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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 11-K

 

 

(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED December 31, 2010

OR

 

¨ TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM              TO             

Commission File Number: 000-21835

 

 

 

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

SUN HYDRAULICS CORPORATION 401(K) AND ESOP

RETIREMENT PLAN

1500 WEST UNIVERSITY PARKWAY

SARASOTA, FLORIDA 34243

 

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

SUN HYDRAULICS CORPORATION

1500 WEST UNIVERSITY PARKWAY

SARASOTA, FLORIDA 34243

 

 

 


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SUN HYDRAULICS CORPORATION 401(K) AND ESOP RETIREMENT PLAN

FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE

AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

DECEMBER 31, 2010 AND 2009


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CONTENTS

 

     Page

Report of Independent Registered Certified Public Accounting Firm

     1

Report of Independent Registered Certified Public Accounting Firm

     2

Financial Statements

  

Statements of Net Assets Available for Benefits

     3

Statements of Changes in Net Assets Available for Benefits

     4

Notes to the Financial Statements

     5

Supplemental Schedule

  

Schedule of Assets (Held at End of Year)

   14

Exhibits

   15

Signature

   16

Consent of Independent Registered Certified Public Accounting Firm

  

Consent of Independent Registered Certified Public Accounting Firm

  


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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Participants and Administrator of the

Sun Hydraulics Corporation 401(k) and

ESOP Retirement Plan:

We have audited the accompanying statement of net assets available for benefits of Sun Hydraulics Corporation 401(k) and ESOP Retirement Plan as of December 31, 2010, and the related statement of changes in net assets available for benefits for the year then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor have we been engaged to perform an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Sun Hydraulics Corporation 401(k) and ESOP Retirement Plan as of December 31, 2010, and the changes in net assets available for benefits for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) is presented for purposes of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

 

/s/ Mayer Hoffman McCann P.C.

Clearwater, Florida

June 17, 2011

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Participants and Administrator of the

Sun Hydraulics Corporation 401(k) and

ESOP Retirement Plan:

We have audited the accompanying statement of net assets available for benefits of Sun Hydraulics Corporation 401(k) and ESOP Retirement Plan as of December 31, 2009, and the related statement of changes in net assets available for benefits for the year then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor have we been engaged to perform an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Sun Hydraulics Corporation 401(k) and ESOP Retirement Plan as of December 31, 2009, and the changes in net assets available for benefits for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

 

/s/ Kirkland, Russ, Murphy, & Tapp, P.A.

Clearwater, Florida

June 18, 2010

 

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SUN HYDRAULICS CORPORATION 401(K) AND ESOP RETIREMENT PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

 

     December 31,  
     2010     2009  
Assets     

Investments at fair value

    

Cash timing difference

   $ (413   $ —     

Common/collective trust fund

     7,815,385        7,209,395   

Money market fund

     234        178   

Mutual funds

     27,361,274        23,857,110   

Self directed brokerage accounts

     1,443,599        802,275   

Sponsor company common stock, non-participant directed

     12,460,127        9,668,925   
                

Total investments at fair value

     49,080,206        41,537,883   
                

Receivables

    

Employer contribution-cash

     90        82   

Employer contribution-sponsor company common stock

     2,192,882        —     

Participants’ contribution

     90        77   

Notes receivable from participants

     2,120,688        2,112,832   
                

Total receivables

     4,313,750        2,112,991   
                

Net assets available for benefits at fair value

     53,393,956        43,650,874   

Adjustment from fair value to contract value for fully benefit responsive investment contract

     (196,566     (49,404
                

Net assets available for benefits

   $ 53,197,390      $ 43,601,470   
                

The accompanying Notes to the Financial Statements are an integral part of these financial statements.

 

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SUN HYDRAULICS CORPORATION 401(K) AND ESOP RETIREMENT PLAN

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

 

     Year Ended
December 31,
 
     2010      2009  

Additions to net assets attributed to:

     

Investment income

     

Net appreciation in fair value of investments

   $ 7,315,391       $ 8,102,019   

Interest on investments

     —           1   

Participant loan interest

     129,051         135,066   
                 

Total investment income

     7,444,442         8,237,086   
                 

Contributions

     

Participant

     1,523,058         1,353,932   

Employer-cash

     1,009,217         848,691   

Employer-sponsor company common stock, at fair value

     2,192,882         —     

Rollovers

     290,594         163,827   
                 

Total contributions

     5,015,751         2,366,450   
                 

Total additions

     12,460,193         10,603,536   
                 

Deductions from net assets:

     

Benefits paid to participants

     2,837,700         4,292,916   

Administrative expenses

     26,573         26,495   
                 

Total deductions

     2,864,273         4,319,411   
                 

Net increase

     9,595,920         6,284,125   
                 

Net assets available for benefits

     

Beginning of the year

     43,601,470         37,317,345   
                 

End of the year

   $ 53,197,390       $ 43,601,470   
                 

The accompanying Notes to the Financial Statements are an integral part of these financial statements.

