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Significant Accounting Policies (Policies) | 6 Months Ended
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Jul. 01, 2018
Accounting Policies [Abstract] |
New Accounting Pronouncements, Policy [Policy Text Block] | In 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014 - 09 - Revenue from Contracts with Customers (ASC 606 ), which supersedes nearly all existing revenue recognition guidance. Subsequent to the issuance of ASU 2014 - 09, the FASB clarified the new guidance through several additional ASUs; hereinafter the collection of revenue guidance is referred to as “ASC 606.” ASC 606 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and any assets recognized from costs incurred to fulfill a contract. The Company adopted the guidance effective January 1, 2018 using the modified retrospective approach for all contracts not completed as of the date of adoption. Results for reporting periods beginning January 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 605, Revenue Recognition. We recorded a net decrease to beginning accumulated deficit of $170,000 as of January 1, 2018, for the cumulative impact of adopting the new guidance. The impact primarily arises from a change in how we account for certain federally funded programs within Sypris Electronics where we transfer control of the products to the customer as they are produced (i.e., a change from recognizing revenue at a point in time to recognizing revenue over time, resulting in revenue being recognized earlier in the process of completing the performance obligation). The following table summarizes the cumulative effect of the changes to our unaudited consolidated balance sheet as of January 1, 2018 from the adoption of ASC 606:
|  |  |  |  |  |  |  |  |  | Opening |
|  | Balance at |  |  | ASC 606 |  |  | Balance at |
|  | Dec. 31, 2017 |  |  | Adjustments |  |  | Jan. 1, 2018 |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Inventories – net |  | $ | 17,641 |  |  | $ | (655 | ) |  | $ | 16,986 |
Contract assets |  |  | 0 |  |  |  | 825 |  |  |  | 825 |
Liabilities and Equity |  |  |  |  |  |  |  |  |  |  |  |
Accumulated deficit |  | $ | (111,591 | ) |  | $ | 170 |  |  | $ | (111,421 | )
Under the modified retrospective method of adoption, we are also required to disclose in the first year of adoption the hypothetical impact to our financial statements if we had continued to follow our accounting policies under ASC 605 during the period. We estimate that the impact to revenue for the three and six months ended July 1, 2018 would have been a decrease of approximately $519,000 and $1,026,000 representing the amount of revenue recognized over time versus at a point in time under ASC 606. Additionally, the adoption of ASC 606 decreased our operating loss and net loss by $80,000, or $0.01 per share and $186,000, or $0.01 per share, for the three and six months ended July 1, 2018, respectively. The following table summarizes the effect of adopting ASC 606 on our unaudited consolidated statement of operations for the three months ended July 1, 2018:
|  | As Reported |  |  | Impact of |  |  | Legacy GAAP |
|  | July 1 , 201 8 |  |  | ASC 606 |  |  | July 1, 2018 |
Net revenue |  | $ | 22,971 |  |  | $ | 519 |  |  | $ | 22,452 |
Cost of sales |  |  | 20,037 |  |  |  | 439 |  |  |  | 19,598 |
Gross profit |  |  | 2,934 |  |  |  | 80 |  |  |  | 2,854 |
Selling, general and administrative |  |  | 3,171 |  |  |  | 0 |  |  |  | 3,171 |
Severance, equipment relocation and other costs |  |  | 305 |  |  |  | 0 |  |  |  | 305 |
Operating loss |  |  | (542 | ) |  |  | 80 |  |  |  | (622 | )
Interest expense, net |  |  | 221 |  |  |  | 0 |  |  |  | 221 |
Other (income), net |  |  | (1,623 | ) |  |  | 0 |  |  |  | (1,623 | )
Income before taxes |  |  | 860 |  |  |  | 80 |  |  |  | 780 |
Income tax expense |  |  | 46 |  |  |  | 0 |  |  |  | 46 |
Net income |  | $ | 814 |  |  | $ | 80 |  |  | $ | 734 |
The following table summarizes the effect of adopting ASC 606 on our unaudited consolidated statement of operations for the six months ended July 1, 2018:
|  | As Reported |  |  | Impact of |  |  | Legacy GAAP |
|  | July 1, 2018 |  |  | ASC 606 |  |  | July 1, 2018 |
