Note 14 - Discontinued Operations

12 Months Ended

Dec. 26, 2020

Notes to Financial Statements

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

14. Discontinued Operations

Fixtures Services Business (“FSG”)

On October 1, 2018, we acquired a fixtures services business as part of Xcerra. At the time of the acquisition our management determined that this business did not align with Cohu’s core business and was not a strategic fit within our organization. As a result, the fixtures services business was 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.

During the fourth quarter of 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. We completed the sale of this business in February 2020 which resulted in an immaterial gain that that was recorded in our statement of operations for the twelve months ended December 26, 2020, as noted below.

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

	December 28,
	2019
Assets:
Cash	$	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 operations are summarized as follows (in thousands):

	December 26,		December 28,			December 29,
	2020		2019			2018
Net sales	$	432	$	6,136		$	1,593
Operating income	$	11	$	478		$	157
Loss from impairment of FSG		-		(1,086	)		-
Gain on sale of FSG		35		-			-
Income (loss) before taxes		46		(608	)		157
Income tax provision		4		89			38
Income (loss), net of tax	$	42	$	(697	)	$	119