 

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SUN HYDRAULICS CORPORATION 401(K) AND ESOP RETIREMENT PLAN

NOTES TO THE FINANCIAL STATEMENTS

DECEMBER 31, 2010 AND 2009

 

1. Description of Plan

The following description of the Sun Hydraulics Corporation 401(k) and ESOP Retirement Plan (f/k/a Sun Hydraulics Corporation Retirement Plan) (the “Plan”) provides only general information. Participants should refer to the Plan agreement, as amended, for a more complete description of the Plan’s provisions.

General

The Plan became effective January 1, 1979. The Plan is a defined contribution 401(k) plan covering employees of its sponsor, Sun Hydraulics Corporation (“Corporation”), who have completed three months employment and reached the age of 18. Employees may enroll in the Plan effective on the first day of each calendar quarter following their third month of employment. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

During 2004, the Corporation adopted the Employee Stock Ownership Plan (“ESOP”). Under the ESOP, the Corporation may contribute on a discretionary basis company common stock to all employees eligible to participate in the Plan. The ESOP is a non-participant directed investment as the Corporation makes all contributions to the fund.

The sponsor company common stock fund is a share-based stock fund. At December 31, 2010, the fund held 329,633 shares of Sun Hydraulics Corporation common stock with a price of $37.80 per share as of such date. At December 31, 2009, the fund held 368,340 shares of Sun Hydraulics Corporation common stock with a price of $26.25 per share as of such date.

The Plan is administered by the Employee Benefits Committee (the “Committee”) except in connection with the acquisition, retention or disposition of Corporation stock held by the Plan, with respect to which the Board of Directors retained authority. The Committee is composed of five employees of the Corporation appointed by the Corporation’s Board of Directors. Charles Schwab Trust Company (the “Trustee”) is the current trustee for the Plan. Schwab Retirement Plan Services, Inc. provides the recordkeeping, accounting, and the telephone and internet exchange features of the Plan.

Contributions

Salary deferral contributions are made by participating employees through payroll deductions in amounts authorized by the employees. The Plan allows participants to make pre-tax contributions from 1% to 100% of their salary not to exceed statutory limits. Pre-tax contributions, of up to 6% of the employee’s salary (depending on length of service), are matched by the Corporation. Matching contributions are based on the years of service as listed in the following schedule:

 

Years of Service

   % Match

Less than three years

   3%

After three years

   4%

After five years

   5%

After seven or more years

   6%

 

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Additional contributions may be made by the Corporation on a discretionary basis. During 2010 and 2009, the Corporation contributed $2,192,882 and $0, respectively, to the ESOP in the form of company stock. The contribution in 2010 is shown as a contribution receivable for that plan year.

Participant Accounts

Each participant’s account is credited with the participant’s contribution, any employer contribution and an allocation of Plan earnings or losses. Allocations are based on the participant’s account balance.

Vesting

Participants are immediately vested in their voluntary contributions plus actual earnings thereon. Participants are vested in employer matching contributions and discretionary employer ESOP contributions based upon years of service defined in the Plan, as follows:

 

Years of Service

   Vesting %

Less than 1

     0%

1

   20%

2

   40%

3

   60%

4

   80%

5 or more

   100%

Payment of Benefits

If a participant ceases to be employed by the Corporation for any reason other than death or total and permanent disability, prior to satisfying the age and service requirements for early or normal retirement, the terminated participant may elect to receive lump-sum or periodic payments of the participant’s vested account balance. Withdrawals may be subject to tax withholdings and penalties.

Benefits may be paid upon death, disability, termination or retirement to the participants or their beneficiaries, in lump-sum amounts or periodic payments. Under certain circumstances, hardship withdrawals are allowed from the Plan.

