448,000, respectively. Sales and similar taxes that are imposed on the Company’s sales and collected from the customer are excluded from revenues. Costs for shipping and handling activities, including those activities that occur subsequent to transfer of control to the customer, are recorded as cost of sales and are expensed as incurred. For the years ended December 28, 2019 and December 29, 2018, the Company recorded no revenues related to performance obligations satisfied in prior periods. As part of the Company’s adoption of the new revenue standard, the Company has elected to use the practical expedient to exclude disclosure of transaction prices allocated to remaining performance obligations, and when the Company expects to recognize such revenue, for all periods prior to the date of initial application of the standard. There was no subscription services revenue from remaining performance obligations as of December 28, 2019. See footnote 12 regarding the Company’s revenue disaggregated by reporting segment, intersegment sales by reporting segment and geography.
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.
Product Development Costs	Product Development Costs Product development costs, charged to expense as incurred, were $6,024,567 in 2019, $6,950,969 in 2018.
Selling and Administrative Expenses	Selling and Administrative Expenses Selling 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 administrative expenses for support functions and related overhead.
Advertising Costs	Advertising Costs The Company expenses advertising costs as incurred. Advertising costs were $462,911 in 2019, $501,615 in 2018.
Software Development Costs	Software Development Costs Software development costs, are primarily costs to develop software sold, leased, or otherwise marketed, that are incurred subsequent to the establishment of technological feasibility are capitalized if significant. Capitalized software development costs are amortized using the straight-line amortization method over the estimated useful life of the applicable software. There were no capitalized software development costs in the 2019. For the year ended December 29, 2018 capitalized software development costs were $1,813,973.
Stock Based Compensation	Stock Based Compensation The Company accounts for its stock based awards in accordance with Accounting Standards Codification subtopic 718-10, Compensation (“ASC 718-10”), which requires a fair value measurement and recognition of compensation expense for all share-based payment awards made to its employees and Directors, including employee stock options and restricted stock awards. The Company estimates the fair value of granted stock options using the Black-Scholes valuation model. This model requires the Company to make estimates and assumptions including, without limitation, estimates regarding the length of time an employee will retain vested stock options before exercising them, the estimated volatility of the Company’s common stock price and the number of options that will be forfeited prior to vesting. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Changes in these estimates and assumptions can materially affect the determination of the fair value of stock-based compensation and consequently, the related amount recognized in the Company’s consolidated statements of operations. For the year ended December 28, 2019, there were 96,000 SARs granted under the 2010 Plan. Under the terms of the Director’s Fee Program, the directors can elect to receive their Director’s fees in cash or in common shares of the Company. This election is made at the beginning of each fiscal year and remains in effect for the entire year.
Income Taxes	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. On December, 22, 2017, SAB 118 was issued due to the complexities involved in accounting for the enacted Tax Act. SAB 118 requires the company to include in its financial statements a reasonable estimate of the impact of the Tax Act on earnings to the extent such estimate has been determined. Accordingly, the U.S. provision for income tax for 2017 was based on the reasonable estimate guidance provided by SAB 118. The company has assessed the impact from the Tax Act and recorded the impact in the fourth quarter of 2018. 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 7 Income Taxes.

BUSINESS ACQUISITIONS (Tables)

BUSINESS ACQUISITIONS (Tables)	12 Months Ended
	Dec. 28, 2019
BUSINESS ACQUISITIONS [Abstract]
Intangible Assets	In connection with the above acquisition, the Company recorded the following intangible assets: Asset Class/Description Amount Weighted-average Life in Years Patents, technology, and licenses Customer relationships $ 689,675 8.3 Intellectual property 586,762 8.3 Non-compete agreements 52,570 8.3 $ 1,329,007 8.3
Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the consideration paid for Big 3 Precision and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date, as well as the fair value at the acquisition date. At August 30, 2019: Consideration Cash $ 338,714 Cash proceeds from debt 80,817,039 $ 81,155,753 Recognized amounts of identifiable assets acquired and liabilities assumed Accounts receivable $ 13,649,937 Inventory 3,240,382 Prepaid and other assets 32,268 Property plant and equipment 13,770,170 Other noncurrent assets 1,337,337 Other intangible assets 21,054,000 Current liabilities (4,910,384 ) Deferred revenue (1,585,709 ) Income tax payable (2,039,117 ) Note payable (375,379 ) Deferred tax liabilities (7,114,732 ) Total identifiable net assets 37,058,773 Goodwill 44,096,980 $ 81,155,753

GOODWILL (Tables)

GOODWILL (Tables)	12 Months Ended
	Dec. 28, 2019
Goodwill [Abstract]
Roll-forward of Goodwill	The following is a roll-forward of goodwill for 2019 and 2018: Industrial Hardware Segment Security Products Segment Metal Products Segment Total 2019 Beginning balance $ 19,086,634 $ 15,753,742 $ — $ 34,840,376 Investment in Big 3 44,636,744 — — 44,636,744 Foreign exchange 40,892 — — 40,892 Ending balance $ 63,764,270 $ 15,753,742 $ — $ 79,518,012 Industrial Hardware Segment Security Products Segment Metal Products Segment Total 2018 Beginning balance $ 19,169,849 $ 13,059,042 $ — $ 32,228,891 Investment in Load N Lock — 2,694,700 — 2,694,700 Foreign exchange (83,215 ) — — (83,215 ) Ending balance $ 19,086,634 $ 15,753,742 $ — $ 34,840,376

INTANGIBLES (Tables)

INTANGIBLES (Tables)	12 Months Ended
	Dec. 28, 2019
INTANGIBLES [Abstract]
Gross Carrying Amount and Accumulated Amortization of Amortizable Intangible Assets	Industrial Hardware Segment Security Products Segment Metal Products Segment Total Weighted-Average Amortization Period (Years) 2019 Gross Amount Patents and developed technology $ 5,375,680 $ 1,618,950 $ — $ 6,994,630 10.2 Customer relationships 22,899,000 1,139,381 — 24,038,381 9.6 Non-compete agreements 12,000 459,570 — 471,570 1.9 Intellectual property — 307,370 — 307,370 2.0 Total Gross Intangibles $ 28,286,680 $ 3,525,271 $ — $ 31,811,951 9.5 2019 Accumulated Amortization Patents and developed technology $ 1,505,097 $ 789,056 $ — $ 2,294,153 Customer relationships 1,751,225 581,262 — 2,332,487 Non-compete agreements 800 417,032 — 417,832 Intellectual property — 307,369 — 307,369 Accumulated Amortization $ 3,257,122 $ 2,094,719 $ — $ 5,351,841 Net per Balance Sheet $ 25,029,558 $ 1,430,552 $ — $ 26,460,110 2018 Gross Amount Patents and developed technology $ 7,884,498 $ 1,648,731 $ — $ 9,533,229 10.2 Customer relationships 3,650,000 1,139,381 — 4,789,381 8.1 Non-compete agreements — 459,570 — 459,570 4.4 Intellectual property — 307,370 — 307,370 5.0 Total Gross Intangibles $ 11,534,498 $ 3,555,052 $ — $ 15,089,550 9.2 2018 Accumulated Amortization Patents and developed technology $ 2,448,380 $ 737,276 $ — $ 3,185,656 Customer relationships 638,750 408,233 — 1,046,983 Non-compete agreements — 329,296 — 329,296 Intellectual property — 245,895 — 245,895 Accumulated Amortization $ 3,087,130 $ 1,720,700 $ — $ 4,807,830 Net per Balance Sheet $ 8,447,368 $ 1,834,352 $ — $ 10,281,720

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 28, 2019
DEBT [Abstract]
Debt	Debt consists of: 2019 2018 Term loans $ 98,765,233 $ 28,675,000 Revolving credit loan — — 98,765,233 28,675,000 Less current portion 5,187,689 2,325,000 $ 93,577,544 $ 26,350,000
Annual Principal Maturities of Long-Term Debt	As of December 29, 2019, scheduled annual principal maturities of long-term debt for each of the next five years follow: 2020 $ 5,187,689 2021 6,437,689 2022 7,500,000 2023 8,750,000 2024 70,889,855 Thereafter — $ 98,765,233

