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Sale of Business
 3 Months Ended
Apr. 03, 2016
Sale of Business  
Sale of Business

4.Sale of Business

 

Agreement to Sell a China Operating Entity

 

On September 22, 2015, the Company signed an agreement to sell an operating entity in China whose manufacturing facility was dedicated to the production of non-core products. As of April 3, 2016, the Company had stopped manufacturing at the facility and met the requirements for held for sale classification on the consolidated balance sheet. The Company reclassified $11.4 million of assets to assets held for sale as of the balance sheet date and the assets primarily relate to land use rights, building and machinery. As of April 3, 2016, the Company had deposited $18.2 million in cash into an escrow account as part of the agreement.  The Company classified the $18.2 million deposit as restricted cash on the consolidated balance sheet and statement of cash flows as of April 3, 2016. This cash will be returned to the Company once the sale is completed, which is expected to occur in the second quarter of 2016. The sales price will exceed the carrying value of the assets.  The Company currently estimates the pre-tax gain on sale to range from $8 million to $9 million and includes approximately $8 million relating to non-cash cumulative translation adjustments that will be reversed on liquidation of the entity.