Significant Accounting Policies [Text Block]

(1)

Summary of Significant Accounting Policies

1993.

(a)

Principles of Consolidation

(b)

Use of Estimates

(c)

Fair Value Measurement

The Company has not elected fair value accounting for any financial instruments for which fair value accounting is optional.

(d)

Fair Value of Financial Instruments

(e)

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of

three

months or less to be cash equivalents. At

December

31,

2016

and

2015,

cash equivalents primarily consisted of money market accounts and certificates of deposit that are readily convertible into cash.

$17.6

million.

(f)

Accounts Receivable

December

31,

2016.

(g)

Inventories

Inventories include material, labor, and manufacturing overhead and are valued at the lower of cost or net realizable value. Cost is determined using the

first

-in,

first

-out (FIFO) method.

December

31,

2016.

(h)

Property, Plant, and Equipment

Property, plant, and equipment are stated at cost and are depreciated or amortized using the straight-line method over the estimated useful lives of the assets or the related lease term, if shorter.

Estimated useful lives of property, plant, and equipment are as follows:

Leasehold improvements	Shorter of estimated useful life or remaining lease term
Buildings and improvements (in years)	20	-	40
Machinery & Equipment (in years)	7	-	15
Furniture, fixtures, computers & software (in years)	3	-	7

Property, plant, and equipment amounts are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset

may

not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value.

(i)

Goodwill

Goodwill is tested for impairment annually, and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount

may

be impaired. Impairment testing for goodwill is done at a reporting unit level. Reporting units are

one

level below the business segment level, but can be combined when reporting units within the same segment have similar economic characteristics. An impairment loss generally would be recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit. The Company consists of a single reporting unit. We last performed “step

1”

of the goodwill impairment test as of

September

30,

2014.

We utilized the guideline public company (“GPC”) method under the market approach and the discounted cash flows method (“DCF”) under the income approach to determine the fair value of the reporting unit for purposes of testing the reporting unit’s carrying value of goodwill for impairment. The GPC method derives a value by generating a multiple of EBITDA through the comparison of the Company to similar publicly traded companies. The DCF approach derives a value based on the present value of a series of estimated future cash flows at the valuation date by the application of a discount rate,

one

that a prudent investor would require before making an investment in our equity securities. The key assumptions used in our approach included:

The reporting unit’s estimated financials and

five

-year projections of financial results, which were based on our strategic plans and long-range forecasts. Sales growth rates represent estimates based on current and forecasted sales mix and market conditions. The profit margins were projected based on historical margins, projected sales mix, current expense structure and anticipated expense modifications.

The discount rate determined using a Weighted Average Cost of Capital method (“WACC”), which considered market and industry data as well as Company-specific risk factors.

Selection of guideline public companies which are similar to each other and to the Company.

As of

September

30,

2014,

based on our calculations under the above noted approach, the fair value of the reporting unit exceeded its carrying value by approximately

$69

million or

74%.

In performing these calculations, management used its most reasonable estimates of the key assumptions discussed above. If our actual operating results and/or the key assumptions utilized in management’s calculations differ from our expectations, it is possible that a future impairment charge

may

be necessary.

The Company’s annual impairment testing date is

December

31.

The Company performed a qualitative assessment (“step

0”)

as of

December

31,

2016,

and determined that it was more likely than not that the fair value of its reporting unit exceeded its carrying amount. As a result, the Company is not required to proceed to a “step

1”

impairment assessment. Factors considered included the

2014

step

analysis and the calculated excess fair value over carrying amount, financial performance, forecasts and trends, market cap, regulatory and environmental issues, macro-economic conditions, industry and market considerations, raw material costs and management stability.

(j)

Intangible Assets

Intangible assets with a definite life are amortized on a straight-line basis, with estimated useful lives ranging from

years. Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that their carrying values

may

not be recoverable.

(k)

Revenue Recognition

(l)

Share-Based Compensation

The Company issues share-based awards through several plans that are described in detail in Note

11.

The compensation cost charged against income for those plans is included in selling, general & administrative expenses as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Share-based compensation expense	$	1,056	$	1,069	$	1,119

The compensation expense for stock options granted during the

three

-year period ended

December

31,

2016,

was determined as the fair value of the options using the Black Scholes valuation model. The assumptions are noted as follows:

	Year Ended December 31,
	2016			2015			2014
Expected volatility		29.7	%	31.5%	-	32.3%	32.8%	-	37.9%
Expected dividends		None			None			None
Risk-free interest rate		0.9	%	1.0%	-	1.2%	0.7%	-	0.9%
Exercise price	$	22.02		$19.97	-	$22.36	$22.55	-	$25.48
Expected term (in years)		5.0			5.0		3.8	to	5.0
Weighted-average grant-date fair value	$	6.11			$6.04			$7.24

The total income tax benefit recognized in the consolidated statements of income for share-based compensation arrangements was approximately

$318,000,

$312,000

and

$320,000

for the years ended

December

31,

2016,

2015

and

2014,

respectively.

(m)

Deferred Rent

The Company accounts for escalating rental payments on a straight-line basis over the term of the lease.

(n)

Shipping and Handling Costs

Costs incurred related to shipping and handling are included in cost of sales. Amounts charged to customers pertaining to these costs are included in net sales.

(o)

Research and Development

On a routine basis, the Company incurs costs related to research and development activity. These costs are expensed as incurred. Approximately

$1.3

million,

$1.3

million, and

$1.4

million were expensed in the years ended

December

31,

2016,

2015

and

2014,

respectively.

(p)

Income Taxes

50%

likelihood of being realized upon settlement. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in tax expense.

(q)

Segments and Related Information

The Company follows the provisions of ASC

280,

Segment Reporting

, which establish standards for the way public business enterprises report information and operating segments in annual financial statements (see Note

17).

(r) Treasury Stock

The Company accounts for treasury stock under the cost method, using the

first

-in,

first

out flow assumption, and we include treasury stock as a component of stockholders’ equity. The Company did

not

repurchase any shares of common stock during the year ended

December

31,

2016.

During the year ended

December

31,

2015,

the Company repurchased

29,559

shares of common stock at a cost of approximately

$587,000.

Recent Accounting Pronouncements

May

2014,

the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.

2014

09,

Revenue from Contracts with Customers

, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This standard will replace most existing revenue recognition guidance when it becomes effective. The standard permits the use of either the full retrospective or modified retrospective transition methods. In

August

2015,

the FASB issued an update to defer the effective date of this update by

one

year. The updated standard becomes effective for the Company in the

first

quarter of

2018,

but allows the Company to adopt the standard

one

year earlier if it so chooses. The Company expects to adopt the standard in the

first

quarter of

2018

using the modified retrospective transition method. The Company is continuing to evaluate its revenue sources for potential impact. Based on the work completed to date, the Company expects that for a significant majority of our business, the recognition of revenue under the updated standard will occur at a point in time, which is consistent with current practice.

