Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations [Abstract]

Discontinued Operations

4.Discontinued Operations

As part of the global strategic restructuring plan, the Company decided to exit the security, microphone and receiveroperations to allow the Company to focus on its core body-worn device segment and to improve the Company’s overall margins and profitability. The Company anticipates that it will exit these operations within a one year period and that it will have limited involvement with the operations post disposal. Therefore, under applicable accounting standards, the Company has classified its security, microphone and receivers operations, as discontinued operations for financial reporting purposes in all periods presented.

Management considered the global strategic restructuring plan a triggering event and therefore, the Company evaluated assets for impairment as of June 13, 2013 and recorded the following costs for the three and six months ended June 30, 2013: (i) a non-cash impairment charge of $515 relating to goodwill and (ii) a non-cash impairment charge of long-lived assets of $468.  Additionally, during the second half of 2013, the Company expects to incur approximately $100 to $150 in additional expense and cash charges related to employee termination costs for the discontinued operations.

The following table shows the results of operations of the Company’s discontinued operations:

		Three Months Ended				Six Months Ended
		June 30,		June 30,		June 30,		June 30,
		2013		2012		2013		2012
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
Sales, net	$	611	$	961	$	1,155	$	2,225
Operating costs and expenses		(1,114)		(1,286)		(2,114)		(2,920)
Loss on impairment of long lived assets and goodwill		(983)		-		(983)		-
Operating loss		(1,486)		(325)		(1,942)		(695)
Other expenses, net		13		-		21		10
Net loss from discontinued operations	$	(1,473)	$	(325)	$	(1,921)	$	(685)

The following table shows the assets and liabilities of the Company’s discontinued operations at June 30, 2013 and December 31, 2012:

		June 30,		December 31,
		2013		2012
Cash	$	2	$	1
Accounts receivable, net		353		294
Inventory, net		647		686
Other current assets		20		59
Current assets of discontinued operations		1,022		1,040
Property and equipment, net		271		785
Other assets		43		46
Other assets of discontinued operations		314		831
Accounts payable		86		31
Accrued compensation and other liabilities		149		142
Current liabilities of discontinued operations	$	235	$	173

In determination of the nonrecurring fair value measurements for impairment of goodwill and long-lived assets, the Company utilized the market value approach, considering the fair value of security, microphone and receiver net assets held for sale or disposition.  Based on the market value assessment, the Company determined fair values for the identified assets and incurred the impairment charges for the remaining book value of the assets during the threeand six months ended June 30, 2013 as set forth in the table below.  These charges were reflected in the Company’s results from discontinued operations. 

		Fair value as of measurement date		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Impairment Charge
Long-lived assets of discontinued operations	$	271	$	-	$	-	$	271	$	468
Goodwill of discontinued operations		-		-		-		-		515