Quarterly report pursuant to Section 13 or 15(d)

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

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Note 4 - Interim Consolidated Financial Statement Details - Consolidated Balance Sheets (Details) - USD ($)
$ in Thousands
Oct. 01, 2017
Jan. 01, 2017
Trade accounts receivable $ 23,866 $ 22,284
Other receivables 284 511
Allowance for doubtful accounts (a) [1] (985) (171)
Accounts receivable—net 23,165 22,624
Raw materials (a) [1] 15,948 14,863
Work in process 2,614 1,557
Finished goods 2,139 3,678
Parts 516 576
Inventories 21,217 20,674
Property, plant and equipment 47,585 49,344
Accumulated depreciation, property, plant and equipment (36,623) (34,907)
Property, Plant and Equipment, Net 10,962 14,437
Payroll 2,540 2,134
Professional services 368 281
Accrued liabilities 5,814 4,604
Land [Member]    
Property, plant and equipment 1,648 1,648
Accumulated depreciation, property, plant and equipment
Building [Member]    
Property, plant and equipment 9,852 9,852
Accumulated depreciation, property, plant and equipment (8,508) (8,174)
Machinery and Equipment [Member]    
Property, plant and equipment [1],[2],[3] 30,308 31,615
Accumulated depreciation, property, plant and equipment [1],[2],[3] (24,160) (22,460)
Furniture and Fixtures [Member]    
Property, plant and equipment 532 556
Accumulated depreciation, property, plant and equipment (405) (438)
Computer Equipment [Member]    
Property, plant and equipment 3,118 3,544
Accumulated depreciation, property, plant and equipment (2,516) (2,842)
Leasehold Improvements [Member]    
Property, plant and equipment 2,127 2,129
Accumulated depreciation, property, plant and equipment (1,034) (993)
Customer Related [Member]    
Other accrued liabilities 1,808 898
Restructuring [Member]    
Other accrued liabilities 185 27
Vendor Related [Member]    
Other accrued liabilities 396 613
Other Accrued Liabilities [Member]    
Other accrued liabilities $ 517 $ 651
[1] The increase in the allowance for doubtful accounts from January 1, 2017 to October 1, 2017 predominantly related to one customer for which management has concluded a provision was required for the outstanding accounts receivable due to the deterioration of the credit risk associated with one customer.
[2] During 2017, the Company removed fully depreciated assets that were no longer in use with a cost and accumulated depreciation value of $870. The China segment impaired assets from machinery and equipment with net book value of $446.The corporate segment also impaired assets with net book value of $130. A total impairment loss was recorded of $576 in 2017.
[3] 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 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 was exceeded by 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 $1,255. 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. No triggering events were noted related to the U.S. segment for the three months ended October 1, 2017, and no additional impairment charge has been recorded. In 2017, the Company also 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 $1,510. The Company estimated undiscounted cash flows and determined a recoverable amount of $1,122 in excess of the net carrying value, therefore no impairment loss has been recorded in the third quarter of 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 1%, the recoverable amount in excess of the carrying amount would be reduced to $641. As such, the Company continues to monitor for impairment triggers each quarter, which may result in future impairments in this asset group. There were no changes to any of the key assumptions used in evaluating this asset group for impairment during the third quarter of 2017.