10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 4, 2015

Commission File Number: 001-36770

SYMMETRY SURGICAL INC

(Exact name of registrant as specified in its charter)

Delaware	47-1523659
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
3034 Owen Drive, Antioch, TN	37013
(Address of principal executive offices)	(Zip Code)
(800) 251-3000
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.        ý Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (S232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

ý Yes  ¨ No

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer   ¨
Non-accelerated filer ý (Do not check if a smaller reporting company)	Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      ¨ Yes  ý  No

The number of shares outstanding of the registrant’s common stock as of August 7, 2015 was 10,302,970 shares.

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION
Item 1	Financial Statements:	2
	Condensed Consolidated Balance Sheets: As of July 4, 2015 and January 3, 2015	2
	Condensed Consolidated and Combined Statements of Operations: Three and Six Months Ended July 4, 2015 and June 28, 2014	3
	Condensed Consolidated and Combined Statements of Comprehensive Income: Three and Six Months Ended July 4, 2015 and June 28, 2014	4
	Condensed Consolidated and Combined Statements of Cash Flows: Six Months Ended July 4, 2015 and June 28, 2014	5
	Notes to Condensed Consolidated and Combined Financial Statements	6
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3	Quantitative and Qualitative Disclosures about Market Risk	18
Item 4	Controls and Procedures	18
PART II OTHER INFORMATION
Item 1	Legal Proceedings	18
Item 1A	Risk Factors	19
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3	Defaults Upon Senior Securities	19
Item 4	Mine Safety Disclosures	19
Item 5	Other Information	19
Item 6	Exhibits	19
Signatures		21

Cautionary Note Regarding Forward-Looking Statements

Throughout this Quarterly Report on Form 10-Q or in other reports or registration statements filed from time to time with the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934, as amended, or under the Securities Act of 1933, as amended, as well as in documents we incorporate by reference or in press releases or oral statements made by our officers or representatives, we may make statements that express our opinions, expectations or projections regarding future events or future results, in contrast with statements that reflect historical facts. These predictive statements, which we generally precede or accompany by such typical conditional words such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “potential,” or “expect,” or by the words “may,” “will,” “could,” or “should,” and similar expressions or terminology are intended to operate as “forward-looking statements” of the kind permitted by the Private Securities Litigation Reform Act of 1995. That legislation protects such predictive statements by creating a “safe harbor” from liability in the event that a particular prediction does not turn out as anticipated.

Forward-looking statements convey our current expectations or forecast future events. While we always intend to express our best judgment when we make statements about what we believe will occur in the future, and although we base these statements on assumptions that we believe to be reasonable when made, these forward-looking statements are not a guarantee of performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to many uncertainties and other variable circumstances, many of which are outside of our control, that could cause our actual results and experience to differ materially from those we thought would occur.

We also refer you to, and believe that you should carefully read, the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” portions of our Annual Report for fiscal 2014 on Form 10-K, as well as in other reports which we file with the Securities and Exchange Commission, to better understand the risks and uncertainties that are inherent in our business and in owning our securities. These reports are available publicly on the SEC website, www.sec.gov, and on our website, www.symmetrysurgical.com.

Any forward-looking statements which we make in this report or in any of the documents that are incorporated by reference herein speak only as of the date of such statement, and we undertake no ongoing obligation to update such statements. Comparisons of results between current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

PART I FINANCIAL INFORMATION

ITEM I. FINANCIAL STATEMENTS

SYMMETRY SURGICAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

	July 4, 2015			January 3, 2015
	(unaudited)
ASSETS:
Current Assets:
Cash	$	4,199		$	2,994
Accounts receivable, net	10,113			10,070
Inventories	24,740			24,141
Deferred income taxes	2,809			2,816
Other current assets	2,043			2,417
Total current assets	43,904			42,438
Property and equipment, net	2,317			2,768
Deferred income taxes	20,924			21,243
Goodwill	7,120			7,126
Intangible assets, net of accumulated amortization	75,063			77,903
Other assets	227			219
Total Assets	$	149,555		$	151,697
LIABILITIES AND EQUITY:
Current Liabilities:
Accounts payable	$	5,513		$	5,283
Accrued wages and benefits	1,743			1,902
Other accrued expenses	1,493			1,417
Accrued income taxes	274			158
Deferred income taxes	14			15
Revolving line of credit, net	—			3,876
Total current liabilities	9,037			12,651
Other long-term liabilities	1,081			1,092
Total Liabilities	10,118			13,743
Commitments and contingencies
Stockholders' Equity:
Common Stock, $.0001 par value; 50,000 shares authorized; shares issued July 4, 2015-10,303; January 3, 2015-10,313	1			1
Additional paid-in capital	139,175			138,576
Retained earnings (deficit)	981			(116		)
Accumulated other comprehensive loss	(720		)	(507		)
Total Stockholders' Equity	139,437			137,954
Total Liabilities and Equity	$	149,555		$	151,697

See accompanying notes to condensed consolidated financial statements.

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SYMMETRY SURGICAL INC.

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS

(In Thousands; Except Per Share Data; Unaudited)

	Three Months Ended					Six Months Ended
	July 4, 2015		June 28, 2014			July 4, 2015			June 28, 2014
Revenue	$	20,662	$	20,473		41,436			41,035
Cost of revenue	10,853		10,631			21,742			22,717
Gross profit	9,809		9,842			19,694			18,318
Sales and marketing expenses	4,141		4,349			8,614			8,805
General and administrative expenses	4,865		4,595			9,426			9,090
Asset impairment	—		10,500			—			10,500
Operating income (loss)	803		(9,602		)	1,654			(10,077		)
Other (income) expense:
Interest expense	63		—			127			—
Other	185		60			(78		)	144
Income (loss) before income taxes	555		(9,662		)	1,605			(10,221		)
Income tax expense (benefit)	214		(3,516		)	508			(3,707		)
Net income (loss)	$	341	$	(6,146	)	$	1,097		$	(6,514	)
Net income (loss) per share:
Basic	$	0.04	$	(0.64	)	$	0.11		$	(0.68	)
Diluted	$	0.04	$	(0.64	)	$	0.11		$	(0.68	)
Weighted average common shares and equivalent shares outstanding:
Basic (a)	9,587		9,587			9,587			9,587
Diluted (a)	9,652		9,587			9,627			9,587

(a) On December 5, 2014, SMI distributed 9,587 shares of Symmetry Surgical common stock. For periods prior to the separation, the weighted-average basic and diluted shares outstanding were based on the number of shares of Symmetry Surgical common stock outstanding on the distribution date. Refer to Note 13 for information regarding the calculation of basic and diluted earnings per share for the period ended June 28, 2014.

See accompanying notes to condensed consolidated and combined financial statements.

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SYMMETRY SURGICAL INC.

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands; Unaudited)

	Three Months Ended					Six Months Ended
	July 4, 2015		June 28, 2014			July 4, 2015			June 28, 2014
Net income (loss)	$	341	$	(6,146	)	$	1,097		$	(6,514	)
Other comprehensive income (loss):
Foreign currency translation adjustments	65		(20		)	(242		)	(30		)
Pension plan actuarial gain (loss), net of taxes	—		3			29			6
Comprehensive income (loss)	$	406	$	(6,163	)	$	884		$	(6,538	)

See accompanying notes to condensed consolidated and combined financial statements.

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SYMMETRY SURGICAL INC.

CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOW

(In Thousands; Unaudited)

	Six Months Ended
	July 4, 2015			June 28, 2014
Operating activities
Net income (loss)	$	1,097		$	(6,514	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	481			472
Amortization	2,796			2,689
Amortization of debt issuance costs	56			—
Net loss on sale of assets	37			79
Asset impairment	—			10,500
Deferred income tax provision	312			(1,963		)
Stock-based compensation	599			371
Unrealized foreign currency transaction loss	58			39
Change in operating assets and liabilities:
Accounts receivable	(307		)	2,862
Due to Symmetry OEM Solutions	—			154
Other assets	354			(189		)
Inventories	(603		)	(3,938		)
Current income taxes	123			36
Accounts payable	303			2,855
Accrued expenses and other	159			(447		)
Net cash provided by operating activities	5,465			7,006
Investing activities
Purchases of property and equipment	(74		)	(166		)
Proceeds from sale of property and equipment	4			—
Net cash used in investing activities	(70		)	(166		)
Financing activities
Net transfers to Symmetry Medical Inc.	—			(5,811		)
Proceeds from Revolving Loan	98			—
Payments on Revolving Loan	(3,974		)	—
Net cash used in financing activities	(3,876		)	(5,811		)
Effect of exchange rate changes on cash	(314		)	(7		)
Net increase in cash	1,205			1,022
Cash at beginning of period	2,994			648
Cash at end of period	$	4,199		$	1,670

See accompanying notes to condensed consolidated and combined financial statements.

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SYMMETRY SURGICAL INC.

NOTES TO CONDENSED CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS

(In Thousands; Except Per Share Data, Unaudited)

1. Description of Operations

Overview

Symmetry Surgical Inc. (the “Company”) is a global marketer and distributor of medical devices with some limited manufacturing focused on the surgery market. The Company offers over 20,000 products and sells primarily to hospitals and surgical centers in the U.S. and countries worldwide. The Company's current product portfolio includes a broad range of reusable stainless steel and titanium, hand-held general and specialty surgical instruments, single use and disposable instruments, electro-surgery instruments, retractor systems, and containers and sterilization devices sold directly to hospitals and other sites of care. These products are typically used in the surgical specialties of neurosurgery, spine, general surgery- open and laparoscopy, microsurgery, OB/Gyn, ophthalmology, otolaryngology / ENT, plastic / reconstructive, peripheral vascular, arthroscopy, orthopedic, pediatrics, cardiovascular, thoracic, and urology in the hospital setting as well as surgery centers and in select physician offices. These products are viewed in two categories by management; Symmetry Surgical Branded Products and Alliance Partners Products. Symmetry Surgical Branded Products include all products sold under brand names managed by the Company whereas Alliance Partners Products are brands the Company distributes for others in defined markets.

Separation from Symmetry Medical Inc.

In August 2014, Symmetry Medical Inc. (“SMI”) announced that it had entered into an Agreement and Plan of Merger, dated as of August 4, 2014 (the “Merger Agreement”), by and among SMI, TecoStar Holdings, Inc., Tecomet, Inc., and TecoSym, Inc. (“Merger Sub”), pursuant to which Merger Sub was merged with and into SMI, with SMI continuing as the surviving corporation (the “Merger”). As a result of the Merger, all of the outstanding shares of common stock of Symmetry Surgical Inc. ( the "Company"), were spun-off to SMI’s stockholders and the holder of each outstanding share of common stock of SMI received one-quarter of a share of common stock of Symmetry Surgical. This is referred to as the “Spin-Off.”

In connection with the Spin-Off, SMI entered into a Separation Agreement, dated as of August 4, 2014 (the “Separation Agreement”) with the Company. Pursuant to the Separation Agreement, SMI transferred all of the assets and liabilities of its Symmetry Surgical Business to the Company prior to the consummation of the Merger and the Spin-Off. The Separation Agreement provides for various agreements and arrangements governing the Company's relationship with SMI after the Spin-Off.

