Assets Held for Sale and Discontinued Operations

3 Months Ended

Apr. 03, 2015

Assets Held For Sale And Discontinued Operations [Abstract]

Assets Held for Sale and Discontinued Operations

3. Assets Held for Sale and Discontinued Operations

On April 15, 2015, the Company completed the sale of certain assets and liabilities of its JK Lasers business for approximately $31.4 million in cash, subject to customary working capital adjustments. The Company began accounting for the JK Lasers business, which is included in the Laser Products reportable segment, as an asset held for sale in the first quarter of 2015. The JK Lasers business divestiture does not qualify for discontinued operations accounting treatment.

In July 2014, the Company completed the sale of certain assets and liabilities of its Scientific Lasers business 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 $1.5 million escrow is included in prepaid expenses and other current assets on the balance sheet as of April 3, 2015 and other long-term assets as of December 31, 2014.

The major components of the assets and liabilities held for sale as of April 3, 2015 and December 31, 2014, respectively, were as follows (in thousands):

	April 3,		December 31,
	2015		2014
Accounts receivable, net	$	4,268	$	95
Inventories		6,936		161
Prepaid and other current assets		452		8
Other assets		1,926		367
Assets held for sale	$	13,582	$	631
Accounts payable	$	1,522	$	16
Accrued expenses and other current liabilities		1,198		74
Other liabilities		234		234
Liabilities held for sale	$	2,954	$	324

Assets and liabilities held for sale as of April 3, 2015 included the balances of the JK Lasers business and the India JV. Assets and liabilities held for sale as of December 31, 2014 included the balances of the India JV.

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
	March 28,
	2014
Sales from discontinued operations	$	4,016
Operating loss from discontinued operations, before income tax	$	(2,851	)
Operating loss from discontinued operations, net of tax	$	(1,866	)

The operating loss from discontinued operations during the three months ended March 28, 2014 included a $1.6 million fair value write-down of the Scientific Lasers business to its estimated fair value less costs to sell.