DISCONTINUED OPERATIONS AND SALE OF ASSETS HELD FOR SALE

Discontinued Operations

Discontinued operations are from the Hull Business that we acquired as part of our acquisition of Rofin. As a condition of the acquisition, we were required to divest and hold separate the Hull Business and reported this business separately as a discontinued operation until its divestiture. We completed the divestiture of the Hull Business on October 11, 2017, after receiving approval for the terms of the sale from the European Commission. As a result of the divestiture, we recorded a loss in discontinued operations of $2,000 in the first quarter of fiscal 2018. The results from discontinued operations in the first quarter of fiscal 2018 to the date of divestiture (October 11, 2017) were immaterial and were not included in our condensed consolidated results of operations.

For financial statement purposes, the results of operations for this discontinued business have been segregated from those of the continuing operations and are presented in our consolidated financial statements as discontinued operations and the net assets of the remaining discontinued business have been presented as current assets and current liabilities held for sale.

The results of discontinued operations for the three and nine months ended June 30, 2018 and July 1, 2017 are as follows (in thousands):



	Three Months Ended					Nine Months Ended
	June 30, 2018		July 1, 2017			June 30, 2018			July 1, 2017
Net sales	$	—	$	7,920		$	—		$	20,296
Cost of sales	—		5,349			—			14,337
Operating expenses	—		2,771			—			6,924
Impairment loss	—		1,249			—			1,249
Other expense	—		5			—			173
Loss from discontinued operations	—		(1,454		)	—			(2,387		)
Loss on disposal of discontinued operations	—		—			(2		)	—
Total loss on discontinued operations	—		(1,454		)	(2		)	(2,387		)
Income tax expense (benefit)	—		300			—			—
Net loss from discontinued operations	$	—	$	(1,754	)	$	(2	)	$	(2,387	)

Assets Held for Sale

Due to the divestiture of the Hull Business on October 11, 2017, there are no assets or liabilities related to the Hull Business classified as held for sale as of June 30, 2018. Current assets and current liabilities classified as held for sale as of September 30, 2017 related to the Hull Business are as follows (in thousands):



	September 30, 2017
Cash	$	33
Accounts receivable	6,931
Inventories	5,586
Prepaid expenses and other assets	607
Property and equipment	10,705
Intangible assets	11,400
Total current assets held for sale	$	35,262

Accounts payable	$	1,129
Other current liabilities	4,875
Total current liabilities held for sale	$	6,004

In the fourth quarter of fiscal 2017, management decided to sell several entities that we acquired in the Rofin acquisition. Although the sale was not completed as of the end of fiscal 2017, we recorded a non-cash impairment charge of $2.9 million to operating expense in our results of operations in the fourth quarter of fiscal 2017 to reduce our carrying value in these entities to fair value. In the first and second quarters of fiscal 2018, we recorded additional non-cash impairment charges (recoveries) of $0.3 million and $(0.5) million, respectively, to operating expense in our results of operations to reduce our carrying value in these entities to fair value. On April 27, 2018, we completed the sale of these entities acquired in the Rofin acquisition in exchange for cash of $6.3 million and we recognized an additional loss on the sale of $0.5 million in the third quarter of fiscal 2018, for a net loss of $0.3 million in the nine months ended June 30, 2018.

Due to the sale of these entities acquired in the Rofin acquisition on April 27, 2018, there are no assets or liabilities related to these entities classified as held for sale as of June 30, 2018. Current assets and current liabilities classified as held for sale as of September 30, 2017 related to continuing operations are as follows (in thousands):



	September 30, 2017
Accounts receivable	$	1,668
Inventories	5,202
Prepaid expenses and other assets	472
Property and equipment	457
Intangible assets	1,187
Total current assets held for sale	$	8,986

Accounts payable	$	189
Other current liabilities	828
Total current liabilities held for sale	$	1,017