The Company includes the consolidated operations of Specialty Surgical Instrumentation, Inc. (d/b/a Symmetry Surgical Inc.), Olsen Medical, LLC, Symmetry Surgical Netherlands, CV, Symmetry Surgical Netherlands, BV, Symmetry Surgical, GmbH and Symmetry Surgical Switzerland, GmbH, all of which were subsidiaries of SMI prior to the Merger and Spin-Off.

2. Basis of Presentation

The condensed consolidated and combined financial statements of the Company have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying condensed consolidated and combined financial statements contain all adjustments of a normal recurring nature considered necessary to present fairly the consolidated and combined financial position of the Company, its results of operations and cash flows. The Company’s results are subject to seasonal fluctuations. Interim results are not necessarily indicative of results for a full year. The condensed consolidated and combined financial statements included herein should be read in conjunction with the fiscal year 2014 consolidated and combined financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for fiscal year 2014.

The Company’s fiscal year is the 52 or 53 week period ending on the Saturday closest to December 31. Fiscal year 2015 is a 52 week year ending January 2, 2016.  The Company’s interim quarters for 2015 are 13 weeks long and quarter-end dates have been set as April 4,2015, July 4,2015 and October 3,2015. Fiscal year 2014 was a 53 week year (ending January 3, 2015). The Company’s interim quarters for 2014 were 13 weeks long, except for the fourth quarter which was 14 weeks long, ending March 29,2014, June 28,2014 and September 27,2014. References in these condensed consolidated and combined financial statements to the three and six months ended refer to these financial periods, respectively.  

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3. Basis for Historical Presentation

The consolidated and combined financial statements prior to Separation on December 5, 2014 include the allocation of certain assets and liabilities that have historically been held at the SMI corporate level but which are specifically identifiable or allocable to Symmetry Surgical. Cash and cash equivalents held by SMI were not allocated to Symmetry Surgical as it was not expected to be transferred to Symmetry Surgical. Long-term debt and short-term borrowings were not allocated to Symmetry Surgical as none of the debt recorded by SMI was directly attributable to or guaranteed by Symmetry Surgical. All historical intracompany transactions and accounts have been eliminated. All historical intercompany transactions between Symmetry Surgical and the OEM Solutions Business have been disclosed as related party transactions. All intercompany transactions between Symmetry Surgical and SMI corporate are considered to be effectively settled in the consolidated and combined financial statements of cash flows as financing activity.

The historical financial statements do not necessarily include all of the expenses that would have been incurred had Symmetry Surgical been a separate, stand-alone entity and may not necessarily reflect Symmetry Surgical’s results of operations, financial position and cash flows had Symmetry Surgical been a stand-alone company during the periods presented. Symmetry Surgical’s historical financial statements include an allocation of expenses related to certain general and administrative, selling and marketing expenses from SMI to Symmetry Surgical. These expenses have been allocated to Symmetry Surgical first on the basis of direct usage when identifiable, with the remainder allocated on basis of their respective revenues. Symmetry Surgical considers the expense allocation methodology and results to be reasonable for all periods presented. However, the allocation may not be indicative of the actual expenses that would have been incurred had Symmetry Surgical operated as an independent, publicly-traded company for the periods presented.

4. Recently Adopted Accounting Pronouncements

On April 5, 2012, the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, was enacted. Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards. In other words, an “emerging growth company” may delay the adoption of certain accounting standards until those standards would otherwise apply to private companies and the Company has chosen to take advantage of this extended transition period.

Revenue from Contracts with Customers:   In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized 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 and services. The ASU 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 assets recognized from costs incurred to obtain or fulfill a contract. The ASU is effective for fiscal periods (including interim periods) beginning after December 15, 2017 and early adoption is not permitted for periods beginning before December 15, 2016. The ASU allows for either full retrospective or a modified retrospective transition method. The Company is currently assessing the potential impact of the adoption of ASU 2014-09 on its financial statements and related disclosures.

Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity:  In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update modifies the requirements for reporting discontinued operations. Under the amendments in ASU 2014-08, the definition of discontinued operation has been modified to only include those disposals of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This update also expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. This update is effective for annual and interim periods beginning after December 15, 2014. The adoption of this ASU in 2015 by the Company did not have an impact on its financial position, results of operations or cash flows. 

Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. In June, 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This new guidance states that a performance target that affects vesting of a share-based payment and that could be achieved after the requisite service period is a performance condition under ASC 718. This update is effective for annual

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and interim periods beginning after December 15, 2015. The Company does not believe this ASU will have an impact on the its financial statements.

Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In August, 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. This new guidance requires management to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The standard is effective for annual periods ending after December 15, 2016 with early adoption permitted. The Company does not believe this ASU will have an impact on its financial statements.

5. Inventories

Inventories consist of the following:  

	July 4, 2015		January 3, 2015
	(unaudited)
Raw material	$	1,037	$	880
Work-in-process	211		530
Finished goods	23,492		22,731
	$	24,740	$	24,141

6. Property and Equipment

Property and equipment, including depreciable lives, consists of the following:

	July 4, 2015			January 3, 2015
	(unaudited)
Buildings and improvements (20 to 40 years)	$	560		$	575
Machinery and equipment (5 to 15 years)	1,484			1,499
Office equipment (3 to 5 years)	3,667			4,039
Construction-in-progress	8			43
	5,719			6,156
Less accumulated depreciation	(3,402		)	(3,388		)
	$	2,317		$	2,768

7. Fair Value of Financial Instruments

Accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable, and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition.

The Company reviews for goodwill impairment annually on the first day of the fourth fiscal quarter and more frequently if circumstances indicate its carrying value may not be recoverable. The fair value of the reporting unit is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets are classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its consolidated and combined financial statements.

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The Company periodically evaluates the carrying value of long-lived assets to be held and used, including definite-lived intangible assets and property plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant, discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its consolidated and combined financial statements.

8. Debt Arrangements

On December 5, 2014, the Company, Specialty Surgical Instrumentation, Inc. and Olsen Medical, LLC (collectively, the “Borrowers”) entered into a Credit Agreement (the “Credit Agreement”) with General Electric Capital Corporation, which provides for a revolving loan of up to $20,000, subject to a borrowing base limitation (the "Revolving Loan"). The Credit Agreement, which is senior and secured, had zero outstanding as of July 4, 2015 and aggregate of $3,876 outstanding as of January 3, 2015. Any amounts outstanding under the Revolving Loan are due and payable on December 5, 2019. Amounts outstanding under the Credit Agreement bear interest at LIBOR plus 3.25%, or the Base Rate (which will generally be based on the prime rate as published by the Wall Street Journal from time to time) plus 2.25%. Borrowings under the Revolving Loan are classified as current due to the existence of cash dominion by GECC. In February 2015, the Company amended the Credit Agreement to allow for a collateral cash account which is excluded from the cash dominion.  This collateral cash account is included in current other assets in consolidated balance sheets.

The Company has deferred debt issuance costs of $390 and $434 as of July 4, 2015 and January 3, 2015, respectively, reflected in current other assets in consolidated balance sheets.

The Credit Agreement is guaranteed by Symmetry Surgical International, Inc., S.S.I.I. LP, LLC and Symmetry Medical SSI Real Estate LLC (collectively the “Guarantors”). The Revolving Loan is secured by a first-priority perfected security interest in substantially all of the tangible and intangible assets of the Borrowers and the Guarantors, including a pledge of 100% of the equity interests of each domestic subsidiary.

The Credit Agreement includes customary covenants for facilities of this type, including limitations on indebtedness, liens, investments and acquisitions, loans and advances, mergers and consolidations, sales of assets, and dividends, stock repurchases and other restricted payments. In addition, the Credit Agreement requires that Borrowers maintain a minimum fixed charge coverage ratio of 1.25 to 1.00 tested at the close of each fiscal quarter beginning March 31, 2015, based on the preceding four fiscal quarters, and maintain at all times minimum liquidity (the sum of cash, cash equivalent and available borrowing capacity under the borrowing base) of $1,500, tested monthly.

The Company was in compliance with all covenants as of July 4, 2015.

9. Net Transfers to Symmetry Medical Inc.

Net transfers to Symmetry Medical Inc. in the condensed consolidated and combined statements of cash flow represent changes in amounts owed to or due from SMI. Prior to the Spin-Off, these were presented within net parent investment on the condensed combined balance sheet and represented SMI's initial investment in the Company, subsequent allocations of expenses, and advances and receipts of cash resulting from the operations of the U.S. business with SMI. The balance reflected the U.S. based Company’s participation in SMI’s U.S. centralized cash management program under which all of the U.S. Company’s cash receipts were remitted to SMI and all cash disbursements were funded by SMI. Other transactions that affected net parent investment included general and administrative expenses incurred by SMI and allocated to the Company. Subsequent to the Spin-Off, the Company no longer participates in cash management and funding arrangements with SMI.

10. Related Party Transactions

Related party transactions of the Company include the purchase and sale of surgical instruments and cases between SMI's OEM Solutions Business and the Company, centralized cash and debt management in the U.S. and the allocation of certain general and administrative, selling and marketing and research and development expenses from SMI to the Company, prior to separation.

Sales of surgical instruments and cases from the Company to SMI's OEM Solutions business were recorded at intercompany transfer prices and totaled $96 and $165 for the three and six month periods ended June 28, 2014, respectively.

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Purchases of surgical instruments and cases from SMI's OEM Solutions business by the Company were recorded at intercompany transfer prices and totaled $1,995 and $3,508 for the three and six month periods ended June 28, 2014, respectively.

The U.S. based portion of the Company participated in SMI's U.S. centralized cash management program under which all of the U.S. Company’s cash receipts were remitted to SMI and all cash disbursements were funded by SMI. The cash receipts were not kept at specific accounts and instead commingled with cash from other SMI entities. As cash was disbursed and received by SMI prior to separation, it has been accounted for through net parent investment.

During fiscal 2014, SMI provided various general and administrative and selling and marketing services to the Company including legal assistance, marketing services, human resources, financial reporting and analysis, information technology and insurance management, as well as research and development services.

It was SMI's policy to charge these expenses first on the basis of direct usage when identifiable, with the remainder allocated among SMI’s subsidiaries on the basis of their respective revenue. These allocations totaled $1,505 and $2,942 for the three and six months ended June 28, 2014, respectively. These changes may not be indicative of the actual expense that would have been incurred had the Company operated as an independent, publicly-traded company for the periods presented.

11. Income Taxes

The provision for income taxes differs from that computed at the Federal statutory rate of 35% in 2015 due to the impact of foreign operations.

12. Commitments and Contingencies

Unconditional Purchase Obligations.  The Company has a contract, which was effective September 2014, to purchase finished instruments through August 2019. Based on contractual pricing at July 4, 2015, the minimum purchase obligation totaled $1,574.  Purchases under the contract totaled approximately $591 for the six months ended July 4, 2015.  These purchases are not in excess of forecasted requirements.

