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Discontinued Operations
 6 Months Ended
Jul. 07, 2012
Discontinued Operations [Abstract]  
Discontinued Operations
(4) Discontinued Operations

On October 26, 2009, the Company sold all of the stock of its wholly owned subsidiary, Sypris Test & Measurement, Inc. (“Sypris Test & Measurement”) for $39,000,000, of which $3,000,000 was deposited in an escrow account in connection with certain customary representations, warranties, covenants and indemnifications of the Company and is classified as restricted cash on the Company’s consolidated balance sheets. During 2010, the Company was made aware of a potential indemnification claim from the purchaser of Sypris Test & Measurement, and the parties are currently engaged in binding arbitration to resolve the claim. The Company estimates that its total liability arising from this claim will not exceed $946,000, however the amounts asserted against the Company range up to approximately $6,000,000, and there can be no assurances that the Company’s estimates regarding its various defenses will be realized. The Company also incurred legal expenses of $576,000 and $799,000 during the three and six months ended July 1, 2012 in connection with the claim. These charges are included in loss from discontinued operations, net of tax in the consolidated statement of operations. In addition to the legal expenses incurred, the Company has paid $196,000 related to the claim as of July 1, 2012. The remaining amount of $750,000 has been reserved in accrued liabilities on the Company’s consolidated balance sheets. As of July 1, 2012, the Company reclassified the $3,000,000 restricted cash balance from non-current assets to current assets on the Company’s consolidated balance sheets, reflecting its expectation to settle the claim within the next twelve months. There can be no assurance that similar potential claims will not emerge in the future or that relevant facts and circumstances will not change, necessitating future changes to an estimated liability.