Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 01, 2017 | Nov. 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Trading Symbol | npk | |
Amendment Flag | false | |
Document Period End Date | Oct. 1, 2017 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 | |
Entity Registrant Name | NATIONAL PRESTO INDUSTRIES INC | |
Entity Central Index Key | 80,172 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,966,417 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 01, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 6,125 | $ 27,034 |
Marketable securities | 121,291 | 84,457 |
Accounts receivable, net | 44,637 | 67,285 |
Inventories: | ||
Finished goods | 35,888 | 25,200 |
Work in process | 89,109 | 66,528 |
Raw materials | 4,546 | 3,675 |
Total inventory | 129,543 | 95,403 |
Assets held for sale | 4,064 | 58,893 |
Other current assets | 6,778 | 7,423 |
Total current assets | 312,438 | 340,495 |
PROPERTY, PLANT AND EQUIPMENT: | ||
PROPERTY, PLANT AND EQUIPMENT | 103,885 | 101,163 |
Less allowance for depreciation | 56,712 | 51,688 |
PROPERTY, PLANT AND EQUIPMENT, NET | 47,173 | 49,475 |
GOODWILL | 11,485 | 11,485 |
INTANGIBLE ASSETS, net | 4,110 | 4,961 |
NOTES RECEIVABLE | 6,696 | 6,534 |
DEFERRED INCOME TAXES | 4,904 | |
OTHER ASSETS | 6,832 | 4,644 |
Total assets | 393,638 | 417,594 |
CURRENT LIABILITIES: | ||
Accounts payable | 27,685 | 39,584 |
Federal and state income taxes | 3,235 | 6,273 |
Accrued liabilities | 13,196 | 12,244 |
Liabilities held for sale | 105 | 6,253 |
Total current liabilities | 44,221 | 64,354 |
DEFERRED INCOME TAXES | 3,004 | |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common stock, $1 par value: Authorized: 12,000,000 shares; Issued: 7,440,518 shares | 7,441 | 7,441 |
Paid-in capital | 8,855 | 7,913 |
Retained earnings | 347,997 | 350,203 |
Accumulated other comprehensive loss | (12) | (47) |
Stockholders' equity before treasury stock | 364,281 | 365,510 |
Treasury stock, at cost | 14,864 | 15,274 |
Total stockholders' equity | 349,417 | 350,236 |
Total liabilities and stockholders' equity | $ 393,638 | $ 417,594 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 01, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 7,440,518 | 7,440,518 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2017 | Oct. 02, 2016 | Oct. 01, 2017 | Oct. 02, 2016 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||||
Net sales | $ 70,614 | $ 74,533 | $ 218,029 | $ 209,991 |
Cost of sales | 51,722 | 57,439 | 161,451 | 159,682 |
Gross profit | 18,892 | 17,094 | 56,578 | 50,309 |
Selling and general expenses | 5,729 | 5,666 | 16,907 | 17,107 |
Intangibles amortization | 1,479 | 1,851 | 568 | |
Operating profit | 11,684 | 11,428 | 37,820 | 32,634 |
Other income | 792 | 225 | 2,722 | 596 |
Earnings from continuing operations before provision for income taxes | 12,476 | 11,653 | 40,542 | 33,230 |
Provision for income taxes from continuing operations | 4,138 | 3,886 | 13,290 | 11,017 |
Earnings from continuing operations | 8,338 | 7,767 | 27,252 | 22,213 |
Earnings (loss) from discontinued operations, net of tax | (6) | 537 | 8,947 | 1,576 |
Net earnings | $ 8,332 | $ 8,304 | $ 36,199 | $ 23,789 |
Weighted average shares outstanding: | ||||
Basic and diluted | 6,991 | 6,972 | 6,987 | 6,969 |
Earnings per share, basic and diluted: | ||||
From continuing operations | $ 1.19 | $ 1.11 | $ 3.90 | $ 3.18 |
From discontinued operations | 0 | 0.08 | 1.28 | 0.23 |
Net earnings per share | $ 1.19 | $ 1.19 | $ 5.18 | $ 3.41 |
Other comprehensive income, net of tax: | ||||
Unrealized gain (loss) on available-for-sale securities | $ 12 | $ (29) | $ 35 | $ (11) |
Comprehensive income | $ 8,344 | $ 8,275 | $ 36,234 | $ 23,778 |
Cash dividends declared and paid per common share | $ 0 | $ 0 | $ 5.50 | $ 5.05 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2017 | Oct. 02, 2016 | |
Cash flows from operating activities: | ||
Net earnings | $ 36,199 | $ 23,789 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Provision for depreciation | 5,211 | 9,390 |
Intangibles amortization | 1,851 | 568 |
Provision for doubtful accounts | 41 | 12 |
Non-cash retirement plan expense | 504 | 578 |
Gain on involuntary conversion of machinery and equipment | (1,997) | |
