Discontinued Operations and Divestitures

12 Months Ended

Dec. 31, 2015

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations and Divestitures

4. Discontinued Operations and Divestitures

Divestitures

In April 2015, the Company completed the sale of certain assets and liabilities of the JK Lasers business, previously included in the Laser Products reportable segment, for approximately $29.6 million in cash, net of final working capital adjustments and transactions costs. The Company recognized a pre-tax gain on sale of $19.6 million in the consolidated statement of operations. The JK Lasers business divestiture does not qualify for discontinued operations accounting treatment.

Discontinued Operations

In June 2015, the Company finalized an agreement to divest its 50% owned joint venture, the India JV, and recorded a pre-tax loss of less than $0.1 million in operating loss from discontinued operations, net of tax in the consolidated statement of operations during the year ended December 31, 2015. The India JV was reported as discontinued operations in the Company’s consolidated financial statements because it was part of the Scientific Lasers business that the Company divested in July 2014. All assets, liabilities, accumulated other comprehensive income and non-controlling interest of the India JV were derecognized as of the date of the agreement.

In July 2014, the Company completed the sale of certain assets and liabilities of the Scientific Lasers business, operating under the Continuum and Quantronix brand names, for approximately $6.5 million, net of working capital adjustments, and recognized a $1.7 million loss, net of tax, in the consolidated statement of operations during the year ended December 31, 2014. The Company began accounting for the Scientific Lasers business, which was previously included in the Laser Products reportable segment, as discontinued operations in the first quarter of 2014. In accordance with the purchase and sales agreement, $1.5 million of the sales proceeds was held in escrow until January 2016. The Company recorded the $1.5 million escrow in other current assets on the consolidated balance sheet. In January 2016, the $1.5 million escrow was released to the Company in full.

In May 2013, the Company consummated the sale of certain assets and liabilities of the Semiconductor Systems business, sold under the GSI brand name, to Electro Scientific Industries, Inc. (“ESI”) for $9.7 million in cash, including working capital adjustments of $1.7 million received in September 2013. The Company recognized a $0.4 million loss on the sale, net of tax, in the consolidated statements of operations during the year ended December 31, 2013.

In October 2012, the Company sold certain assets and liabilities of the Laser Systems business, operating under the Control Laser and Baublys brand names, for $7.0 million to Hans Laser, subject to working capital adjustments, and recorded a $2.3 million gain, net of tax, in the consolidated statement of operations during the year ended December 31, 2012. In September 2013, the Company paid $0.4 million to Hans Laser as the final net working capital adjustment which resulted in an additional loss of $0.2 million, net of tax.

Assets and liabilities of discontinued operations as of December 31, 2014 included the balances of the India JV. There were no assets and liabilities of discontinued operations as of December 31, 2015. The major components of the assets and liabilities of discontinued operations as of December 31, 2014, respectively, were as follows (in thousands):

	2014
Accounts receivable, net	$	95
Inventories		161
Other assets		375
Assets of discontinued operations	$	631
Accounts payable	$	16
Accrued expenses and other current liabilities		74
Other liabilities		234
Liabilities of discontinued operations	$	324

The following table presents the operating results which are reported as discontinued operations in the Company’s consolidated statements of operations (in thousands):

	Year Ended December 31,
	2015			2014			2013
Revenue from discontinued operations	$	—		$	10,514		$	33,792
Loss from discontinued operations, before income tax	$	(13	)	$	(8,059	)	$	(3,361	)
Loss from discontinued operations, net of tax	$	(13	)	$	(5,607	)	$	(2,054	)
Loss on disposal of discontinued operations, net of tax	$	—		$	(1,726	)	$	(592	)

The loss from discontinued operations for the year ended December 31, 2014 included a $3.0 million fair value write-down of the Scientific Lasers business to its fair value less costs to sell and a $0.5 million fair value write-down of the India JV.