Note 6 - Discontinued Operations

3 Months Ended

Mar. 25, 2017

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

6. Discontinued Operations

In

June

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. Our decision to sell this non-core business resulted from management’s determination that it was no longer a strategic fit within our organization. As part of the divestiture of BMS at

June

27,

2015,

we recorded a long-term contingent consideration receivable that has been classified as Level 

3

in the fair value hierarchy. See Note

3,

“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 from the buyer should BMS achieve specified annual revenue targets in certain years as specified in the sale agreement. The periodic fair value of the contingent consideration is determined through the use of the Monte Carlo simulation model. There was no adjustment to the contingent consideration receivable recorded in the

first

quarter of

2017

and the value was

$0.3

 million at

March

25,

2017

.