Discontinued Operations

9 Months Ended

Sep. 26, 2014

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

2. Discontinued Operations

On July 15, 2014, the Company completed the sale of certain assets and liabilities of its Scientific Lasers business operating under the Continuum brand name for approximately $6.5 million in cash, net of working capital adjustments.  In accordance with the purchase and sale agreement, $1.5 million of the sales proceeds is held in escrow until January 2016. The Company has recorded the $1.5 million escrow in other long term assets on the balance sheet.

In 2013, the Company consummated the sale of certain assets and liabilities of the Semiconductor Systems business for $8.6 million in cash, net of working capital adjustments.

The major components of the assets and liabilities of discontinued operations as of September 26, 2014 and December 31, 2013, respectively, are as follows (in thousands):

	September 26,		December 31,
	2014		2013
Accounts receivable, net	$	95	$	5,361
Inventories		161		8,454
Prepaid and other current assets		8		247
Other assets		367		2,026
Assets of discontinued operations	$	631	$	16,088
Accounts payable	$	16	$	2,393
Accrued expenses and other current liabilities		1,188		2,295
Other liabilities		233		1,710
Liabilities of discontinued operations	$	1,437	$	6,398

Assets and liabilities of discontinued operations as of September 26, 2014 include the balances of the India JV. In addition, liabilities of discontinued operations as of September 26, 2014 include a $0.6 million working capital settlement that is due to the buyers of the Scientific Lasers business.

The following table presents the operating results which are reported as discontinued operations in the Company’s consolidated statements of operations (in thousands):

	ThreeMonths Ended						Nine Months Ended
	September 26,			September 27,			September 26,			September 27,
	2014			2013			2014			2013
Sales from discontinued operations	$	225		$	5,625		$	10,512		$	28,296
Loss from discontinued operations, before income tax	$	(1,256	)	$	(152	)	$	(6,243	)	$	(2,831	)
Loss from discontinued operations, net of tax	$	(273	)	$	(185	)	$	(4,817	)	$	(1,643	)
Loss on disposal of discontinued operations, net of tax	$	(321	)	$	(281	)	$	(321	)	$	(592	)

The loss from discontinued operations during the three months ended September 26, 2014 includes a $0.5 million fair value write-down of the India JV. The Company is currently in negotiations with the joint venture partner to dissolve the joint venture. The loss from discontinued operations during the nine months ended September 26, 2014 includes a $3.0 million fair value write-down of the Scientific Lasers business to its fair value less costs to sell and the $0.5 million fair value write-down of the India JV.