 

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Investment Options

The participants, upon enrollment in the Plan, elect to invest their contributions, in multiples of five (5) % increments, in the investment options provided by the Plan. Initial investments in sponsor company common stock is not a participant directed investment option.

Notes Receivable From Participants

A participant may receive a loan based on the loan program set forth by the Plan. The minimum loan is $1,000 and the maximum is $50,000, not to exceed 50% of the participant’s vested account balance. Loans are repaid through payroll deductions over a maximum of five (5) years. A participant can have only one loan outstanding. Current loans bear interest at rates between 5.25% and 10.25%.

Plan Expenses

The Plan pays the account administrative service fee from income earned by the Plan. The Corporation pays the administrative service fee, legal and accounting fees, and other expenses on behalf of the Plan.

Forfeitures

At December 31, 2010 and 2009, forfeited nonvested accounts totaled $3,201 and $33,722, respectively. Account balances will revert back to the Plan and will be used to pay reasonable administrative expenses of the Plan; any excess will be used to reduce the employer’s matching contributions.

 

2. Summary of Accounting Policies

Basis of Accounting

The accompanying financial statements are presented on the accrual basis of accounting.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Investments

The Plan’s investments are held by the Trustee. The Plan’s investments are stated at fair value. If available, quoted market prices are used to value investments. For investments without quoted market prices, the net asset value is calculated and verified on a daily basis by the respective trusts and reported to the Trustee. Notes receivable from participants are valued at cost which equals fair value. Investment income and gains and losses are allocated among participants on the basis of individual participant account balances. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividend income is recognized when earned.

 

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Payment of Benefits

Benefits are recorded when paid.

Net Appreciation in Fair Value of Investments

The Plan presents, in the statements of changes in net assets available for benefits, the net appreciation in fair value of its investments consisting of interest, dividends, the realized gains (losses) and the unrealized appreciation (depreciation) on those investments.

Recent Accounting Pronouncements

In September 2010, the Financial Accounting Standards Board issued guidance that requires participant loans be classified as notes receivable from participants, which are segregated from plan investments and measured at their unpaid principal balance plus any accrued but unpaid interest, which approximates fair value. Previously, loans were classified as investments and measured at fair value. The guidance should be applied retrospectively to all periods presented. The Plan adopted this guidance as of December 31, 2010 and reclassified participant loans from plan investments to a component of receivables for both periods presented in the statements of net assets available for benefits. Other than the reclassification requirements, the adoption of this standard did not have a material impact on the Plan’s financial statements.

 

3. Investments

Investment balances that represent five percent or more of the net assets available for benefits are as follows:

 

     2010      2009  

Sponsor Company Common Stock

   $ 12,460,127       $ 9,668,925   

Schwab Stable Value Select Fund

     7,815,385         7,209,395   

JPMorgan Core Bond Fund

     5,195,977         4,759,516   

Schwab S&P 500 Index Select

     4,367,113         4,253,971   

Artio International Equity A

     3,377,520         3,167,504   

Rainier Large Cap Equity

     2,896,175         2,345,129   

During the years ended December 31, 2010 and 2009, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value as follows:

 

     2010      2009  

Mutual funds

   $ 3,246,328       $ 4,194,060   

Common/collective trust fund

     174,239         215,271   

Sponsor company common stock

     3,840,751         3,570,604   

Self directed brokerage account

     54,073         122,084   
                 

Net change in fair value

   $ 7,315,391       $ 8,102,019   
                 

 

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A portion of the Schwab Stable Value Fund, a common collective trust (“CCT”), is invested in guaranteed investment contracts (“GICs”) which provide for benefit-responsive withdrawals by plan participants at contract value. The GICs are valued at fair value in Investments with an adjustment to reflect them at contract value on the Statement of Net Assets. The average yield for the CCT was 2.73% and 3.06% for the years ended December 31, 2010 and 2009, respectively. The CCT’s crediting interest rates on investments ranged from 0.02% to 9.88% and 0.22% to 9.70% on December 31, 2010 and 2009, respectively.

 

4. Fair Value Measurements

The Company uses the three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

Level 1. Observable inputs such as quoted prices in active markets;

Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

Common/collective trust fund

The common/collective trust fund’s market value is based on the asset value per unit as determined by the collective trust as of the valuation date and are classified as Level 2.

Common stocks

Sun Hydraulics Corporation common stock and common stocks held in self-directed brokerage accounts are stated at fair value as quoted by the market close price on a recognized securities exchange on the last business day of the Plan year and are classified as Level 1.

