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Note 5 - Toluca Sale-leaseback
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Sale Leaseback Transaction Disclosure [Text Block]
(
5
)
Toluca Sale-Leaseback
 
On
October
 
30,
 
2015,
the Company entered into a non-binding letter of intent to sell and lease-back its property and buildings in Toluca, Mexico, which is part of the Sypris Technologies Group. As such, the Company concluded that the assets qualified for Assets Held for Sale accounting in accordance with Accounting Standards Codification (ASC) 
205
as of
December
 
31,
 
2015.
The assets had a net book value of
$3,230,000
as of
December
 
31,
 
2015.
 
On
March
9,
2016,
Sypris Technologies Mexico, S. de R.L. de C.V. (“Seller”), a subsidiary of the Company, concluded its sale of the
24
-acre Toluca property pursuant to an agreement with Promotora y Desarrolladora Pulso Inmobiliario, S.C. (together with its affiliates and assignees, “Buyer”) for
215,000,000
Mexican Pesos, or approximately
$12,182,000
in U.S. currency. Simultaneously, the Seller and the Buyer entered a long-term lease of the
9
acres and buildings currently occupied by Seller and needed for its ongoing business in Toluca (collectively, the “Toluca Sale-Leaseback”). The Company incurred transaction related expenses of
$1,116,000.
 
As a result of the Toluca Sale-Leaseback, the Company initially recorded a capital lease of
$3,315,000,
which is included in property plant and equipment. The Company recorded an initial gain on the sale of
$2,370,000
during the year ended
December
 
31,
 
2016,
which is included in other income, net in the consolidated statement of operations, and recorded a deferred gain of
$4,368,000
as of
December
 
31,
 
2016,
which will be recognized over the
ten
year lease term. The Company’s base rent, which is denominated in U.S. currency, is
$936,000
annually, adjusted based on U.S. CPI with certain cap conditions.
 
The following assets have been segregated and included in assets held for sale in the consolidated balance sheet as of
December
31,
2015
(in thousands):
 
 
 
December 31,
 
 
 
2015
 
Land and land improvements
   $
1,568
  
Buildings and building improvements
    
3,658
  
Accumulated depreciation
    
(1,996
 )
Property, plant and equipment, net
   $
3,230