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Note 7 - Toluca Sale-leaseback
 6 Months Ended
Jul. 02, 2017
Notes to Financial Statements  
Sale Leaseback Transactions [Text Block]
(
7
)
Toluca Sale-Leaseback
 
On
March 9, 2016,
Sypris Technologies Mexico, S. de R.L. de C.V. (the “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, the “Buyer”) for
215,000,000
Mexican Pesos, or approximately
$12,182,000
in U.S. currency. Simultaneously, the Seller and the Buyer entered into a long-term lease of the
9
acres and the buildings needed for the Seller’s 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
six
months ended
July 
3,
 
2016,
which is included in other income, net in the condensed consolidated statement of operations, and has a deferred gain of
$4,734,000
as of
July 
2,
 
2017,
which will be recognized over the remainder of the
ten
year lease term. The Company’s base rent, which is denominated in U.S. currency, is
$936,000
annually, adjusted based on annual changes in the U.S. CPI with certain cap conditions.