Discontinued Operations Discontinued Operations - (Tables)

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Discontinued Operations

The financial results of SISD are reported as a discontinued operation for all periods presented. In 2015, a pre-tax gain of $125,357,000 and associated income tax expense of $47,175,000 was recorded in "Net income (loss) from discontinued operations" on the Consolidated Statements of Operations. In 2016, a binding arbitration was concluded in the second quarter of 2016 with respect to certain product performance claims made by an SISD customer, for which the Company remained responsible under the indemnity provisions of the sale transaction. In that proceeding, the tribunal ordered the Company to pay the customer approximately $326,000, primarily representing a refund of the product purchase price. The tribunal also ordered the customer to pay the Company approximately $45,000, primarily representing reimbursement of legal fees. The net settlement of $281,000 was recorded in discontinued operations in the second quarter of 2016, along with $123,000 of legal fees. The tax benefit related to this expense was $149,000, resulting in a net loss from discontinued operations of $255,000.

The major classes of revenue and expense included in discontinued operations were as follows (in thousands):

	Year Ended December 31,
	2016			2015			2014
Revenue	$	—		$	23,248		$	59,821
Cost of revenue	—			(11,291		)	(26,953		)
Research, development, and engineering expenses	—			(2,126		)	(4,089		)
Selling, general, and administrative expenses	—			(7,800		)	(12,968		)
Foreign currency loss	—			(177		)	(170		)
Operating income from discontinued business	—			1,854			15,641
Gain (loss) on sale of discontinued business	(404		)	125,357			—
Income from discontinued operations before income tax expense	(404		)	127,211			15,641
Income tax expense (benefit) on discontinued operations	(149		)	47,801			4,997
Net income (loss) from discontinued operations	$	(255	)	$	79,410		$	10,644

Significant non-cash items related to the discontinued business were as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Stock-based compensation expense	$	—	$	1,533	$	1,099
Depreciation expense	—		401		777
Amortization expense	—		165		364
Capital expenditures	—		482		631