Legal & Environmental Matters.  The Company is involved, from time to time, in various contractual, product liability, patent (or intellectual property) and other claims and disputes incidental to its business. Currently, there is no environmental or other litigation pending or, to the knowledge of the Company, threatened, that the Company expects to have a material adverse effect on its financial condition, results of operations or liquidity. While litigation is subject to uncertainties and the outcome of litigated matters is not predictable with assurance, the Company currently believes that the disposition of all pending or, to the knowledge of the Company, threatened claims and disputes, individually or in the aggregate, should not have a material adverse effect on the Company’s consolidated and combined financial condition, results of operations or liquidity.

Under the terms of the separation agreement between the Company and SMI, the Company agreed to indemnify SMI and its related entities from and against any and all liabilities relating to, arising out of or resulting from: any failure by the Company to pay, perform or otherwise promptly discharge any of the liabilities the Company agreed to assume with the Spin-Off; any of the Company's liabilities defined in the Merger Agreement; and any breach of any of the Merger Agreement, Separation Agreement or IP Cross-License Agreement. Liabilities that result from these obligations could result in significant, and in some cases uninsured, financial obligations. The Company does not believe this will have a significant impact on its financial position, results of operations or cash flows.

In September 2013, Xodus Medical Inc., Alessio Pigazzi and Glenn Keilar (collectively “Xodus”) filed suit against Prime Medical, LLC (“Prime”), and Specialty Surgical Instrumentation, Inc. d/b/a Symmetry Surgical Inc. in the United States District Court for the Western District of Pennsylvania under cause number 2:13-cv-01372-AJS. In the lawsuit Xodus alleged that Prime, a manufacturer of products Symmetry Surgical distributes, had infringed on two of its patents, U.S. Patent No. 8,511,314 and US Patent No. 8,464,720 (the “Xodus Patents”) and that Symmetry Surgical was liable to it for damages resulting from selling products that infringed on the Xodus Patents.  Symmetry Surgical’s Distribution Agreement with Prime provides Symmetry Surgical with full indemnification for these claims, and Prime has paid for all costs of litigation thus far.   On February 24, 2014 the U.S. Patent and Trademarks Office ("USPTO") found substantial questions regarding the patentability of the Xodus Patents and on July 10, 2014 the USPTO rejected both of the Xodus Patents.  Xodus has appealed to the full Board of the USPTO, a process that could take over a year to conclude.  Should the USPTO reverse its prior two findings, and should the US District Court find that Prime’s products infringe on the Xodus Patents,

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then Symmetry Surgical may be found liable to Xodus for some percentage of its sales of the Prime products, to the extent that Prime is unable to satisfy its indemnity obligations.

On September 29, 2014, a purported class action complaint challenging the company’s former parent’s merger and the Company’s spin-out as a stand-alone public company was filed by Resolution Partners, an alleged stockholder of SMI, and all others similarly situated, in the Kosciusko Circuit Court in the state of Indiana. The complaint named as defendants Symmetry Medical Inc. (“SMI”), the members of the board of directors of SMI, Genstar Capital LLC, Tecomet’s sponsor (‘‘Genstar’’), Tecomet, Holdings and TecoSym Inc. The complaint generally alleges, among other things, that the members of the SMI board of directors breached their fiduciary duties to Resolution Partners and SMI stockholders during merger negotiations and by entering into the Merger Agreement and approving the Merger, and that Genstar and Tecomet allegedly aided and abetted such alleged breaches of fiduciary duties. The complaint further alleges that the joint proxy statement/prospectus filed by Symmetry Surgical with the SEC on September 5, 2014, which contained the preliminary proxy statement of SMI, was misleading or omitted certain allegedly material information. The complaint sought, among other relief, injunctive relief enjoining consummation of the Merger, compensatory and/or rescissory damages in an unspecified amount and costs and fees. The parties settled the suit prior to the consummation of the transaction, for no additional consideration and a few additional disclosures filed in a Form 8-k, although left the issue of a claim for fees and costs for resolution at a later time, either through agreement or via a court hearing. The Company has agreed with SMI to share equally in any fee award, up to 50% of the remaining insurance deductible. The Company does not believe this will have a significant impact on its financial position, results of operations or cash flows.

13. Net Income (Loss) Per Share

The following table sets forth the computation of earnings per share.  

	Three Months Ended					Six Months Ended
	July 4, 2015		June 28, 2014			July 4, 2015		June 28, 2014
	(unaudited)					(unaudited)
Net income (loss) for basic earnings per share:
Income (loss) available to common shares - Basic	$	341	$	(6,146	)	$	1,097	$	(6,514	)
Basic weighted average common shares outstanding	9,587		9,587			9,587		$	9,587
Net income (loss) attributable to common shareholders	$	0.04	$	(0.64	)	$	0.11	$	(0.68	)
Net income (loss) for diluted earnings per share:
Income (loss) available to common shares - Diluted	$	341	$	(6,146	)	$	1,097	$	(6,514	)
Basic weighted average common shares outstanding	9,587		9,587			9,587		9,587
Effect of dilution	65		—			40		—
Diluted weighted average common shares outstanding	9,652		9,587			9,627		9,587
Net income (loss) attributable to common shareholders	$	0.04	$	(0.64	)	$	0.11	$	(0.68	)

As of July 4, 2015, the diluted weighted average share calculation does not include performance based restricted stock awarded in 2014 totaling 500 shares due to the performance criteria not being completed.

For periods prior to the separation, the numerator for both basic and diluted earnings per share was net income (loss) attributable to the Company. The denominator for basic and diluted earnings per share was calculated using the number of shares of Symmetry Surgical common shares outstanding on the distribution date.

14. Product and Geographic Information 

The Company has one operating segment which is the lowest level for which discrete financial information is available and the operating results are regularly reviewed by management. The Company sells a broad range of reusable stainless steel and titanium hand-held instruments and retractor systems, single use and sterile disposable surgical products (vein strippers, SECTO dissectors, tonsil sponges and surgical marker pens), and sterilization containers. These products are typically used in the surgical specialties of spine, general/OB-GYN, microsurgery/neurosurgery, orthopedics, laparoscopy, cardiovascular, thoracic, and general surgery in the hospital setting as well as surgery centers and in select physician offices. These products are viewed in two categories by management; Symmetry Surgical Branded Products and Alliance Partners Products. Symmetry

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Surgical Branded Products include all products sold under brand names managed by the Company whereas Alliance Partners Products are brands the Company distributes for others in defined markets.

Revenues to External Customers:

	Three Months Ended				Six Months Ended
Revenue by Geography	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
	(unaudited)				(unaudited)
United States	$	18,042	$	18,229	$	35,896	$	36,206
International	2,620		2,244		5,540		4,829
Total revenues	$	20,662	$	20,473	$	41,436	$	41,035

Revenues by Product:

	Three Months Ended				Six Months Ended
	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
	(unaudited)				(unaudited)
Symmetry Surgical branded	$	18,677	$	17,876	$	37,538	$	34,706
Alliance Partners	1,985		2,597		3,898		6,329
Total revenues	$	20,662	$	20,473	$	41,436	$	41,035

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Dollars in thousands, unless otherwise noted)

Separation from Symmetry Medical Inc.

In August 2014, Symmetry Medical Inc. (“SMI”) announced that it had entered into an Agreement and Plan of Merger, dated as of August 4, 2014 (the “Merger Agreement”), by and among SMI, TecoStar Holdings, Inc., Tecomet, Inc., and TecoSym, Inc. (“Merger Sub”), pursuant to which Merger Sub was merged with and into SMI, with SMI continuing as the surviving corporation (the “Merger”). As a result of the Merger, all of the outstanding shares of common stock of Symmetry Surgical were spun-off to SMI’s stockholders and the holder of each outstanding share of common stock of SMI received one-quarter of a share of common stock of Symmetry Surgical. We refer to this as the “Spin-Off.”

In connection with the Spin-Off, SMI entered into a Separation Agreement, dated as of August 4, 2014 (the “Separation Agreement”) with the Company. Pursuant to the Separation Agreement, SMI transferred all of the assets and liabilities of its Symmetry Surgical Business to the Company prior to the consummation of the Merger and the Spin-Off. The Separation Agreement provides for various agreements and arrangements governing Symmetry Surgical’s relationship with SMI after the Spin-Off. Following the completion of the Merger and the Spin-Off on December 5, 2014, Symmetry Surgical began to operate as an independent publicly-traded company.

Business Overview

Symmetry Surgical Inc. (collectively, "Symmetry Surgical," the "Company," "we," "us," or "our") is a global marketer and distributor of medical devices with some limited manufacturing focused on the surgery market. We offer over 20,000 products and sell primarily to hospitals and surgical centers in the U.S. and countries worldwide. Our current product portfolio includes a broad range of reusable stainless steel and titanium, hand-held general and specialty surgical instruments, single use and disposable instruments (vein strippers, SECTO® dissectors, tonsil sponges and surgical marker pens), electro-surgery instruments, retractor systems, and containers and sterilization devices sold directly to hospitals and other sites of care.  Symmetry Surgical is dedicated to developing and delivering high-quality, innovative surgical instruments that meet clinicians' needs and improve patients' lives. Our team collaborates with healthcare providers around the world to provide medical devices that exceed our customers' expectations and provide solutions for today's needs and tomorrow's growth. Our products are typically used in the surgical specialties of neurosurgery, spine, general surgery-open and laparoscopy, microsurgery, OB/Gyn,

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ophthalmology, otolaryngology / ENT, plastic / reconstructive, peripheral vascular, arthroscopy, orthopedic, pediatrics, cardiovascular, thoracic, and urology in the hospital setting as well as surgery centers and in select physician offices. Our products are viewed in two categories by management: Symmetry Surgical Branded Products and Alliance Partners Products. Symmetry Surgical Branded Products include all products sold under brand names managed by the Company whereas Alliance Partners Products are brands the Company distributes for others in defined markets.

Symmetry Surgical has operations in the U.S., Germany and Switzerland, and includes the consolidated operations of Specialty Surgical Instrumentation, Inc. (d/b/a Symmetry Surgical Inc.), Olsen Medical, LLC, Symmetry Surgical Netherlands, CV, Symmetry Surgical Netherlands, BV, Symmetry Surgical, GmbH and Symmetry Surgical Switzerland GmbH.

During the second quarter 2015, our revenue increased $189, or 0.9%, compared to the second quarter 2014. Excluding the impact of the loss of the New Wave Surgical product line, which was acquired by a third party and no longer distributed by the Company after April 30, 2014, second quarter sales improved 4.9% driven by improved supply chain service levels and sales execution efforts offset by low single digit price erosion due to specific product promotions.

