Discontinued Operations

6 Months Ended

Jun. 30, 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. During the three and six months ended June 30, 2011, total discontinued operations include charges totaling $59.3 million and $66.8 million, respectively. These charges include an inventory write-off totaling $33.4 million, charges to settle contracts totaling $11.1 million and an asset impairment charge totaling $6.2 million.

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 sale 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. During the three months ended June 30, 2012, the Company recorded a $1.4 million gain on the sale of assets of this discontinued segment that were held for sale.

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

	Three months ended June 30, 2012									Three months ended June 30, 2011
	Solar Systems			Metrology			Total			Solar Systems			Metrology			Total
Net sales	$	—		$	—		$	—		$	—		$	—		$	—
Cost of sales	—			—			—			35,281			—			35,281
Gross profit	—			—			—			(35,281		)	—			(35,281		)
Total operating expenses (income)	80			(1,299		)	(1,219		)	24,020			397			24,417
Operating (loss) income	$	(80	)	$	1,299		$	1,219		$	(59,301	)	$	(397	)	$	(59,698	)
Net (loss) income from discontinued operations, net of tax	$	(53	)	$	860		$	807		$	(37,106	)	$	(6	)	$	(37,112	)

	Six months ended June 30, 2012									Six months ended June 30, 2011
	Solar Systems			Metrology			Total			Solar Systems			Metrology			Total
Net sales	$	—		$	—		$	—		$	—		$	—		$	—
Cost of sales	—			—			—			36,912			—			36,912
Gross profit	—			—			—			(36,912		)	—			(36,912		)
Total operating expenses (income)	74			(1,212		)	(1,138		)	29,928			895			30,823
Operating (loss) income	$	(74	)	$	1,212		$	1,138		$	(66,840	)	$	(895	)	$	(67,735	)
Net (loss) income from discontinued operations, net of tax	$	(49	)	$	806		$	757		$	(42,002	)	$	(447	)	$	(42,449	)

Liabilities of discontinued segment held for sale, totaling $5.4 million, as of June 30, 2012 and December 31, 2011, consist of the deferred gain related to the net assets of the former Metrology business in China.