February

2016,

the FASB issued ASU No.

2016

02,

Leases.

The guidance in this ASU supersedes the leasing guidance in Topic

840,

Leases

. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. The amendments in ASU No.

2016

are effective for annual reporting periods beginning after

December

15,

2018,

including interim periods within that reporting period with early adoption permitted. The Company is evaluating the impact of adopting this ASU on its consolidated financial position and results of operations.

March

2016,

the FASB issued ASU No.

2016

09,

Improvements to Employee Share Based Payment Accounting

. This ASU simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards, forfeitures and classification on the statement of cash flows. The provisions of this ASU are effective for fiscal years beginning after

December

15,

2016,

and interim periods within those fiscal years. The Company will adopt the new standard in the

first

quarter of

2017.

Although the impact of adopting this update to the Company’s Consolidated Financial Statements is not expected to have a material effect, the impact will depend on market factors and the timing and intrinsic value of future share-based compensation award vests and exercises. The Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. Subsequent to adoption, the Company notes the potential for volatility in its effective tax rate as any windfall or shortfall tax benefits related to its share-based compensation plans will be recorded directly into results of operations.

Revisions

Certain revisions have been made to the

2015

Consolidated Balance Sheet and

2015

Consolidated Statement of Cash Flows to conform to the current year presentation relating to presentation of a reserve for uncertain tax positions. The impact on the

2015

Consolidated Balance Sheet was a decrease in the amount of

$315,000

to both refundable income taxes and accrued expenses. The impact on the

2015

Consolidated Statement of Cash Flows (cash provided by operating activities) was an increase to the change in refundable income taxes of

$315,000

and a decrease to the change in accrued expenses of

$315,000.

These revisions had no impact on previously reported net income and are deemed immaterial to the previously issued financial statements.

Certain revisions have been made to the

2015

Consolidated Balance Sheet,

2015

Consolidated Statement of Operations and

2015

Consolidated Statement of Stockholders’ Equity to conform to the current year presentation relating to the presentation of common shares outstanding. The impact to the Consolidated Balance Sheet was a decrease of

29,559

in the number of common shares outstanding. The impact to the Statements of Operations was a decrease of approximately

13,000

shares in basic and diluted weighted average common shares outstanding. The impact to the Consolidated Statement of Stockholders’ Equity was a decrease of approximately

30,000

in common shares outstanding (repurchase of common stock line). These revisions had no impact on previously reported net income, earnings per share or cash flows and are deemed immaterial to the previously issued financial statements.

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Note 2 - Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2016

Cash Flow, Supplemental Disclosures [Text Block]

(2)	Supplemental Cash Flow Information

Cash paid for interest and income taxes is as follows (in thousands):

	Years Ended December 31,
	2016		2015		2014
Interest	$	66	$	86	$	103
Income taxes, net of refunds	$	3,562	$	1,459	$	3,259

During the years ended

December

31,

2016,

2015

and

2014,

the Company permitted the exercise of stock options with exercise proceeds paid with the Company’s stock (“cashless” exercises) totaling approximately

$166,000,

$36,000

and

$372,000,

respectively.

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Note 3 - Receivables

12 Months Ended

Dec. 31, 2016

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(3)

Receivables

Receivables consist of the following (in thousands):

	December 31,
	2016			2015
Accounts receivable–trade	$	21,816		$	17,980
Less allowance for doubtful receivables		(567	)		(499	)
Receivables, net	$	21,249		$	17,481

$126,000

and

$16,000

for the years ended

December

31,

2016

and

2015,

respectively.

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

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Note 4 - Inventories

12 Months Ended

Dec. 31, 2016

Inventory Disclosure [Text Block]

(4)	Inventories

Inventories consist of the following (in thousands):

	December 31,
	2016		2015
Raw materials	$	7,111	$	7,506
Work in process		1,354		1,192
Finished goods		5,686		5,504
Total Inventory	$	14,151	$	14,202

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Note 5 - Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Intangible Assets Disclosure [Text Block]

(5)

Other Intangible Assets

The carrying values of the Company’s definite-lived intangible assets as of

December

31,

2016

and

2015

are as follows (in thousands):

	Patents			Non- Compete			Customer List			Total
Estimated useful life (in years)		14			5			5
Gross amount at December 31, 2016	$	429		$	512		$	2,046		$	2,987
Accumulated amortization at December 31, 2016		(429	)		(449	)		(1,791	)		(2,669	)
Net balance at December 31, 2016	$	-		$	63		$	255		$	318

Gross amount at December 31, 2015	$	429		$	512		$	2,046		$	2,987
Accumulated amortization at December 31, 2015		(429	)		(387	)		(1,535	)		(2,351	)
Net balance at December 31, 2015	$	-		$	125		$	511		$	636

Amortization expense related to intangible assets was approximately

$318,000,

and

$393,000,

for the years ended

December

31,

2016,

2015

and

2014,

respectively. Future amortization for the years ending

December

will be approximately (in thousands):

2017			318
Total		$	318

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Note 6 - Property, Plant, and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment Disclosure [Text Block]

(6)	Property, Plant, and Equipment

Property, plant, and equipment consist of the following (in thousands):

	December 31,
	2016		2015
Land and improvements	$	3,191	$	3,191
Buildings and improvements		28,241		25,399
Leasehold improvements		2,759		2,839
Machinery & Equipment		54,633		51,016
Furniture, fixtures, computers & software		6,419		6,498
Construction in progress–equipment		1,563		1,621
	$	96,806	$	90,564

Depreciation and amortization expense for the years ended

December

31,

2016,

2015

and

2014,

were approximately

$5.3

million,

$4.5

million and

$4.0

million, respectively.

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Note 7 - Indebtedness

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Text Block]

(7)

Indebtedness

December

2013,

the Company entered into an unsecured

$40

million revolving credit facility with Bank of America, N.A. The credit facility calls for interest of LIBOR plus a margin that ranges from

1.0%

1.5%

or, at the discretion of the Company, the bank’s prime rate less a margin that ranges from

0.25%

zero.

In both cases the applicable margin is dependent upon Company performance. Under the credit facility, the Company is subject to a minimum fixed-charge coverage financial covenant as well as a maximum total funded debt to EBITDA financial covenant. The credit facility was amended effective

December

31,

2014,

to modify the definition of “consolidated fixed-charge coverage ratio”. The Company’s

$40

million credit facility matures on

November

30,

2018.

