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Discontinued Operations Discontinued Operations - (Tables)
12 Months Ended
Dec. 31, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations

The financial results of SISD are reported as a discontinued operation for all periods presented. In 2015, a pre-tax gain of $125,357,000 and associated income tax expense of $47,175,000 was recorded in "Net income (loss) from discontinued operations" on the Consolidated Statements of Operations. A binding arbitration was concluded in 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 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 major classes of revenue and expense included in discontinued operations were as follows (in thousands):
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Revenue
 
$

 
$

 
$
23,248

Cost of revenue
 

 

 
(11,291
)
Research, development, and engineering expenses
 

 

 
(2,126
)
Selling, general, and administrative expenses
 

 

 
(7,800
)
Foreign currency loss
 

 

 
(177
)
Operating income from discontinued business
 

 

 
1,854

Gain (loss) on sale of discontinued business
 

 
(404
)
 
125,357

Income from discontinued operations before income tax expense
 

 
(404
)
 
127,211

Income tax expense (benefit) on discontinued operations
 

 
(149
)
 
47,801

Net income (loss) from discontinued operations
 
$

 
$
(255
)
 
$
79,410


Significant non-cash items related to the discontinued business were as follows (in thousands):
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Stock-based compensation expense
 
$

 
$

 
$
1,533

Depreciation expense
 

 

 
401

Amortization expense
 

 

 
165

Capital expenditures
 

 

 
482