Basis for Historical Presentation

Our financial information has been prepared on a stand-alone basis derived from SMI’s consolidated financial statements and accounting records for the periods prior to the Spin-Off on December 5, 2014. Therefore, as of and for the period ended June 28, 2014, our financial statements are unaudited combined. Beginning in fiscal 2015, our financial statements are unaudited consolidated. The combined financial statements reflect Symmetry Surgical’s financial position, results of operations, and cash flows as our business was operated as part of SMI prior to the Spin-Off, in conformity with U.S. generally accepted accounting principles ("GAAP").

The combined financial statements included the allocation of certain assets and liabilities that historically had been held at the SMI corporate level but which were specifically identifiable or allocable to Symmetry Surgical. Cash and cash equivalents held by SMI at the effective time of the Merger remained with SMI and were not allocated to Symmetry Surgical. Long-term debt and short-term borrowings were not allocated to Symmetry Surgical as none of the debt recorded by SMI is directly attributable to or guaranteed by Symmetry Surgical. All intracompany transactions and accounts have been eliminated. All intercompany transactions between Symmetry Surgical and SMI's OEM Solutions business have been reflected as related party transactions. All intercompany transactions between Symmetry Surgical and SMI corporate are considered to be effectively settled in the combined financial statements of cash flows as financing activity and in the combined balance sheets as net parent investment.

The historical financial statements do not necessarily include all of the expenses that would have been incurred and may not necessarily reflect Symmetry Surgical’s results of operations, financial position and cash flows had Symmetry Surgical been a stand-alone company during the periods presented. Symmetry Surgical’s historical financial statements include an allocation of expenses related to certain general and administrative, selling and marketing expenses from SMI to Symmetry Surgical. These expenses have been allocated to Symmetry Surgical first on the basis of direct usage when identifiable, with the remainder allocated on basis of their respective revenues. Symmetry Surgical considers the expense allocation methodology and results to be reasonable for all periods presented. However, the allocation may not be indicative of the actual expenses that would have been incurred had Symmetry Surgical operated as an independent, publicly-traded company for the periods presented.

Three months ended July 4, 2015 compared to three months ended June 28, 2014 (unaudited)

Revenue.   Revenue for the three months ended July 4, 2015increased$189, or 0.9%, to $20,662 from $20,473 for the comparable 2014 period.  Revenue for each of our principal product categories in these periods was as follows:

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	Three Months Ended
Revenue by product	July 4, 2015		June 28, 2014		Dollar Change			Percent Change
	(unaudited)
Symmetry Surgical branded	$	18,677	$	17,876	$	801		4.5	%
Alliance Partners	1,985		2,597		(612		)	(23.6	)%
Total revenues	$	20,662	$	20,473	$	189		0.9	%

	Three Months Ended
Revenue by Geography	July 4, 2015		June 28, 2014		Dollar Change			Percent Change
	(unaudited)
United States	$	18,042	$	18,229	$	(187	)	(1.0	)%
International	2,620		2,244		376			16.8	%
Total revenues	$	20,662	$	20,473	$	189		0.9	%

During the second quarter 2015, our revenue increased $189, or 0.9%, compared to the second quarter 2014. Excluding the impact of the loss of the New Wave Surgical product line, which was acquired by a third party in the first quarter 2014 and no longer distributed by the Company after April 30, 2014, second quarter sales improved 4.9% driven by improved supply chain service levels and sales execution efforts offset by low single digit price erosion due to specific product promotions.

U.S. sales were down $187, or (1.0%). Excluding the reduction in New Wave Surgical revenue, U.S. revenue was up 3.4% and represented the second consecutive quarter of year over year growth. International revenue was up $376, or 16.8%, and represented the fourth consecutive quarter of year over year growth.

Symmetry Surgical Branded revenue was up $801, or 4.5%. Alliance Partners revenue was down $612, or 23.6%. Excluding the reduction in New Wave Surgical revenue, Alliance Partners revenue was up 9.4% for the reasons previously stated above.

Gross Profit.  Gross profit for the three months ended July 4, 2015 decreased $33, or 0.3%, to $9,809 from $9,842 for the comparable 2014 period. Gross profit as a percentage of revenue decreased 0.6%, to 47.5% for the three months ended July 4, 2015 from 48.1% for the comparable 2014 period. Second quarter 2014 gross profit included a one-time supplier termination payment from the acquirer of New Wave Surgical which favorably impacted gross profit.  Offsetting this payment, second quarter 2015 gross profit was favorably impacted by improved product mix, lower product costs due to favorable exchange rates, tight cost controls and volume leverage on higher sales, slightly offset by pricing pressure related to product specific promotions.

General and Administrative Expenses.   For the three months ended July 4, 2015, general and administrative expenses increased $270 or 5.9%, to $4,865 from $4,595 in the comparable period in 2014. Significant items which impacted general and administrative expenses included: 

	Three Months Ended July 4, 2015
	Dollars			As a % of Revenue
	(unaudited)
2014 period reported General &Administrative expenses	$	4,595		22.4	%
Employee compensation and benefit costs, excluding stock compensation	(260		)
Amortization of intangible assets	51
Research and development	30
Stock compensation	107
Other	342
2015 period reported General & Administrative expenses	$	4,865		23.5	%

During 2015, employee compensation and benefit costs paid in cash decreased $260 due to no cash bonus plan for 2015 which resulted in a decrease in bonus expense of $185 as well as cost reduction actions taken in the second half of 2014 to

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improve the cost structure of the business given lower revenue. Research and development costs in 2014 were an allocation from SMI. In 2015 these costs now represent direct costs incurred by Symmetry Surgical and have increased as we have invested in a dedicated team. Other increased $342 driven by higher professional fees related to the Company's separation from SMI and being a stand-alone public company. 

Sales and Marketing Expenses.   For the three months ended July 4, 2015, sales and marketing expenses decreased $208 or 4.8% to $4,141 from $4,349 in the comparable period in 2014, due to efficiencies achieved in exhibition, advertising, and product sample expenses.

Other (Income) Expense.   Interest expense of $63 was incurred for the three months ended July 4, 2015 related to the new financial arrangement put into place December 5, 2014 in connection with the Spin-off.

Other income for the three months ended July 4, 2015 and June 28, 2014 represents foreign currency exchange rate fluctuations on transactions denominated in foreign currencies.

Income Tax Expense.   The effective tax rate was an expense of 38.6% for the three months ended July 4, 2015 as compared to a benefit of 36.4% for the three months ended June 28, 2014. The expense for income taxes increased by $3,730 for the three months ended July 4, 2015 primarily due to the change in pre-tax income (loss). The effective tax rate in 2015 differs from the U.S. Federal tax rate of 35% primarily because of the impact of foreign tax rates.

Six months ended July 4, 2015 compared to six months ended June 28, 2014 (Unaudited)

Revenue.   Revenue for the six months ended July 4, 2015 increased $401 or 1.0%, to $41,436 from $41,035 for the comparable 2014 period. Revenue for each of our product categories in these periods was as follows:

	Six Months Ended
Revenue by product	July 4, 2015		June 28, 2014		Dollar Change			Percent Change
	(unaudited)
Symmetry Surgical branded	$	37,538	$	34,706	$	2,832		8.2	%
Alliance Partners	3,898		6,329		(2,431		)	(38.4	)%
Total Revenue	$	41,436	$	41,035	401			1.0	%

	Six Months Ended
Revenue by Geography	July 4, 2015		June 28, 2014		Dollar Change			Percent Change
	(unaudited)
United States	$	35,896	$	36,206	$	(310	)	(0.9	)%
International	5,540		4,829		711			14.7	%
Total revenues	$	41,436	$	41,035	$	401		1.0	%

The $401 increase in revenue in the six months ended July 4, 2015 as compared to the comparable 2014 period was primarily driven by improved service levels, improved sales execution efforts, and certain product promotions. Offsetting the improvement was a $2,684 reduction in the New Wave Surgical product line, which was acquired by a third party in the first quarter 2014 and no longer distributed by the Company after April 30, 2014.

Gross Profit.   Gross profit for the six months ended July 4, 2015 increased $1,376, or 7.5%, to $19,694 from $18,318 for the comparable 2014 period primarily due to the $401 increase in revenue and improved gross profit as a percentage of revenue. Gross profit as a percentage of revenue increased 2.9%, to 47.5% for the six months ended July 4, 2015 from 44.6% for the comparable 2014 period. Gross profit as a percentage of revenue was favorably impacted by improved product mix, lower product costs due to favorable exchange rates, tight cost controls and volume leverage on higher sales, slightly offset by pricing pressure related to product specific promotions.

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General and Administrative Expenses.   For the six months ended July 4, 2015, general and administrative expenses increased $336 or 3.7%, to $9,426 from $9,090 in the comparable period in 2014. Significant items which impacted general and administrative expenses included:

	Six Months Ended July 4, 2015
	Dollars			As a % of Revenue
	(unaudited)
2014 period reported General &Administrative expenses	$	9,090		22.2	%
Employee compensation and benefit costs, excluding stock compensation	(769		)
Amortization of intangible assets	107
Research and development	197
Stock compensation	228
Other	573
2015 period reported General & Administrative expenses	$	9,426		22.7	%

During 2015, employee compensation and benefit costs paid in cash decreased $769 due to no cash bonus plan for 2015 which resulted in a decrease in bonus expense of $321 as well as cost reduction actions taken in the second half of 2014 to improve the cost structure of the business given lower revenue. Research and development costs in 2014 were an allocation from SMI. In 2015 these costs now represent direct costs incurred by Symmetry Surgical and have increased as we have invested in a dedicated team. Other increased $573 driven by higher professional fees related to the Company's separation from SMI and being a stand-alone public company. 

Sales and Marketing Expenses.   For the six months ended July 4, 2015, sales and marketing expenses decreased $191 or 2.2% to $8,614 from $8,805 in the comparable period in 2014, due to lower employee compensation and benefit levels, reduced professional fees and efficiencies in exhibition, advertising, and product sample expenses.

Asset Impairment.   During the six months ended June 28, 2014, the Company recorded a pre-tax non-cash charge in the amount of $10,500. The 2014 impairment was primarily driven by lower revenue due to sluggish hospital spending environment in the U.S. and previously disclosed integration challenges related to the 2011 acquisition of the surgical instruments portfolio from Codman & Shurtleff, Inc. from which the Company did not recover as quickly as previously expected.

Other (Income) Expense.   Other income for the six months ended July 4, 2015 and June 28, 2014 represents foreign currency exchange rate fluctuations on transactions denominated in foreign currencies.

Income Tax Expense.   The effective tax rate was an expense of 31.7% for the six months ended July 4, 2015 as compared to a benefit of 36.3% for the six months ended June 28, 2014. The expense for income taxes increased by $4,215 for the six months ended July 4, 2015 primarily due to the increase in pre-tax income. The effective tax rate in 2015 differs from the U.S. Federal tax rate of 35% primarily because of the impact of foreign tax rates

Liquidity and Capital Resources

Liquidity

Our principal source of liquidity is cash generated from operations. Principal uses of cash in 2015 have been for working capital and payments on the Revolving Loan. We expect that our principal uses of cash in the future will be to pay for capital expenditures, to finance working capital, and to fund possible future acquisitions.