Money market funds

The money market funds are valued at quoted prices in an active market, which represents the net asset values of shares held by the Plan at year-end and are classified as Level 1.

Mutual funds

Mutual funds and mutual funds held in self-directed brokerage accounts are valued at quoted prices in an active market, which represents the net asset values of shares held by the Plan at year-end and are classified as Level 1.

 

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As of December 31, 2010, the Plan’s investments measured at fair value on a recurring basis were as follows:

 

Description

   Assets
Measured at
Fair Value at
12/31/2010
     Fair Value Measurements at 12/31/10 Using  
      Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs

(Level 3)
 

Common/collective trust fund

   $ 7,815,385         —           7,815,385         —     

Sponsor company common stock

     12,460,127         12,460,127         —           —     

Money market fund

     234         234         —           —     

Mutual funds

           

Target/Life Cycle/Allocation

     4,123,064         4,123,064         —           —     

Fixed Income

     5,195,977         5,195,977         —           —     

Large Company Equity

     10,037,402         10,037,402         —           —     

Mid Company Equity

     2,444,002         2,444,002         —           —     

Small Company Equity

     2,135,173         2,135,173         —           —     

International/Global Equity

     3,425,656         3,425,656         —           —     

Self directed brokerage accounts

     1,443,599         1,443,599         —           —     
                                   
   $ 49,080,619         41,265,234         7,815,385         —     
                                   

As of December 31, 2009, the Plan’s investments measured at fair value on a recurring basis were as follows:

 

Description

   Assets
Measured at
Fair Value at
12/31/2009
     Fair Value Measurements at 12/31/09 Using  
      Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
     Significant
Other
Observable
Inputs
(Level 2)
     Significant
Unobservable
Inputs

(Level 3)
 

Common/collective trust fund

   $ 7,209,395         —           7,209,395         —     

Sponsor company common stock

     9,668,925         9,668,925         —           —     

Money market fund

     178         178         —           —     

Mutual funds

           

Target/Life Cycle/Allocation

     3,515,568         3,515,568         —           —     

Fixed Income

     4,759,516         4,759,516         —           —     

Large Company Equity

     8,855,718         8,855,718         —           —     

Mid Company Equity

     1,995,170         1,995,170         —           —     

Small Company Equity

     1,563,634         1,563,634         —           —     

International/Global Equity

     3,167,504         3,167,504         —           —     

Self directed brokerage accounts

     802,275         802,275         —           —     
                                   
   $ 41,537,883         34,328,488         7,209,395         —     
                                   

 

5. Non-participant Directed Investments

Information about the net assets and the significant components of the changes in net assets relating to the non-participant directed investments is as follows:

 

     2010      2009  

Net assets:

     

Sponsor company common stock

   $ 12,460,127       $ 9,668,925   
                 

 

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     Year Ended
December 31,
 
      2010     2009  

Changes in net assets:

    

Contributions

   $ —        $ 2,463,200   

Net appreciation

     3,840,751        3,570,604   

Benefits paid to participants

     (604,061     (562,633

Administrative expenses

     (6,449     (6,440

Loans taken

     (281,692     (327,906

Forfeitures

     (44,800     (60,639

Transfers to participant directed investments

     (112,547     (280,510
                
   $ 2,791,202      $ 4,795,676   
                

 

6. Tax Status of the Plan

The Internal Revenue Service has determined and informed the Corporation by letter dated October 3, 2005, that the Plan and related trusts were designed in accordance with applicable sections of the Internal Revenue Code. Although the Plan has been amended since receiving the letter, the Corporation believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the Internal Revenue Code.

Additionally, the Internal Revenue Service has determined and informed the Corporation by letter dated May 20, 2011, the Plan and related trusts were designed in accordance with applicable sections of the Internal Revenue Code. Although the Plan has been amended since receiving the letter, the Corporation believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the Internal Revenue Code.

 

7. Plan Termination

Although it has not expressed any intent to do so, the Corporation has the right under the Plan to amend or discontinue the Plan at any time and to terminate the Plan, subject to the terms of ERISA. In the event of Plan termination, the participants will become 100% vested in their accounts and net assets of the Plan will be distributed to the participants and beneficiaries of the Plan.

 

8. Related Party Transactions

Certain Plan investments are shares of mutual funds and a common/collective trust managed by the Trustee and shares of the Corporation’s common stock; and, therefore, these transactions qualify as party-in-interest.

