Discontinued Operations

9 Months Ended

Oct. 02, 2020

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

On July 2, 2018, the Company completed the sale of its AS&O Product Line to Viant. In connection with the sale, the parties executed a transition services agreement whereby the Company would provide certain corporate services (including accounting, payroll, and information technology services) to Viant for a period of up to one year from the date of the closing to facilitate an orderly transfer of business operations. Viant paid Integer for these services as specified in the transition services agreement, which were complete as of June 28, 2019.

The Company recognized $2.9 million of income under the transition services agreement for the performance of services during the nine months ended September 27, 2019, of which $0.1 million is within Cost of sales and $2.8 million, is within Selling, general and administrative expenses.

During the quarter ended June 28, 2019, the Company received $4.8 million due to a net working capital adjustment agreed to with Viant. This was recognized as gain on sale from discontinued operations during the quarter ended June 28, 2019.

The operating results of the AS&O Product Line have been classified as discontinued operations in the Condensed Consolidated Statements of Operations for all periods presented. The discontinued operations of the AS&O Product Line are reported in the Medical segment. Income from discontinued operations net of taxes, were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	October 2, 2020		September 27, 2019		October 2, 2020		September 27, 2019
Gain on sale of discontinued operations	$	—	$	—	$	—	$	(4,974)
Other income, net	—		—		—		(342)
Provision for income taxes	—		—		—		178
Income from discontinued operations	$	—	$	—	$	—	$	5,138

Cash flow information from discontinued operations was as follows (in thousands):

	Nine Months Ended
	October 2, 2020		September 27, 2019
Cash used in operating activities	$	—	$	(58)
Cash provided by investing activities	—		4,734