Note 10 - Discontinued Operations

6 Months Ended

Jun. 27, 2020

Notes to Financial Statements

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

10. Discontinued Operations

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 and it has been presented 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 for all periods presented.

In 2019, we recorded a charge of $1.1 million to impair goodwill and purchased intangible assets associated with this operating segment as the estimated fair value less cost to sell exceeded the carrying value. In February 2020, we completed the sale of this business with an immaterial impact to the statement of operations for the three months ended March 28, 2020.

Balance sheet information for our fixtures services business presented as discontinued operations is summarized as follows (in thousands):

	December 28,
	2019
Assets:
Cash and cash equivalents	$	736
Accounts receivable, net		1,316
Inventories		1,411
Other current assets		40
Total current assets		3,503
Property, plant and equipment, net		33
Other noncurrent assets		82
Total assets	$	3,618
Liabilities:
Other accrued current liabilities	$	599
Total current liabilities		599
Noncurrent liabilities		24
Total liabilities	$	623

Operating results of our discontinued segment are summarized as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 27,		June 29,		June 27,		June 29,
	2020		2019		2020		2019
Net sales	$	-	$	1,708	$	432	$	3,300
Operating income before income taxes	$	-		38	$	11		227
Gain on sale of Fixtures business		-		-		35		-
Income before taxes		-		38		46		227
Income tax provision		-		14		4		39
Income, net of tax	$	-	$	24	$	42	$	188