Asset Impairment

6 Months Ended

May 02, 2014

Asset Impairment

7.

During the second fiscal quarter of 2014, management performed an impairment test of Eclipse Electronic Systems, Inc.’s (Eclipse) long-lived assets including property, plant and equipment and intangible assets due to the uncertain outlook for sales and earnings over the next five years. The net book value of Eclipse’s long-lived assets at May 2, 2014, totaled $41.5 million. Although Eclipse’s sales are currently being delayed and orders pushed out, the forecast of undiscounted cash flow over the remaining useful life of the intangible assets exceeded the book value of Eclipse, and accordingly, no impairment was recorded.