Discontinued Operations

12 Months Ended

Dec. 31, 2016

Discontinued Operations [Abstract]

Discontinued Operations

2.  DISCONTINUED OPERATIONS

On June 13, 2013, the Company announced a global strategic restructuring plan designed to accelerate the Company’s future growth and reduce costs. As part of the global strategic restructuring plan, the Company decided to exit the security and certain microphone and receiver operations. On January 27, 2014, the Company completed the sale of the security business and certain microphone and receiver operations of IntriCon Tibbetts Corporation, IntriCon’s wholly owned subsidiary based in Camden, Maine, to Sierra Peaks Corporation, pursuant to an Asset Purchase Agreement entered into on January 27, 2014 between Sierra Peaks Corporation, as the buyer, and IntriCon Tibbetts Corporation as the seller. Sierra Peaks Corporation paid $500 cash at closing for the assets and assumed certain operating liabilities of the businesses.

The Company recorded a loss on the sale of $120. The net loss was computed as follows:

Accounts receivable, net	$	384
Inventory, net		128
Property, plant and equipment, net		127
Other assets		1
Accounts payable		(69)
Net assets sold	$	571
Cash proceeds received from Sierra Peaks		500
Net assets sold		(571)
Transaction costs		(49)
Loss on sale of discontinued operations, net of income taxes	$	(120)

The following table shows the results of microphone and receiver discontinued operations:

		Year Ended
		December 31,		December 31,		December 31,
		2016		2015		2014
Sales, net	$	-	$	-	$	207
Operating costs and expenses		-		-		(357)
Loss on impairment		-		-		-
Operating loss		-		-		(150)
Other income, net		-		-		-
Net loss from discontinued operations	$	-	$	-	$	(150)

In December 2016, the Company’s board of directors approved plans to discontinue its cardiac diagnostic monitoring business. The Company sold the cardiac diagnostic monitoring business on February 17, 2017 to Datrix, LLC.

The following table shows the cardiac diagnostic monitoring business balance sheets as of December 31, 2016 and 2015:

		December 31,		December 31,
		2016		2015
Accounts receivable, net	$	123	$	243
Inventory		-		837
Other current assets		-		6
Current assets of discontinued operations	$	123	$	1,086
Other assets		-		33
Other assets of discontinued operations	$	-	$	33
Accounts payable		22		22
Accrued compensation and other liabilities		101		94
Current liabilities of discontinued operations	$	123	$	116

The following table shows the results of the cardiac diagnostic monitoring discontinued operations:

		Year Ended
		December 31,		December 31,		December 31,
		2016		2015		2014
Sales, net	$	1,161	$	1,212	$	1,209
Operating costs and expenses		(2,135)		(2,177)		(2,080)
Loss on impairment		(796)		-		-
Net loss from discontinued operations		(1,770)		(965)		(871)

In 2016, the Company evaluated the cardiac diagnostic monitoring business for impairment and recorded non-cash impairment charges of $796.

In determining the nonrecurring fair value measurements of the impairment of other short and long-term assets, the Company utilized the market value approach. Based on the market value assessment, the Company determined fair values for the identified assets and incurred impairment charges for the remaining book value of the assets during the year ended December 31, 2016 as set forth in the table below. These charges were reflected in the Company’s discontinued operations in 2016.

		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
Accounts Receivable	$	123	$	-	$	-	$	175	$	52
Inventory		-		-		-		726		726
Other Assets		-		-		-		18		18