Discontinued Operations

Sale of Photovoltaics Business

The following table presents the statements of operations for the discontinued operations of the Photovoltaics Business:



	For the Fiscal Years Ended September 30,
(in thousands)	2017			2016			2015
Revenue	$	—		$	—		$	12,614
Cost of revenue	12			(159		)	8,245
Gross loss	(12		)	159			4,369
Operating expense (income)	13			(868		)	2,240
Other income	—			—			779
Gain on sale of discontinued operations	—			—			86,958
(Loss) income from discontinued operations before income tax expense	(25		)	1,027			89,866
Income tax benefit (expense)	—			20			(28,700		)
(Loss) income from discontinued operations, net of tax	$	(25	)	$	1,047		$	61,166

On December 22, 2015, we settled all of the outstanding rights and obligations of a solar power venture in Spain, including outstanding non-current receivables, for a payment of $0.7 million. The outstanding non-current receivables had a net book value of $0 at the time of settlement as they were fully allowed for previously. The resulting gain was recorded in the discontinued operations of the Photovoltaics Business for the fiscal year ended September 30, 2016.

Included in discontinued operations of the Photovoltaics Business during the fiscal year ended September 30, 2016 were $0.4 million of New Mexico incentive tax credits received. There were no incentive tax credits received during the fiscal years ended September 30, 2017 and 2015.

Sale of Digital Products Business

The following table presents the statements of operations for the discontinued operations of the Digital Products Business:



	For the Fiscal Years Ended September 30,
(in thousands)	2017		2016			2015
Revenue	$	—	$	—		$	11,944
Cost of revenue	—		(500		)	9,107
Gross profit	—		500			2,837
Operating expense (income)	2		(292		)	2,800
Recognition of previously deferred gain on sale of assets	—		3,804			—
Gain on sale of discontinued operations	—		—			1,994
Other income	41		—			—
Income from discontinued operations before income tax expense	39		4,596			2,031
Income tax benefit (expense)	—		4			2,175
Income from discontinued operations, net of tax	$	39	$	4,600		$	4,206

In December 2015, we entered into an agreement to terminate our lease and related obligations associated with a facility in Newark, California which we abandoned effective February 2016 following the sale of the Digital Products Business. As a result of this agreement, we paid $0.2 million and recorded a gain of $0.3 million on the lease termination in the discontinued operations of the Digital Products Business during the fiscal year ended September 30, 2016. Also see Note 10 - Accrued Expenses and Other Current Liabilities.

Included in cost of revenue for the fiscal year ended September 30, 2016 is $0.4 million due to a reduction in expected product warranty liabilities from a settlement associated with the Digital Products Business.

During the fiscal year ended September 30, 2016, we recognized the deferred gain of $3.4 million and reversal of other liabilities of $0.4 million, that had been recorded as of September 30, 2015, resulting in a credit of $3.8 million to deferred gain on sale of assets within discontinued operations of the Digital Products Business as the result of the favorable ruling from the Sumitomo Electric Industries, LTD (“SEI”) arbitration. Also see Note 13- Commitments and Contingencies.