As of

December

31,

2016,

the Company had

borrowings outstanding under the credit facility. Included in the credit facility were approximately

$0.4

million in standby letters of credit drawable as a financial guarantee on worker’s compensation insurance policies. As of

December

31,

2016,

the Company was in compliance with all covenants under the credit facility.

October

11,

2012,

the Company entered into a loan agreement to finance the purchase of

two

new molded fiber machines. The annual interest rate is fixed at

1.83%.

As of

December

31,

2016,

approximately

$5.0

million had been advanced on the loan and the outstanding balance was approximately

$856,000.

The loan will be repaid over a

five

-year term. The loan is secured by the related molded fiber machines.

Long-term debt consists of the following (in thousands):

	December 31,
	2016			2015
Equipment loans	$	856		$	1,870
Total long-term debt		856			1,870
Current installments		(856	)		(1,011	)
Long-term debt, excluding current installments	$	-		$	859

Aggregate maturities of long-term debt are as follows (in thousands):

Year ending December 31:
2017	$	856
	$	856

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Note 8 - Accrued Expenses

12 Months Ended

Dec. 31, 2016

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

(8)

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	December 31,
	2016		2015
Compensation	$	2,144	$	2,107
Benefits / self-insurance reserve		180		250
Paid time off		990		965
Commissions payable		260		319
Other		1,124		1,418
	$	4,698	$	5,059

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Note 9 - Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Text Block]

(9)

Income Taxes

The Company’s income tax provision for the years ended

December

31,

2016,

2015

and

2014

consists of the following (in thousands):

	Years Ended December 31,
	2016		2015			2014
Current
Federal	$	3,120	$	3,131		$	2,638
State		651		580			336
		3,771		3,711			2,974
Deferred
Federal		546		508			1,262
State		30		(71	)		(30	)
		576		437			1,232

Total income tax provision	$	4,347	$	4,148		$	4,206

December

31,

2016,

the Company had net operating loss carryforwards for federal income tax purposes of approximately

$119,000,

which are available to offset future taxable income and expire during the federal tax year ending

December

31,

2019.

The approximate tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows (in thousands):

	December 31,
	2016			2015
Deferred tax assets:
Reserves	$	531		$	532
Inventory capitalization		427			407
Compensation programs		578			501
Retirement liability		19			27
Equity-based compensation		257			290
Net operating loss carryforwards		40			141
Deferred rent		7			10
Intangible assets		340			264
Total deferred tax assets		2,199			2,172
Deferred tax liabilities:
Excess of book over tax basis of fixed assets		(4,767	)		(4,186	)
Goodwill		(891	)		(869	)
Total deferred tax liabilities		(5,658	)		(5,055	)
Net long-term deferred tax liabilities	$	(3,459	)	$	(2,883	)

The amounts recorded as deferred tax assets as of

December

31,

2016,

and

2015,

represent the amount of tax benefits of existing deductible temporary differences or carryforwards that are more likely than not to be realized through the generation of sufficient future taxable income within the carryforward period. The Company has total deferred tax assets of

$2.2

million at

December

31,

2016,

that it believes are more likely than not to be realized in the carryforward period. Management reviews the recoverability of deferred tax assets during each reporting period.

The actual tax provision for the years presented differs from the “expected” tax provision for those years, computed by applying the U.S. federal corporate rate of

34.0%

to income before income tax expense as follows:

	Years Ended December 31,
	2016			2015			2014
Computed “expected” tax rate		34.0	%		34.0	%		34.0	%
Increase (decrease) in income taxes resulting from:
State taxes, net of federal tax benefit		3.7			2.3			1.1
Meals and entertainment		0.2			0.3			0.3
R&D credits		(0.6	)		(0.8	)		(0.7	)
Domestic production deduction		(2.5	)		(2.5	)		(1.4	)
Non-deductible ISO stock option expense		0.3			0.4			0.4
Unrecognized tax benefits		(0.1	)		-			1.3
Other		0.3			1.6			0.8
Effective tax rate		35.3	%		35.3	%		35.8	%

2004,

income tax returns filed in Massachusetts which have been audited through

2007,

income tax returns filed in Florida which have been audited through

2009

and income tax returns in Colorado which have been audited through

2013.

An audit for income tax returns filed in New Jersey for the years

2009

through

2012

is currently in progress. An audit for the Company’s federal tax return for

2014

is currently in progress. Federal and state tax returns for the years

2013

through

2016

remain open to examination by the IRS and various state jurisdictions.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (“UTB”) resulting from uncertain tax positions is as follows (in thousands):

	December 31,
	2016			2015
Gross UTB balance at beginning of fiscal year	$	162		$	230
Reductions for tax positions of prior years		(12	)		(68	)
Gross UTB balance at end of fiscal year	$	150		$	162

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of

December

31,

2016

and

2015,

$150,000

and

$162,000,

respectively.

In addition, the total amount of accrued interest and penalties on uncertain tax positions at

December

31,

2016

and

2015

$153,000

and

$153,000,

respectively.

December

31,

2016,

all of the unrecognized tax benefits relate to tax returns of a specific state jurisdiction that are currently under examination. Accordingly, the Company expects a reduction of this amount in

2017,

as the examination is expected to close within the next

-months.

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Note 10 - Net Income Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Text Block]

(10)

Net Income Per Share

	Years Ended December 31,
	2016		2015		2014
Basic weighted average common shares outstanding during the year		7,190		7,102		7,028
Weighted average common equivalent shares due to stock options and restricted stock units		85		104		147
Diluted weighted average common shares outstanding during the year		7,275		7,206		7,175

December

31,

2016,

2015

and

2014,

the number of stock awards excluded from the computation was

52,377,

72,495

and

53,651,

respectively.

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Note 11 - Stock Option and Equity Incentive Plans

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

(11)	Stock Option and Equity Incentive Plans

Incentive Plan

June

2003,

the Company formally adopted the

2003

Incentive Plan (the “Plan”). The Plan was originally intended to benefit the Company by offering equity-based incentives to certain of the Company’s executives and employees, thereby giving them a permanent stake in the growth and long-term success of the Company and encouraging the continuance of their involvement with the Company’s businesses. The Plan was amended effective

June

2008,

to permit certain performance-based cash awards to be made under the Plan. The Plan was further amended on

June

2011,

to increase the maximum number of shares of common stock in the aggregate to be issued to

2,250,000.

