Pre-Production Costs Related to Long-Term Supply Arrangements

6 Months Ended

Jun. 26, 2016

Pre-Production Costs and Deferred Revenue Related to Long-Term Supply Arrangements [Abstract]

PreProductionCostsandDeferredRevenueRelatedtoLongTermSupplyArrangements [Text Block]

Preproduction Costs Related to Long-Term Supply Arrangements

We incur preproduction engineering and tooling costs related to the products produced for our customers under long-term supply agreements. We expense all preproduction engineering costs for which reimbursement is not contractually guaranteed by the customer or which are in excess of the contractually guaranteed reimbursement amount. We amortize the cost of the customer-owned tooling over the expected life of the wheel program on a straight line basis. Also, we defer any reimbursements made to us by our customers and recognize the tooling reimbursement revenue over the same period in which the tooling is in use. Changes in the facts and circumstances of individual wheel programs may accelerate the amortization of both the cost of customer-owned tooling and the deferred tooling reimbursement revenues. Recognized tooling reimbursement revenues, which totaled $3.9 million and $3.2 million for the twenty-six weeks ended June 26, 2016 and June 28, 2015, respectively, are included in net sales in the condensed consolidated statements of operations. The following tables summarize the unamortized customer-owned tooling costs included in our non-current assets, and the deferred tooling revenues included in accrued liabilities and other non-current liabilities:

(Dollars in Thousands)	June 26, 2016			December 27, 2015
Unamortized Preproduction Costs
Preproduction costs	$	76,788		$	73,095
Accumulated amortization	(61,601		)	(58,632		)
Net preproduction costs	$	15,187		$	14,463
Deferred Tooling Revenues
Accrued expenses	$	3,524		$	2,908
Other non-current liabilities	4,707			1,266
Total deferred tooling revenues	$	8,231		$	4,174