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Discontinued Operations | 6 Months Ended
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Jul. 03, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Disposals 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the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When we classify a disposal group as held for sale, we test for impairment. An impairment charge is recognized when the carrying value of the disposal group exceeds the estimated fair value, less costs to sell. We also cease depreciation and amortization for assets classified as held for sale. During the first quarter of 2021, we committed to a plan to sell our oil and gas cable business in Brazil that met all of the criteria to classify the assets and liabilities of this business, formerly part of the Industrial Automation Solutions segment, as held for sale. At such time, the carrying value of the disposal group exceeded the fair value less costs to sell, which we determined based upon the expected sale price, by $3.4 million. Therefore, we recognized an impairment charge equal to this amount in the first quarter of 2021. The impairment charge was excluded from Segment EBITDA of our Industrial Automation Solutions segment. We completed the sale of our oil and gas cable business in Brazil during the second quarter of 2021 for $10.9 million, net of cash delivered with the business. Discontinued Operations On February 22, 2022, we sold Tripwire for gross cash consideration of $350 million. T he divestiture of Tripwire represents a strategic shift impacting our operations and financial results. As a result, the Tripwire disposal group, which was included in our Industrial Automation Solutions segment, is reported within discontinued operations. We recognized a loss on disposal of discontinued operations, net of tax of $4.6 million during the six months ended July 3, 2022. The following table summarizes the operating results of the Tripwire disposal group up to the February 22, 2022 disposal date:
| Three Months Ended |  | Six Months Ended
| July 3, 2022 |  | July 4, 2021 |  | July 3, 2022 |  | July 4, 2021
| (In thousands)
Revenues | $ | — |  |  | $ | 26,117 |  |  | $ | 12,067 |  |  | $ | 53,815 |
Cost of sales | — |  |  | (5,936) |  |  | (3,256) |  |  | (11,473) |
Gross profit | — |  |  | 20,181 |  |  | 8,811 |  |  | 42,342 |
Selling, general and administrative expenses | — |  |  | (11,984) |  |  | (8,185) |  |  | (22,803) |
Research and development expenses | — |  |  | (8,659) |  |  | (5,528) |  |  | (17,547) |
Amortization of intangible assets | — |  |  | (1,930) |  |  | (638) |  |  | (3,884) |
Loss before taxes | $ | — |  |  | $ | (2,392) |  |  | $ | (5,540) |  |  | $ | (1,892) |
During the six months ended July 3, 2022, th e Tripwire disposal group had capital expenditures of approximately $0.0 million and recognized share-based compensation expense of $0.2 million. During the three and six months ended July 4, 2021, th e Tripwire disposal group had capital expenditu res of approximately $1.6 million and $2.3 million, respectively, and recognized share-based compensation expense of $0.7 million and $1.4 million, res pectively. The disposal group did not have any significant non-cash charges for investing activities during the three and six months ended July 3, 2022 and July 4, 2021. The following table provides the major classes of assets and liabilities of the disposal group as of December 31, 2021:
| December 31, 2021
| (In thousands)
Assets: |
Cash and cash equivalents | $ | 2,194 |
Receivables, net | 28,773 |
Inventories, net | 150 |
Other current assets | 7,418 |
Property, plant and equipment, less accumulated depreciation | 6,250 |
Operating lease right-of-use assets | 3,893 |
Goodwill | 331,024 |
Intangible assets, less accumulated amortization | 63,541 |
Deferred income taxes | 834 |
Other long-lived assets | 5,325 |
Total assets of Tripwire disposal group | $ | 449,402 |
Liabilities: |
Accounts payable | $ | 6,458 |
Accrued liabilities | 56,208 |
Deferred income taxes | 10,964 |
Long-term operating lease liabilities | 5,257 |
Other long-term liabilities | 20,192 |
Total liabilities of Tripwire disposal group | $ | 99,079 |
The Tripwire disposal group also had $3.4 million of accumulated other comprehensive income as of December 31, 2021.

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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 https://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 https://asc.fasb.org/subtopic&trid=2122178 + Details
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