The amendment also added appropriate language so as to enable grants of stock-based awards under the Plan to continue to be eligible for exclusion from the

$1,000,000

limitation on deductibility under Section

162(m)

of the Internal Revenue Code (the “Code”). The Plan was further amended on

March

2013,

to (i) prohibit the repricing of stock options or other equity awards without the consent of the Company’s shareholders, and (ii) prohibit the Company from buying out underwater stock options.

Two

types of equity awards

may

be granted to participants under the Plan: restricted shares or other stock awards. Restricted shares are shares of common stock awarded subject to restrictions and to possible forfeiture upon the occurrence of specified events. Other stock awards are awards that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, shares of common stock. Such awards

may

include Restricted Stock Unit Awards (“RSUs”), unrestricted or restricted stock, incentive and non-qualified stock options, performance shares, or stock appreciation rights. The Company determines the form, terms, and conditions, if any, of any awards made under the Plan.

Through

December

31,

2016,

1,197,034

shares of common stock have been issued under the

2003

Incentive Plan, none of which have been restricted. An additional

46,065

shares are being reserved for outstanding grants of RSUs and other share-based compensation that are subject to various performance and time-vesting contingencies. The Company has also granted awards in the form of stock options under this Plan. Through

December

31,

2016,

170,000

options have been granted and

83,125

options are outstanding. At

December

31,

2016,

936,182

shares or options are available for future issuance in the

2003

Incentive Plan.

Director Plan

Effective

July

15,

1998,

the Company adopted the

1998

Director Plan, which was amended and renamed, on

June

2009,

the

2009

Non-Employee Director Stock Incentive Plan (the “Director Plan”). The Director Plan was amended on

March

2013,

to (i) prohibit the repricing of stock options or other equity awards without the consent of the Company’s shareholders, and (ii) prohibit the Company from buying out underwater stock options. The Director Plan, as amended, provides for the issuance of stock options and other equity-based securities of up to

975,000

shares to non-employee members of the Company’s board of directors. Through

December

31,

2016,

325,810

options have been granted and

149,453

options are outstanding. For the year ended

December

31,

2016,

4,764

shares of common stock were issued and

131,554

shares remained available to be issued under the Director Plan.

The following is a summary of stock option activity under all plans:

	Shares Under Options			Weighted Average Exercise Price (per share)		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)

Outstanding December 31, 2015		270,205		$	15.40
Granted		17,184			22.02
Exercised		(54,811	)		24.57
Outstanding December 31, 2016		232,578		$	16.53		3.66	$	2,074
Exercisable at December 31, 2016		210,078		$	16.02		3.86	$	1,981
Vested and expected to vest at December 31, 2016		232,578		$	16.53		3.66	$	2,074

During the years ended

December

31,

2016,

2015

and

2014,

the total intrinsic value of all options exercised (i.e., the difference between the market price and the price paid by the employees to exercise the options) was approximately

$0.7

million,

$1.3

million, and

$3.4

million, respectively, and the total amount of consideration received from the exercise of these options was approximately

$695,000,

$394,000,

and

$709,000,

respectively. At its discretion, the Company allows option holders to surrender previously owned common stock in lieu of paying the exercise price and withholding taxes. During the year ended

December

31,

2016,

6,514

(6,514

for options and

zero

for taxes) were surrendered at an average market price of

$25.50.

During the year ended

December

31,

2015,

1,632

(1,632

for options and

zero

for taxes) were surrendered at an average market price of

$21.97.

During the year ended

December

31,

2014,

32,164

(14,931

for options and

17,233

for taxes) were surrendered at an average market price of

$25.42.

During the years ended

December

31,

2016,

2015

and

2014,

the Company recognized compensation expense related to stock options granted to directors and employees of approximately

$238,000,

$282,000,

and

$354,000,

respectively.

February

22,

2016,

the Company’s Compensation Committee approved the award of

$400,000

payable in shares of the Company’s common stock to the Company’s Chairman, Chief Executive Officer, and President under the

2003

Equity Incentive Plan. The shares were issued on

December

28,

2016.

The Company has recorded compensation expense of

$400,000

for the year ended

December

31,

2016.

Stock compensation expense of

$400,000

was also recorded in both

2015

and

2014

for similar awards.

June

2016,

the Company issued

4,764

shares of unrestricted common stock to the non-employee members of the Company’s Board of Directors as part of their annual retainer for serving on the Board. Based upon the closing price of

$22.02

June

2016,

the Company recorded compensation expense of approximately

$105,000

associated with the stock issuance for the year ended

December

31,

2016.

The Company recorded compensation expense of approximately

$105,000

and

$122,000

for similar awards in

2015

and

2014,

respectively.

December

31,

2016:

	Restricted Stock Units			Weighted Average Award Date Fair Value
Outstanding at December 31, 2015		40,645		$	19.67
Awarded		17,822			21.66
Shares vested		(11,909	)		20.94
Outstanding at December 31, 2016		46,558		$	20.05

The Company recorded approximately

$314,000,

$274,000

and

$237,000

in compensation expense related to these RSUs during the years ended

December

31,

2016,

2015

and

2014,

respectively

December

31,

2016,

3,389

shares were redeemed for this purpose at an average market price of

$22.82.

During the years ended

December

31,

2015

and

2014,

3,405

and

9,878

shares were redeemed for this purpose at an average market price of

$23.15

and

$25.88,

respectively.

The following summarizes the future share-based compensation expense the Company will record as the equity securities granted through

December

31,

2016,

vest (in thousands):

	Options		Common Stock		Restricted Stock Units		Total
2017		44		-		293		337
2018		16		-		207		223
2019		-		-		110		110
2020		-		-		23		23
Total	$	60	$	-	$	633	$	693

Tax benefits totaling approximately

$145,000,

$356,000,

and

$1,219,000

were recognized as additional paid-in capital during the years ended

December

31,

2016,

2015

and

2014,

respectively, since the Company’s tax deductions exceeded the share-based compensation charge recognized for stock options exercised and RSUs vested.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

XML 31 R18.htm IDEA: XBRL DOCUMENT

Note 12 - Preferred Stock

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note Disclosure [Text Block]

(12)

Preferred Stock

March

18,

2009,

the Company declared a dividend of

one

preferred share purchase right (a “Right”) for each outstanding share of common stock, par value

$0.01

per share on

March

20,

2009,

to the stockholders of record on that date. Each Right entitles the registered holder to purchase from the Company

one

-thousandth of a share of Series A Junior Participating Preferred Stock, par value

$0.01

per share (the “Preferred Share”), of the Company, at a price of

$25.00

per

one

-thousandth of a Preferred Share subject to adjustment and the terms of the Rights Agreement. The rights expire on

March

19,

2019.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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+ Details

XML 32 R19.htm IDEA: XBRL DOCUMENT

Note 13 - Supplemental Retirement Benefits

12 Months Ended

Dec. 31, 2016

Supplemental Retirement Benefits Disclosure [Text Block]

(13)

Supplemental Retirement Benefits

$4,000,

$4,000

and

$23,000

for the years ended

December

31,

2016,

2015

and

2014,

respectively. The present value of the supplemental retirement obligation has been calculated using a

4.0%

discount rate, and is included in other liabilities. Total projected future cash payments for the years ending

December

31,

2017

through

2019,

are approximately

$25,000

for each year.

