Note C - Discontinued Operations

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

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

C. Discontinued Operations

On October 7, 2022, the Separation of MtronPTI was completed. In accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations, the Company determined that MTronPTI’s business line met the conditions for a discontinued operation and is recorded as such in the consolidated financial statements. The Company reports financial results for discontinued operations separately from continuing operations in order to distinguish the financial impact of the disposal transaction from ongoing operations.

The following table summarizes the significant line items included in Income from Discontinued Operations, Net of Tax in the Consolidated Statements of Operations for the three months ended March 31, 2022 (in thousands):

	Three Months Ended
	March 31, 2022
Revenues	$	7,691
Manufacturing cost of sales		(4,819	)
Engineering, selling and administrative		(1,804	)
Interest expense, net		(3	)
Other expense, net		(17	)
Income from discontinued operations before income taxes		1,048
Income tax provision		240
Income from discontinued operations, net of tax	$	808

The cash flows related to discontinued operations have not been segregated, and are included in the Condensed Consolidated Statements of Cash Flows for all periods presented. The following table summarizes depreciation and other significant operating noncash items, capital expenditures and financing activities of discontinued operations for each period presented (in thousands):

	Three Months Ended
	March 31, 2022
Depreciation		148
Amortization of finite-lived intangible assets		13
Stock-based compensation expense		219
Capital expenditures		207