We believe our cash flows from operations, as well as our bank financing arrangement, will permit us to stay committed to our strategic plan of growing the current business as well as growing through acquisitions.

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The following table summarizes our primary sources and uses of cash in the periods presented:

	Six Months Ended
	July 4, 2015			June 28, 2014
	(unaudited)
Net cash flow provided by (used in):
Operating activities	$	5,465		$	7,006
Investing activities	(70		)	(166		)
Financing activities	(3,876		)	(5,811		)
Effect of exchange rate changes on cash	(314		)	(7		)
Net increase (decrease) in cash	$	1,205		$	1,022

Operating Activities.   Operating activities generated cash of $5,465 for the six months ended July 4, 2015 as compared to $7,006 for the comparable period in 2014, a decrease of $1,541. The decrease in cash from operations is primarily a result of an increase in working capital, mainly inventory purchases to better service customer demands. Cash from operating activities was also negatively impacted by $7,848 of aggregate adjustments for other operating non-cash activities due to asset impairment and deferred taxes, offset by higher net income of $7,611.

Investing Activities.   Capital expenditures of $74 were $92 lower in the six months ended July 4, 2015 compared to the six months ended June 28, 2014, and primarily relate to one time investments in e-commerce and IT infrastructure that did not repeat in 2015.

Financing Activities.   Financing activities used $3,876 of cash for the six months ended July 4, 2015 compared to a usage of $5,811 in the comparable period of 2014. Financing activities during 2015 related to the net payments on the Revolving Loan. Financing activities during 2014 resulted solely from cash transfers to SMI. Subsequent to the Spin-Off, the Company no longer participates in cash management and funding arrangements with SMI. The Company completed the period ending July 4, 2015 with no borrowings on its Revolving Loan.

Capital Expenditures

Capital expenditures of $74 were $92 lower in the six months ended July 4, 2015 as compared to the similar period in 2014. Expenditures in 2015 were primarily for information systems.

Debt and Credit Facilities

On December 5, 2014, the Company, Specialty Surgical Instrumentation, Inc. and Olsen Medical, LLC (collectively, the “Borrowers”) entered into a Credit Agreement (the “Credit Agreement”) with General Electric Capital Corporation ("GECC"), which provides for a Revolving Loan of up to $20,000, subject to a borrowing base limitation. Any amounts outstanding under the Revolving Loan are due and payable on December 5, 2019. Amounts outstanding under the Credit Agreement bear interest at LIBOR plus 3.25%, or the Base Rate (which will generally be based on the prime rate as published by the Wall Street Journal from time to time) plus 2.25%. Borrowings under this revolving loan are classified as current due to the existence of cash dominion by GECC. In February 2015, we amended the Credit Agreement to allow for a collateral cash account which is excluded from the cash dominion.  This collateral cash account is included in other assets in the consolidated balance sheets. As of July 4, 2015, there were no outstanding borrowings under our Credit Agreement.

The Credit Agreement is guaranteed by Symmetry Surgical International, Inc., S.S.I.I. LP, LLC and Symmetry Medical SSI Real Estate LLC (collectively the “Guarantors”). The Revolving Loan is secured by a first-priority perfected security interest in substantially all of the tangible and intangible assets of the Borrowers and the Guarantors, including a pledge of 100% of the equity interests of each domestic subsidiary.

The Credit Agreement includes customary covenants for facilities of this type, including limitations on indebtedness, liens, investments and acquisitions, loans and advances, mergers and consolidations, sales of assets, and dividends, stock repurchases and other restricted payments. In addition, the Credit Agreement requires that Borrowers maintain a minimum fixed charge coverage ratio of 1.25 to 1.00 tested at the close of each fiscal quarter beginning March 31, 2015, based on the preceding four fiscal quarters, and maintain at all times minimum liquidity (the sum of cash, cash equivalent and available borrowing capacity

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under the borrowing base) of $1,500, tested monthly. As of July 4, 2015, the borrowing base limitation was $11,825 and fully available.

We believe that cash flow from operating activities and borrowings on our Revolving Loan will be sufficient to fund currently anticipated working capital, planned capital spending and debt service requirements for the foreseeable future, including at least the next twelve months.

Off-Balance Sheet Arrangements

Off-balance sheet arrangements include our operating leases.

Environmental

We incurred almost zero capital expenditures specifically for environmental compliance and health and safety in the second quarter of 2015. In connection with past acquisitions, we completed Phase I environmental assessments and did not find any significant issues that we believe needed to be remediated. Based on information currently available, we do not believe that we have any material environmental liabilities. We cannot be certain, however, that environmental issues will not be discovered or arise in the future related to these acquisitions or existing facilities.

Critical Accounting Policies and Estimates

The preparation of the consolidated and combined financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses during the periods presented. Our Annual Report on Form 10-K for fiscal year ended January 3, 2015, includes a summary of the critical accounting policies we believe are the most important to aid in understanding our financial results. There have been no material changes to these critical accounting policies that impacted our reported amounts of assets, liabilities, revenues or expenses during the six months ended July 4, 2015.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 

For financial risks related to changes in interest rates, foreign currency exchange rates, commodity prices and the effects of inflation, reference is made to Item 7a "Quantitative and Qualitative Disclosures About Market Risk" contained in Part II of our Annual Report on Form 10-K for the fiscal year ended January 3, 2015. Our exposure to these risks, at the end of the second quarter covered by this report, has not changed materially since January 3, 2015.

ITEM 4. CONTROLS AND PROCEDURES 

This Report includes the certifications of our Chief Executive Officer and Chief Financial Officer required by Rule 13a-14 of the Securities Exchange Act of 1934 (the “Exchange Act”).  See Exhibits 31.1 and 31.2 to this report on Form 10-Q. This Item 4 includes information concerning the controls and control evaluations referred to in those certifications.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures. 

In connection with the preparation of this Report, our management, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the fiscal quarter covered by this report on Form 10-Q.  Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of July 4, 2015.

Changes in Internal Control over Financial Reporting

There have been no changes in our “internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the fiscal quarter covered by this report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

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Information pertaining to legal proceedings is provided in Note 12 entitled "Commitments and Contingencies" of the Notes to consolidated and combined financial statements included under Item 1, "Financial Statements," and is incorporated by reference herein.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item 1A "Risk Factors" contained in our Annual Report on Form 10-K for the fiscal year ended January 3, 2015, which could materially affect our business, financial condition or future results. There have been no material changes from the risk factors disclosed in our Annual Report on Form 10-K, other than the following risk factor.

Our efforts to differentiate our products in the marketplace with breadth, innovation, intellectual property, quality, service, education/training, or branding may fail, resulting in reduced demand for our products.

Our comprehensive portfolio, complemented by our commercial efforts, generates demand in the marketplace. Should we fail to differentiate ourselves with portfolio breadth, product innovation, patented technologies, and quality, demand for our products could erode. We must continue to have a broad offering of proprietary products as well as Alliance Partners products offered on behalf of other manufacturers that are complementary in nature. We augment our portfolio and leverage our commercial efforts through contractual relationships with other primary manufacturers to represent their products in parts or all of the U.S., as well as other parts of the world.  These relationships are dynamic in nature and while we have contractual agreements in place, there is no guarantee that this revenue cannot be lost with or without compensation due to acquisition of the manufacturer by another party, termination of the relationship by either party, or other factors.  While we attempt to protect our rights and revenue associated with these products, the loss of any or all such products could negatively impact our financial results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not Applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS

31.1	Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14 and 15d-14 as adopted pursuant to the Section 302 of the Sarbanes-Oxley Act.*
31.2	Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14 and 15d-14 as adopted pursuant to the Section 302 of the Sarbanes-Oxley Act.*
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act.*

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Linkbase Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

19

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

* Filed concurrently herewith.

20

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SYMMETRY SURGICAL INC.
	By	/s/ Thomas J. Sullivan
		Thomas J. Sullivan,
		President and Chief Executive Officer
		(Principal Executive Officer)
	By	/s/ Scott Kunkel
		Scott Kunkel,
		Senior Vice President and Chief Financial Officer
		(Principal Financial Officer)
August 10, 2015

21

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Thomas J. Sullivan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Symmetry Surgical Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.		The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.		The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

August 10, 2015
	/s/ Thomas J. Sullivan
	Thomas J. Sullivan
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Scott D. Kunkel, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Symmetry Surgical Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.		The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.		The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

August 10, 2015
	/s/ Scott D. Kunkel
	Scott D. Kunkel
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Section 1350 Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), each of the undersigned officers of Symmetry Surgical Inc., a Delaware corporation (the “Corporation”), does hereby certify that:

The Quarterly Report on Form 10-Q for the quarter and three months ended July 4, 2015 (the “Form 10-Q”) of the Corporation fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

August 10, 2015
	/s/ Thomas J. Sullivan
	Thomas J. Sullivan
	Chief Executive Officer
	/s/ Scott D. Kunkel
	Scott D. Kunkel
	Chief Financial Officer

XML

Commitments and Contingencies (Details) - Jul. 04, 2015 - USD ($) $ in Thousands	Total
Commitments and Contingencies Disclosure [Abstract]
Unconditional purchase obligations contract price	$ 1,574
Unrecorded unconditional purchase obligation, purchases	$ 591

XML

Net Income (Loss) Per Share (Tables)

6 Months Ended

Jul. 04, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of earnings per share.  

	Three Months Ended					Six Months Ended
	July 4, 2015		June 28, 2014			July 4, 2015		June 28, 2014
	(unaudited)					(unaudited)
Net income (loss) for basic earnings per share:
Income (loss) available to common shares - Basic	$	341	$	(6,146	)	$	1,097	$	(6,514	)
Basic weighted average common shares outstanding	9,587		9,587			9,587		$	9,587
Net income (loss) attributable to common shareholders	$	0.04	$	(0.64	)	$	0.11	$	(0.68	)
Net income (loss) for diluted earnings per share:
Income (loss) available to common shares - Diluted	$	341	$	(6,146	)	$	1,097	$	(6,514	)
Basic weighted average common shares outstanding	9,587		9,587			9,587		9,587
Effect of dilution	65		—			40		—
Diluted weighted average common shares outstanding	9,652		9,587			9,627		9,587
Net income (loss) attributable to common shareholders	$	0.04	$	(0.64	)	$	0.11	$	(0.68	)

XML

Product and Geographic Information (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Segment Reporting Information [Line Items]
Revenue	$ 20,662	$ 20,473	$ 41,436	$ 41,035
Symmetry Surgical [Member]
Segment Reporting Information [Line Items]
Revenue	18,677	17,876	37,538	34,706
Alliance Partners [Member]
Segment Reporting Information [Line Items]
Revenue	$ 1,985	$ 2,597	$ 3,898	$ 6,329

XML

Basis of Presentation

6 Months Ended

Jul. 04, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The condensed consolidated and combined financial statements of the Company have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying condensed consolidated and combined financial statements contain all adjustments of a normal recurring nature considered necessary to present fairly the consolidated and combined financial position of the Company, its results of operations and cash flows. The Company’s results are subject to seasonal fluctuations. Interim results are not necessarily indicative of results for a full year. The condensed consolidated and combined financial statements included herein should be read in conjunction with the fiscal year 2014 consolidated and combined financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for fiscal year 2014.

