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Note 3 - Exit and Disposal Activities | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Restructuring and Related Activities Disclosure [Text Block] |
( 3 ) | Exit and Disposal Activities
On November 22, 2016, the Board of Directors of the Company approved moving forward with the exploration of a range of strategic options for the Broadway Plant, including the divestiture of the plant, the transitional reduction in its operations to accommodate lower volumes, the relocation of production to other Company facilities as needed, and/or the closure of the plant. Accordingly, management explored various exit or disposal options for the Broadway Plant with the input of our salaried and unionized employees, our customers and others within the industry. On February 21, 2017, with the benefit of management’s analysis, the Board approved a modified exit or disposal plan with respect to the Broadway Plant, which is now expected to continue certain transitional operations into 2018. The Company expects to relocate certain assets from the Broadway Plant to other manufacturing facilities as needed to serve its existing and target customer base and to identify underutilized or non-core assets for disposal. Management expects to use proceeds from the sale of any underutilized or non-core assets to fund costs incurred on the transfer of equipment from the Broadway Plant and the transition of the related production. Management will evaluate options for the real estate and any remaining assets in the Broadway Plant following the completion of production at that facility. In 2016, the Company recorded charges of $645,000, or $0.03 per share, related to the transition of production from the Broadway Plant, which is included in severance, relocation and other costs in the Consolidated Statement of Operations. A summary of the pre-tax charges is as follows (in thousands):
|  | Total Program |  |  | Recognized as of December 31, 2016 |  |  | Remaining Costs to be Recognized |
Severance and benefit-related costs |  | $ | 1,265 |  |  | $ | 427 |  |  | $ | 838 |
Asset impairments |  |  | 188 |  |  |  | 188 |  |  |  | 0 |
Equipment relocation costs |  |  | 2,531 |  |  |  | 0 |  |  |  | 2,531 |
Other |  |  | 530 |  |  |  | 30 |  |  |  | 500 |
|  | $ | 4,514 |  |  | $ | 645 |  |  | $ | 3,869 |
Severance and benefit-related costs tied to workforce reductions were recorded in accordance with Accounting Standards Codification (ASC) 420, Exit or Disposal Cost Obligations and ASC 712, Compensation – Nonretirement Postemployment Benefits . Under ASC 420, one -time termination benefits that are conditioned on employment through a certain transition period are recognized ratably between the date employees are communicated the details of the one -time termination benefit and their final date of service. Accordingly, the Company has recorded $427,000 in 2016 and expects to record an additional $838,000 in 2017. The Company evaluates its long-lived assets for impairment when events or circumstances indicate that the carrying value may not be recoverable in accordance with ASC 360, Impairment and Disposal of Long-Lived Asset . The Company’s strategic decision to transition production from the Broadway Plant led to an $188,000 non-cash impairment charge in 2016. The charge was based on the excess of carrying value of certain assets not expected to be redeployed over their respective fair value. Fair values for these assets were determined based on discounted cash flow analyses. A summary of costs and related reserves for the transition of production from the Broadway Plant at December 31, 2016 is as follows (in thousands):
|  | Accrued |  |  |  |  |  | Cash |  |  | Accrued |
|  | Balance at |  |  |  |  |  | Payments |  |  | Balance at |
|  | Dec. 31, |  |  | 2016 |  |  | or Asset |  |  | Dec. 31, |
|  | 2015 |  |  | Charge |  |  | Write-Offs |  |  | 2016 |
Severance and benefit related costs |  | $ | 0 |  |  | $ | 427 |  |  | $ | 0 |  |  | $ | 427 |
Asset impairments |  |  | 0 |  |  |  | 188 |  |  |  | (188 | ) |  |  | 0 |
Equipment relocation costs |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Other |  |  | 0 |  |  |  | 30 |  |  |  | (30 | ) |  |  | 0 |
|  | $ | 0 |  |  | $ | 645 |  |  | $ | (218 | ) |  | $ | 427 |
The Company expects to incur additional pre-tax costs of approximately $3,869,000 within Sypris Technologies, which is expected to be all cash expenditures. As noted above, management expects to use proceeds from the sale of any underutilized or non-core assets to fund costs incurred on the transfer of equipment from the Broadway Plant and the transition of the related production. The following assets have been segregated and included in assets held for sale in the consolidated balance sheet as of December 31, 2016 (in thousands):
|  | December 31, |
|  | 2016 |
Machinery, equipment, furniture and fixtures |  | $ | 6,673 |
Accumulated depreciation |  |  | (5,841 | )
Property, plant and equipment, net |  | $ | 832 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.P.3) -URI http://asc.fasb.org/extlink&oid=27011515&loc=d3e140864-122747 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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