Loss on disposal of property, plant and equipment | 14 | 431 |
Gain on divestiture of business | (11,413) | |
Other | 292 | 126 |
Changes in operating accounts: | ||
Accounts receivable, net | 22,560 | 9,385 |
Inventories | (33,834) | (29,412) |
Other assets and current assets | (1,543) | 2,751 |
Accounts payable and accrued liabilities | (12,223) | 9,760 |
Federal and state income taxes | (11,114) | (764) |
Net cash provided by (used in) operating activities | (5,452) | 26,614 |
Cash flows from investing activities: | ||
Marketable securities purchased | (121,723) | (49,256) |
Marketable securities - maturities and sales | 84,942 | 15,720 |
Proceeds from divestiture of business, net of cash paid | 64,033 | |
Notes issued | (2,419) | |
Proceeds from insurnace settlement | 1,997 | |
Acquisition of intangible assets | (1,000) | (211) |
Purchase of property, plant and equipment | (5,707) | (3,936) |
Sale of property, plant and equipment | 1 | 2 |
Net cash provided by (used in) investing activities | 22,543 | (40,100) |
Cash flows from financing activities: | ||
Dividends paid | (38,405) | (35,161) |
Proceeds from sale of treasury stock | 519 | 443 |
Other | (114) | |
Net cash used in financing activities | (38,000) | (34,718) |
Net decrease in cash and cash equivalents | (20,909) | (48,204) |
Cash and cash equivalents at beginning of year | 27,034 | 56,222 |
Cash and cash equivalents at end of year | $ 6,125 | $ 8,018 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Oct. 01, 2017 | |
Basis Of Presentation [Abstract] | |
Basis Of Presentation | NOTE A – BASIS OF PRESENTATION The consolidated interim financial statements included herein are unaudited and have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). In the opinion of management of the Company, the consolidated interim financial statements reflect all the adjustments which were of a normal recurring nature necessary for a fair presentation of the results of the interim periods. The condensed consolidated balance sheet as of December 31, 2016 is summarized from audited consolidated financial statements, but does not include all the disclosures contained therein and should be read in conjunction with the 2016 Annual Report on Form 10-K. Interim results for the period are not indicative of those for the year. On January 3, 2017, the Company and its wholly-owned subsidiary, Presto Absorbent Products, Inc. (“PAPI”), entered into an asset purchase agreement wherein substantially all PAPI assets were sold and certain liabilities were assigned to Drylock Technologies, LTD. (“Drylock”) in exchange for $68,448,000 . The proceeds amount differs from the amount previously disclosed because of the customary post-closing adjustments that were finalized during the second quarter of 2017, totaling $1,448,000 . The asset purchase agreement also provides for additional proceeds of $4,000,000 upon the sale of certain delayed assets, consisting of machinery and equipment that were the subject of an involuntary conversion, at a future date. As a result of this transaction, effective in the fourth quarter of 2016, the Company classified its results of operations for all periods presented to reflect its Absorbent Products business as a discontinued operation and classified the assets and liabilities of its Absorbent Products business as held for sale. See Note I for further discussion. |
Reclassifications
Reclassifications | 9 Months Ended |
Oct. 01, 2017 | |
Reclassifications [Abstract] | |
Reclassifications | NOTE B – RECLASSIFICATIONS In addition to the reclassifications mentioned in Note A above, certain reclassifications have been made to the prior periods’ financial statements to conform to the current period’s financial statement presentation. These reclassifications did not affect net earnings or stockholders’ equity as previously reported. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 01, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE C – EARNINGS PER SHARE Basic earnings per share is based on the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share also includes the dilutive effect of additional potential common shares issuable. Unvested stock awards, which contain non-forfeitable rights to dividends whether paid or unpaid (“participating securities”), are included in the number of shares outstanding for both basic and diluted earnings per share calculations. |
