Disposal of Video Camera Segment (Cohu Electronics)

12 Months Ended

Dec. 27, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposal of Video Camera Segment (Cohu Electronics)

2. Disposal of Video Camera Segment (Cohu Electronics)

On June 6, 2014, we completed the sale of substantially all the assets of our video camera segment. Our decision to sell 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 and included up to $0.5 million in contingent consideration and a working capital adjustment. In connection with the sale we incurred $0.8 million of divestiture-related costs that would not have been incurred otherwise. These costs, which are netted against the gain on disposal presented below 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.

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

	December 27, 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)	2014		2013		2012
Net sales	$	5,460	$	15,726	$	14,850
Operating income (loss) before income taxes	$	(242)	$	1,317	$	(121	)
Gain on disposal of video camera segment		4,434		—		—
Income tax provision (benefit)		1,319		475		—
Income from discontinued operations, net of taxes	$	2,873	$	842	$	(121	)

In the fourth quarter of fiscal 2014 we revised the fair value contingent consideration to be earned pursuant to the definitive agreement by $0.3 million as a result of the achievement of certain milestones. This adjustment in the fair value of the contingent consideration has been included in the gain on disposal of video camera segment presented above.