Discontinued Operations

3 Months Ended

Mar. 31, 2012

Discontinued Operations

Discontinued Operations

Note 2 — Discontinued Operations

CIGS Solar Systems Business

On July 28, 2011, we announced a plan to discontinue our CIGS solar systems business. The action, which was completed on September 27, 2011, was in response to the dramatically reduced cost of mainstream solar technologies driven by significant reductions in prices, large industry investment, a lower than expected end market acceptance for CIGS technology and technical barriers in scaling CIGS. This business was previously included as part of our LED & Solar segment. Accordingly, the results of operations for the CIGS solar systems business have been recorded as discontinued operations in the accompanying condensed consolidated statements of income for all periods presented.

Metrology

On August 15, 2010, we signed a definitive agreement to sell our Metrology business to Bruker Corporation (“Bruker”) comprising our entire Metrology reporting segment for $229.4 million. Accordingly, Metrology’s operating results were accounted for as discontinued operations and the related assets and liabilities were classified as held for sale. The sales transaction closed on October 7, 2010, except for assets located in China due to local restrictions. Total proceeds, which included a working capital adjustment of $1 million, totaled $230.4 million of which $7.2 million relates to the net assets in China. The Company recorded a liability to defer the gain of $5.4 million on disposal related to the assets in China.

Summary information related to discontinued operations is as follows (in thousands):

	Three months ended March 31, 2012								Three months ended March 31, 2011
	Solar Systems		Metrology			Total			Solar Systems			Metrology			Total
Net sales	$	—	$	—		$	—		$	—		$	—		$	—
Cost of sales	—		—			—			1,631			—			1,631
Gross profit	—		—			—			(1,631		)	—			(1,631		)
Total operating expenses	—		81			81			5,908			498			6,406
Operating loss	$	—	$	(81	)	$	(81	)	$	(7,539	)	$	(498	)	$	(8,037	)
Net loss from discontinued operations, net of tax	$	—	$	(50	)	$	(50	)	$	(4,896	)	$	(441	)	$	(5,337	)

Liabilities of discontinued segment held for sale, totaling $5.4 million, as of March 31, 2012 and December 31, 2011, consist of the deferred gain related to the net assets of the former Metrology business in China.