STOCK OPTIONS AND AWARDS (Table

STOCK OPTIONS AND AWARDS (Tables)	12 Months Ended
	Dec. 28, 2019
Stock Options and Awards [Abstract]
Stock Appreciation Rights Activity	The following tables set forth the outstanding SARs for the period specified: Year Ended December Year Ended December 29, 2018 Units Weighted - Average Exercise Price Units Weighted - Average Exercise Price Outstanding at beginning of period 189,167 $ 21.46 141,500 $ 20.36 Issued 96,000 23.65 51,000 24.90 Exercised (1,667 ) 19.10 — — Forfeited (7,500 ) 21.20 (3,333 ) 19.10 Outstanding at end of period 276,000 22.30 189,167 21.46
SARs Outstanding and Exercisable	SARs Outstanding and Exercisable Range of Exercise Prices Outstanding as of December Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Exercisable as of December 2019 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price $ 19.10-26.30 276,000 3.3 $ 22.30 38,003 2.3 19.10
Stock Option Activity	The following tables set forth the outstanding stock grants for the period specified: Year Ended December Year Ended December 29, 2018 Shares Weighted - Average Exercise Price Shares Weighted - Average Exercise Price Outstanding at beginning of period 25,000 $ — 25,000 $ — Issued — — — — Forfeited — — — — Outstanding at end of period 25,000 — 25,000 —
Stock Grants Outstanding and Exercisable	Stock Grants Outstanding and Exercisable Range of Exercise Prices Outstanding as of December 2019 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Exercisable as of December 2019 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price $ 0.00 25,000 2.3 — — — —

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 28, 2019
Income Taxes [Abstract]
Deferred Income Tax (Assets) Liabilities	Deferred income tax (assets) liabilities relate to: 2019 2018 Property, plant and equipment $ 4,638,141 $ 2,582,792 Right of Use Asset 2,933,189 -- Intangible assets 9,236,711 4,710,052 Other 380,336 218,710 Foreign Withholding Tax 315,747 540,761 Total deferred income tax liabilities 17,504,124 8,052,315 Other postretirement benefits (239,348 ) (156,710 ) Inventories (1,422,472 ) (1,133,427 ) Allowance for doubtful accounts (123,172 ) (146,576 ) Accrued compensation (311,125 ) (200,232 ) Lease Obligation (2,933,189 ) -- Pensions (6,804,275 ) (6,127,538 ) Foreign Tax Credit (400,078 ) (167,826 ) Total deferred income tax assets (12,233,659 ) (7,932,309 ) Net deferred income tax (assets) liabilities $ 5,270,465 $ 120,006
Income Before Income Taxes	Income before income taxes consists of: 2019 2018 Domestic $ 12,537,168 $ 12,431,889 Foreign 3,668,803 5,158,440 $ 16,205,971 $ 17,590,329
Provision for Income Taxes	The provision for income taxes follows: 2019 2018 Current: Federal $ 2,783,481 $ 484,451 Foreign 1,001,270 753,521 State 489,921 347,199 Deferred: Federal (756,206 ) 815,858 Foreign (225,014 ) 153,726 State (353,623 ) 529,637 $ 2,939,829 $ 3,084,392
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: 2019 2018 Amount Percent Amount Percent Income taxes using U.S. federal statutory rate $ 3,403,254 21 % $ 3,693,968 21 % State income taxes, net of federal benefit 117,276 1 692,698 4 Impact on Foreign Repatriation Tax Reform -- 0 (83,479 ) (1 ) Impact of foreign subsidiaries on effective tax rate (239,823 ) (2 ) (401,992 ) (2 ) Impact of New Tax Law -- 0 (507,847 ) (2 ) Impact of Research & Development tax credit (411,090 ) (3 ) (216,675 ) (1 ) Impact of manufacturers deduction on effective tax rate 0 0 0 0 Other—net 70,212 1 (92,281 ) (1 ) 2,939,829 18 % 3,084,392 18 %
Reconciliation of Unrecognized Tax Benefits	A reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows: 2018 Balance at beginning of year $ 299,722 $ 299,734 Increases for positions taken during the current period 137,927 0 Increases for positions taken during the prior period 2,039,117 74,219 Decreases resulting from the expiration of the statute of limitations (69,384 ) (74,231 ) Balance at end of year $ 2,407,382 $ 299,722

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 28, 2019
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: 2020 $ 4,721,598 2021 2,935,895 2022 1,743,488 2023 955,255 2024 647,597 $ 11,003,833

RETIREMENT BENEFIT PLANS (Table

RETIREMENT BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 28, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Funded Status of Pension Benefit Plans and Postretirement Benefit Plan	As of December 28, 2019 and December 29, 2018, the status of the Company’s pension benefit plans and other postretirement benefit plan was as follows: Pension Benefit Other Postretirement Benefit 2019 2018 2019 2018 Benefit obligation at beginning of year $ 91,533,200 $ 98,522,201 $ 2,096,761 $ 2,423,410 Change in discount rate 12,313,831 (8,319,874 ) 239,138 (217,539 ) Service cost 1,055,410 1,319,841 33,287 37,024 Interest cost 3,516,318 3,107,164 56,755 77,161 Actuarial (gain)/loss (1,508,935 ) 531,799 77,813 (89,664 ) Significant Event -- -- (902,719 ) -- Benefits paid (3,918,781 ) (3,627,931 ) (35,016 ) (133,631 ) Benefit obligation at end of year $ 102,991,043 $ 91,533,200 $ 1,566,019 $ 2,096,761 2019 2018 2019 2018 Fair value of plan assets at beginning of year $ 66,170,875 $ 72,098,772 $ 1,448,126 $ 1,391,239 Actual return on plan assets 11,803,359 (4,827,641 ) 13,466 56,887 Employer contributions 304,105 2,527,675 35,016 133,631 Significant Event -- -- (902,719 ) -- Benefits paid (3,918,781 ) (3,627,931 ) (35,016 ) (133,631 ) Fair value of plan assets at end of year $ 74,359,558 $ 66,170,875 $ 558,873 $ 1,448,126 Pension Benefit Other Postretirement Benefit Funded Status 2019 2018 2019 2018 Net amount recognized in the balance sheet $ (28,631,485 ) $ (25,362,325 ) $ (1,007,146 ) $ (648,635 )
Amounts Recognized in Accumulated Other Comprehensive Income	Amounts recognized in accumulated other comprehensive income consist of: Pension Benefit Other Postretirement Benefit 2019 2018 2019 2018 Net (loss)/gain $ (36,315,245 ) $ (33,714,584 ) $ 499,701 $ 1,332,634 Prior service (cost) credit (265,012 ) (364,392 ) 8,253 13,325 $ (36,580,257 ) $ (34,078,976 ) $ 507,954 $ 1,345,959
Change in the Components of Accumulated Other Comprehensive income	Change in the components of accumulated other comprehensive income consist of: Pension Benefit Other Postretirement Benefit 2019 2018 2019 2018 Balance at beginning of period $ (34,078,976 ) $ (33,059,756 ) $ 1,345,959 $ 1,108,182 Change due to availability of final actual assets and census data --- --- -- -- Charged to net periodic benefit cost Prior service cost 99,380 114,822 (5,072 ) (5,072 ) Net loss (gain) 1,162,196 1,110,111 (47,272 ) (65,591 ) Liability (gains)/losses Discount rate (12,313,831 ) 8,319,874 (239,138 ) 217,539 Asset (gains)/losses deferred 7,724,649 (9,531,647 ) (14,567 ) 1,237 Significant Event -- -- (454,143 ) -- Additional recognition due to plan amendment -- 14,928 — — Other 826,325 (1,047,308 ) (77,813 ) 89,664 Balance at end of period $ (36,580,257 ) $ (34,078,976 ) $ 507,954 $ 1,345,959
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 other postretirement benefit plan for the fiscal year indicated were as follows: 2019 2018 Discount rate - Pension plans 3.18% - 4.20% - 4.22% - Supplemental pension plans 2.61% 3.81% - Other postretirement plan 3.35% 4.26%
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: 2019 2018 Number of plans 5 5 Projected benefit obligation $ 102,991,043 $ 91,533,200 Accumulated benefit obligation 102,991,043 91,533,200 Fair value of plan assets 74,359,558 66,170,875 Net amount recognized in accrued benefit liability (28,631,485 ) (25,362,325 )
Defined Contribution Plan	The Company made contributions to the plan as follows: 2019 2018 Regular matching contributions $ 540,693 $ 551,046 Transitional credit contributions 305,226 349,062 Non-discretionary contributions 638,745 578,373 Total contributions made for the period $ 1,484,664 $ 1,478,481
Pension Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Components of Net Periodic Benefit Cost	Components of the net periodic benefit cost of the Company’s pension benefit plans for the fiscal year indicated were as follows: 2019 2018 Service cost $ 1,055,410 $ 1,319,841 Interest cost 3,510,618 3,107,164 Expected return on plan assets (4,761,320 ) (5,219,515 ) Amortization of prior service cost 99,380 114,822 Amortization of the net loss 1,162,196 1,110,111 Net periodic benefit cost $ 1,071,984 $ 432,423
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: 2019 2018 Discount rate - Pension plans 4.20% - 3.54% - 3.57% - Supplemental pension plans 3.81% 3.10% Expected return on plan assets 7.5% 7.5% Rate of compensation increase 0% 0%
Fair Values of Plans Assets Utilizing Fair Value Hierarchy	The fair values of the company’s pension plans assets at December 28, 2019 and December 29, 2018, utilizing the fair value hierarchy discussed in Note 2, follow: December Level Level Level Total Cash and Equivalents: Common/collective trust funds $ — $ 334,138 $ — $ 334,138 Equities: The Eastern Company Common Stock 6,625,560 — 6,625,560 Common/collective trust funds Russell Multi Asset Core Plus Fund (a) — 33,413,819 — 33,413,819 Fixed Income: Common/collective trust funds Target Duration LDI Fixed Income Funds (b) • Russell 8 Year LDI Fixed Income Fund — 12,796,482 — 12,796,482 • Russell 14 Year LDI Fixed Income Fund — 11,387,626 — 11,387,626 STRIPS Fixed Income Funds (c) • Russell 15 Year STRIPS Fixed Income Fund — 3,050,389 — 3,050,389 • Russell 10 Year STRIPS Fixed Income Fund — 4,616,924 — 4,616,924 • Russell 28 to 29 Year STRIPS Fixed Income Fund — 2,134,620 — 2,134,620 Total $ 6,625,560 $ 67,733,998 $ — $ 74,359,558 December 29, 2018 Level 1 Level 2 Level 3 Total Cash and Equivalents: Common/collective trust funds $ — $ 306,882 $ — $ 306,882 Equities: The Eastern Company Common Stock 5,247,495 — 5,247,495 Common/collective trust funds Russell Multi Asset Core Plus Fund (a) — 30,611,519 — 30,611,519 Fixed Income: Common/collective trust funds Target Duration LDI Fixed Income Funds (b) • Russell 8 Year LDI Fixed Income Fund — 5,735,993 — 5,735,993 • Russell 14 Year LDI Fixed Income Fund — 17,044,596 — 17,044,596 STRIPS Fixed Income Funds (c) • Russell 15 Year STRIPS Fixed Income Fund — 1,811,436 — 1,811,436 • Russell 10 Year STRIPS Fixed Income Fund — 3,408,879 — 3,408,879 • Russell 28 to 29 Year STRIPS Fixed Income Fund — 2,004,075 — 2,004,075 Total $ 5,247,495 $ 60,923,380 $ — $ 66,170,875 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 RITC (formerly Russell) Multi-Asset Core Plus Fund seeks to provide long-term growth of capital over a market cycle by offering a diversified portfolio of funds and separate accounts investing in global stock, return seeking fixed income, commodities, global real estate and opportunistic investments. They hold a dynamic mix of underlying Russell Investments funds and/or separate accounts. Russell Investments is a strong proponent of disciplined strategic asset allocation and rebalancing strategies, and believes that unstable movements in the market have the potential to create opportunities. By identifying short-term mispricing, and making small tactical adjustments to the Multi-Asset Core Plus Fund, they believe there is potential to enhance returns while continuing to manage risks. (b) The Target Duration LDI Fixed Income Funds seek to outperform their respective Barclays-Russell LDI Indexes over a full market cycle. These Funds invest primarily in investment grade corporate bonds that closely match those found in discount curves used to value U.S. pension liabilities. They seek to provide additional incremental return through modest interest rate timing, security selection and tactical use of non-credit sectors. Generally, for use in combination with other bond funds to gain additional credit exposure, with the goal of reducing the mismatch between a plan’s assets and liabilities. (c) The STRIPS (Separate Trading of Registered Interest and Principal of Securities) Funds seek to provide duration and Treasury exposure by investing in an optimized subset of the STRIPS universe with a similar duration profile as the Barclays U.S. Treasury STRIPS 10-11 year, 16-16 year or 28-29 year Index. These passively managed funds are generally used with other bond funds to add additional duration to the asset portfolio. This will help reduce the mismatch between a plan’s assets and liabilities.
Other Postretirement Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Components of Net Periodic Benefit Cost	Components of the net periodic benefit cost of the Company’s other postretirement benefit plan were as follows: 2019 2018 Service cost $ 33,287 $ 37,024 Interest cost 56,755 77,161 Expected return on plan assets (28,033 ) (55,650 ) Amortization of prior service cost (5,072 ) (5,072 ) Amortization of the net loss (47,272 ) (65,591 ) Net periodic benefit cost $ 9,665 $ (12,128 )
Assumptions Used to Determine Net Periodic Benefit Cost for Benefit Plans	Assumptions used to determine net periodic benefit cost for the Company’s other postretirement plan for the fiscal year indicated were as follows: 2019 2018 Discount rate 4.26% 3.60% Expected return on plan assets 4.0% 4.0%