Net revenue |  | $ | 42,913 |  |  | $ | 1,026 |  |  | $ | 41,887 |
Cost of sales |  |  | 37,948 |  |  |  | 840 |  |  |  | 37,108 |
Gross profit |  |  | 4,965 |  |  |  | 186 |  |  |  | 4,779 |
Selling, general and administrative |  |  | 6,319 |  |  |  | 0 |  |  |  | 6,319 |
Severance, equipment relocation and other costs |  |  | 814 |  |  |  | 0 |  |  |  | 814 |
Operating loss |  |  | (2,168 | ) |  |  | 186 |  |  |  | (2,354 | )
Interest expense, net |  |  | 434 |  |  |  | 0 |  |  |  | 434 |
Other (income), net |  |  | (1,707 | ) |  |  | 0 |  |  |  | (1,707 | )
Loss before taxes |  |  | (895 | ) |  |  | 186 |  |  |  | (1,081 | )
Income tax expense |  |  | 86 |  |  |  | 0 |  |  |  | 86 |
Net loss |  | $ | (981 | ) |  | $ | 186 |  |  | $ | (1,167 | )
The following table summarizes the cumulative effect of the changes to our unaudited consolidated balance sheets as of July 1, 2018 from the adoption of ASC 606:
|  | As Reported |  |  | Impact of |  |  | Legacy GAAP |
|  | July 1, 2018 |  |  | ASC 606 |  |  | July 1, 2018 |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Inventories – net |  | $ | 17,555 |  |  | $ | 1,495 |  |  | $ | 19,050 |
Contract assets |  |  | 1,851 |  |  |  | 1,851 |  |  |  | 0 |
Liabilities and Equity |  |  |  |  |  |  |  |  |  |  |  |
Accumulated deficit |  | $ | (112,402 | ) |  | $ | 356 |  |  | $ | (112,758 | )
In February 2016, the FASB issued ASU No. 2016 - 02, Leases (ASC 842 ). The new standard was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This standard affects any entity that enters into a lease, with some specified scope exemptions. The guidance in this update supersedes FASB Accounting Standards Codification (“ASC”) 840, Leases. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently assessing the impact of adopting this ASU on its consolidated financial statements and related disclosures. We believe the adoption of the standard will likely have a material impact to our consolidated balance sheets for the recognition of certain operating leases as right-of-use assets and lease liabilities. We are in the process of analyzing our lease portfolio and evaluating systems to comply with the standard’s retrospective adoption requirements. In March 2017, the FASB issued ASU No. 2017 - 07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017 - 07 ). The update requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service cost/credit and actuarial gain/loss, and settlement and curtailment effects, are to be presented outside of any subtotal of operating income. The income statement guidance requires application on a retrospective basis. The Company adopted the ASU on January 1, 2018, and as a result operating income increased $199,000 and other income decreased by $199,000 for the six months ended July 2, 2017. The Company used the practical expedient provided in ASU 2017 - 07 that permits the use of the amounts disclosed in its benefit plans notes for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. These changes in presentation do not result in any changes to net loss or loss per share. Details of the components of net periodic benefit costs are provided in Note 17. In February 2018, the FASB issued ASU No. 2018 - 02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018 - 02 ). Under existing U.S. GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in accumulated other comprehensive income are adjusted, certain tax effects become stranded in accumulated other comprehensive income. The amendments in ASU 2018 - 02 allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The amendments in this ASU also require certain disclosures about stranded tax effects. The guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption in any period is permitted. The Company is currently evaluating the timing and impact of adopting ASU 2018 - 02.

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- Definition Disclosure of accounting policy pertaining to new accounting pronouncements that may impact the entity's financial reporting. Includes, but is not limited to, quantification of the expected or actual impact. + References No definition available. + Details
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