Business Segments
Business Segments | 9 Months Ended |
Oct. 01, 2017 | |
Business Segments [Abstract] | |
Business Segments | NOTE D – BUSINESS SEGMENTS In the following summary, operating profit represents earnings before other income and income taxes. The Company's segments operate discretely from each other with no shared manufacturing facilities. Costs associated with corporate activities (such as cash and marketable securities management) and the assets associated with such activities are included within the Housewares/Small Appliances segment for all periods presented. (in thousands) Housewares / Small Appliances Defense Assets Held for Sale Total Quarter ended October 1, 2017 External net sales $ 20,935 $ 49,679 $ $ 70,614 Gross profit 3,148 15,744 18,892 Operating profit 299 11,385 11,684 Total assets 219,811 169,762 4,065 393,638 Depreciation and amortization 344 2,434 2,778 Capital expenditures 579 (215) 364 Quarter ended October 2, 2016 External net sales $ 23,716 $ 50,817 $ $ 74,533 Gross profit 3,460 13,634 17,094 Operating profit 683 10,745 11,428 Total assets 165,523 161,663 59,401 386,587 Depreciation and amortization 257 1,778 2,035 Capital expenditures - 967 967 (in thousands) Housewares / Small Appliances Defense Assets Held for Sale Total Nine Months ended October 1, 2017 External net sales $ 57,883 $ 160,146 $ $ 218,029 Gross profit 7,845 48,733 56,578 Operating profit (loss) (103) 37,923 37,820 Total assets 219,811 169,762 4,065 393,638 Depreciation and amortization 955 6,058 7,013 Capital expenditures 1,502 1,374 2,876 Nine Months ended October 2, 2016 External net sales $ 64,392 $ 145,599 $ $ 209,991 Gross profit 11,016 39,293 50,309 Operating profit 2,596 30,038 32,634 Total assets 165,523 161,663 59,401 386,587 Depreciation and amortization 755 4,844 5,599 Capital expenditures 892 2,090 2,982 |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Oct. 01, 2017 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | NOTE E - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company utilizes the methods of fair value as described in Financial Accounting Standard Board (“FASB”) Accounting Standard Codification (“ASC”) 820, Fair Value Measurements and Disclosures, to value its financial assets and liabilities. ASC 820 utilizes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying amounts for cash and cash equivalents, accounts receivable, notes receivable, accounts payable, and accrued liabilities approximate fair value due to the immediate or short-term maturity of these financial instruments. |
Cash, Cash Equivalents And Mark
Cash, Cash Equivalents And Marketable Securities | 9 Months Ended |
Oct. 01, 2017 | |
Cash, Cash Equivalents And Marketable Securities [Abstract] | |
Cash, Cash Equivalents And Marketable Securities | NOTE F - CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES The Company considers all highly liquid marketable securities with an original maturity of three months or less to be cash equivalents. Cash equivalents include money market funds. The Company deposits its cash in high quality financial institutions. The balances, at times, may exceed federally insured limits. Money market funds are reported at fair value determined using quoted prices in active markets for identical securities (Level 1, as defined by FASB ASC 820). The Company has classified all marketable securities as available-for-sale which requires the securities to be reported at estimated fair value, with unrealized gains and losses, net of tax, reported as a separate component of stockholders' equity. Highly liquid, tax-exempt variable rate demand notes with put options exercisable in three months or less are classified as marketable securities. At October 1, 2017 and December 31, 2016, cost for marketable securities was determined using the specific identification method. A summary of the amortized costs and fair values of the Company’s marketable securities at the end of the periods presented is shown in the following table. All of the Company’s marketable securities are classified as Level 2, as