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 28, 2019
Earning Per Share [Abstract]
Denominators Used in the Earnings Per Share Computations	The denominators used in the earnings per share computations follow: 2019 2018 Basic: Weighted average shares outstanding 6,235,098 6,258,277 Diluted: Weighted average shares outstanding 6,235,098 6,258,277 Dilutive stock options 34,910 15,697 Denominator for diluted earnings per share 6,270,008 6,273,974

REPORTABLE SEGMENTS (Tables)

REPORTABLE SEGMENTS (Tables)	12 Months Ended
	Dec. 28, 2019
REPORTABLE SEGMENTS [Abstract]
Segment Financial Information	2019 2018 Sales: Sales to unaffiliated customers: Industrial Hardware $ 164,505,888 $ 140,293,409 Security Products 58,324,085 64,897,871 Metal Products 28,912,646 29,084,183 $ 251,742,619 $ 234,275,463 Inter-segment Sales: Industrial Hardware $ 61,557 $ 366,381 Security Products 3,382,791 3,365,695 Metal Products 11,731 13,421 $ 3,456,079 $ 3,745,497 Income Before Income Taxes: Industrial Hardware $ 11,067,011 $ 9,588,185 Security Products 5,389,612 7,122,640 Metal Products 1,001,231 1,148,516 Operating Profit 17,457,854 17,859,341 Interest expense (1,857,961 ) (1,202,272 ) Other income 606,078 933,260 $ 16,205,971 $ 17,590,329 Geographic Information: Net Sales: United States $ 230,920,619 $ 207,789,058 Foreign 20,822,000 26,486,405 $ 251,742,619 $ 234,275,463 Foreign sales are primarily to customers in North America. Identifiable Assets: United States $ 263,295,787 $ 166,665,767 Foreign 17,367,189 14,581,800 $ 280,662,976 $ 181,247,567 Industrial Hardware $ 66,008,663 $ 47,600,805 Security Products 54,804,360 54,593,837 Metal Products 19,439,404 19,909,256 140,252,427 122,103,898 General corporate 140,410,549 59,143,669 $ 280,662,976 $ 181,247,567 2019 2018 Depreciation and Amortization: Industrial Hardware $ 4,015,017 $ 2,978,324 Security Products 1,281,008 1,135,811 Metal Products 1,158,856 1,215,073 $ 6,454,881 $ 5,329,208 Capital Expenditures: Industrial Hardware $ 3,603,863 $ 3,029,406 Security Products 935,722 1,482,267 Metal Products 897,573 901,400 5,437,158 5,413,073 Currency translation adjustment 3,330 (9,014 ) General corporate — 6,486 $ 5,440,488 $ 5,410,545

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details)	12 Months Ended
	Dec. 28, 2019DivisionSubsidiarySegment
Description of Business Information [Abstract]
Number of operating segments | Segment	3
United States [Member]
Description of Business Information [Abstract]
Number of separate operating businesses | Division	9
Canada [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	2
Tillsonburg, Ontario, Canada [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	1
Kelowna, British Columbia, Canada [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	1
Taipei, Taiwan [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	1
Hong Kong [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	1
China [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	2
Shanghai, China [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	1
Dongguan, China [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	1
Mexico [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	2
Lerma, Mexico [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	1
Reynosa, Mexico [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	1
Wrexham, United Kingdom [Member]
Description of Business Information [Abstract]
Number of wholly-owned subsidiaries	1

BUSINESS ACQUISITIONS (Details)