The Company’s fiscal year is the 52 or 53 week period ending on the Saturday closest to December 31. Fiscal year 2015 is a 52 week year ending January 2, 2016.  The Company’s interim quarters for 2015 are 13 weeks long and quarter-end dates have been set as April 4,2015, July 4,2015 and October 3,2015. Fiscal year 2014 was a 53 week year (ending January 3, 2015). The Company’s interim quarters for 2014 were 13 weeks long, except for the fourth quarter which was 14 weeks long, ending March 29,2014, June 28,2014 and September 27,2014. References in these condensed consolidated and combined financial statements to the three and six months ended refer to these financial periods, respectively.

XML

Property and Equipment (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jan. 03, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,719	$ 6,156
Less accumulated depreciation	(3,402)	(3,388)
Property and equipment, net	2,317	2,768
Buildings and Improvement [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 560	575
Buildings and Improvement [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	20 years
Buildings and Improvement [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	40 years
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,484	1,499
Machinery and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Machinery and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	15 years
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,667	4,039
Office Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Office Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Construction-in-Progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 8	$ 43

XML

Inventories (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Inventory Disclosure [Abstract]
Raw material	$ 1,037	$ 880
Work-in-process	211	530
Finished goods	23,492	22,731
Inventories, net	$ 24,740	$ 24,141

XML

Debt Arrangements (Details)	6 Months Ended
	Jul. 04, 2015 USD ($)	Jun. 28, 2014 USD ($)	Jan. 03, 2015 USD ($)	Dec. 05, 2014 USD ($)
Schedule of Long-term and Short-term Debt [Line Items]
Revolving line of credit, net	$ 0		$ 3,876,000
Revolving Credit Facility [Member] | Secured Debt [Member]
Schedule of Long-term and Short-term Debt [Line Items]
Maximum borrowing capacity				$ 20,000,000
Revolving line of credit, net	0		$ 3,876,000
Deferred debt issuance costs	$ 390,000	$ 434,000
Fixed charge coverage ratio	1.25
Liquidity requirement	$ 1,500,000
Revolving Credit Facility [Member] | Secured Debt [Member] | LIBOR [Member]
Schedule of Long-term and Short-term Debt [Line Items]
Basis spread on variable rate	3.25%
Revolving Credit Facility [Member] | Secured Debt [Member] | Base Rate [Member]
Schedule of Long-term and Short-term Debt [Line Items]
Basis spread on variable rate	2.25%

XML

Related Party Transactions (Details) - Jun. 28, 2014 - Symmetry Medical Inc. [Member] - USD ($) $ in Thousands	Total	Total
Related Party Transaction [Line Items]
Sales	$ 96	$ 165
Purchases	1,995	3,508
Expenses	$ 1,505	$ 2,942

XML

Description of Operations

6 Months Ended

Jul. 04, 2015

Nature of Operations [Abstract]

Description of Operations

Description of Operations

Overview

Symmetry Surgical Inc. (the “Company”) is a global marketer and distributor of medical devices with some limited manufacturing focused on the surgery market. The Company offers over 20,000 products and sells primarily to hospitals and surgical centers in the U.S. and countries worldwide. The Company's current product portfolio includes a broad range of reusable stainless steel and titanium, hand-held general and specialty surgical instruments, single use and disposable instruments, electro-surgery instruments, retractor systems, and containers and sterilization devices sold directly to hospitals and other sites of care. These products are typically used in the surgical specialties of neurosurgery, spine, general surgery- open and laparoscopy, microsurgery, OB/Gyn, ophthalmology, otolaryngology / ENT, plastic / reconstructive, peripheral vascular, arthroscopy, orthopedic, pediatrics, cardiovascular, thoracic, and urology in the hospital setting as well as surgery centers and in select physician offices. These products are viewed in two categories by management; Symmetry Surgical Branded Products and Alliance Partners Products. Symmetry Surgical Branded Products include all products sold under brand names managed by the Company whereas Alliance Partners Products are brands the Company distributes for others in defined markets.

Separation from Symmetry Medical Inc.

In August 2014, Symmetry Medical Inc. (“SMI”) announced that it had entered into an Agreement and Plan of Merger, dated as of August 4, 2014 (the “Merger Agreement”), by and among SMI, TecoStar Holdings, Inc., Tecomet, Inc., and TecoSym, Inc. (“Merger Sub”), pursuant to which Merger Sub was merged with and into SMI, with SMI continuing as the surviving corporation (the “Merger”). As a result of the Merger, all of the outstanding shares of common stock of Symmetry Surgical Inc. ( the "Company"), were spun-off to SMI’s stockholders and the holder of each outstanding share of common stock of SMI received one-quarter of a share of common stock of Symmetry Surgical. This is referred to as the “Spin-Off.”

In connection with the Spin-Off, SMI entered into a Separation Agreement, dated as of August 4, 2014 (the “Separation Agreement”) with the Company. Pursuant to the Separation Agreement, SMI transferred all of the assets and liabilities of its Symmetry Surgical Business to the Company prior to the consummation of the Merger and the Spin-Off. The Separation Agreement provides for various agreements and arrangements governing the Company's relationship with SMI after the Spin-Off.

The Company includes the consolidated operations of Specialty Surgical Instrumentation, Inc. (d/b/a Symmetry Surgical Inc.), Olsen Medical, LLC, Symmetry Surgical Netherlands, CV, Symmetry Surgical Netherlands, BV, Symmetry Surgical, GmbH and Symmetry Surgical Switzerland, GmbH, all of which were subsidiaries of SMI prior to the Merger and Spin-Off.

XML

Income Taxes (Narrative) (Details)	6 Months Ended
	Jul. 04, 2015
Income Tax Disclosure [Abstract]
Federal statutory income tax rate	35.00%

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
ASSETS:
Cash	$ 4,199	$ 2,994
Accounts receivable, net	10,113	10,070
Inventories	24,740	24,141
Deferred income taxes	2,809	2,816
Other current assets	2,043	2,417
Total current assets	43,904	42,438
Property and equipment, net	2,317	2,768
Deferred income taxes	20,924	21,243
Goodwill	7,120	7,126
Intangible assets, net of accumulated amortization	75,063	77,903
Other assets	227	219
Total Assets	149,555	151,697
LIABILITIES AND EQUITY:
Accounts payable	5,513	5,283
Accrued wages and benefits	1,743	1,902
Other accrued expenses	1,493	1,417
Accrued income taxes	274	158
Deferred income taxes	14	15
Revolving line of credit, net	0	3,876
Total current liabilities	9,037	12,651
Other long-term liabilities	1,081	1,092
Total Liabilities	$ 10,118	$ 13,743
Commitments and contingencies
Stockholders' Equity:
Common Stock, $.0001 par value; 50,000 shares authorized; shares issued July 4, 2015-10,303; January 3, 2015-10,313	$ 1	$ 1
Additional paid-in capital	139,175	138,576
Retained earnings (deficit)	981	(116)
Accumulated other comprehensive loss	(720)	(507)
Total Stockholders' Equity	139,437	137,954
Total Liabilities and Equity	$ 149,555	$ 151,697

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CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 341	$ (6,146)	$ 1,097	$ (6,514)
Other comprehensive income (loss):
Foreign currency translation adjustments	65	(20)	(242)	(30)
Pension plan actuarial gain (loss), net of taxes	0	3	29	6
Comprehensive income (loss)	$ 406	$ (6,163)	$ 884	$ (6,538)

XML

Product and Geographic Information (Details Textual)	6 Months Ended
	Jul. 04, 2015 segment
Segment Reporting [Abstract]
Number of operating segments	1

XML

Recently Adopted Accounting Pronouncements Recently Adopted Accounting Pronouncements (Policies)

6 Months Ended

Jul. 04, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Adopted Accounting Pronouncements

Revenue from Contracts with Customers:   In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized 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 and services. The ASU 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 assets recognized from costs incurred to obtain or fulfill a contract. The ASU is effective for fiscal periods (including interim periods) beginning after December 15, 2017 and early adoption is not permitted for periods beginning before December 15, 2016. The ASU allows for either full retrospective or a modified retrospective transition method. The Company is currently assessing the potential impact of the adoption of ASU 2014-09 on its financial statements and related disclosures.

Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity:  In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update modifies the requirements for reporting discontinued operations. Under the amendments in ASU 2014-08, the definition of discontinued operation has been modified to only include those disposals of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This update also expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. This update is effective for annual and interim periods beginning after December 15, 2014. The adoption of this ASU in 2015 by the Company did not have an impact on its financial position, results of operations or cash flows. 

Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. In June, 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This new guidance states that a performance target that affects vesting of a share-based payment and that could be achieved after the requisite service period is a performance condition under ASC 718. This update is effective for annual and interim periods beginning after December 15, 2015. The Company does not believe this ASU will have an impact on the its financial statements.

Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In August, 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. This new guidance requires management to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The standard is effective for annual periods ending after December 15, 2016 with early adoption permitted. The Company does not believe this ASU will have an impact on its financial statements.

XML

Product and Geographic Information (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 20,662	$ 20,473	$ 41,436	$ 41,035
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	18,042	18,229	35,896	36,206
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 2,620	$ 2,244	$ 5,540	$ 4,829

XML

Property and Equipment (Tables)

6 Months Ended

Jul. 04, 2015

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, including depreciable lives, consists of the following:

	July 4, 2015			January 3, 2015
	(unaudited)
Buildings and improvements (20 to 40 years)	$	560		$	575
Machinery and equipment (5 to 15 years)	1,484			1,499
Office equipment (3 to 5 years)	3,667			4,039
Construction-in-progress	8			43
	5,719			6,156
Less accumulated depreciation	(3,402		)	(3,388		)
	$	2,317		$	2,768

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CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Operating activities
Net income (loss)	$ 1,097	$ (6,514)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	481	472
Amortization	2,796	2,689
Amortization of debt issuance costs	56	0
Net loss on sale of assets	37	79
Asset impairment	0	10,500
Deferred income tax provision	312	(1,963)
Stock-based compensation	599	371
Unrealized foreign currency transaction loss	58	39
Change in operating assets and liabilities:
Accounts receivable	(307)	2,862
Due to Symmetry OEM Solutions	0	154
Other assets	354	(189)
Inventories	(603)	(3,938)
Current income taxes	123	36
Accounts payable	303	2,855
Accrued expenses and other	159	(447)
Net cash provided by operating activities	5,465	7,006
Investing activities
Purchases of property and equipment	(74)	(166)
Proceeds from sale of property and equipment	4	0
Net cash used in investing activities	(70)	(166)
Financing activities
Net transfers to Symmetry Medical Inc.	0	(5,811)
Proceeds from Revolving Loan	98	0
Payments on Revolving Loan	(3,974)	0
Net cash used in financing activities	(3,876)	(5,811)
Effect of exchange rate changes on cash	(314)	(7)
Net increase in cash	1,205	1,022
Cash at beginning of period	2,994	$ 648
Cash at end of period	$ 4,199

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Jul. 04, 2015	Jan. 03, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000	50,000
Common stock, shares issued	10,303	10,313

XML

Related Party Transactions

6 Months Ended

Jul. 04, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Related party transactions of the Company include the purchase and sale of surgical instruments and cases between SMI's OEM Solutions Business and the Company, centralized cash and debt management in the U.S. and the allocation of certain general and administrative, selling and marketing and research and development expenses from SMI to the Company, prior to separation.

