Note 6 - Acquisitions

6 Months Ended

Jul. 04, 2015

Notes to Financial Statements

Business Combination Disclosure [Text Block]

6 . Acquisitions

The Company has acquired numerous companies throughout its history and those acquisitions have generally included significant future contingent consideration. The Company gives no assurance that it will make acquisitions in the future and if they do make acquisitions gives no assurance that such acquisitions will be successful.

Future Contingent Payments

As of July 4, 2015, the Company had two active acquisition agreements whereby additional contingent consideration may be earned by the former shareholders: 1) effective July 1, 2012 the Company acquired certain assets of BGA, LLC (“BGA”); and 2) effective August 1, 2014 the Company acquired all of the stock of Point Comm, Inc. (“PCI”). The Company estimates future contingent payments at July 4, 2015 as follows:

Fiscal Year	BGA		PCI		Total
2015	$	127	$	262	$	389
2016		271		197		468
2017		-		307		307
Estimated future contingent consideration payments	$	398	$	766	$	1,164

Estimates of future contingent payments are subject to significant judgment and actual payments may materially differ from estimates. Future contingent payments to be made to BGA and PCI are capped at cumulative maximums of $2.6 million and $2.0 million, respectively. The Company estimates future contingent consideration in payments based on forecasted performance and recorded the net present value of those expected payments as of

July 4, 2015.

Actual future contingent payments may materially differ from the estimates above. Future contingent payments to be made to BGA and PCI are capped at cumulative maximums of $2.6 million and $2.0 million, respectively. The Company estimates future contingent consideration in payments based on forecasted performance and recorded the net present value of those expected payments as of

July 4, 2015. The measurement is based on significant inputs that are not observable in the market, which “Fair Value Measurements and Disclosures” (ASU Topic 820-10-35) refers to as Level 3 inputs.

The Company paid $0.1 million and $0.3 million in contingent consideration during the twenty-six week periods ended July 4, 2015 and June 28, 2014, respectively. There were no other changes to the fair value of the contingent consideration during the twenty-six week period ended July 4, 2015.