defined by FASB ASC 820, with fair values determined using significant other observable inputs, which include quoted prices in markets that are not active, quoted prices of similar securities, recently executed transactions, broker quotations, and other inputs that are observable. There were no transfers into or out of Level 2 during the nine months ended October 1, 2017. (In Thousands) MARKETABLE SECURITIES Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses October 1, 2017 Tax-exempt Municipal Bonds $ 27,013 $ 26,994 $ 7 $ 26 Variable Rate Demand Notes 94,297 94,297 - - Total Marketable Securities $ 121,310 $ 121,291 $ 7 $ 26 December 31, 2016 Tax-exempt Municipal Bonds $ 38,223 $ 38,151 $ 1 $ 73 Variable Rate Demand Notes 46,306 46,306 - - Total Marketable Securities $ 84,529 $ 84,457 $ 1 $ 73 Proceeds from maturities and sales of available-for-sale securities totaled $ 19,692,000 and $ 12,329,000 for the three month periods ended October 1, 2017 and October 2, 2016, respectively, and totaled $84,942,000 and $15,720,000 for the nine month periods then ended, respectively. There were no gross gains or losses related to sales of marketable securities during the same periods. Net unrealized gains (losses) included in other comprehensive income were $ 18,000 and $ (44,000) before taxes for the three month periods ended October 1, 2017 and October 2, 2016, respectively, and were $53,000 and $(16,000) before taxes for the nine month periods then ended, respectively. No unrealized gains or losses were reclassified out of accumulated other comprehensive income during the same periods. The contractual maturities of the marketable securities held at October 1, 2017 are as follows: $ 23,785,000 within one year; $ 14,438,000 beyond one year to five years; $ 8,451,000 beyond five years to ten years, and $ 74,617,000 beyond ten years. All of the instruments in the beyond five year ranges are variable rate demand notes which can be tendered for cash at par plus interest within seven days. Despite the stated contractual maturity date, to the extent a tender is not honored, the notes become immediately due and payable. |
Other Assets
Other Assets | 9 Months Ended |
Oct. 01, 2017 | |
Other Assets [Abstract] | |
Other Assets | NOTE G – OTHER ASSETS Other Assets includes prepayments that are made from time to time by the Company for certain materials used in the manufacturing process in the Housewares/Small Appliances segment. The Company expects to utilize the prepayments and related materials over an estimated period of up to three years. As of October 1, 2017 and December 31, 2016, $12,762,000 and $10,974,000 of such prepayments, respectively, remained unused and outstanding. At October 1, 2017 and December 31, 2016, $5,930,000 and $6,330,000 , respectively, of these amounts were included in Other Current Assets, representing the Company’s best estimate of the expected utilization of the prepayments and related materials during the twelve-month periods following those dates. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Oct. 01, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | NOTE H – COMMITMENTS AND CONTINGENCIES The Company is involved in largely routine litigation incidental to its business. Management believes the ultimate outcome of the litigation will not have a material effect on the Company's consolidated financial position, liquidity, or results of operations. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Oct. 01, 2017 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | NOTE I – DISCONTINUED OPERATIONS On January 3, 2017, the Company and its wholly-owned subsidiary, Presto Absorbent Products, Inc. (“PAPI”), entered into an asset purchase agreement wherein substantially all PAPI assets were sold and certain liabilities were assigned to Drylock Technologies, LTD. (“Drylock”) in exchange for $68,448,000 . The proceeds amount differs from the amount previously disclosed because of the customary post-closing adjustments that were finalized during the second quarter of 2017, totaling $1,448,000 . The asset purchase agreement also provides for additional proceeds of $4,000,000 upon the sale of certain delayed assets, consisting of machinery and equipment that