Sales of surgical instruments and cases from the Company to SMI's OEM Solutions business were recorded at intercompany transfer prices and totaled $96 and $165 for the three and six month periods ended June 28, 2014, respectively.

Purchases of surgical instruments and cases from SMI's OEM Solutions business by the Company were recorded at intercompany transfer prices and totaled $1,995 and $3,508 for the three and six month periods ended June 28, 2014, respectively.

The U.S. based portion of the Company participated in SMI's U.S. centralized cash management program under which all of the U.S. Company’s cash receipts were remitted to SMI and all cash disbursements were funded by SMI. The cash receipts were not kept at specific accounts and instead commingled with cash from other SMI entities. As cash was disbursed and received by SMI prior to separation, it has been accounted for through net parent investment.

During fiscal 2014, SMI provided various general and administrative and selling and marketing services to the Company including legal assistance, marketing services, human resources, financial reporting and analysis, information technology and insurance management, as well as research and development services.

It was SMI's policy to charge these expenses first on the basis of direct usage when identifiable, with the remainder allocated among SMI’s subsidiaries on the basis of their respective revenue. These allocations totaled $1,505 and $2,942 for the three and six months ended June 28, 2014, respectively. These changes may not be indicative of the actual expense that would have been incurred had the Company operated as an independent, publicly-traded company for the periods presented.

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DOCUMENT AND ENTITY INFORMATION - shares	6 Months Ended
	Jul. 04, 2015	Aug. 07, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Symmetry Surgical Inc.
Entity Central Index Key	0001616101
Current Fiscal Year End Date	--01-02
Entity Filer Category	Non-accelerated Filer
Trading Symbol	ssrg
Entity Common Stock, Shares Outstanding		10,302,970
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 04, 2015
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2015

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Income Taxes

6 Months Ended

Jul. 04, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The provision for income taxes differs from that computed at the Federal statutory rate of 35% in 2015 due to the impact of foreign operations.

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CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Income Statement [Abstract]
Revenue	$ 20,662	$ 20,473	$ 41,436	$ 41,035
Cost of revenue	10,853	10,631	21,742	22,717
Gross profit	9,809	9,842	19,694	18,318
Sales and marketing expenses	4,141	4,349	8,614	8,805
General and administrative expenses	4,865	4,595	9,426	9,090
Asset impairment	0	10,500	0	10,500
Operating income (loss)	803	(9,602)	1,654	(10,077)
Other (income) expense:
Interest expense	63	0	127	0
Other	185	60	(78)	144
Income (loss) before income taxes	555	(9,662)	1,605	(10,221)
Income tax expense (benefit)	214	(3,516)	508	(3,707)
Net income (loss)	$ 341	$ (6,146)	$ 1,097	$ (6,514)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.04	$ (0.64)	$ 0.11	$ (0.68)
Diluted (in dollars per share)	$ 0.04	$ (0.64)	$ 0.11	$ (0.68)
Weighted average common shares and equivalent shares outstanding:
Basic (in shares)	9,587,000	9,587,000	9,587,000	9,587,000
Diluted (in shares)	9,652,000	9,587,000	9,627,000	9,587,000

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Inventories

6 Months Ended

Jul. 04, 2015

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of the following:  

	July 4, 2015		January 3, 2015
	(unaudited)
Raw material	$	1,037	$	880
Work-in-process	211		530
Finished goods	23,492		22,731
	$	24,740	$	24,141

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Recently Adopted Accounting Pronouncements

6 Months Ended

Jul. 04, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

On April 5, 2012, the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, was enacted. Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards. In other words, an “emerging growth company” may delay the adoption of certain accounting standards until those standards would otherwise apply to private companies and the Company has chosen to take advantage of this extended transition period.

Revenue from Contracts with Customers:   In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized 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 and services. The ASU 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 assets recognized from costs incurred to obtain or fulfill a contract. The ASU is effective for fiscal periods (including interim periods) beginning after December 15, 2017 and early adoption is not permitted for periods beginning before December 15, 2016. The ASU allows for either full retrospective or a modified retrospective transition method. The Company is currently assessing the potential impact of the adoption of ASU 2014-09 on its financial statements and related disclosures.

Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity:  In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update modifies the requirements for reporting discontinued operations. Under the amendments in ASU 2014-08, the definition of discontinued operation has been modified to only include those disposals of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This update also expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. This update is effective for annual and interim periods beginning after December 15, 2014. The adoption of this ASU in 2015 by the Company did not have an impact on its financial position, results of operations or cash flows. 

Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. In June, 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This new guidance states that a performance target that affects vesting of a share-based payment and that could be achieved after the requisite service period is a performance condition under ASC 718. This update is effective for annual and interim periods beginning after December 15, 2015. The Company does not believe this ASU will have an impact on the its financial statements.

Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In August, 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. This new guidance requires management to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact. Management will also be required to evaluate and disclose whether its plans alleviate that doubt. The standard is effective for annual periods ending after December 15, 2016 with early adoption permitted. The Company does not believe this ASU will have an impact on its financial statements.

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Inventories (Tables)

6 Months Ended

Jul. 04, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventories consist of the following:  

	July 4, 2015		January 3, 2015
	(unaudited)
Raw material	$	1,037	$	880
Work-in-process	211		530
Finished goods	23,492		22,731
	$	24,740	$	24,141

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Commitments and Contingencies

6 Months Ended

Jul. 04, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Unconditional Purchase Obligations.  The Company has a contract, which was effective September 2014, to purchase finished instruments through August 2019. Based on contractual pricing at July 4, 2015, the minimum purchase obligation totaled $1,574.  Purchases under the contract totaled approximately $591 for the six months ended July 4, 2015.  These purchases are not in excess of forecasted requirements.

Legal & Environmental Matters.  The Company is involved, from time to time, in various contractual, product liability, patent (or intellectual property) and other claims and disputes incidental to its business. Currently, there is no environmental or other litigation pending or, to the knowledge of the Company, threatened, that the Company expects to have a material adverse effect on its financial condition, results of operations or liquidity. While litigation is subject to uncertainties and the outcome of litigated matters is not predictable with assurance, the Company currently believes that the disposition of all pending or, to the knowledge of the Company, threatened claims and disputes, individually or in the aggregate, should not have a material adverse effect on the Company’s consolidated and combined financial condition, results of operations or liquidity.

Under the terms of the separation agreement between the Company and SMI, the Company agreed to indemnify SMI and its related entities from and against any and all liabilities relating to, arising out of or resulting from: any failure by the Company to pay, perform or otherwise promptly discharge any of the liabilities the Company agreed to assume with the Spin-Off; any of the Company's liabilities defined in the Merger Agreement; and any breach of any of the Merger Agreement, Separation Agreement or IP Cross-License Agreement. Liabilities that result from these obligations could result in significant, and in some cases uninsured, financial obligations. The Company does not believe this will have a significant impact on its financial position, results of operations or cash flows.

In September 2013, Xodus Medical Inc., Alessio Pigazzi and Glenn Keilar (collectively “Xodus”) filed suit against Prime Medical, LLC (“Prime”), and Specialty Surgical Instrumentation, Inc. d/b/a Symmetry Surgical Inc. in the United States District Court for the Western District of Pennsylvania under cause number 2:13-cv-01372-AJS. In the lawsuit Xodus alleged that Prime, a manufacturer of products Symmetry Surgical distributes, had infringed on two of its patents, U.S. Patent No. 8,511,314 and US Patent No. 8,464,720 (the “Xodus Patents”) and that Symmetry Surgical was liable to it for damages resulting from selling products that infringed on the Xodus Patents.  Symmetry Surgical’s Distribution Agreement with Prime provides Symmetry Surgical with full indemnification for these claims, and Prime has paid for all costs of litigation thus far.   On February 24, 2014 the U.S. Patent and Trademarks Office ("USPTO") found substantial questions regarding the patentability of the Xodus Patents and on July 10, 2014 the USPTO rejected both of the Xodus Patents.  Xodus has appealed to the full Board of the USPTO, a process that could take over a year to conclude.  Should the USPTO reverse its prior two findings, and should the US District Court find that Prime’s products infringe on the Xodus Patents, then Symmetry Surgical may be found liable to Xodus for some percentage of its sales of the Prime products, to the extent that Prime is unable to satisfy its indemnity obligations.

On September 29, 2014, a purported class action complaint challenging the company’s former parent’s merger and the Company’s spin-out as a stand-alone public company was filed by Resolution Partners, an alleged stockholder of SMI, and all others similarly situated, in the Kosciusko Circuit Court in the state of Indiana. The complaint named as defendants Symmetry Medical Inc. (“SMI”), the members of the board of directors of SMI, Genstar Capital LLC, Tecomet’s sponsor (‘‘Genstar’’), Tecomet, Holdings and TecoSym Inc. The complaint generally alleges, among other things, that the members of the SMI board of directors breached their fiduciary duties to Resolution Partners and SMI stockholders during merger negotiations and by entering into the Merger Agreement and approving the Merger, and that Genstar and Tecomet allegedly aided and abetted such alleged breaches of fiduciary duties. The complaint further alleges that the joint proxy statement/prospectus filed by Symmetry Surgical with the SEC on September 5, 2014, which contained the preliminary proxy statement of SMI, was misleading or omitted certain allegedly material information. The complaint sought, among other relief, injunctive relief enjoining consummation of the Merger, compensatory and/or rescissory damages in an unspecified amount and costs and fees. The parties settled the suit prior to the consummation of the transaction, for no additional consideration and a few additional disclosures filed in a Form 8-k, although left the issue of a claim for fees and costs for resolution at a later time, either through agreement or via a court hearing. The Company has agreed with SMI to share equally in any fee award, up to 50% of the remaining insurance deductible. The Company does not believe this will have a significant impact on its financial position, results of operations or cash flows.

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Debt Arrangements

6 Months Ended

Jul. 04, 2015

Debt Disclosure [Abstract]

Debt Arrangements

Debt Arrangements

On December 5, 2014, the Company, Specialty Surgical Instrumentation, Inc. and Olsen Medical, LLC (collectively, the “Borrowers”) entered into a Credit Agreement (the “Credit Agreement”) with General Electric Capital Corporation, which provides for a revolving loan of up to $20,000, subject to a borrowing base limitation (the "Revolving Loan"). The Credit Agreement, which is senior and secured, had zero outstanding as of July 4, 2015 and aggregate of $3,876 outstanding as of January 3, 2015. Any amounts outstanding under the Revolving Loan are due and payable on December 5, 2019. Amounts outstanding under the Credit Agreement bear interest at LIBOR plus 3.25%, or the Base Rate (which will generally be based on the prime rate as published by the Wall Street Journal from time to time) plus 2.25%. Borrowings under the Revolving Loan are classified as current due to the existence of cash dominion by GECC. In February 2015, the Company amended the Credit Agreement to allow for a collateral cash account which is excluded from the cash dominion.  This collateral cash account is included in current other assets in consolidated balance sheets.

