Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations [Abstract]

Discontinued Operations

2. DISCONTINUED OPERATIONS

In December 2009, the Company's Board of Directors authorized management to exit the non-core electronics products segment operated by its wholly-owned subsidiary, RTI Electronics, Inc. and divest the assets used in the business. The decision to exit the electronics products segment was made to allow the Company to focus on its core body-worn device segment. In connection with its decision to divest the electronics business, the Company evaluated assets for impairment and costs of terminating employees and recorded the following: (i) an impairment charge of $685 relating to goodwill, (ii) a reduction to realizable value of $720 to tangible assets, and (iii) $275 in employee termination costs for the year ended December 31, 2009. Additional costs related to employee terminations of approximately $200 were recorded during the first half of 2010.

On May 28, 2010 the Company completed the sale of substantially all of the assets of its electronics business to an affiliate of Shackleton Equity Partners ("Shackleton"), pursuant to an Asset Purchase Agreement dated May 28, 2010. Shackleton paid $850 cash at closing for the assets and assumed certain operating liabilities of IntriCon's electronics business, subject to an accounts receivable adjustment.

The Company recorded a net gain on sale of $35. The net gain was computed as follows during the second quarter of the 2010 fiscal year:

Cash	$	4
Accounts receivable, net		773
Inventory, net		383
Other current assets		16
Property and equipment, net		72
Other assets		26
Accounts payable		(356	)
Accrued expenses		(130	)
Long-term debt		(48	)
Total	$	740
Cash proceeds received from Shackleton		850
Net assets sold		(740	)
Transaction costs		(75	)
Gain on sale of discontinued operations	$	35

The following table shows the results of operations of the Company's electronic products segment for the 2010 fiscal year:

	Year Ended December 31, 2010
Sales, net	$	2,346
Operating costs and expenses		(2,670	)
Loss on impairment of long lived asset and goodwill		—
Operating loss		(324	)
Other expense, net		(5	)
Loss from operations before income tax benefit		(329	)
Income tax expense (benefit)		—
Net loss from discontinued operations	$	(329	)

As discussed above, along with the decision to divest the electronics business, the Company evaluated assets for impairment as of December 31, 2009. There was no additional impairment identified and recorded during the 2010 fiscal year.