XML 33 R20.htm IDEA: XBRL DOCUMENT

Note 14 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Text Block]

(14)	Commitments and Contingencies

(a)

Leases

– The Company has operating leases for certain facilities that expire through

2021.

Certain of the leases contain escalation clauses that require payments of additional rent, as well as increases in related operating costs.

Future minimum lease payments under non-cancelable operating leases as of

December

31,

2016,

are as follows (in thousands):

Years Ending December 31,	Operating Leases
2017		891
Total minimum lease payments (a)	$	891

(a)

Minimum payments have not been reduced by minimum sublease rentals of approximately

$24,000

due in the future under non-cancelable subleases.

Rent expense amounted to approximately

$0.8

million,

$1.2

million and

$1.8

million in

2016,

2015

and

2014,

respectively.

(b)

Legal

– The Company is a defendant in various administrative proceedings that are being handled in the ordinary course of business. In the opinion of management of the Company, these suits and claims should not result in final judgments or settlements that, in the aggregate, would have a material adverse effect on the Company’s financial condition or results of operations.

XML 34 R21.htm IDEA: XBRL DOCUMENT

Note 15 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2016

Compensation and Employee Benefit Plans [Text Block]

(15)

Employee Benefit Plans

The Company maintains a profit sharing plan for eligible employees. Contributions to the Plan are made in the form of matching contributions to employee

401k

deferrals, as well as discretionary profit sharing amounts determined by the Board of Directors to be funded by

March

following each fiscal year. Contributions were approximately

$740,000,

$750,000

and

$750,000

2016,

2015

and

2014,

respectively.

The Company has a partially self-insured health insurance program that covers all eligible participating employees. The maximum liability is limited by a stop loss of

$200,000

per insured person, along with an aggregate stop loss determined by the number of participants.

December

31,

2016

and

2015,

the balance of the deferred compensation liability totaled approximately

$1.7

million and

$1.5

million, respectively. The related assets, which are held in the form of a Company-owned, variable life insurance policy that names the Company as the beneficiary, are reported within other assets in the accompanying balance sheets, and are accounted for based on the underlying cash surrender values of the policies, and totaled approximately

$1.8

million and

$1.7

million as of

December

31,

2016

and

2015,

respectively.

XML 35 R22.htm IDEA: XBRL DOCUMENT

Note 16 - Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Text Block]

(16)

Fair Value of Financial Instruments

820,

Fair Value Measurements and Disclosures

, and directly related to the amount of subjectivity associated with inputs to fair valuation of these assets and liabilities, are as follows:

Level

The Company has

assets and liabilities that are measured at fair value on a recurring basis.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

XML 36 R23.htm IDEA: XBRL DOCUMENT

Note 17 - Segment Data

12 Months Ended

Dec. 31, 2016

Segment Reporting Disclosure [Text Block]

(17)

Segment Data

The Company consists of a single operating and reportable segment.

Revenues from customers outside of the United States are not material. No customer comprised more than

10%

of the Company’s consolidated revenues for the year ended

December

31,

2016.

A vast majority of the Company’s assets are located in the United States.

December

31,

2016,

2015

and

2014

are as follows (in thousands):

	2016					2015					2014
Market	Net Sales		%			Net Sales		%			Net Sales		%

Medical	$	64,522		44.2	%	$	57,297		41.3	%	$	50,092		36.0	%
Automotive		27,450		18.8	%		26,879		19.4	%		27,358		19.6	%
Consumer		21,419		14.7	%		17,274		12.4	%		17,661		12.7	%
Electronics		11,586		7.9	%		13,218		9.5	%		15,830		11.4	%
Industrial		10,661		7.3	%		11,028		7.9	%		13,208		9.5	%
Aerospace & Defense		10,494		7.2	%		13,154		9.5	%		15,158		10.9	%
Net Sales	$	146,132		100.0	%	$	138,850		100.0	%	$	139,307		100.0	%

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Name Accounting Standards Codification
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+ Details

XML 37 R24.htm IDEA: XBRL DOCUMENT

Note 18 - Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Text Block]

(18)

Quarterly Financial Information (unaudited)

Summarized quarterly financial data is as follows (in thousands, except per share data):

2016	Q1		Q2		Q3		Q4
Net sales	$	34,503	$	37,902	$	37,220	$	36,507
Gross profit		7,727		10,295		8,452		8,176
Net income		1,075		2,735		2,669		1,491
Basic net income per share		0.15		0.38		0.37		0.21
Diluted net income per share		0.15		0.38		0.37		0.20

2015	Q1		Q2		Q3		Q4
Net sales	$	33,977	$	36,499	$	34,441	$	33,933
Gross profit		8,638		10,293		9,510		9,013
Net income		1,653		2,272		1,992		1,676
Basic net income per share		0.23		0.32		0.28		0.24
Diluted net income per share		0.23		0.32		0.28		0.23

XML 38 R25.htm IDEA: XBRL DOCUMENT

Note 19 - Plant Consolidation

12 Months Ended

Dec. 31, 2016

Plant Consolidation Disclosure [Text Block]

(19)

Plant Consolidation

March

18,

2015,

the Company committed to move forward with a plan to cease operations at its Raritan, New Jersey, plant and consolidate operations into its Newburyport, Massachusetts, facility and other UFP facilities. The Company’s decision was in response to a continued decline in business at the Raritan facility and the recent purchase of the

137,000

-square-foot facility in Newburyport. The activities related to this consolidation are complete.

December

31,

2015

and the Georgetown relocation is substantially complete.

The Company has incurred approximately

$2.1

million in

one

-time expenses in connection with the Massachusetts consolidations. Included in this amount are approximately

$180,000

relating to employee severance payments and relocation costs, approximately

$1.5

million in moving expenses and expenses associated with vacating the Raritan, Haverhill and Byfield properties, and approximately

$360,000

in lease termination costs. Total cash charges were approximately

$2.0

million. The Company expects annual cost savings of approximately

$1.0

million as a result of these consolidations.

