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Note 4 - Discontinued Operations
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
4.
Discontinued Operations
 
In
2015,
we sold all of the outstanding stock of BMS for
$4.9
 million in cash and up to
$2.5
 million of contingent cash consideration. In
2014,
we sold substantially all the assets of our video camera business, Cohu Electronics for
$10.3
 million comprised of
$9.5
 million in cash,
$0.5
 million in contingent consideration and a working capital adjustment. Our decision to sell these
two
non-core businesses resulted from management’s determination that they were no longer a strategic fit within our organization.
 
As part of the divestiture of BMS we recorded a long-term contingent consideration receivable that has been classified as Level 
3
in the fair value hierarchy. See Note
5,
“Financial Instruments Measured at Fair Value” for additional information on the
three
-tier fair value hierarchy. The contingent consideration represents the estimated fair value of future payments we are due based on BMS achieving annual revenue targets in certain years as specified in the sale agreement. We determine the value of the contingent consideration using a Monte Carlo simulation model with changes to the fair value of the contingent consideration being recognized in discontinued operations. At
December
31,
2016
and
December
26,
2015,
the fair value of the receivable totaled
$0.3
 million and
$0.5
 million, respectively.
 
Operating results of our discontinued operations are summarized as follows
(in thousands)
:
 
   
December 31,
    
December 26,
    
December 27,
  
   
2016
   
2015
   
2014
 
                         
Net sales:
                        
Microwave equipment segment
   $
-
     $
6,965
     $
16,694
  
Video camera segment
    
-
      
-
      
5,460
  
    $
-
     $
6,965
     $
22,154
  
                         
Operating loss before income taxes:
                        
Microwave equipment segment
   $
-
     $
(1,963
 )   $
(10,305
 )
Video camera segment
    
-
      
-
      
(242
 )
     
-
      
(1,963
 )    
(10,547
 )
Loss from sale of BMS
    
(221
 )    
(3,573
 )    
-
  
Gain from sale of Cohu Electronics
    
-
      
-
      
4,434
  
Loss before taxes
    
(221
 )    
(5,536
 )    
(6,113
 )
Income tax provision
    
-
      
6
      
(41
 )
Loss, net of tax
   $
(221
 )   $
(5,542
 )   $
(6,072
 )