BUSINESS ACQUISITIONS (Details)	Aug. 30, 2019USD ($)Division	Jun. 01, 2018USD ($)	Jun. 30, 2018USD ($)	Dec. 28, 2019USD ($)	Dec. 28, 2019USD ($)	Dec. 29, 2018USD ($)	Dec. 30, 2017USD ($)
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract]
Goodwill				$ 79,518,012	$ 79,518,012	$ 34,840,376	$ 32,228,891
Acquisition expenses				$ 765,000	$ 1,184,000
Term Loan [Member]
Intangible Assets Acquired [Abstract]
Maximum borrowing capacity	$ 100,000,000
Repayment of debt	(19,100,000)
Revolving Credit Loan [Member]
Intangible Assets Acquired [Abstract]
Maximum borrowing capacity	20,000,000
Big 3 Holdings, LLC [Member]
Acquisitions [Abstract]
Total consideration	81,155,753
Intangible Assets Acquired [Abstract]
Cash on hand	$ 2,100,000
Number of divisions | Division	2
Consideration [Abstract]
Cash	$ 338,714
Cash proceeds from debt	80,817,039
Total consideration	81,155,753
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract]
Accounts receivable	13,649,937
Inventory	3,240,382
Prepaid and other assets	32,268
Property plant and equipment	13,770,170
Other noncurrent assets	1,337,337
Other intangible assets	21,054,000
Current liabilities	(4,910,384)
Deferred revenue	(1,585,709)
Income tax payable	(2,039,117)
Note payable	(375,379)
Deferred tax liabilities	(7,114,732)
Total identifiable net assets	37,058,773
Goodwill	44,096,980
Identifiable assets acquired, goodwill, and liabilities assumed, net	81,155,753
Goodwill expected to be deductible for income tax purposes	$ 0
Load N Lock [Member]
Acquisitions [Abstract]
Total consideration		$ 4,995,000
Intangible Assets Acquired [Abstract]
Intangible assets			$ 1,329,007
Weighted-average life			8 years 3 months 18 days
Consideration [Abstract]
Total consideration		4,995,000
Recognized amounts of identifiable assets acquired and liabilities assumed [Abstract]
Goodwill		$ 2,694,700
Load N Lock [Member] | Customer Relationships [Member]
Intangible Assets Acquired [Abstract]
Intangible assets			$ 689,675
Weighted-average life			8 years 3 months 18 days
Load N Lock [Member] | Intellectual Property [Member]
Intangible Assets Acquired [Abstract]
Intangible assets			$ 586,762
Weighted-average life			8 years 3 months 18 days
Load N Lock [Member] | Non-compete Agreements [Member]
Intangible Assets Acquired [Abstract]
Intangible assets			$ 52,570
Weighted-average life			8 years 3 months 18 days

ACCOUNTING POLICIES, Cash Equiv

ACCOUNTING POLICIES, Cash Equivalents and Inventories (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Cash Equivalents [Abstract]
Amount of deposits insured by Federal Deposit Insurance Corporation (FDIC)	$ 250,000
Percentage of available cash located in foreign subsidiaries	50.00%
Inventories [Abstract]
LIFO inventory amount	$ 31,011,130
FIFO inventory amount	7,295,793
Excess of current cost over LIFO carrying value	$ 6,712,162	$ 6,957,972

ACCOUNTING POLICIES, Property,

ACCOUNTING POLICIES, Property, Plant and Equipment and Related Depreciation (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Property, Plant and Equipment and Related Depreciation [Abstract]
Depreciation	$ 4,722,758	$ 4,329,136
Building [Member] | Minimum [Member]
Property, Plant and Equipment and Related Depreciation [Abstract]
Estimated useful lives of the assets	10 years
Building [Member] | Maximum [Member]
Property, Plant and Equipment and Related Depreciation [Abstract]
Estimated useful lives of the assets	39 years 6 months
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment and Related Depreciation [Abstract]
Estimated useful lives of the assets	3 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment and Related Depreciation [Abstract]
Estimated useful lives of the assets	10 years

ACCOUNTING POLICIES, Goodwill (

ACCOUNTING POLICIES, Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Goodwill [Abstract]
Impairment of goodwill	$ 0	$ 0

ACCOUNTING POLICIES, Intangible

ACCOUNTING POLICIES, Intangible Assets and Right of Use Assets (Details)	12 Months Ended
	Dec. 28, 2019USD ($)Lease	Dec. 29, 2018USD ($)
Intangibles Assets [Abstract]
Amortization expense	$ 1,726,539	$ 1,452,084
Right of Use Assets [Abstract]
Number of operating leases | Lease	45
Right of use assets	$ 12,342,475	0
Lease liability	12,342,475	$ 0
ASU 2016-02 [Member]
Right of Use Assets [Abstract]
Right of use assets	12,342,000
Lease liability	$ 12,342,000
ASU 2016-02 [Member] | Minimum [Member]
Right of Use Assets [Abstract]
Lease extension option term	12 months
ASU 2016-02 [Member] | Maximum [Member]
Right of Use Assets [Abstract]
Lease extension option term	140 months
Technology and Licenses [Member] | Minimum [Member]
Intangibles Assets [Abstract]
Useful lives of intangible assets	5 years
Technology and Licenses [Member] | Maximum [Member]
Intangibles Assets [Abstract]
Useful lives of intangible assets	17 years
Non-Compete Agreements [Member]
Intangibles Assets [Abstract]
Useful lives of intangible assets	5 years
Customer Relationships [Member]
Intangibles Assets [Abstract]
Useful lives of intangible assets	5 years

ACCOUNTING POLICIES, Revenue Re

ACCOUNTING POLICIES, Revenue Recognition (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Revenue Recognition [Abstract]
Accounts receivable, customers due period	30 days
Accounts receivable, allowance for doubtful accounts	$ 556,000	$ 680,000
Bad debt expense	64,000	220,000
Revenue recognized employing the percentage of completion method	576,000	0
Sales returns	613,000	725,000
Revenue [Abstract]
Net sales	251,742,619	234,275,463
Subscription [Member]
Revenue [Abstract]
Net sales	567,000	448,000
Subscription services revenue related to performance obligations satisfied in prior periods	$ 0	$ 0

ACCOUNTING POLICIES, Product De

ACCOUNTING POLICIES, Product Development Costs, Advertising Costs and Software Development Costs (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Product Development Costs [Abstract]
Product development expenses	$ 6,024,567	$ 6,950,969
Advertising Costs [Abstract]
Advertising costs	462,911	501,615
Software Development Costs [Abstract]
Capitalized software	$ 0	$ 1,813,973

ACCOUNTING POLICIES, Stock Base

ACCOUNTING POLICIES, Stock Based Compensation (Details) - shares	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Stock Appreciation Rights (SARs) [Member]
Stock Based Compensation [Abstract]
Options granted (in shares)	96,000	51,000

GOODWILL (Details)

GOODWILL (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Goodwill [Roll Forward]
Beginning balance	$ 34,840,376	$ 32,228,891
Foreign exchange	40,892	(83,215)
Ending balance	79,518,012	34,840,376
Big 3 Holdings, LLC [Member]
Goodwill [Roll Forward]
Investment	44,636,744
Load N Lock [Member]
Goodwill [Roll Forward]
Investment		2,694,700
Industrial Hardware Segment [Member]
Goodwill [Roll Forward]
Beginning balance	19,086,634	19,169,849
Foreign exchange	40,892	(83,215)
Ending balance	63,764,270	19,086,634
Industrial Hardware Segment [Member] | Big 3 Holdings, LLC [Member]
Goodwill [Roll Forward]
Investment	44,636,744
Industrial Hardware Segment [Member] | Load N Lock [Member]
Goodwill [Roll Forward]
Investment		0
Security Products Segment [Member]
Goodwill [Roll Forward]
Beginning balance	15,753,742	13,059,042
Foreign exchange	0	0
Ending balance	15,753,742	15,753,742
Security Products Segment [Member] | Big 3 Holdings, LLC [Member]
Goodwill [Roll Forward]
Investment	0
Security Products Segment [Member] | Load N Lock [Member]
Goodwill [Roll Forward]
Investment		2,694,700
Metal Products Segment [Member]
Goodwill [Roll Forward]
Beginning balance	0	0
Foreign exchange	0	0
Ending balance	0	0
Metal Products Segment [Member] | Big 3 Holdings, LLC [Member]
Goodwill [Roll Forward]
Investment	$ 0
Metal Products Segment [Member] | Load N Lock [Member]
Goodwill [Roll Forward]
Investment		$ 0

INTANGIBLES (Details)

INTANGIBLES (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Amortization expense fiscal year maturity [Abstract]
2020	$ 4,082,000
2021	4,062,000
2022	4,055,000
2023	4,055,000
2024	3,372,000
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	31,811,951	$ 15,089,550
Accumulated Amortization	5,351,841	4,807,830
Net per Balance Sheet	$ 26,460,110	$ 10,281,720
Weighted-Average Amortization Period	9 years 6 months	9 years 2 months 12 days
Industrial Hardware Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	$ 28,286,680	$ 11,534,498
Accumulated Amortization	3,257,122	3,087,130
Net per Balance Sheet	25,029,558	8,447,368
Security Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	3,525,271	3,555,052
Accumulated Amortization	2,094,719	1,720,700
Net per Balance Sheet	1,430,552	1,834,352
Metal Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	0	0
Accumulated Amortization	0	0
Net per Balance Sheet	0	0
Patents and Developed Technology [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	6,994,630	9,533,229
Accumulated Amortization	$ 2,294,153	$ 3,185,656
Weighted-Average Amortization Period	10 years 2 months 12 days	10 years 2 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	$ 5,375,680	$ 7,884,498
Accumulated Amortization	1,505,097	2,448,380
Patents and Developed Technology [Member] | Security Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	1,618,950	1,648,731
Accumulated Amortization	789,056	737,276
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	24,038,381	4,789,381
Accumulated Amortization	$ 2,332,487	$ 1,046,983
Weighted-Average Amortization Period	9 years 7 months 6 days	8 years 1 month 6 days
Customer Relationships [Member] | Industrial Hardware Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	$ 22,899,000	$ 3,650,000
Accumulated Amortization	1,751,225	638,750
Customer Relationships [Member] | Security Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	1,139,381	1,139,381
Accumulated Amortization	581,262	408,233
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	471,570	459,570
Accumulated Amortization	$ 417,832	$ 329,296
Weighted-Average Amortization Period	1 year 10 months 24 days	4 years 4 months 24 days
Non-Compete Agreements [Member] | Industrial Hardware Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	$ 12,000	$ 0
Accumulated Amortization	800	0
Non-Compete Agreements [Member] | Security Products Segment [Member]
Gross carrying amount and accumulated amortization of amortizable intangible assets [Abstract]
Gross Amount	459,570	459,570
Accumulated Amortization	417,032	329,296
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	$ 307,369	$ 245,895
Weighted-Average Amortization Period	2 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	307,369	245,895
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