July

16,

2014,

the Company committed to move forward with a plan to cease operations at its Costa Mesa, California, plant and consolidate operations into its Rancho Dominguez, California, facility and other UFP facilities. The Company’s decision was in response to the

December

31,

2014,

expiration of the lease on the Costa Mesa facility as well as the close proximity of the

two

properties. The California consolidation was complete at

December

31,

2015.

The Company has recorded the following restructuring costs associated with the consolidations discussed above for the fiscal years ended

December

31,

2016

and

2015

(in thousands):

	2016		2015						2014
Restructuring Costs	MA		MA		CA		Total		MI		CA		Total

Employee severance	$	-	$	178	$	18	$	196	$	237	$	10	$	247
Relocation		420		1,138		66		1,204		356		501		857
Lease termination		-		356		-		356		-		-		-
Workforce training		-		-		-		-		373		-		373
Plant infrastructure		-		-		-		-		79		-		79
														-
Total restructuring costs	$	420	$	1,672	$	84	$	1,756	$	1,045	$	511	$	1,556

The

2016

costs were reclassified in the Consolidated Statement of Income as “Restructuring Costs” from Cost of Sales. The

2015

costs were reclassified in the Consolidated Statement of Income as “Restructuring Costs” as follows:

$1,669,000

from Cost of Sales,

$36,000

from Selling, General and Administrative expenses and

$51,000

from Gain on sales of property, plant and equipment. The

2014

costs were reclassified in the Consolidated Statement of Income as “Restructuring Costs” as follows:

$1,385,000

from Cost of Sales,

$82,000

from Selling, General and Administrative expenses and

$89,000

from Gain on sales of property, plant and equipment.

XML 39 R26.htm IDEA: XBRL DOCUMENT

Note 20 - Related Party Transactions

12 Months Ended

Dec. 31, 2016

(20)	Related Party Transactions

Daniel Croteau, who has been a member of the Company’s board of directors since

December

16,

2015,

is the Chief Executive Officer of Vention Medical, Inc., a customer of the Company. Sales to Vention for the year ended

December

31,

2016

were approximately

$474,000.

Open accounts receivable from Vention were approximately

$23,000

December

31,

2016.

XML 40 R27.htm IDEA: XBRL DOCUMENT

Note 21 - Material Overcharge Settlement

12 Months Ended

Dec. 31, 2016

Legal Matters and Contingencies [Text Block]

(21)	Material Overcharge Settlement

January

1999

through

August

2010.

The Company recorded a gain of approximately

$2.1

million during the year ended

December

31,

2016,

which represents the full settlement amount received. The settlement amount is recorded as “Material overcharge settlement” in the operating income section of the Consolidated Statements of Income.

XML 41 R28.htm IDEA: XBRL DOCUMENT

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2016

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

UFP TECHNOLOGIES, INC.

Consolidated Financial Statement Schedule

Valuation and Qualifying Accounts

Years ended

December

31,

2016,

2015

and

2014

Accounts receivable, allowance for doubtful accounts:

	2016			2015			2014
Balance at beginning of year	$	499		$	502		$	512
Provision for bad debt		126			16			63
Write-offs, net of recoveries		(58	)		(19	)		(73	)
Balance at end of year	$	567		$	499		$	502

XML 42 R29.htm IDEA: XBRL DOCUMENT

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

(a)	Principles of Consolidation

Use of Estimates, Policy [Policy Text Block]

(b)	Use of Estimates

Fair Value Measurement, Policy [Policy Text Block]

(c)	Fair Value Measurement

The Company has not elected fair value accounting for any financial instruments for which fair value accounting is optional.

Fair Value of Financial Instruments, Policy [Policy Text Block]

(d)

Fair Value of Financial Instruments

Cash and Cash Equivalents, Policy [Policy Text Block]

(e)

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of

three

months or less to be cash equivalents. At

December

31,

2016

and

2015,

cash equivalents primarily consisted of money market accounts and certificates of deposit that are readily convertible into cash.

$17.6

million.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

(f)

Accounts Receivable

December

31,

2016.

Inventory, Policy [Policy Text Block]

(g)

Inventories

Inventories include material, labor, and manufacturing overhead and are valued at the lower of cost or net realizable value. Cost is determined using the

first

-in,

first

-out (FIFO) method.

December

31,

2016.

Property, Plant and Equipment, Policy [Policy Text Block]

(h)	Property, Plant, and Equipment

Property, plant, and equipment are stated at cost and are depreciated or amortized using the straight-line method over the estimated useful lives of the assets or the related lease term, if shorter.

Estimated useful lives of property, plant, and equipment are as follows:

Leasehold improvements	Shorter of estimated useful life or remaining lease term
Buildings and improvements (in years)	20	-	40
Machinery & Equipment (in years)	7	-	15
Furniture, fixtures, computers & software (in years)	3	-	7

Property, plant, and equipment amounts are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset

may

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

(i)

Goodwill

Goodwill is tested for impairment annually, and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount

may

be impaired. Impairment testing for goodwill is done at a reporting unit level. Reporting units are

one

1”

of the goodwill impairment test as of

September

30,

2014.

one

that a prudent investor would require before making an investment in our equity securities. The key assumptions used in our approach included:

The reporting unit’s estimated financials and

five

The discount rate determined using a Weighted Average Cost of Capital method (“WACC”), which considered market and industry data as well as Company-specific risk factors.

Selection of guideline public companies which are similar to each other and to the Company.

As of

September

30,

2014,

based on our calculations under the above noted approach, the fair value of the reporting unit exceeded its carrying value by approximately

$69

million or

74%.

may

be necessary.

The Company’s annual impairment testing date is

December

31.

The Company performed a qualitative assessment (“step

0”)

as of

December

31,

2016,

and determined that it was more likely than not that the fair value of its reporting unit exceeded its carrying amount. As a result, the Company is not required to proceed to a “step

1”

impairment assessment. Factors considered included the

2014

step

Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

(j)

Intangible Assets

Intangible assets with a definite life are amortized on a straight-line basis, with estimated useful lives ranging from

years. Intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that their carrying values

may

not be recoverable.

Revenue Recognition, Policy [Policy Text Block]

(k)	Revenue Recognition

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

(l)

Share-Based Compensation

The Company issues share-based awards through several plans that are described in detail in Note

11.

