Discontinued Operations and Divestitures

9 Months Ended

Oct. 02, 2015

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations and Divestitures

3. Discontinued Operations and Divestitures

In June 2015, the Company finalized an agreement to divest its 50% owned joint venture, the India JV, and recorded a pre-tax loss of less than $0.1 million in operating loss from discontinued operations, net of tax during the nine months ended October 2, 2015. All assets, liabilities, accumulated other comprehensive income and non-controlling interest of the India JV were derecognized as of the date of the agreement.  

On April 15, 2015, the Company completed the sale of certain assets and liabilities of its JK Lasers business, previously included in the Laser Products reportable segment, for approximately $29.6 million in cash, net of the final working capital adjustments and transaction costs. During the nine months ended October 2, 2015, the Company recognized a pre-tax gain on sale of $19.6 million in other income (expense), net on the consolidated statement of operations. 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 the final 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 October 2, 2015 and other long-term assets as of December 31, 2014.

Assets and liabilities of discontinued operations as of December 31, 2014 included the balances of the India JV. There were no assets and liabilities of discontinued operations as of October 2, 2015. The major components of the assets and liabilities of discontinued operations as of December 31, 2014, respectively, were as follows (in thousands):

	December 31,
	2014
Accounts receivable, net	$	95
Inventories		161
Prepaid and other current assets		8
Other assets		367
Assets of discontinued operations	$	631
Accounts payable	$	16
Accrued expenses and other current liabilities		74
Other liabilities		234
Liabilities of discontinued operations	$	324

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
	October 2,		September 26,			October 2,			September 26,
	2015		2014			2015			2014
Revenue from discontinued operations	$	—	$	225		$	—		$	10,512
Operating loss from discontinued operations, before income tax	$	—	$	(1,256	)	$	(13	)	$	(6,243	)
Operating loss from discontinued operations, net of tax	$	—	$	(273	)	$	(13	)	$	(4,817	)
Loss on disposal of discontinued operations, net of tax	$	—	$	(321	)	$	—		$	(321	)