Discontinued Operations

9 Months Ended

Oct. 01, 2017

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On July 6, 2015, the Company completed the sale of its Surface Inspection Systems Division (SISD). A binding arbitration was concluded in the second quarter of 2016 with respect to certain product performance claims made by an SISD customer, for which the Company remained responsible under the indemnity provisions of the sale transaction. In that proceeding, the tribunal ordered the Company to pay the customer approximately $326,000, primarily representing a refund of the product purchase price. The tribunal also ordered the customer to pay the Company approximately $45,000, primarily representing reimbursement of legal fees. The net settlement of $281,000 was recorded in discontinued operations in the second quarter of 2016, along with $123,000 of legal fees. The tax benefit related to this expense was $149,000, resulting in a net loss from discontinued operations of $255,000.

The losses included in discontinued operations were as follows (in thousands):

	Three-months Ended				Nine-months Ended
	October 1, 2017		October 2, 2016		October 1, 2017		October 2, 2016
Operating income from discontinued operations	$	—	$	—	$	—	$	—
Gain (loss) on sale of discontinued operations	—		—		—		(404		)
Income (loss) from discontinued operations before income tax expense (benefit)	—		—		—		(404		)
Income tax expense (benefit) on discontinued operations	—		—		—		(149		)
Net income (loss) from discontinued operations	$	—	$	—	$	—	$	(255	)