 

9. Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

 

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10. Reconciliation of Financial Statements to Schedule H of Form 5500

The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2010 and 2009 to Schedule H of Form 5500:

 

     2010      2009  

Net assets available for benefits per the financial statements

   $ 53,197,390       $ 43,601,470   

Adjustment from fair value to contract value for fully benefit responsive investment contract

     196,566         49,404   
                 

Net assets available for benefits per Schedule H of Form 5500, line 1(l)

   $ 53,393,956       $ 43,650,874   
                 

The following is a reconciliation of net increase in net assets available for benefits for the years ended December 31, 2010 and 2009 per the financial statements to net income on Schedule H of Form 5500:

 

     2010      2009  

Net increase in net assets available for benefits per the financial statements

   $ 9,595,920       $ 6,284,125   

Adjustment from fair value to contract value for fully benefit responsive investment contract

     147,162         415,430   
                 

Net income per Schedule H of Form 5500, line 2(k)

   $ 9,743,082       $ 6,699,555   
                 

 

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SUPPLEMENTAL SCHEDULE

 

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SUN HYDRAULICS CORPORATION 401(K) AND ESOP RETIREMENT PLAN

SCHEDULE OF ASSETS (HELD AT END OF YEAR)

December 31, 2010

Information furnished pursuant to item 4i, Schedule H of Form 5500

Employer identification number: 59 2754337

 

(a)    (b)    ( c )    (d)      (e)  
     

Identity of issuer, borrower,

lessor, or similar party

  

Description of

investment including

maturity date, rate of

interest, collateral, par or

maturity value

   Cost      Market Value  

*

   Schwab Stable Value Select Fund    Common/Collective Trust    $ #       $ 7,815,385   

*

   Schwab Government Money Fund    Money Market Fund      #         234   
   American Beacon Large Cap Value    Mutual Fund      #         1,516,602   
   Artio International Equity A    Mutual Fund      #         3,377,520   
   Blackrock Lifepath 2020    Mutual Fund      #         1,700,897   
   Blackrock Lifepath 2030    Mutual Fund      #         1,529,838   
   Blackrock Lifepath 2040    Mutual Fund      #         436,038   
   Blackrock Lifepath 2050    Mutual Fund      #         27,581   
   Blackrock Lifepath Ret I    Mutual Fund      #         428,710   
   JPMorgan Core Bond Fund    Mutual Fund      #         5,195,977   
   Loomis Sayles Small Cap Value    Mutual Fund      #         2,135,173   
   Manning & Napier World Oppty A    Mutual Fund      #         10,692   
   Morgan Stanley Mid Cap Grth P    Mutual Fund      #         52,304   
   Oppenheimer Developing Mkts Y    Mutual Fund      #         37,444   
   Perkins Mid Cap Value Inv    Mutual Fund      #         2,391,698   
   Rainier Large Cap Equity    Mutual Fund      #         2,896,175   

*

   Schwab S&P 500 Index Select    Mutual Fund      #         4,367,113   
   Thornburg Value R5    Mutual Fund      #         1,257,512   
   Personal Choice Retirement Account    Self Directed Brokerage Account      #         1,443,599   

**

   Sponsor Company Common Stock    Common Stock
     3,889,236         12,460,127   
   Notes receivable from participants    Various maturity dates
with interest ranging from 5.25%-10.25%
     #         2,120,688   
                       
  

Total investments

      $ 3,889,236       $ 51,201,307   
                       

 

* Represents a party-in-interest to the Plan.
** Represents both a party-in-interest to the Plan and a non-participant directed fund.
# Investments are particpant-directed and, therefore, cost information is not required.

See accompanying independent registered public accounting firm’s report.

 

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Exhibits:

 

Exhibit
Number

  

Exhibit Description

23.1    Consent of Independent Registered Certified Public Accounting Firm – Mayer, Hoffman, McCann, P. C.
23.2    Consent of Independent Registered Certified Public Accounting Firm – Kirkland, Russ, Murphy, & Tapp, P.A.

 

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SIGNATURE

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

                                                                                      Sun Hydraulics Corporation 401(K) and ESOP Retirement Plan
June 17, 2011   By: /s/ Tricia L. Fulton                
  Tricia L. Fulton
  Chief Financial Officer (Principal
Financial and Accounting Officer)

 

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