Note 12 - Discontinued Operations

12 Months Ended

Dec. 29, 2018

Notes to Financial Statements

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

12. Discontinued Operations

In

2015,

we sold all of the outstanding stock of Broadcast Microwave Services, Inc. (“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 they were

no

longer a strategic fit within our organization. As part of the divestiture of BMS we recorded a contingent consideration receivable that was classified as Level 

3

in the fair value hierarchy. See Note

7,

“Financial Instruments Measured at Fair Value” for additional information on the

three

-tier fair value hierarchy. The contingent consideration represented the estimated fair value of future payments we were due based on BMS achieving annual revenue targets in

2016

and

2017

as specified in the sale agreement. We determined 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. During

2017,

BMS failed to meet the necessary revenue targets and the contingent consideration receivable was written-off. Loss from sale of BMS amounts below represent changes in the fair value of the contingent consideration receivable.

On

October 1, 2018,

we acquired a fixtures services business as part of Xcerra. In the

fourth

quarter of

2018,

our management determined that this business did

not

align with our core business and was

not

a strategic fit within our organization. As a result, the fixtures services business has been marketed for sale since we acquired Xcerra on

October 1, 2018.

We expect to complete the sale of this business within

12

months and it qualifies to be reported as discontinued operations. For financial statement purposes, the results of operations for this business have been segregated from those of continuing operations and are presented in our consolidated financial statements as discontinued operations.

Balance sheet information for our fixtures services business presented as discontinued operations is summarized as follows

(in thousands)

:

	December 29,
	2018
Assets:
Cash	$	461
Accounts receivable, net		1,718
Inventories		1,388
Other current assets		174
Total current assets		3,741
Property, plant and equipment, net		66
Other noncurrent assets		13
Total assets	$	3,820
Liabilities:
Other accrued current liabilities		518
Total current liabilities		518
Total liabilities	$	518

Operating results of our discontinued operations are summarized as follows

(in thousands)

:

	December 29,		December 30,			December 31,
	2018		2017			2016
Net sales	$	1,593	$	-		$	-
Operating income	$	157	$	-		$	-
Loss from sale of BMS		-		(278	)		(221	)
Income (loss) before taxes		157		(278	)		(221	)
Income tax provision		38		-			-
Income (loss), net of tax	$	119	$	(278	)	$	(221	)