were the subject of an involuntary conversion, at a future date. As a result of this transaction, effective in the fourth quarter of 2016, the Company classified its results of operations for all periods presented to reflect its Absorbent Products business as a discontinued operation and classified the assets and liabilities of its Absorbent Products business as held for sale. The Company’s pre-tax gain on sale of $11,413,000 , net of one-time transaction costs, was recorded in the first six months of 2017 within earnings from discontinued operations. This amount differs from the gain previously reported as a result of the post-closing adjustments mentioned above that were finalized in the second quarter of 2017. The following table summarizes the results of the Absorbent Products business within discontinued operations for each of the periods presented: Three Months Ended Nine Months Ended (in thousands) (unaudited) October 1, 2017 October 2, 2016 October 1, 2017 October 2, 2016 Net sales $ - $ 18,545 $ 421 $ 57,569 Cost of sales (133) (17,175) (618) (53,217) Selling and general expenses - (560) (24) (1,974) Gain on divestiture, net - - 11,413 - Other income (expense) - (2) 2,078 (5) Earnings from discontinued operations before provision for income taxes (133) 808 13,270 2,373 Provision for income taxes from discontinued operations (127) 271 4,323 797 Earnings from discontinued operations, net of tax $ (6) $ 537 $ 8,947 $ 1,576 The following table summarizes the major classes of assets and liabilities of the Absorbent Products business held for sale for each of the periods presented: (in thousands) October 1, 2017 (Unaudited) December 31, 2016 Accounts receivable, net $ 246 $ 13,781 Inventories - 10,747 Property, plant and equipment, net 3,819 34,365 Assets held for sale $ 4,065 $ 58,893 Accounts payable $ 105 $ 5,245 Accrued liabilities - 1,008 Liabilities held for sale $ 105 $ 6,253 The Consolidated Statements of Cash Flows do not present the cash flows from discontinued operations separately from cash flows from continuing operations. Cash provided by (used in) operating activities from discontinued operations was $(5,437,000) and $3,314,000 for the nine months ended October 1, 2017 and October 2, 2016, respectively. Cash provided by (used in) investing activities related to discontinued operations was $63,199,000 and $(954,000) for the nine months ended October 1, 2017 and October 2, 2016, respectively. In connection with the asset purchase agreement discussed above, the Company entered into a 10 -year lease agreement with Drylock for a portion of its manufacturing and warehouse facilities. The lease agreement provided for total annual payments of $1,288,000 initially. It also provides Drylock an option for early termination of the lease after the initial five years and an option to modify the space subject to the agreement. Drylock elected the latter option as of June 30, 2017. The agreement allows as well for adjustments to the rental payments based on certain price indices. The Company has also entered into a transition services agreement with Drylock, which is expected to continue through the fourth quarter of 2017. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Oct. 01, 2017 | |
Recently Issued Accounting Pronouncements [Abstract] | |
Recently Issued Accounting Pronouncements | NOTE J – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates the performance of Step 2 from the goodwill impairment test. In performing its annual or interim impairment testing, an entity will instead compare the fair value of the reporting unit with its carrying amount and recognize any impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The standard is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business , which provides guidance in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting, including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those periods, with early adoption permitted under certain circumstances. The Company does not expect the adoption of ASU 2017-01 to have a material impact on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 provides guidance on the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 provides guidance for estimating