DEBT (Details)

DEBT (Details) - USD ($)		Aug. 30, 2019	Dec. 28, 2019	Dec. 28, 2019	Dec. 29, 2018
Disclosure of Debt [Abstract]
Period for quarterly principal payment				18 months
Schedule of debt [Abstract]
Term loans			$ 98,765,233	$ 98,765,233	$ 28,675,000
Revolving credit loan			0	0	0
Long term debt	[1]		98,765,233	98,765,233	28,675,000
Less current portion			5,187,689	5,187,689	2,325,000
Long term debt, less current portion			93,577,544	93,577,544	26,350,000
Unamortized discounts and debt Issuance costs			360,146	360,146	0
Interest paid				$ 1,857,961	$ 1,202,272
Credit Agreement [Member] | Minimum [Member]
Disclosure of Debt [Abstract]
Fixed charge coverage ratio				1.25
Credit Agreement [Member] | Maximum [Member]
Disclosure of Debt [Abstract]
Senior net leverage ratio				4.25
Term Loan [Member]
Disclosure of Debt [Abstract]
Maximum borrowing capacity		$ 100,000,000
Payments on term loan		(19,100,000)
Term of loan				5 years
Maturity date of loan				Aug. 30, 2024
Term Loan [Member] | Interest Rate Swap [Member]
Disclosure of Debt [Abstract]
Original notional amount		$ 50,000,000	$ 50,000,000	$ 50,000,000
Percentage of outstanding balance of term loan		50.00%
Fixed rate of interest		1.44%
Term Loan [Member] | LIBOR [Member]
Disclosure of Debt [Abstract]
Term of variable rate				3 months
Term Loan [Member] | LIBOR [Member] | Minimum [Member]
Disclosure of Debt [Abstract]
Basis spread on variable rate				1.25%
Term Loan [Member] | LIBOR [Member] | Maximum [Member]
Disclosure of Debt [Abstract]
Basis spread on variable rate				2.25%
Term Loan [Member] | 1 Month LIBOR [Member]
Disclosure of Debt [Abstract]
Fixed rate of interest			3.19%	3.19%
Term of variable rate				1 month
Schedule of debt [Abstract]
Revolving credit loan			$ 50,000,000	$ 50,000,000
Term Loan [Member] | 1 Month LIBOR [Member]
Disclosure of Debt [Abstract]
Fixed rate of interest			3.44%	3.44%
Term of variable rate				1 month
Schedule of debt [Abstract]
Revolving credit loan			$ 50,000,000	$ 50,000,000
Term Loan [Member] | December 31, 2019 through June 30, 2021 [Member]
Disclosure of Debt [Abstract]
Quarterly principal payment				1,250,000
Term Loan [Member] | September 30, 2021 through June 30, 2023 [Member]
Disclosure of Debt [Abstract]
Quarterly principal payment				1,875,000
Term Loan [Member] | September 30, 2023 through June 30, 2024 [Member]
Disclosure of Debt [Abstract]
Quarterly principal payment				$ 2,500,000
Revolving Credit Loan [Member]
Disclosure of Debt [Abstract]
Maximum borrowing capacity		$ 20,000,000
Maturity date of loan				Aug. 30, 2024
Annual commitment fee percentage			0.25%
Revolving Credit Loan [Member] | LIBOR [Member] | Minimum [Member]
Disclosure of Debt [Abstract]
Basis spread on variable rate				1.25%
Revolving Credit Loan [Member] | LIBOR [Member] | Maximum [Member]
Disclosure of Debt [Abstract]
Basis spread on variable rate				2.25%
[1]	Amounts are net of unamortized discounts and debt issuance costs of $360,146 as of December 28, 2019 and $0 as of December 29, 2018.

DEBT, Principal Maturities of D

DEBT, Principal Maturities of Debt (Details) - USD ($)	Dec. 28, 2019	Dec. 29, 2018
Scheduled annual principal maturities of long-term debt [Abstract]
2020	$ 5,187,689
2021	6,437,689
2022	7,500,000
2023	8,750,000
2024	70,889,855
Thereafter	0
Long term debt	$ 98,765,233	$ 28,675,000

