Annual report pursuant to Section 13 and 15(d)

Note 4 - Consolidated Financial Statement Details - Consolidated Balance Sheets (Details)

v3.8.0.1
Note 4 - Consolidated Financial Statement Details - Consolidated Balance Sheets (Details) - USD ($)
$ in Thousands
Dec. 31, 2017
Jan. 01, 2017
Trade accounts receivable $ 28,793 $ 22,284
Other receivables 300 511
Allowance for doubtful accounts (171)
Accounts receivable—net 29,093 22,624
Raw materials [1] 17,049 14,863
Work in process 1,874 1,557
Finished goods 3,029 3,678
Parts and other 411 576
Inventories 22,363 20,674
Cost:    
Property, plant and equipment 47,686 49,344
Less accumulated depreciation and impairment:    
Accumulated depreciation, property, plant and equipment (37,417) (34,907)
Property, Plant and Equipment, Net 10,269 14,437
Payroll 2,485 2,134
Professional services 328 281
Accrued liabilities 4,877 4,604
Land [Member]    
Cost:    
Property, plant and equipment 1,648 1,648
Less accumulated depreciation and impairment:    
Accumulated depreciation, property, plant and equipment
Building [Member]    
Cost:    
Property, plant and equipment 9,852 9,852
Less accumulated depreciation and impairment:    
Accumulated depreciation, property, plant and equipment (8,619) (8,174)
Machinery and Equipment [Member]    
Cost:    
Property, plant and equipment [1],[2] 30,319 31,615
Less accumulated depreciation and impairment:    
Accumulated depreciation, property, plant and equipment [1],[2] (24,650) (22,460)
Furniture and Fixtures [Member]    
Cost:    
Property, plant and equipment 534 556
Less accumulated depreciation and impairment:    
Accumulated depreciation, property, plant and equipment (413) (438)
Computer Equipment [Member]    
Cost:    
Property, plant and equipment [2] 3,173 3,544
Less accumulated depreciation and impairment:    
Accumulated depreciation, property, plant and equipment [2] (2,622) (2,842)
Leasehold Improvements [Member]    
Cost:    
Property, plant and equipment 2,160 2,129
Less accumulated depreciation and impairment:    
Accumulated depreciation, property, plant and equipment (1,113) (993)
Customer Related [Member]    
Less accumulated depreciation and impairment:    
Other accrued liabilities 936 898
Restructuring [Member]    
Less accumulated depreciation and impairment:    
Other accrued liabilities 109 27
Vendor Related [Member]    
Less accumulated depreciation and impairment:    
Other accrued liabilities 493 613
Other Accrued Liabilities [Member]    
Less accumulated depreciation and impairment:    
Other accrued liabilities $ 526 $ 651
[1] Included within machinery and equipment were assets under capital leases with costs of $533 and $2,193 and associated accumulated depreciation of $222 and $673 as of December 31, 2017 and January 1, 2017, respectively. The related depreciation expense for the year ended December 31, 2017 and January 1, 2017 was $162 and $673, respectively. An impairment charge of $97 was allocated to machinery and equipment under capital lease for the year ended December 31, 2017. During the year ended December 31, 2017, $1,660 machinery and equipment under capital lease was purchased and transferred to machinery and equipment owned.
[2] In accordance with ASC 360-10, the Company is required to evaluate for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Upon the occurrence of a triggering event, the Company assesses whether the estimated undiscounted cash flows expected from the use of the asset and the residual value from the ultimate disposal of the asset exceeds the carrying value. In the second quarter of 2017, the Company identified that operating results for its U.S. segment asset group did not meet its forecasted results, which was considered a triggering event related to its U.S. segment asset group. The Company estimated undiscounted cash flows and determined the carrying amounts exceeded the recoverable amount, and therefore performed a discounted cash flow analysis. The difference between the discounted cash flows and the carrying amount resulted in an impairment loss of $1,025 which was recorded in 2017. The net carrying amount of the U.S. asset group is $1,188. The estimate of discounted cash flows is sensitive to certain key assumptions, for instance, if our revenue projections are lower by 1%, the impairment would increase by $110. If there was a 1% increase in the weighted average cost of capital, the impairment would increase by $37. The Company calculated the impairment loss by discounting the future cash flows which was determined to represent the fair value of the asset group and deducted this from the carrying amount of the segment asset group. As at December 31, 2017 the Company did not identify any further triggering events related to the U.S. asset group. Additionally during the second quarter of 2017, the Company removed fully depreciated machinery and equipment that were no longer in use with a cost and accumulated depreciation value of $870. The China segment impaired machinery and equipment with net book value of $265, associated cost of $383 and accumulated depreciation value of $118. The China segment also impaired machinery and equipment with net book value of $181, associated cost of $472 and accumulated depreciation value of $291. The corporate segment also impaired computer hardware and software with net book value of $130, associated cost of $135 and accumulated depreciation of $5. A total impairment loss was recorded of $576 in the second quarter of 2017 related to the China and Corporate segments. As at December 31, 2017, the Company identified that operating results for its China segment asset group did not meet forecasted results, which was considered a triggering event related to its China segment asset group. The net carrying amount of the China asset group is $1,380. The Company estimated undiscounted cash flows and determined a recoverable amount of $1,410 in excess of the net carrying value, therefore no impairment loss was recorded in 2017. The key assumptions included in these cash flows are projected revenue based on management’s revised forecast and corresponding margins. The estimate of undiscounted cash flows are sensitive to these key assumptions, for instance, if our revenue projections are lower by 10%, the recoverable amount in excess of the carrying amount would be reduced to $1,060. As such, the Company continues to monitor for impairment triggers each quarter, which may result in future impairments in this asset group.