Discontinued Operations

3 Months Ended

Jan. 01, 2016

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

Note 15 – Discontinued Operations

The Company’s board of directors previously approved the plan to sell certain non-core business units including Eclipse Electronic Systems, Inc. (Eclipse), a manufacturer of embedded communication intercept receivers for signal intelligence applications; Wallop Defence Systems, Ltd. (Wallop), a manufacturer of flare countermeasure devices; Pacific Aerospace and Electronics Inc. (PA&E), a manufacturer of hermetically sealed electrical connectors; a small distribution business; and a small manufacturing business.

On June 5, 2015, the Company sold Eclipse for $7.9million and retained ownership of the land, building and building improvements, which are held for sale.  In addition, on July20, 2015, the Company sold PA&E for $22.3million.

During the first fiscal quarter of 2016 and 2015, the Company incurred a loss of $4.8millionand $5.9 million, respectively, on discontinued operations.For the first three months of fiscal 2016, a $2.2million loss on assets held for sale at Advanced Materials was principally due the reduction of Wallop’s estimated selling price based upon lower expectations of earnings for the business and continuing negotiations with the buyer.  Principal assumptions used in measuring the estimated loss on assets held for sale included estimated selling price of the discontinued business, discount rates, industry growth rates, and pricing of comparable transactions in the market. 

During the first three months of fiscal 2015, the Company recorded a $0.5million increase in a liability related to environmental remediation at a previously sold business for which the Company provided indemnification.  A loss of $0.3million, net of tax, is reflected in discontinued operations.

The operating results of the discontinued operations for the three month period ended January1,2016, consisted of the following:

In Thousands	Avionics &			Sensors &			Advanced
	Controls			Systems			Materials			Other			Total
Net Sales	$	5,582		$	-		$	2,484		$	-		$	8,066
Operating earnings (loss)		1,167			(156	)		(3,746	)		(4	)		(2,739	)
Gain (loss) on net assets held for    sale		(270	)		-			(2,247	)		-			(2,517	)
Tax expense (benefit)		413			-			(889	)		-			(476	)
Income (loss) from discontinued    operations	$	484		$	(156	)	$	(5,104	)	$	(4	)	$	(4,780	)

The operating results of the discontinued operations for the recast three month period ended December26, 2014, consisted of the following:

In Thousands	Avionics &			Sensors &		Advanced
	Controls			Systems		Materials			Other			Total
Net Sales	$	14,162		$	5,928	$	3,441		$	-		$	23,531
Operating earnings (loss)		(845	)		300		(6,985	)		(508	)		(8,038	)
Gain (loss) on net assets held for    sale		-			-		-			-			-
Tax expense (benefit)		(407	)		148		(1,656	)		(176	)		(2,091	)
Income (loss) from discontinued    operations	$	(438	)	$	152	$	(5,329	)	$	(332	)	$	(5,947	)

Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at January1,2016, are comprised of the following:

In Thousands	Avionics &			Sensors &		Advanced
	Controls			Systems		Materials		Total
Accounts receivable, net	$	3,799		$	-	$	2,287	$	6,086
Inventories		12,436			-		6,918		19,354
Prepaid expenses		104			-		177		281
Current Assets of Businesses Held for Sale	$	16,339		$	-	$	9,382	$	25,721
Net property, plant and equipment	$	5,413		$	-	$	10,618	$	16,031
Intangibles, net		-			-		4,268		4,268
Deferred income tax benefits		(147	)		-		777		630
Other assets		-			-		1,474		1,474
Non-Current Assets of Businesses Held for Sale	$	5,266		$	-	$	17,137	$	22,403
Accounts payable	$	1,124		$	-	$	4,598	$	5,722
Accrued liabilities		7,183			-		5,142		12,325
Current Liabilities of Businesses Held for Sale	$	8,307		$	-	$	9,740	$	18,047
Other liabilities		642			-		-		642
Non-Current Liabilities of Businesses Held for Sale	$	642		$	-	$	-	$	642
Net Assets of Businesses Held for Sale	$	12,656		$	-	$	16,779	$	29,435

Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at October2,2015, were comprised of the following:

In Thousands	Avionics &			Sensors &		Advanced
	Controls			Systems		Materials		Total
Accounts receivable, net	$	5,360		$	-	$	1,546	$	6,906
Inventories		14,763			-		5,841		20,604
Prepaid expenses		156			-		185		341
Current Assets of Businesses Held for Sale	$	20,279		$	-	$	7,572	$	27,851
Net property, plant and equipment	$	5,474		$	-	$	12,199	$	17,673
Intangibles, net		945			-		4,928		5,873
Deferred income tax benefits		(147	)		-		-		(147	)
Other assets		-			-		1,518		1,518
Non-Current Assets of Businesses Held for Sale	$	6,272		$	-	$	18,645	$	24,917
Accounts payable	$	1,878		$	-	$	4,837	$	6,715
Accrued liabilities		8,340			-		2,051		10,391
Current Liabilities of Businesses Held for Sale	$	10,218		$	-	$	6,888	$	17,106
Deferred income tax liabilities	$	-		$	-	$	194	$	194
Other liabilities		2,215			-		-		2,215
Non-Current Liabilities of Businesses Held for Sale	$	2,215		$	-	$	194	$	2,409
Net Assets of Businesses Held for Sale	$	14,118		$	-	$	19,135	$	33,253