STOCK OPTIONS AND AWARDS (Detai

STOCK OPTIONS AND AWARDS (Details)	12 Months Ended
	Dec. 28, 2019USD ($)Plan$ / sharesshares	Dec. 29, 2018USD ($)$ / sharesshares
Stock Options [Abstract]
Number of plans that have shares reserved for further issuance | Plan	1
Minimum [Member]
Stock Options [Abstract]
Percentage of fair market value of stock on grant date for exercise price	100.00%
Stock Appreciation Rights (SARs) [Member]
Stock Options [Abstract]
Stock-based compensation expense | $	$ 397,250	$ 276,778
Number of Units, Stock Appreciation Rights (SARs) [Roll Forward]
Outstanding at beginning of period (in shares) | shares	189,167	141,500
Issued (in shares) | shares	96,000	51,000
Exercised (in shares) | shares	(1,667)	0
Forfeited (in shares) | shares	(7,500)	(3,333)
Outstanding at end of period (in shares) | shares	276,000	189,167
Weighted - Average Exercise Price, Stock Appreciation Rights (SARs) [Abstract]
Outstanding at beginning of period (in dollars per share)	$ 21.46	$ 20.36
Issued (in dollars per share)	23.65	24.90
Exercised (in dollars per share)	19.10	0
Forfeited (in dollars per share)	21.20	19.10
Outstanding at end of period (in dollars per share)	22.30	$ 21.46
SARs Grants Outstanding and Exercisable [Abstract]
Minimum Range of Exercise Prices (in dollars per share)	19.10
Maximum Range of Exercise Prices (in dollars per share)	$ 26.30
Outstanding (in shares) | shares	276,000
Weighted- Average Remaining Contractual Life	3 years 3 months 18 days
Weighted- Average Exercise Price (in dollars per share)	$ 22.30
Exercisable as of December 29, 2018 (in shares) | shares	38,003
Exercisable, Weighted- Average Remaining Contractual Life	2 years 3 months 18 days
Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 19.10
Stock Options [Member]
Number of Units, Stock Appreciation Rights (SARs) [Roll Forward]
Outstanding at beginning of period (in shares) | shares	25,000	25,000
Issued (in shares) | shares	0	0
Forfeited (in shares) | shares	0	0
Outstanding at end of period (in shares) | shares	25,000	25,000
Weighted - Average Exercise Price, Stock Appreciation Rights (SARs) [Abstract]
Outstanding at beginning of period (in dollars per share)	$ 0	$ 0
Issued (in dollars per share)	0	0
Forfeited (in dollars per share)	0	0
Outstanding at end of period (in dollars per share)	0	$ 0
SARs Grants Outstanding and Exercisable [Abstract]
Maximum Range of Exercise Prices (in dollars per share)	$ 0
Outstanding (in shares) | shares	25,000
Weighted- Average Remaining Contractual Life	2 years 3 months 18 days
Weighted- Average Exercise Price (in dollars per share)	$ 0
Exercisable as of December 29, 2018 (in shares) | shares	0
Exercisable, Weighted- Average Remaining Contractual Life	0 years
Exercisable, Weighted- Average Exercise Price (in dollars per share)	$ 0
Restricted Stock [Member]
Stock Options [Abstract]
Issued (in shares) | shares	0	0
Stock Options and SARs [Member]
SARs Grants Outstanding and Exercisable [Abstract]
Outstanding options, intrinsic value | $	$ 2,898,945
2010 Plan [Member]
Stock Options [Abstract]
Expected term		3 years 6 months
Volatility deviation		29.50%
Risk free rate		2.33%
Shares available for future grant (in shares) | shares	178,500
2010 Plan [Member] | Minimum [Member]
Stock Options [Abstract]
Expected term	3 years 6 months
Volatility deviation	28.88%
Risk free rate	1.42%
2010 Plan [Member] | Maximum [Member]
Stock Options [Abstract]
Expected term	4 years
Volatility deviation	32.33%
Risk free rate	2.48%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Components of Deferred Tax (Assets) and Liabilities [Abstract]
Property, plant and equipment	$ 4,638,141	$ 2,582,792
Right of Use Asset	2,933,189	0
Intangible assets	9,236,711	4,710,052
Other	380,336	218,710
Foreign Withholding Tax	315,747	540,761
Total deferred income tax liabilities	17,504,124	8,052,315
Other postretirement benefits	(239,348)	(156,710)
Inventories	(1,422,472)	(1,133,427)
Allowance for doubtful accounts	(123,172)	(146,576)
Accrued compensation	(311,125)	(200,232)
Lease Obligation	(2,933,189)	0
Pensions	(6,804,275)	(6,127,538)
Foreign Tax Credit	(400,078)	(167,826)
Total deferred income tax assets	(12,233,659)	(7,932,309)
Net deferred income tax (assets) liabilities	5,270,465	120,006
Income before income taxes [Abstract]
Domestic	12,537,168	12,431,889
Foreign	3,668,803	5,158,440
Income before income taxes	16,205,971	17,590,329
Current [Abstract]
Federal	2,783,481	484,451
Foreign	1,001,270	753,521
State	489,921	347,199
Deferred [Abstract]
Federal	(756,206)	815,858
Foreign	(225,014)	153,726
State	(353,623)	529,637
Provision for income taxes	2,939,829	3,084,392
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, Amount	3,403,254	3,693,968
State income taxes, net of federal benefit, Amount	117,276	692,698
Impact on Foreign Repatriation Tax Reform, Amount	0	(83,479)
Impact of foreign subsidiaries on effective tax rate, Amount	(239,823)	(401,992)
Impact of New Tax Law, Amount	0	(507,847)
Impact of Research & Development tax credit, Amount	(411,090)	(216,675)
Impact of manufacturers deduction on effective tax rate, Amount	0	0
Other-net, Amount	70,212	(92,281)
Provision for income taxes	$ 2,939,829	$ 3,084,392
Income taxes using U.S. federal statutory rate, Percent	21.00%	21.00%
State income taxes, net of federal benefit, Percent	1.00%	4.00%
Impact on Foreign Repatriation Tax Reform, percent	0	(0.01)
Impact of foreign subsidiaries on effective tax rate, Percent	(2.00%)	(2.00%)
Impact of New Tax Law, percent	0	(0.02)
Impact of Research & Development tax credit, Percent	(3.00%)	(1.00%)
Impact of manufacturers deduction on effective tax rate, Percent	0.00%	0.00%
Other-net, Percent	1.00%	(1.00%)
Effective income tax rate	18.00%	18.00%
Total income taxes paid	$ 3,197,984	$ 3,741,021
Effect of tax cuts and jobs act of 2017 [Abstract]
Undistributed earnings of foreign subsidiaries	7,460,584
Reconciliation of the beginning and ending amount of unrecognized tax benefits [Roll Forward]
Balance at beginning of year	299,722	299,734
Increases for positions taken during the current period	137,927	0
Increases for positions taken during the prior period	2,039,117	74,219
Decreases resulting from the expiration of the statute of limitations	(69,384)	(74,231)
Balance at end of year	2,407,382	$ 299,722
Tax Year [Abstract]
Unrecognized tax benefits that would affect the annual effective tax rate	1,640,609
Accrued interest related to unrecognized tax benefits	$ 57,879
U.S. Federal [Member]
Tax Year [Abstract]
Open tax year	2015
State and Local Jurisdiction [Member]
Tax Year [Abstract]
Open tax year	2015
Foreign Jurisdiction [Member]
Tax Year [Abstract]
Open tax year	2013

LEASES (Details)

LEASES (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Future minimum payments under non-cancelable operating leases [Abstract]
Rent expense for all operating leases	$ 3,106,630	$ 2,552,887
Weighted average lease term	5 years
Weighted average discount rate	5.00%
Non-Cancelable Leases [Member]
Future minimum payments under non-cancelable operating leases [Abstract]
2020	$ 4,721,598
2021	2,935,895
2022	1,743,488
2023	955,255
2024	647,597
Total	$ 11,003,833

RETIREMENT BENEFIT PLANS, Net P

RETIREMENT BENEFIT PLANS, Net Periodic Benefit Cost and Assumptions (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
RETIREMENT BENEFIT PLANS [Abstract]
Increase in expense of unrecognized prior service cost		$ 14,928
Pension Benefit [Member]
Components of the net periodic benefit cost [Abstract]
Service cost	$ 1,055,410	1,319,841
Interest cost	3,516,318	3,107,164
Expected return on plan assets	(4,761,320)	(5,219,515)
Amortization of prior service cost	99,380	114,822
Amortization of the net loss	1,162,196	1,110,111
Net periodic benefit cost	$ 1,071,984	$ 432,423
Assumptions used to determine net periodic benefit cost [Abstract]
Expected return on plan assets	7.50%	7.50%
Rate of compensation increase	0.00%	0.00%
Pension Benefit [Member] | Minimum [Member]
Assumptions used to determine net periodic benefit cost [Abstract]
Discount rate	4.20%	3.54%
Pension Benefit [Member] | Maximum [Member]
Assumptions used to determine net periodic benefit cost [Abstract]
Discount rate	4.22%	3.57%
Other Postretirement Benefit [Member]
Components of the net periodic benefit cost [Abstract]
Service cost	$ 33,287	$ 37,024
Interest cost	56,755	77,161
Expected return on plan assets	(28,033)	(55,650)
Amortization of prior service cost	(5,072)	(5,072)
Amortization of the net loss	(47,272)	(65,591)
Net periodic benefit cost	$ 9,665	$ (12,128)
Assumptions used to determine net periodic benefit cost [Abstract]
Discount rate	4.26%	3.60%
Expected return on plan assets	4.00%	4.00%
Supplemental Pension [Member]
Assumptions used to determine net periodic benefit cost [Abstract]
Discount rate	3.81%	3.10%

RETIREMENT BENEFIT PLANS, Funde

RETIREMENT BENEFIT PLANS, Funded Status (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Pension Benefit [Member]
Change in benefit obligation [Roll Forward]
Benefit obligation at beginning of year	$ 91,533,200	$ 98,522,201
Change in discount rate	12,313,831	(8,319,874)
Service cost	1,055,410	1,319,841
Interest cost	3,516,318	3,107,164
Actuarial (gain)/loss	(1,508,935)	531,799
Significant Event	0	0
Benefits paid	(3,918,781)	(3,627,931)
Benefit obligation at end of year	102,991,043	91,533,200
Change in fair value of plan assets [Roll Forward]
Fair value of plan assets at beginning of year	66,170,875	72,098,772
Actual return on plan assets	11,803,359	(4,827,641)
Employer contributions	304,105	2,527,675
Significant Event	0	0
Benefits paid	(3,918,781)	(3,627,931)
Fair value of plan assets at end of year	74,359,558	66,170,875
Funded Status [Abstract]
Net amount recognized in the balance sheet	(28,631,485)	(25,362,325)
Other Postretirement Benefit [Member]
Change in benefit obligation [Roll Forward]
Benefit obligation at beginning of year	2,096,761	2,423,410
Change in discount rate	239,138	(217,539)
Service cost	33,287	37,024
Interest cost	56,755	77,161
Actuarial (gain)/loss	77,813	(89,664)
Significant Event	(902,719)	0
Benefits paid	(35,016)	(133,631)
Benefit obligation at end of year	1,566,019	2,096,761
Change in fair value of plan assets [Roll Forward]
Fair value of plan assets at beginning of year	1,448,126	1,391,239
Actual return on plan assets	13,466	56,887
Employer contributions	35,016	133,631
Significant Event	(902,719)	0
Benefits paid	(35,016)	(133,631)
Fair value of plan assets at end of year	558,873	1,448,126
Funded Status [Abstract]
Net amount recognized in the balance sheet	$ (1,007,146)	$ (648,635)