The Company has deferred debt issuance costs of $390 and $434 as of July 4, 2015 and January 3, 2015, respectively, reflected in current other assets in consolidated balance sheets.

The Credit Agreement is guaranteed by Symmetry Surgical International, Inc., S.S.I.I. LP, LLC and Symmetry Medical SSI Real Estate LLC (collectively the “Guarantors”). The Revolving Loan is secured by a first-priority perfected security interest in substantially all of the tangible and intangible assets of the Borrowers and the Guarantors, including a pledge of 100% of the equity interests of each domestic subsidiary.

The Credit Agreement includes customary covenants for facilities of this type, including limitations on indebtedness, liens, investments and acquisitions, loans and advances, mergers and consolidations, sales of assets, and dividends, stock repurchases and other restricted payments. In addition, the Credit Agreement requires that Borrowers maintain a minimum fixed charge coverage ratio of 1.25 to 1.00 tested at the close of each fiscal quarter beginning March 31, 2015, based on the preceding four fiscal quarters, and maintain at all times minimum liquidity (the sum of cash, cash equivalent and available borrowing capacity under the borrowing base) of $1,500, tested monthly.

The Company was in compliance with all covenants as of July 4, 2015.

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Property and Equipment

6 Months Ended

Jul. 04, 2015

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

Property and equipment, including depreciable lives, consists of the following:

	July 4, 2015			January 3, 2015
	(unaudited)
Buildings and improvements (20 to 40 years)	$	560		$	575
Machinery and equipment (5 to 15 years)	1,484			1,499
Office equipment (3 to 5 years)	3,667			4,039
Construction-in-progress	8			43
	5,719			6,156
Less accumulated depreciation	(3,402		)	(3,388		)
	$	2,317		$	2,768

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Fair Value of Financial Instruments

6 Months Ended

Jul. 04, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable, and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Certain nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition.

The Company reviews for goodwill impairment annually on the first day of the fourth fiscal quarter and more frequently if circumstances indicate its carrying value may not be recoverable. The fair value of the reporting unit is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets are classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its consolidated and combined financial statements.

The Company periodically evaluates the carrying value of long-lived assets to be held and used, including definite-lived intangible assets and property plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant, discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its consolidated and combined financial statements.

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Net Parent Investment

6 Months Ended

Jul. 04, 2015

Former Parent Company Investment [Abstract]

Net Parent Investment

Net Transfers to Symmetry Medical Inc.

Net transfers to Symmetry Medical Inc. in the condensed consolidated and combined statements of cash flow represent changes in amounts owed to or due from SMI. Prior to the Spin-Off, these were presented within net parent investment on the condensed combined balance sheet and represented SMI's initial investment in the Company, subsequent allocations of expenses, and advances and receipts of cash resulting from the operations of the U.S. business with SMI. The balance reflected the U.S. based Company’s participation in SMI’s U.S. centralized cash management program under which all of the U.S. Company’s cash receipts were remitted to SMI and all cash disbursements were funded by SMI. Other transactions that affected net parent investment included general and administrative expenses incurred by SMI and allocated to the Company. Subsequent to the Spin-Off, the Company no longer participates in cash management and funding arrangements with SMI.

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Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Net income (loss) for basic earnings per share:
Income (loss) available to common shares - Basic	$ 341	$ (6,146)	$ 1,097	$ (6,514)
Basic weighted average common shares outstanding	9,587	9,587	9,587	9,587
Net income (loss) attributable to common shareholders	$ 0.04	$ (0.64)	$ 0.11	$ (0.68)
Net income (loss) for diluted earnings per share:
Income (loss) available to common shares - Diluted	$ 341	$ (6,146)	$ 1,097	$ (6,514)
Basic weighted average common shares outstanding	9,587	9,587	9,587	9,587
Effect of dilution	65	0	40	0
Diluted weighted average common shares outstanding	9,652	9,587	9,627	9,587
Net income (loss) attributable to common shareholders	$ 0.04	$ (0.64)	$ 0.11	$ (0.68)
Performance-based shares excluded in the calculation of diluted EPS			500

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Product and Geographic Information

6 Months Ended

Jul. 04, 2015

Segment Reporting [Abstract]

Product and Geographic Information

Product and Geographic Information 

The Company has one operating segment which is the lowest level for which discrete financial information is available and the operating results are regularly reviewed by management. The Company sells a broad range of reusable stainless steel and titanium hand-held instruments and retractor systems, single use and sterile disposable surgical products (vein strippers, SECTO dissectors, tonsil sponges and surgical marker pens), and sterilization containers. These products are typically used in the surgical specialties of spine, general/OB-GYN, microsurgery/neurosurgery, orthopedics, laparoscopy, cardiovascular, thoracic, and general surgery in the hospital setting as well as surgery centers and in select physician offices. These products are viewed in two categories by management; Symmetry Surgical Branded Products and Alliance Partners Products. Symmetry Surgical Branded Products include all products sold under brand names managed by the Company whereas Alliance Partners Products are brands the Company distributes for others in defined markets.

Revenues to External Customers:

	Three Months Ended				Six Months Ended
Revenue by Geography	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
	(unaudited)				(unaudited)
United States	$	18,042	$	18,229	$	35,896	$	36,206
International	2,620		2,244		5,540		4,829
Total revenues	$	20,662	$	20,473	$	41,436	$	41,035

Revenues by Product:

	Three Months Ended				Six Months Ended
	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
	(unaudited)				(unaudited)
Symmetry Surgical branded	$	18,677	$	17,876	$	37,538	$	34,706
Alliance Partners	1,985		2,597		3,898		6,329
Total revenues	$	20,662	$	20,473	$	41,436	$	41,035

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Product and Geographic Information (Tables)

6 Months Ended

Jul. 04, 2015

Segment Reporting [Abstract]

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area

Revenues to External Customers:

	Three Months Ended				Six Months Ended
Revenue by Geography	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
	(unaudited)				(unaudited)
United States	$	18,042	$	18,229	$	35,896	$	36,206
International	2,620		2,244		5,540		4,829
Total revenues	$	20,662	$	20,473	$	41,436	$	41,035

Schedule of Product Information

Revenues by Product:

	Three Months Ended				Six Months Ended
	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
	(unaudited)				(unaudited)
Symmetry Surgical branded	$	18,677	$	17,876	$	37,538	$	34,706
Alliance Partners	1,985		2,597		3,898		6,329
Total revenues	$	20,662	$	20,473	$	41,436	$	41,035

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CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS (Parenthetical)	Dec. 05, 2014 shares
Income Statement [Abstract]
Common stock, shares outstanding	9,587,000

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Basis for Historical Presentation

6 Months Ended

Jul. 04, 2015

Basis for Historical Presentation [Abstract]

Basis for Historical Presentation

Basis for Historical Presentation

The consolidated and combined financial statements prior to Separation on December 5, 2014 include the allocation of certain assets and liabilities that have historically been held at the SMI corporate level but which are specifically identifiable or allocable to Symmetry Surgical. Cash and cash equivalents held by SMI were not allocated to Symmetry Surgical as it was not expected to be transferred to Symmetry Surgical. Long-term debt and short-term borrowings were not allocated to Symmetry Surgical as none of the debt recorded by SMI was directly attributable to or guaranteed by Symmetry Surgical. All historical intracompany transactions and accounts have been eliminated. All historical intercompany transactions between Symmetry Surgical and the OEM Solutions Business have been disclosed as related party transactions. All intercompany transactions between Symmetry Surgical and SMI corporate are considered to be effectively settled in the consolidated and combined financial statements of cash flows as financing activity.

The historical financial statements do not necessarily include all of the expenses that would have been incurred had Symmetry Surgical been a separate, stand-alone entity and may not necessarily reflect Symmetry Surgical’s results of operations, financial position and cash flows had Symmetry Surgical been a stand-alone company during the periods presented. Symmetry Surgical’s historical financial statements include an allocation of expenses related to certain general and administrative, selling and marketing expenses from SMI to Symmetry Surgical. These expenses have been allocated to Symmetry Surgical first on the basis of direct usage when identifiable, with the remainder allocated on basis of their respective revenues. Symmetry Surgical considers the expense allocation methodology and results to be reasonable for all periods presented. However, the allocation may not be indicative of the actual expenses that would have been incurred had Symmetry Surgical operated as an independent, publicly-traded company for the periods presented.

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Basis of Presentation (Details)	3 Months Ended								6 Months Ended	12 Months Ended
	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Jan. 03, 2015	Sep. 27, 2014	Jun. 28, 2014	Mar. 29, 2014	Jul. 04, 2015	Jan. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Number of weeks in interim quarter			91 days	91 days	98 days	91 days	91 days	91 days
Minimum [Member]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Number of weeks in fiscal year									364 days
Maximum [Member]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Number of weeks in fiscal year									371 days
Scenario, Forecast [Member]
Organization, Consolidation and Presentation of Financial Statements [Line Items]
Number of weeks in fiscal year										371 days
Number of weeks in interim quarter	91 days	91 days

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Net Income (Loss) Per Share

6 Months Ended

Jul. 04, 2015

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Net Income (Loss) Per Share

The following table sets forth the computation of earnings per share.  

	Three Months Ended					Six Months Ended
	July 4, 2015		June 28, 2014			July 4, 2015		June 28, 2014
	(unaudited)					(unaudited)
Net income (loss) for basic earnings per share:
Income (loss) available to common shares - Basic	$	341	$	(6,146	)	$	1,097	$	(6,514	)
Basic weighted average common shares outstanding	9,587		9,587			9,587		$	9,587
Net income (loss) attributable to common shareholders	$	0.04	$	(0.64	)	$	0.11	$	(0.68	)
Net income (loss) for diluted earnings per share:
Income (loss) available to common shares - Diluted	$	341	$	(6,146	)	$	1,097	$	(6,514	)
Basic weighted average common shares outstanding	9,587		9,587			9,587		9,587
Effect of dilution	65		—			40		—
Diluted weighted average common shares outstanding	9,652		9,587			9,627		9,587
Net income (loss) attributable to common shareholders	$	0.04	$	(0.64	)	$	0.11	$	(0.68	)

As of July 4, 2015, the diluted weighted average share calculation does not include performance based restricted stock awarded in 2014 totaling 500 shares due to the performance criteria not being completed.

For periods prior to the separation, the numerator for both basic and diluted earnings per share was net income (loss) attributable to the Company. The denominator for basic and diluted earnings per share was calculated using the number of shares of Symmetry Surgical common shares outstanding on the distribution date.