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Note 6 - CSS Sale
 9 Months Ended
Oct. 01, 2017
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
(
6
)
CSS Sale
 
On
August 16, 2016,
the Company completed the sale of certain assets, intellectual property, contracts and other assets of Sypris Electronics (the “CSS Sale”) comprised principally of
the CSS product lines. The assets were sold for
$42,000,000
in cash consideration,
$1,500,000
of which was released from escrow to the Company during the
third
quarter of
2017
after being held in escrow for
12
months from the sale date in connection with certain customary representations, warranties, covenants and indemnifications of the Company. The Company recognized a net gain of
$31,240,000
on the sale, which was reported in other income, net in the consolidated statement of operations for the
nine
months ended
October 
2,
 
2016.
 
A portion of the proceeds from the CSS Sale was used to pay off the
Company’s most senior, secured debt consisting of a “Term Loan” and a “Revolving Credit Facility.” As a result of the early extinguishment of debt, the Company was required to pay
$1,521,000
in penalties, which is included in loss on extinguishment of debt, and wrote off the remaining amount of deferred loan costs associated with the Term Loan and Revolving Credit Facility, which is included in interest expense, net for the
three
and
nine
months ended
October 
2,
 
2016.
The retained portion of the Sypris Electronics segment will continue to provide circuit card and full “box build” electronic manufacturing to customers in the aerospace, defense, medical and severe environment markets, among others.
 
Revenue from the CSS product lines for the
three
and
nine
months ended
October 
2,
 
2016
was
$1,769,000
and
$11,061,000.
While the Company is able to distinguish revenue and contribution margin information related to the CSS product lines, the Company is
not
able to present meaningful information about the results of operations and cash flows of the CSS product lines. Therefore, the sale was
not
classified as a discontinued operation.