RETIREMENT BENEFIT PLANS, Amoun

RETIREMENT BENEFIT PLANS, Amounts Recognized in, and Changes in Components of AOCI (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018	Dec. 28, 2019	Dec. 29, 2018
Amounts recognized in accumulated other comprehensive income [Abstract]
Total	$ 23,363,637	$ 20,688,630	$ 23,363,637	$ 20,688,630
Defined Benefit Plan, Change in components of accumulated other comprehensive income [Abstract]
Balance at beginning of period	20,688,630
Liability (gains)/losses [Abstract]
Balance at end of period	23,363,637	20,688,630
Pension Benefit [Member]
Amounts recognized in accumulated other comprehensive income [Abstract]
Net (loss)/gain			(36,315,245)	(33,714,584)
Prior service (cost) credit			(265,012)	(364,392)
Total	(34,078,976)	(33,059,756)	(36,580,257)	(34,078,976)
Defined Benefit Plan, Change in components of accumulated other comprehensive income [Abstract]
Balance at beginning of period	(34,078,976)	(33,059,756)
Change due to availability of final actual assets and census data	0	0
Charged to net periodic benefit cost [Abstract]
Prior service cost	99,380	114,822
Net loss (gain)	1,162,196	1,110,111
Liability (gains)/losses [Abstract]
Discount rate	(12,313,831)	8,319,874
Asset (gains)/losses deferred	7,724,649	(9,531,647)
Significant Event	0	0
Additional recognition due to plan amendment	0	14,928
Other	826,325	(1,047,308)
Balance at end of period	(36,580,257)	(34,078,976)
Amounts that will be amortized from accumulated other comprehensive income in next fiscal year [Abstract]
Net (loss) gain			(1,300,134)
Prior service cost (credit)			99,380
Other Postretirement Benefit [Member]
Amounts recognized in accumulated other comprehensive income [Abstract]
Net (loss)/gain			499,701	1,332,634
Prior service (cost) credit			8,253	13,325
Total	1,345,959	1,108,182	507,954	$ 1,345,959
Defined Benefit Plan, Change in components of accumulated other comprehensive income [Abstract]
Balance at beginning of period	1,345,959	1,108,182
Change due to availability of final actual assets and census data	0	0
Charged to net periodic benefit cost [Abstract]
Prior service cost	(5,072)	(5,072)
Net loss (gain)	(47,272)	(65,591)
Liability (gains)/losses [Abstract]
Discount rate	(239,138)	217,539
Asset (gains)/losses deferred	(14,567)	1,237
Significant Event	(454,143)	0
Additional recognition due to plan amendment	0	0
Other	(77,813)	89,664
Balance at end of period	$ 507,954	$ 1,345,959
Amounts that will be amortized from accumulated other comprehensive income in next fiscal year [Abstract]
Net (loss) gain			25,509
Prior service cost (credit)			$ (5,072)

RETIREMENT BENEFIT PLANS, Assum

RETIREMENT BENEFIT PLANS, Assumptions Used to Determine the Projected Benefit Obligations and Estimated Benefit Payments (Details)	12 Months Ended
	Dec. 28, 2019USD ($)Plan	Dec. 29, 2018USD ($)Plan
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
Pension Benefit [Member]
Assumptions used to determine net periodic benefit obligations [Abstract]
Accumulated benefit obligation for all qualified and nonqualified defined benefit pension plans	$ 102,991,053	$ 91,533,200
Pension plans with projected benefit obligation and accumulated benefit obligation in excess of plan assets [Abstract]
Number of plans | Plan	5	5
Projected benefit obligation	$ 102,991,043	$ 91,533,200
Accumulated benefit obligation	102,991,043	91,533,200
Fair value of plan assets	74,359,558	66,170,875
Net amount recognized in accrued benefit liability	(28,631,485)	$ (25,362,325)
Estimated future benefit payments to participants [Abstract]
2020	4,300,000
2021	4,500,000
2022	4,700,000
2023	4,900,000
2024	5,100,000
2025 through 2029	28,000,000
Contributions expected to be made by Company in next fiscal year	$ 2,700,000
Pension Benefit [Member] | Minimum [Member]
Assumptions used to determine net periodic benefit obligations [Abstract]
Discount rate	3.18%	4.20%
Pension Benefit [Member] | Maximum [Member]
Assumptions used to determine net periodic benefit obligations [Abstract]
Discount rate	3.23%	4.22%
Other Postretirement Benefit [Member]
Assumptions used to determine net periodic benefit obligations [Abstract]
Discount rate	3.35%	4.26%
Pension plans with projected benefit obligation and accumulated benefit obligation in excess of plan assets [Abstract]
Net amount recognized in accrued benefit liability	$ (1,007,146)	$ (648,635)
Estimated future benefit payments to participants [Abstract]
2020	50,000
2021	49,000
2022	50,000
2023	51,000
2024	52,000
2025 through 2029	293,000
Contributions expected to be made by Company in next fiscal year	$ 50,000
Supplemental Pension [Member]
Assumptions used to determine net periodic benefit obligations [Abstract]
Discount rate	2.61%	3.81%

RETIREMENT BENEFIT PLANS, Fair

RETIREMENT BENEFIT PLANS, Fair Value of Pension Plan Assets (Details) - USD ($)		12 Months Ended
		Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Equity Securities [Member]
Fair values of pension plans assets [Abstract]
Long-term target allocations for plan assets		50.00%
Fixed income [Member]
Fair values of pension plans assets [Abstract]
Long-term target allocations for plan assets		50.00%
Pension Benefit [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		$ 74,359,558	$ 66,170,875	$ 72,098,772
Number of shares of employer common stock included plan assets (in shares)		0	0
Cash dividends received		$ 95,488	$ 95,488
Pension Benefit [Member] | Level 1 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		6,625,560	5,247,495
Pension Benefit [Member] | Level 2 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		67,733,998	60,923,380
Pension Benefit [Member] | Level 3 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		0	0
Pension Benefit [Member] | Common/Collective Trust Funds [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		334,138	306,882
Pension Benefit [Member] | Common/Collective Trust Funds [Member] | Level 1 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		0	0
Pension Benefit [Member] | Common/Collective Trust Funds [Member] | Level 2 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		334,138	306,882
Pension Benefit [Member] | Common/Collective Trust Funds [Member] | Level 3 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		0	0
Pension Benefit [Member] | Equity Securities [Member]
Fair values of pension plans assets [Abstract]
Value of employer common stock included plan assets		0	0
Pension Benefit [Member] | The Eastern Company Common Stock [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		6,625,560	5,247,495
Pension Benefit [Member] | The Eastern Company Common Stock [Member] | Level 1 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		6,625,560	5,247,495
Pension Benefit [Member] | The Eastern Company Common Stock [Member] | Level 2 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		0	0
Pension Benefit [Member] | The Eastern Company Common Stock [Member] | Level 3 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets		0	0
Pension Benefit [Member] | Russell Multi Asset Core Plus Fund [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[1]	33,413,819	30,611,519
Pension Benefit [Member] | Russell Multi Asset Core Plus Fund [Member] | Level 1 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[1]	0	0
Pension Benefit [Member] | Russell Multi Asset Core Plus Fund [Member] | Level 2 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[1]	33,413,819	30,611,519
Pension Benefit [Member] | Russell Multi Asset Core Plus Fund [Member] | Level 3 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[1]	0	0
Pension Benefit [Member] | Russell 8 Year LDI Fixed Income Fund [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[2]	12,796,482	5,735,993
Pension Benefit [Member] | Russell 8 Year LDI Fixed Income Fund [Member] | Level 1 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[2]	0	0
Pension Benefit [Member] | Russell 8 Year LDI Fixed Income Fund [Member] | Level 2 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[2]	12,796,482	5,735,993
Pension Benefit [Member] | Russell 8 Year LDI Fixed Income Fund [Member] | Level 3 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[2]	0	0
Pension Benefit [Member] | Russell 14 Year LDI Fixed Income Fund [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[2]	11,387,626	17,044,596
Pension Benefit [Member] | Russell 14 Year LDI Fixed Income Fund [Member] | Level 1 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[2]	0	0
Pension Benefit [Member] | Russell 14 Year LDI Fixed Income Fund [Member] | Level 2 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[2]	11,387,626	17,044,596
Pension Benefit [Member] | Russell 14 Year LDI Fixed Income Fund [Member] | Level 3 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[2]	0	0
Pension Benefit [Member] | Russell 15 Year STRIPS Fixed Income Fund [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	3,050,389	1,811,436
Pension Benefit [Member] | Russell 15 Year STRIPS Fixed Income Fund [Member] | Level 1 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	0	0
Pension Benefit [Member] | Russell 15 Year STRIPS Fixed Income Fund [Member] | Level 2 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	3,050,389	1,811,436
Pension Benefit [Member] | Russell 15 Year STRIPS Fixed Income Fund [Member] | Level 3 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	0	0
Pension Benefit [Member] | Russell 10 Year STRIPS Fixed Income Fund [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	4,616,924	3,408,879
Pension Benefit [Member] | Russell 10 Year STRIPS Fixed Income Fund [Member] | Level 1 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	0	0
Pension Benefit [Member] | Russell 10 Year STRIPS Fixed Income Fund [Member] | Level 2 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	4,616,924	3,408,879
Pension Benefit [Member] | Russell 10 Year STRIPS Fixed Income Fund [Member] | Level 3 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	0	0
Pension Benefit [Member] | Russell 28 to 29 Year STRIPS Fixed Income Fund [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	2,134,620	2,004,075
Pension Benefit [Member] | Russell 28 to 29 Year STRIPS Fixed Income Fund [Member] | Level 1 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	0	0
Pension Benefit [Member] | Russell 28 to 29 Year STRIPS Fixed Income Fund [Member] | Level 2 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	2,134,620	2,004,075
Pension Benefit [Member] | Russell 28 to 29 Year STRIPS Fixed Income Fund [Member] | Level 3 [Member]
Fair values of pension plans assets [Abstract]
Fair value of plan assets	[3]	$ 0	$ 0
Pension Benefit [Member] | Equity Securities, Common Stock [Member]
Fair values of pension plans assets [Abstract]
Number of shares of employer common stock included plan assets (in shares)		217,018	217,018
Value of employer common stock included plan assets		$ 6,625,560	$ 5,247,495
[1]	The investment objective of the RITC (formerly Russell) Multi-Asset Core Plus Fund seeks to provide long-term growth of capital over a market cycle by offering a diversified portfolio of funds and separate accounts investing in global stock, return seeking fixed income, commodities, global real estate and opportunistic investments. They hold a dynamic mix of underlying Russell Investments funds and/or separate accounts. Russell Investments is a strong proponent of disciplined strategic asset allocation and rebalancing strategies, and believes that unstable movements in the market have the potential to create opportunities. By identifying short-term mispricing, and making small tactical adjustments to the Multi-Asset Core Plus Fund, they believe there is potential to enhance returns while continuing to manage risks.
[2]	The Target Duration LDI Fixed Income Funds seek to outperform their respective Barclays-Russell LDI Indexes over a full market cycle. These Funds invest primarily in investment grade corporate bonds that closely match those found in discount curves used to value U.S. pension liabilities. They seek to provide additional incremental return through modest interest rate timing, security selection and tactical use of non-credit sectors. Generally, for use in combination with other bond funds to gain additional credit exposure, with the goal of reducing the mismatch between a plan's assets and liabilities.
[3]	The STRIPS (Separate Trading of Registered Interest and Principal of Securities) Funds seek to provide duration and Treasury exposure by investing in an optimized subset of the STRIPS universe with a similar duration profile as the Barclays U.S. Treasury STRIPS 10-11 year, 16-16 year or 28-29 year Index. These passively managed funds are generally used with other bond funds to add additional duration to the asset portfolio. This will help reduce the mismatch between a plan's assets and liabilities.

