Discontinued Operations

6 Months Ended

Jun. 29, 2012

Discontinued Operations

2. Discontinued Operations

Beginning in 2011, the Company conducted a strategic review of its businesses to focus its growth priorities and simplify the Company’s business model. In June 2012, the Company committed to a plan for the sale of the Semiconductor Systems operating segment, sold under the GSI brand name, and Laser Systems product lines, sold under the Control Laser and Baublys brand names. The Company expects to sell these businesses within twelve months. As a result, the Company began accounting for these businesses as discontinued operations beginning in the second quarter of 2012. The Company includes all current and historical results of these businesses in income from discontinued operations, net of tax, in the accompanying consolidated statements of operations. The Company classified the assets and liabilities for these businesses for the current and prior period in the consolidated balance sheets as current assets and current liabilities, respectively. The Company’s consolidated statements of cash flows include the cash flows from both continuing and discontinued operations.

The major components of the assets and liabilities of discontinued operations as of June 29, 2012 and December 31, 2011 are as follows (in thousands):

	June 29, 2012		December 31, 2011
Accounts receivable, net	$	8,778	$	11,320
Inventories		14,237		14,271
Other assets		1,054		2,616
Property, plant and equipment		6,842		7,456
Assets of discontinued operations	$	30,911	$	35,663
Accounts payable, accrued expenses and other current liabilities	$	7,546	$	8,861
Deferred revenue		1,179		5,061
Other liabilities		824		884
Liabilities of discontinued operations	$	9,549	$	14,806

The following table includes Semiconductor System and Laser Systems operating results which are presented as discontinued operations in the Company’s consolidated statement of operations and were historically included in the Semiconductor Systems and Laser Products segments, respectively (in thousands):

	Three Months Ended				Six Months Ended
	June 29, 2012		July 1, 2011		June 29, 2012		July 1, 2011
Sales from discontinued operations	$	15,103	$	18,761	$	28,724	$	33,116
Income from discontinued operations before income taxes	$	517	$	3,318	$	852	$	4,678
Income from discontinued operations, net of tax	$	414	$	3,143	$	736	$	4,592