credit losses on certain types of financial instruments, including trade receivables, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. ASU 2016-13 also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance requires a modified retrospective transition method and early adoption is permitted. The Company does not expect the adoption of ASU 2016-13 to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which provides guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. The guidance is effective for reporting periods (interim and annual) beginning after December 15, 2017. The Company does not expect the adoption of ASU 2016-01 to have a material effect on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) which amended the existing accounting standards for revenue recognition. ASU 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. It is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of annual reporting periods beginning after December 15, 2016. The amendment may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company expects to adopt ASU 2014-09 as of January 1, 2018, and continues to deliberate on the transition method. T he Company’s evaluation of the impact of the standard on its two business segments, Housewares/Small Appliances and Defense, is ongoing . R epresentative samples of existing revenue contracts for each material revenue stream are being considered and evaluated. That evaluation entails a review of the “five-step” model established by ASU 2014-09 to identify the contact, performance obligations, the transactions price, the process for allocating the transaction price to performance obligations, the timing and pattern of revenue recognition, and additional disclosures that may be required. The Company will continue assessing the impact of ASU 2014-09 on its consolidated financial statements through the date of adoption. |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Oct. 01, 2017 | |
Business Segments [Abstract] | |
Summary Of Business Segments Information | (in thousands) Housewares / Small Appliances Defense Assets Held for Sale Total Quarter ended October 1, 2017 External net sales $ 20,935 $ 49,679 $ $ 70,614 Gross profit 3,148 15,744 18,892 Operating profit 299 11,385 11,684 Total assets 219,811 169,762 4,065 393,638 Depreciation and amortization 344 2,434 2,778 Capital expenditures 579 (215) 364 Quarter ended October 2, 2016 External net sales $ 23,716 $ 50,817 $ $ 74,533 Gross profit 3,460 13,634 17,094 Operating profit 683 10,745 11,428 Total assets 165,523 161,663 59,401 386,587 Depreciation and amortization 257 1,778 2,035 Capital expenditures - 967 967 (in thousands) Housewares / Small Appliances Defense Assets Held for Sale Total Nine Months ended October 1, 2017 External net sales $ 57,883 $ 160,146 $ $ 218,029 Gross profit 7,845 48,733 56,578 Operating profit (loss) (103) 37,923 37,820 Total assets 219,811 169,762 4,065 393,638 Depreciation and amortization 955 6,058 7,013 Capital expenditures 1,502 1,374 2,876 Nine Months ended October 2, 2016 External net sales $ 64,392 $ 145,599 $ $ 209,991 Gross profit 11,016 39,293 50,309 Operating profit 2,596 30,038 32,634 Total assets 165,523 161,663 59,401 386,587 Depreciation and amortization 755 4,844 5,599 Capital expenditures 892 2,090 2,982 |
Cash, Cash Equivalents And Ma17
Cash, Cash Equivalents And Marketable Securities (Tables) | 9 Months Ended |
Oct. 01, 2017 | |
Cash, Cash Equivalents And Marketable Securities [Abstract] | |
Summary Of The Amortized Costs And Fair Values Of Marketable Securities | (In Thousands) MARKETABLE SECURITIES Amortized Cost Fair Value Gross Unrealized Gains Gross Unrealized Losses October 1, 2017 Tax-exempt Municipal Bonds $ 27,013 $ 26,994 $ 7 $ 26 Variable Rate Demand Notes 94,297 94,297 - - Total Marketable Securities $ 121,310 $ 121,291 $ 7 $ 26 December 31, 2016 Tax-exempt Municipal Bonds $ 38,223 $ 38,151 $ 1 $ 73 Variable Rate Demand Notes 46,306 46,306 - - Total Marketable Securities $ 84,529 $ 84,457 $ 1 $ 73 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Oct. 01, 2017 | |
Discontinued Operations [Abstract] | |
