Disposal of Video Camera Segment

6 Months Ended

Jun. 28, 2014

Discontinued Operations And Disposal Groups [Abstract]

2.	Disposal of Video Camera Segment

On June 6, 2014, Cohu announced the sale of substantially all the assets of our video camera segment, Cohu Electronics. Our decision to sell Cohu Electronics resulted from management’s determination that this industry segment was no longer a strategic fit within our organization. The sales price was $9.5 million in cash plus up to $0.5 million in contingent consideration. The sales price is subject to a working capital adjustment and, as a result, adjustments to the gain on disposal noted below are possible.

Balance sheet information of our discontinued video camera segment is summarized as follows (in thousands):


	June 28, 2014		December 28, 2013
Assets:
Accounts receivable, net	$	—	$	2,597
Inventories		—		3,568
Other current assets		—		107

Total current assets		—		6,272
Property, plant and equipment, net		—		431

Total assets	$	—	$	6,703

Liabilities:
Accounts payable	$	—	$	730
Other accrued current liabilities		—		1,017

Total liabilities	$	—	$	1,747

Operating results of our discontinued video camera segment is summarized as follows (in thousands):


	Three Months Ended					Six Months Ended
	June 28, 2014			June 29, 2013		June 28, 2014			June 29, 2013
Net sales	$	1,907		$	4,418	$	5,460		$	8,207

Operating income (loss) before income taxes	$	(363	)	$	451	$	(242	)	$	658
Gain on disposal of video camera segment		4,248			—		4,133			—
Income tax provision		653			162		653			237

Income from discontinued operations, net of taxes	$	3,232		$	289	$	3,238		$	421

In connection with the sale of the assets of our video camera segment we incurred divestiture-related costs that would not have been incurred otherwise. These costs consist of legal advisory services, success based compensation arrangements and certain other items that are incremental to normal operating charges and were expensed as incurred. During the three and six months ended June 28, 2014 divestiture-related costs totaled $0.7 million and $0.8 million, respectively and have been netted against the gain on disposal presented above.

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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