The compensation cost charged against income for those plans is included in selling, general & administrative expenses as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Share-based compensation expense	$	1,056	$	1,069	$	1,119

The compensation expense for stock options granted during the

three

-year period ended

December

31,

2016,

was determined as the fair value of the options using the Black Scholes valuation model. The assumptions are noted as follows:

	Year Ended December 31,
	2016			2015			2014
Expected volatility		29.7	%	31.5%	-	32.3%	32.8%	-	37.9%
Expected dividends		None			None			None
Risk-free interest rate		0.9	%	1.0%	-	1.2%	0.7%	-	0.9%
Exercise price	$	22.02		$19.97	-	$22.36	$22.55	-	$25.48
Expected term (in years)		5.0			5.0		3.8	to	5.0
Weighted-average grant-date fair value	$	6.11			$6.04			$7.24

The total income tax benefit recognized in the consolidated statements of income for share-based compensation arrangements was approximately

$318,000,

$312,000

and

$320,000

for the years ended

December

31,

2016,

2015

and

2014,

respectively.

Deferred Charges, Policy [Policy Text Block]

(m)	Deferred Rent

The Company accounts for escalating rental payments on a straight-line basis over the term of the lease.

Shipping and Handling Cost, Policy [Policy Text Block]

(n)

Shipping and Handling Costs

Costs incurred related to shipping and handling are included in cost of sales. Amounts charged to customers pertaining to these costs are included in net sales.

Research and Development Expense, Policy [Policy Text Block]

(o)

Research and Development

On a routine basis, the Company incurs costs related to research and development activity. These costs are expensed as incurred. Approximately

$1.3

million,

$1.3

million, and

$1.4

million were expensed in the years ended

December

31,

2016,

2015

and

2014,

respectively.

Income Tax, Policy [Policy Text Block]

(p)

Income Taxes

50%

likelihood of being realized upon settlement. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in tax expense.

Segment Reporting, Policy [Policy Text Block]

(q)	Segments and Related Information

The Company follows the provisions of ASC

280,

Segment Reporting

, which establish standards for the way public business enterprises report information and operating segments in annual financial statements (see Note

17).

Stockholders Equity, Treasury Stock [Policy Text Block]

(r) Treasury Stock

The Company accounts for treasury stock under the cost method, using the

first

-in,

first

out flow assumption, and we include treasury stock as a component of stockholders’ equity. The Company did

not

repurchase any shares of common stock during the year ended

December

31,

2016.

During the year ended

December

31,

2015,

the Company repurchased

29,559

shares of common stock at a cost of approximately

$587,000.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

May

2014,

the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.

2014

09,

Revenue from Contracts with Customers

August

2015,

the FASB issued an update to defer the effective date of this update by

one

year. The updated standard becomes effective for the Company in the

first

quarter of

2018,

but allows the Company to adopt the standard

one

year earlier if it so chooses. The Company expects to adopt the standard in the

first

quarter of

2018

February

2016,

the FASB issued ASU No.

2016

02,

Leases.

The guidance in this ASU supersedes the leasing guidance in Topic

840,

Leases

2016

are effective for annual reporting periods beginning after

December

15,

2018,

March

2016,

the FASB issued ASU No.

2016

09,

Improvements to Employee Share Based Payment Accounting

December

15,

2016,

and interim periods within those fiscal years. The Company will adopt the new standard in the

first

quarter of

2017.

Revisions Policy [Policy Text Block]

Revisions

Certain revisions have been made to the

2015

Consolidated Balance Sheet and

2015

Consolidated Statement of Cash Flows to conform to the current year presentation relating to presentation of a reserve for uncertain tax positions. The impact on the

2015

Consolidated Balance Sheet was a decrease in the amount of

$315,000

to both refundable income taxes and accrued expenses. The impact on the

2015

Consolidated Statement of Cash Flows (cash provided by operating activities) was an increase to the change in refundable income taxes of

$315,000

and a decrease to the change in accrued expenses of

$315,000.

These revisions had no impact on previously reported net income and are deemed immaterial to the previously issued financial statements.

Certain revisions have been made to the

2015

Consolidated Balance Sheet,

2015

Consolidated Statement of Operations and

2015

29,559

in the number of common shares outstanding. The impact to the Statements of Operations was a decrease of approximately

13,000

shares in basic and diluted weighted average common shares outstanding. The impact to the Consolidated Statement of Stockholders’ Equity was a decrease of approximately

30,000

XML 43 R30.htm IDEA: XBRL DOCUMENT

Note 1 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Table Text Block]

Leasehold improvements	Shorter of estimated useful life or remaining lease term
Buildings and improvements (in years)	20	-	40
Machinery & Equipment (in years)	7	-	15
Furniture, fixtures, computers & software (in years)	3	-	7

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Year Ended December 31,
	2016		2015		2014
Share-based compensation expense	$	1,056	$	1,069	$	1,119

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Year Ended December 31,
	2016			2015			2014
Expected volatility		29.7	%	31.5%	-	32.3%	32.8%	-	37.9%
Expected dividends		None			None			None
Risk-free interest rate		0.9	%	1.0%	-	1.2%	0.7%	-	0.9%
Exercise price	$	22.02		$19.97	-	$22.36	$22.55	-	$25.48
Expected term (in years)		5.0			5.0		3.8	to	5.0
Weighted-average grant-date fair value	$	6.11			$6.04			$7.24

XML 44 R31.htm IDEA: XBRL DOCUMENT

Note 2 - Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

	Years Ended December 31,
	2016		2015		2014
Interest	$	66	$	86	$	103
Income taxes, net of refunds	$	3,562	$	1,459	$	3,259

XML 45 R32.htm IDEA: XBRL DOCUMENT

Note 3 - Receivables (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	December 31,
	2016			2015
Accounts receivable–trade	$	21,816		$	17,980
Less allowance for doubtful receivables		(567	)		(499	)
Receivables, net	$	21,249		$	17,481

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Note 4 - Inventories (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Inventory, Current [Table Text Block]

	December 31,
	2016		2015
Raw materials	$	7,111	$	7,506
Work in process		1,354		1,192
Finished goods		5,686		5,504
Total Inventory	$	14,151	$	14,202

XML 47 R34.htm IDEA: XBRL DOCUMENT

Note 5 - Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	Patents			Non- Compete			Customer List			Total
Estimated useful life (in years)		14			5			5
Gross amount at December 31, 2016	$	429		$	512		$	2,046		$	2,987
Accumulated amortization at December 31, 2016		(429	)		(449	)		(1,791	)		(2,669	)
Net balance at December 31, 2016	$	-		$	63		$	255		$	318

Gross amount at December 31, 2015	$	429		$	512		$	2,046		$	2,987
Accumulated amortization at December 31, 2015		(429	)		(387	)		(1,535	)		(2,351	)
Net balance at December 31, 2015	$	-		$	125		$	511		$	636

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

2017			318
Total		$	318

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Note 6 - Property, Plant, and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Property, Plant, and Equipment Components [Table Text Block]