Results of discontinued operations and schedule of major classes of assets and liabilities | The following table summarizes the results of the Absorbent Products business within discontinued operations for each of the periods presented: Three Months Ended Nine Months Ended (in thousands) (unaudited) October 1, 2017 October 2, 2016 October 1, 2017 October 2, 2016 Net sales $ - $ 18,545 $ 421 $ 57,569 Cost of sales (133) (17,175) (618) (53,217) Selling and general expenses - (560) (24) (1,974) Gain on divestiture, net - - 11,413 - Other income (expense) - (2) 2,078 (5) Earnings from discontinued operations before provision for income taxes (133) 808 13,270 2,373 Provision for income taxes from discontinued operations (127) 271 4,323 797 Earnings from discontinued operations, net of tax $ (6) $ 537 $ 8,947 $ 1,576 The following table summarizes the major classes of assets and liabilities of the Absorbent Products business held for sale for each of the periods presented: (in thousands) October 1, 2017 (Unaudited) December 31, 2016 Accounts receivable, net $ 246 $ 13,781 Inventories - 10,747 Property, plant and equipment, net 3,819 34,365 Assets held for sale $ 4,065 $ 58,893 Accounts payable $ 105 $ 5,245 Accrued liabilities - 1,008 Liabilities held for sale $ 105 $ 6,253 |
Basis Of Presentation (Narrativ
Basis Of Presentation (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jul. 02, 2017 | Dec. 31, 2017 | |
Proceeds from sale | $ 68,448 | |
Post-closing adjustments | $ 1,448 | |
Scenario, Forecast [Member] | ||
Proceeds from sale | $ 4,000 |
Business Segments (Schedule Of
Business Segments (Schedule Of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 01, 2017 | Oct. 02, 2016 | Oct. 01, 2017 | Oct. 02, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
External net sales | $ 70,614 | $ 74,533 | $ 218,029 | $ 209,991 | |
Gross profit | 18,892 | 17,094 | 56,578 | 50,309 | |
Operating profit (loss) | 11,684 | 11,428 | 37,820 | 32,634 | |
Total assets | 393,638 | 386,587 | 393,638 | 386,587 | $ 417,594 |
Depreciation and amortization | 2,778 | 2,035 | 7,013 | 5,599 | |
Capital expenditures | 364 | 967 | 2,876 | 2,982 | |
Housewares/ Small Appliances [Member] | |||||
Segment Reporting Information [Line Items] | |||||
External net sales | 20,935 | 23,716 | 57,883 | 64,392 | |
Gross profit | 3,148 | 3,460 | 7,845 | 11,016 | |
Operating profit (loss) | 299 | 683 | (103) | 2,596 | |
Total assets | 219,811 | 165,523 | 219,811 | 165,523 | |
Depreciation and amortization | 344 | 257 | 955 | 755 | |
Capital expenditures | 579 | 1,502 | 892 | ||
Defense Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
External net sales | 49,679 | 50,817 | 160,146 | 145,599 | |
Gross profit | 15,744 | 13,634 | 48,733 | 39,293 | |
Operating profit (loss) | 11,385 | 10,745 | 37,923 | 30,038 | |
Total assets | 169,762 | 161,663 | 169,762 | 161,663 | |
Depreciation and amortization | 2,434 | 1,778 | 6,058 | 4,844 | |
Capital expenditures | (215) | 967 | 1,374 | 2,090 | |
Discontinued Operations Held-for-sale [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | $ 4,065 | $ 59,401 | $ 4,065 | $ 59,401 |
Cash, Cash Equivalents And Ma21
Cash, Cash Equivalents And Marketable Securities (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2017 | Oct. 02, 2016 | Oct. 01, 2017 | Oct. 02, 2016 | |
Cash, Cash Equivalents And Marketable Securities [Line Items] | ||||
Transfers into Level 2 | $ 0 | $ 0 | ||
Transfers out of Level 2 | 0 | 0 | ||
Proceeds from sales of available-for-sale securities | 19,692,000 | $ 12,329,000 | 84,942,000 | $ 15,720,000 |
Gross gains or losses related to sales of marketable securities | 0 | 0 | 0 | 0 |
Net unrealized gains (losses) included in accumulated other comprehensive income, before taxes | 18,000 | (44,000) | 53,000 | (16,000) |
Contractual maturities of marketable securities within 1 year | 23,785,000 | 23,785,000 | ||
Contractual maturities of marketable securities, years 2-5 | 14,438,000 | 14,438,000 | ||
Contractual maturities of marketable securities, years 6-10 | 8,451,000 | 8,451,000 | ||
Contractual maturities of marketable securities, after 10 years | 74,617,000 | $ 74,617,000 | ||
Marketable securities liquidation period | 7 days | |||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Cash, Cash Equivalents And Marketable Securities [Line Items] | ||||
