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Discontinued Operations | 6 Months Ended
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Jun. 28, 2020
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations We classify assets and liabilities as held for sale (disposal group) when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal group is available for immediate sale in its present condition. We also consider whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. During the fourth quarter of 2019, we committed to a plan to sell Grass Valley, and at such time, met all of the criteria to classify the assets and liabilities of this business as held for sale. Furthermore, we determined a divestiture of Grass Valley represents a strategic shift that is expected to have a major impact on our operations and financial results. As a result, the Grass Valley disposal group, which was included in our Enterprise Solutions segment, is reported within discontinued operations. The Grass Valley disposal group excludes certain Grass Valley pension liabilities that we are retaining. We also ceased depreciating and amortizing the assets of the disposal group once they met the held for sale criteria during the fourth quarter of 2019. We wrote down the carrying value of Grass Valley and recognized asset impairments totaling $89.8 million and $113.0 million in the three and six months e nded June 28, 2020, respectively. We determined the estimated fair values of the assets and of the reporting unit by calculating the present values of their estimated future cash flows. On July 2, 2020, we completed the sale of Grass Valley - see further discussion in Note 19. The following table summarizes the operating results of the disposal group for the three and six months ended June 28, 2020 and June 30, 2019, respectively:
|  | Three Months Ended |  |  |  | Six Months Ended |  |
|  | June 28, 2020 |  | June 30, 2019 |  | June 28, 2020 |  | June 30, 2019
|  | (In thousands) |  |  |  |  |  |
Revenues |  | $ | 56,812 |  |  | $ | 89,178 |  |  | $ | 107,861 |  |  | $ | 176,213 |
Cost of sales |  | (33,989) |  |  | (53,227) |  |  | (69,191) |  |  | (102,390) |
Gross profit |  | 22,823 |  |  | 35,951 |  |  | 38,670 |  |  | 73,823 |
Selling, general and administrative expenses |  | (19,342) |  |  | (20,030) |  |  | (36,861) |  |  | (44,861) |
Research and development expenses |  | (5,974) |  |  | (10,259) |  |  | (14,473) |  |  | (21,166) |
Amortization of intangibles |  | — |  |  | (3,299) |  |  | — |  |  | (8,477) |
Asset impairment of discontinued operations |  | (89,810) |  |  | — |  |  | (113,007) |  |  | — |
Interest expense, net |  | (214) |  |  | (207) |  |  | (420) |  |  | (413) |
Non-operating pension cost |  | (111) |  |  | (55) |  |  | (196) |  |  | (111) |
Income (loss) before taxes |  | $ | (92,628) |  |  | $ | 2,101 |  |  | $ | (126,287) |  |  | $ | (1,205) |
The disposal group had capital expenditures of approximately $8.5 million a nd $16.4 million during the three and six months ended June 28, 2020, respectively; and $8.7 million and $14.5 million during the three and six months ended June 30, 2019, respectively. The disposal group recognized credits to stock-based compensation of $0.0 million and $0.9 million during the three and six months ended June 28, 2020, respectively. The disposal group incurred stock based compensation expense of $0.3 million and $0.6 million during the three and six months ended June 30, 2019, respectively. The disposal group did not have any significant non-cash charges for investing activities during the three and six months ended June 28, 2020 or June 30, 2019. The following table provides the major classes of assets and liabilities of the disposal group as of June 28, 2020 and December 31, 2019, respectively:
|  | June 28, 2020 |  | December 31, 2019
|  | (In thousands) |  |
Assets: |  |  |  |
Cash and cash equivalents |  | $ | 33,337 |  |  | $ | 18,405 |
Receivables, net |  | 90,492 |  |  | 117,386 |
Inventories, net |  | 49,997 |  |  | 55,002 |
Other current assets |  | 38,626 |  |  | 35,187 |
Plant, property, and equipment, less accumulated depreciation |  | 65,056 |  |  | 61,233 |
Operating lease right-of-use assets |  | 15,631 |  |  | 16,902 |
Goodwill |  | 26,067 |  |  | 26,707 |
Intangible assets, less accumulated depreciation |  | 150,214 |  |  | 143,459 |
Deferred income taxes |  | 58,148 |  |  | 59,560 |
Other long-lived assets |  | 12,201 |  |  | 21,652 |
Impairment of disposal group |  | (289,447) |  |  | (180,358) |
Total Assets of discontinued operations |  | $ | 250,322 |  |  | $ | 375,135 |
Liabilities: |  |  |  |
Accounts payable |  | $ | 42,482 |  |  | $ | 52,425 |
Accrued liabilities |  | 38,816 |  |  | 83,349 |
Postretirement benefits |  | 4,976 |  |  | 6,224 |
Deferred income taxes |  | 2,404 |  |  | 2,740 |
Long-term operating lease liabilities |  | 18,745 |  |  | 20,459 |
Other long-term liabilities |  | 2,250 |  |  | 5,082 |
Total Liabilities of discontinued operations |  | $ | 109,673 |  |  | $ | 170,279 |
The disposal group also had $11.5 million and $42.3 million of accumulated other comprehensive losses as of June 28, 2020 and December 31, 2019, respectively.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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