	December 31,
	2016		2015
Land and improvements	$	3,191	$	3,191
Buildings and improvements		28,241		25,399
Leasehold improvements		2,759		2,839
Machinery & Equipment		54,633		51,016
Furniture, fixtures, computers & software		6,419		6,498
Construction in progress–equipment		1,563		1,621
	$	96,806	$	90,564

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Note 7 - Indebtedness (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Long-term Debt Instruments [Table Text Block]

	December 31,
	2016			2015
Equipment loans	$	856		$	1,870
Total long-term debt		856			1,870
Current installments		(856	)		(1,011	)
Long-term debt, excluding current installments	$	-		$	859

Schedule of Maturities of Long-term Debt [Table Text Block]

Year ending December 31:
2017	$	856
	$	856

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

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Note 8 - Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Accrued Liabilities [Table Text Block]

	December 31,
	2016		2015
Compensation	$	2,144	$	2,107
Benefits / self-insurance reserve		180		250
Paid time off		990		965
Commissions payable		260		319
Other		1,124		1,418
	$	4,698	$	5,059

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Note 9 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Years Ended December 31,
	2016		2015			2014
Current
Federal	$	3,120	$	3,131		$	2,638
State		651		580			336
		3,771		3,711			2,974
Deferred
Federal		546		508			1,262
State		30		(71	)		(30	)
		576		437			1,232

Total income tax provision	$	4,347	$	4,148		$	4,206

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
	2016			2015
Deferred tax assets:
Reserves	$	531		$	532
Inventory capitalization		427			407
Compensation programs		578			501
Retirement liability		19			27
Equity-based compensation		257			290
Net operating loss carryforwards		40			141
Deferred rent		7			10
Intangible assets		340			264
Total deferred tax assets		2,199			2,172
Deferred tax liabilities:
Excess of book over tax basis of fixed assets		(4,767	)		(4,186	)
Goodwill		(891	)		(869	)
Total deferred tax liabilities		(5,658	)		(5,055	)
Net long-term deferred tax liabilities	$	(3,459	)	$	(2,883	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Years Ended December 31,
	2016			2015			2014
Computed “expected” tax rate		34.0	%		34.0	%		34.0	%
Increase (decrease) in income taxes resulting from:
State taxes, net of federal tax benefit		3.7			2.3			1.1
Meals and entertainment		0.2			0.3			0.3
R&D credits		(0.6	)		(0.8	)		(0.7	)
Domestic production deduction		(2.5	)		(2.5	)		(1.4	)
Non-deductible ISO stock option expense		0.3			0.4			0.4
Unrecognized tax benefits		(0.1	)		-			1.3
Other		0.3			1.6			0.8
Effective tax rate		35.3	%		35.3	%		35.8	%

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	December 31,
	2016			2015
Gross UTB balance at beginning of fiscal year	$	162		$	230
Reductions for tax positions of prior years		(12	)		(68	)
Gross UTB balance at end of fiscal year	$	150		$	162

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Note 10 - Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Weighted Average Number of Shares [Table Text Block]

	Years Ended December 31,
	2016		2015		2014
Basic weighted average common shares outstanding during the year		7,190		7,102		7,028
Weighted average common equivalent shares due to stock options and restricted stock units		85		104		147
Diluted weighted average common shares outstanding during the year		7,275		7,206		7,175

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Note 11 - Stock Option and Equity Incentive Plans (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Shares Under Options			Weighted Average Exercise Price (per share)		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)

Outstanding December 31, 2015		270,205		$	15.40
Granted		17,184			22.02
Exercised		(54,811	)		24.57
Outstanding December 31, 2016		232,578		$	16.53		3.66	$	2,074
Exercisable at December 31, 2016		210,078		$	16.02		3.86	$	1,981
Vested and expected to vest at December 31, 2016		232,578		$	16.53		3.66	$	2,074

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

	Restricted Stock Units			Weighted Average Award Date Fair Value
Outstanding at December 31, 2015		40,645		$	19.67
Awarded		17,822			21.66
Shares vested		(11,909	)		20.94
Outstanding at December 31, 2016		46,558		$	20.05

Schedule of Future Share-based Compensation Expense [Table Text Block]

	Options		Common Stock		Restricted Stock Units		Total
2017		44		-		293		337
2018		16		-		207		223
2019		-		-		110		110
2020		-		-		23		23
Total	$	60	$	-	$	633	$	693

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Note 14 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Years Ending December 31,	Operating Leases
2017		891
Total minimum lease payments (a)	$	891

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Note 17 - Segment Data (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

	2016					2015					2014
Market	Net Sales		%			Net Sales		%			Net Sales		%

Medical	$	64,522		44.2	%	$	57,297		41.3	%	$	50,092		36.0	%
Automotive		27,450		18.8	%		26,879		19.4	%		27,358		19.6	%
Consumer		21,419		14.7	%		17,274		12.4	%		17,661		12.7	%
Electronics		11,586		7.9	%		13,218		9.5	%		15,830		11.4	%
Industrial		10,661		7.3	%		11,028		7.9	%		13,208		9.5	%
Aerospace & Defense		10,494		7.2	%		13,154		9.5	%		15,158		10.9	%
Net Sales	$	146,132		100.0	%	$	138,850		100.0	%	$	139,307		100.0	%

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Note 18 - Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information [Table Text Block]

2016	Q1		Q2		Q3		Q4
Net sales	$	34,503	$	37,902	$	37,220	$	36,507
Gross profit		7,727		10,295		8,452		8,176
Net income		1,075		2,735		2,669		1,491
Basic net income per share		0.15		0.38		0.37		0.21
Diluted net income per share		0.15		0.38		0.37		0.20

2015	Q1		Q2		Q3		Q4
Net sales	$	33,977	$	36,499	$	34,441	$	33,933
Gross profit		8,638		10,293		9,510		9,013
Net income		1,653		2,272		1,992		1,676
Basic net income per share		0.23		0.32		0.28		0.24
Diluted net income per share		0.23		0.32		0.28		0.23

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Note 19 - Plant Consolidation (Tables)

12 Months Ended

Dec. 31, 2016

Restructuring and Related Costs [Table Text Block]

	2016		2015						2014
Restructuring Costs	MA		MA		CA		Total		MI		CA		Total

Employee severance	$	-	$	178	$	18	$	196	$	237	$	10	$	247
Relocation		420		1,138		66		1,204		356		501		857
Lease termination		-		356		-		356		-		-		-
Workforce training		-		-		-		-		373		-		373
Plant infrastructure		-		-		-		-		79		-		79
														-
Total restructuring costs	$	420	$	1,672	$	84	$	1,756	$	1,045	$	511	$	1,556

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Schedule II - Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2016