On October 7, 2022, the Separation of MtronPTI was completed. In accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations, the Company determined that MTronPTI’s business line met the conditions for a discontinued operation and is recorded as such in the consolidated financial statements. The Company reports financial results for discontinued operations separately from continuing operations in order to distinguish the financial impact of the disposal transaction from ongoing operations.

The Separation was achieved through LGL’s distribution (the “Distribution”) of 100% of the shares of MtronPTI's common stock to holders of LGL's common stock as of the close of business on the record date of September 30, 2022. LGL's stockholders of record received one-half share of MtronPTI's common stock for every share of LGL's common stock. In connection with the Separation, MtronPTI wrote off $4,439,000 of intercompany receivables due from LGL, which brought intercompany balances to zero. LGL retained no ownership interest in the MtronPTI business following the Separation. No gain or loss was recorded due to the Separation.

Costs directly related to the Separation were $638,000 and $200,000 for the years ended December 31, 2022 and 2021, respectively. During the fourth quarter of 2022, MtronPTI agreed to share excess Separation costs thereby reducing the Separation costs paid by LGL by $219,000 and resulting in net Separation costs for 2022 of $419,000. Separation costs for all periods presented were included within Income from discontinued operations, net of tax within the Consolidated Statements of Operations.

The information presented as discontinued operations on the Consolidated Balance Sheet at December 31, 2021 includes certain assets and liabilities that were transferred to MtronPTI pursuant to the Separation agreement and in connection with the Separation. There were no assets or liabilities classified as discontinued operations as of December 31, 2022.

The following table summarizes the carrying value of the significant classes of assets and liabilities classified as discontinued operations as of December 31, 2021 (in thousands):

	December 31, 2021
Cash and cash equivalents	$	2,635
Accounts receivable, net of allowances of $131		3,995
Inventories, net		5,221
Prepaid expenses and other current assets		242
Current Assets of Discontinued Operations	$	12,093

Net property, plant and equipment	$	3,382
Right-of-use lease asset		218
Deferred income taxes		441
Other assets		157
Non-Current Assets of Discontinued Operations	$	4,198

Accounts payable	$	1,396
Accrued compensation and commissions expense		1,213
Other accrued expenses		424
Current Liabilities of Discontinued Operations	$	3,033

Long-term lease liability		145
Non-Current Liabilities of Discontinued Operations	$	145

The following table summarizes the significant line items included in Income from Discontinued Operations, Net of Tax in the Consolidated Statements of Operations for 2022 and 2021 (in thousands):

	Years Ended December 31,
	2022			2021
Revenues	$	23,529		$	26,694
Manufacturing cost of sales		(15,164	)		(17,358	)
Engineering, selling and administrative		(5,870	)		(6,601	)
Interest expense, net		(6	)		(12	)
Other (expense) income, net		(44	)		11
Income from discontinued operations before income taxes		2,445			2,734
Income tax provision		560			646
Income from discontinued operations, net of tax	$	1,885		$	2,088

The cash flows related to discontinued operations have not been segregated and are included in the Consolidated Statements of Cash Flows for all periods presented. The following table summarizes depreciation and other significant operating non-cash items, capital expenditures and financing activities of discontinued operations for the period through October 6, 2022 and the year ended December 31, 2021 (in thousands):

	Period through October 6, 2022			Year ended December 31, 2021
Depreciation		496			488
Amortization of finite-lived intangible assets		42			54
Stock-based compensation expense		26			34
Capital expenditures		(662	)		(1,099	)