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Discontinued Operations
 12 Months Ended
Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
On July 6, 2015, the Company completed the sale of its Surface Inspection Systems Division (SISD) to AMETEK, Inc. (AMETEK) for $155,655,000 in cash. Transaction costs totaled $5,198,000 and included $1,106,000 of stock option expense from the accelerated vesting of stock options in connection with the sale.
Carrying amounts of major assets and liabilities included as part of the disposal group were as follows (in thousands):
 
 
December 31, 2014
Accounts receivable, net
 
$
10,885

Inventories, net
 
6,313

Unbilled revenue
 
2,356

Prepaid expenses and other current assets
 
2,955

Property, plant, and equipment, net
 
1,944

Goodwill
 
4,301

Intangible assets, net
 
1,029

Other assets
 
31

Held for sale assets
 
$
29,814

 
 
 
Accounts payable
 
$
1,891

Accrued expenses
 
4,335

Deferred revenue
 
5,965

Held for sale liabilities
 
$
12,191


The financial results of SISD are reported as a discontinued operation for all periods presented. A pre-tax gain of $125,357,000 and associated income tax expense of $47,175,000 was recorded in "Net income from discontinued operations" on the Consolidated Statements of Operations.
The major classes of revenue and expense included in discontinued operations were as follows (in thousands):
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
Revenue
 
$
23,248

 
$
59,821

 
$
46,235

Cost of revenue
 
(11,291
)
 
(26,953
)
 
(21,191
)
Research, development, and engineering expenses
 
(2,126
)
 
(4,089
)
 
(3,772
)
Selling, general, and administrative expenses
 
(7,800
)
 
(12,968
)
 
(11,842
)
Foreign currency loss
 
(177
)
 
(170
)
 
—

Operating income from discontinued business
 
1,854

 
15,641

 
9,430

Gain on sale of discontinued business
 
125,357

 
—

 
—

Income from discontinued operations before income tax expense
 
127,211

 
15,641

 
9,430

Income tax expense on discontinued operations
 
47,801

 
4,997

 
3,040

Net income from discontinued operations
 
$
79,410

 
$
10,644

 
$
6,390


Significant non-cash items related to the discontinued business were as follows (in thousands):
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
Stock-based compensation expense
 
$
1,533

 
$
1,099

 
$
837

Depreciation expense
 
401

 
777

 
703

Amortization expense
 
165

 
364

 
376

Capital expenditures
 
482

 
631

 
749


The Company also entered into a Transition Services Agreement (TSA) with AMETEK to ensure an orderly and effective transition of SISD. Under the terms of the TSA, the Company agreed to continue to perform certain administrative activities related to SISD; however, AMETEK is responsible for monitoring the business and making all strategic decisions. Activities under this TSA were completed as of December 31, 2015. The income associated with this TSA was not material in 2015.