RETIREMENT BENEFIT PLANS, Defin

RETIREMENT BENEFIT PLANS, Defined Contribution Plan (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Contribution Plan [Abstract]
Total contributions for the period	$ 1,484,664	$ 1,478,481
Regular Matching Contributions [Member]
Contribution Plan [Abstract]
Total contributions for the period	540,693	551,046
Transitional Credit Contributions [Member]
Contribution Plan [Abstract]
Total contributions for the period	305,226	349,062
Non-discretionary Contributions [Member]
Contribution Plan [Abstract]
Total contributions for the period	$ 638,745	578,373
Plan 401 K Plan Amendment [Member]
Contribution Plan [Abstract]
Percentage of voluntary contributions allowed to participants, maximum	100.00%
Employer matching contribution percentage	50.00%
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%
Non-Union U.S. Employees [Member]
Contribution Plan [Abstract]
Total contributions for the period	$ 550,286	$ 565,748
Non-Union U.S. Employees [Member] | Minimum [Member]
Contribution Plan [Abstract]
Non-discretionary contribution percentage for certain employees who were eligible to participate in the salaried plan	0.00%
Non-Union U.S. Employees [Member] | Maximum [Member]
Contribution Plan [Abstract]
Non-discretionary contribution percentage for certain employees who were eligible to participate in the salaried plan	4.00%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - shares	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Basic [Abstract]
Weighted average shares outstanding (in shares)	6,235,098	6,258,277
Diluted [Abstract]
Weighted average shares outstanding (in shares)	6,235,098	6,258,277
Dilutive stock options (in shares)	34,910	15,697
Denominator for diluted earnings per share (in shares)	6,270,008	6,273,974
Anti-dilutive stock equivalents (in shares)	0	0

REPORTABLE SEGMENTS (Details)

REPORTABLE SEGMENTS (Details) - USD ($)	12 Months Ended
	Dec. 28, 2019	Dec. 29, 2018
Reportable Segments Information [Abstract]
Sales	$ 251,742,619	$ 234,275,463
Income before income taxes	16,205,971	17,590,329
Operating profit	17,457,854	17,859,341
Interest expense	(1,857,961)	(1,202,272)
Other income	606,078	933,260
Assets	280,662,976	181,247,567
Depreciation and amortization	6,454,881	5,329,208
Capital expenditures before currency translation adjustment	5,437,158	5,413,073
Currency translation adjustment	3,330	(9,014)
Capital expenditures	5,440,488	5,410,545
Operating Segments [Member]
Reportable Segments Information [Abstract]
Assets	140,252,427	122,103,898
Operating Segments [Member] | Industrial Hardware [Member]
Reportable Segments Information [Abstract]
Sales	164,505,888	140,293,409
Income before income taxes	11,067,011	9,588,185
Assets	66,008,663	47,600,805
Depreciation and amortization	4,015,017	2,978,324
Capital expenditures before currency translation adjustment	3,603,863	3,029,406
Operating Segments [Member] | Security Products [Member]
Reportable Segments Information [Abstract]
Sales	58,324,085	64,897,871
Income before income taxes	5,389,612	7,122,640
Assets	54,804,360	54,593,837
Depreciation and amortization	1,281,008	1,135,811
Capital expenditures before currency translation adjustment	935,722	1,482,267
Operating Segments [Member] | Metal Products [Member]
Reportable Segments Information [Abstract]
Sales	28,912,646	29,084,183
Income before income taxes	1,001,231	1,148,516
Assets	19,439,404	19,909,256
Depreciation and amortization	1,158,856	1,215,073
Capital expenditures before currency translation adjustment	897,573	901,400
Intersegment Eliminations [Member]
Reportable Segments Information [Abstract]
Sales	3,456,079	3,745,497
Intersegment Eliminations [Member] | Industrial Hardware [Member]
Reportable Segments Information [Abstract]
Sales	61,557	366,381
Intersegment Eliminations [Member] | Security Products [Member]
Reportable Segments Information [Abstract]
Sales	3,382,791	3,365,695
Intersegment Eliminations [Member] | Metal Products [Member]
Reportable Segments Information [Abstract]
Sales	11,731	13,421
General Corporate [Member]
Reportable Segments Information [Abstract]
Assets	140,410,549	59,143,669
Capital expenditures	0	6,486
Reportable Geographical Components [Member]
Reportable Segments Information [Abstract]
Sales	251,742,619	234,275,463
Reportable Geographical Components [Member] | United States [Member]
Reportable Segments Information [Abstract]
Sales	230,920,619	207,789,058
Assets	263,295,787	166,665,767
Reportable Geographical Components [Member] | Foreign [Member]
Reportable Segments Information [Abstract]
Sales	20,822,000	26,486,405
Assets	$ 17,367,189	$ 14,581,800

CONTINGENCIES (Details)

CONTINGENCIES (Details) - USD ($)	15 Months Ended
	Mar. 31, 2018	Dec. 28, 2019
Contingency Information [Abstract]
Remediation costs accrual		$ 50,000
Cost to remediate and monitor the landfill	$ 430,000

CONCENTRATION OF RISK (Details)

CONCENTRATION OF RISK (Details)	12 Months Ended
	Dec. 28, 2019USD ($)Customer	Dec. 29, 2018Customer	Aug. 30, 2019USD ($)
Term Loan [Member] | Interest Rate Swap [Member]
Interest Rate Risk [Abstract]
Interest rate swap, notional amount | $	$ 50,000,000		$ 50,000,000
Term Loan [Member] | LIBOR [Member]
Interest Rate Risk [Abstract]
Term of variable rate	3 months
Term Loan [Member] | LIBOR [Member] | Minimum [Member]
Interest Rate Risk [Abstract]
Basis spread on variable rate	1.25%
Term Loan [Member] | LIBOR [Member] | Maximum [Member]
Interest Rate Risk [Abstract]
Basis spread on variable rate	2.25%
Accounts Receivable [Member] | Customer Concentration Risk [Member]
Accounts Receivable, Net [Abstract]
Number of major customers | Customer	1	0
Threshold percentage of concentration risk	10.00%	10.00%

Schedule II - Valuation and Q_2

Schedule II - Valuation and Qualifying accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($)		12 Months Ended
		Dec. 28, 2019		Dec. 29, 2018
Valuation and qualifying accounts information [Abstract]
Balance at beginning of period		$ 680,000		$ 470,000
Charged to costs and expenses		202,000		220,000
Charged to other accounts - Describe		78,000	[1]	0
Deductions - Describe	[2]	0		10,000
Balance at end of period		$ 556,000		$ 680,000
[1]	Acquired company opening balance.
[2]	Uncollectible accounts written off, net of recoveries.