Reclassification out of AOCI | $ 0 | $ 0 | $ 0 | $ 0 |
Cash, Cash Equivalents And Ma22
Cash, Cash Equivalents And Marketable Securities (Summary Of The Amortized Costs And Fair Values Of Marketable Securities) (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
MARKETABLE SECURITIES, Amortized Cost | $ 121,310 | $ 84,529 |
MARKETABLE SECURITIES, Fair Value | 121,291 | 84,457 |
MARKETABLE SECURITIES, Gross Unrealized Gains | 7 | 1 |
MARKETABLE SECURITIES, Gross Unrealized Losses | 26 | 73 |
Tax-Exempt Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
MARKETABLE SECURITIES, Amortized Cost | 27,013 | 38,223 |
MARKETABLE SECURITIES, Fair Value | 26,994 | 38,151 |
MARKETABLE SECURITIES, Gross Unrealized Gains | 7 | 1 |
MARKETABLE SECURITIES, Gross Unrealized Losses | 26 | 73 |
Variable Rate Demand Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
MARKETABLE SECURITIES, Amortized Cost | 94,297 | 46,306 |
MARKETABLE SECURITIES, Fair Value | $ 94,297 | $ 46,306 |
Other Assets (Narrative) (Detai
Other Assets (Narrative) (Details) - Housewares/ Small Appliances [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2017 | Dec. 31, 2016 | |
Expected prepayment utilization period | 3 years | |
Other Assets [Member] | ||
Materials Prepayments | $ 12,762 | $ 10,974 |
Other Current Assets [Member] | ||
Materials Prepayments | $ 5,930 | $ 6,330 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
Jul. 02, 2017 | Oct. 01, 2017 | Oct. 02, 2016 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale | $ 68,448 | |||
Post-closing adjustments | 1,448 | |||
Gain on divestiture of business, net | $ 11,413 | |||
Cash provided by (used in) operating activities of discontinued operations | (5,437) | $ 3,314 | ||
Cash provided by (used in) investing activities related to discontinued operations | $ 63,199 | $ (954) | ||
Term of lease | 10 years | |||
Early termination term | 5 years | |||
Scenario, Forecast [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale | $ 4,000 | |||
Discontinued Operations Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on divestiture of business, net | $ 11,413 | $ 11,413 | ||
Discontinued Operations Held-for-sale [Member] | Scenario, Forecast [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total annual lease payments | $ 1,288 |
Discontinued Operations (Summar
Discontinued Operations (Summary Of Results) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Oct. 01, 2017 | Oct. 02, 2016 | Jul. 02, 2017 | Oct. 01, 2017 | Oct. 02, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net sales | $ 70,614 | $ 74,533 | $ 218,029 | $ 209,991 | |
Cost of sales | (51,722) | (57,439) | (161,451) | (159,682) | |
Selling and general expenses | (5,729) | (5,666) | (16,907) | (17,107) | |
Gain on divestiture of business, net | 11,413 | ||||
Other income | 792 | 225 | 2,722 | 596 | |
Earnings from discontinued operations, net of tax | (6) | 537 | 8,947 | 1,576 | |
Discontinued Operations Held-for-sale [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net sales | 18,545 | 421 | 57,569 | ||
Cost of sales | (133) | (17,175) | (618) | (53,217) | |
Selling and general expenses | (560) | (24) | (1,974) | ||
Gain on divestiture of business, net | $ 11,413 | 11,413 | |||
Other income | (2) | 2,078 | (5) | ||
Earnings from discontinued operations before provision for income taxes | (133) | 808 | 13,270 | 2,373 | |
Provision for income taxes from discontinued operations | (127) | 271 | 4,323 | 797 | |
Earnings from discontinued operations, net of tax | $ (6) | $ 537 | $ 8,947 | $ 1,576 |
Discontinued Operations (Summ26
Discontinued Operations (Summary of Major Classes of Assets and Liabilities) (Details) - USD ($) $ in Thousands | Oct. 01, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 44,637 | $ 67,285 |
Inventories | 129,543 | 95,403 |
Property, Plant and equipment, net | 47,173 | 49,475 |
Accounts payable | 27,685 | 39,584 |
Accrued liabilities | 13,196 | 12,244 |
Discontinued Operations Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 246 | 13,781 |
Inventories | 10,747 | |
Property, Plant and equipment, net | 3,819 | 34,365 |
Assets held for sale | 4,065 | 58,893 |
Accounts payable | 105 | 5,245 |
Accrued liabilities | 1,008 | |
Liabilities held for sale | $ 105 | $ 6,253 |