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Discontinued Operations | 12 Months Ended
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Dec. 28, 2020
Discontinued Operations And Disposal Groups [Abstract] |
Discontinued Operations |
(3) | Discontinued Operations
On January 19, 2020, the Company entered into a definitive equity interests purchase agreement for the sale of the Company’s Mobility business unit. The sale was completed on April 17, 2020 for a base purchase price of $550,000, subject to customary purchase price adjustments. The base purchase price does not include certain accounts receivable of the divested business, which were estimated to total approximately $95,000. Subsequently, the final purchase price was $569,246 after customary purchase price adjustments, which did not include approximately $83,000 accounts receivable of the divested business. On April 18, 2020, the Company also entered into a Transition Services Agreement (TSA) with the Purchaser pursuant to which the Purchaser is receiving certain services (the Services) to enable it to operate the Mobility business unit after the closing of the sale of the Mobility business unit. The Services include finance and accounting, human resources, legal and compliance, sales, information technology, and other corporate support services. Under the TSA, the Services are being provided at cost for a period of up to 24 months. In addition, the Company entered into a Manufacturing Supply Agreement with the Purchaser pursuant to which the Purchaser will supply products to a few customers of the Company. There was no material impact on the Company’s consolidated financial statements. Further, on June 29, 2020, the Company entered into a Sales Force Agreement with the Purchaser pursuant to which the Company’s sales representatives will assist the Purchaser in selling PCBs manufactured by the Purchaser to certain customers for a commission for a period up to April 17, 2021. There was no material impact on the Company’s consolidated financial statements. As the sale of the Company’s Mobility business unit represents a strategic shift that will have a major effect on the Company’s operations and financial results, in accordance with the provisions of FASB authoritative guidance on the presentation of financial statements, Mobility business unit results are classified as discontinued operations in the consolidated statements of operations for all periods presented. Prior year results have been recast to conform with the current presentation. The following table summarizes the results of Mobility operations for each period prior to sale:
|  | For the Year Ended |
|  | December 28, |  |  | December 30, |  |  | December 31, |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (In thousands, except per share data) |
Net sales |  | $ | 143,951 |  |  | $ | 556,098 |  |  | $ | 609,519 |
Cost of goods sold |  |  | 136,800 |  |  |  | 531,592 |  |  |  | 555,154 |
Gross profit |  |  | 7,151 |  |  |  | 24,506 |  |  |  | 54,365 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  | 1,461 |  |  |  | 4,840 |  |  |  | 3,231 |
General and administrative |  |  | 2,317 |  |  |  | 4,875 |  |  |  | 7,464 |
Research and development |  |  | 147 |  |  |  | — |  |  |  | — |
Amortization of definite-lived intangibles |  |  | 809 |  |  |  | 2,698 |  |  |  | 2,698 |
Restructuring charges |  |  | — |  |  |  | 1,601 |  |  |  | 858 |
Total operating expenses |  |  | 4,734 |  |  |  | 14,014 |  |  |  | 14,251 |
Operating income |  |  | 2,417 |  |  |  | 10,492 |  |  |  | 40,114 |
Other (expense) income: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | (223 | ) |  |  | (1,147 | ) |  |  | (3,194 | )
Gain on sale of the Mobility business unit |  |  | 237,253 |  |  |  | — |  |  |  | — |
Other, net |  |  | 1,160 |  |  |  | 2,513 |  |  |  | 5,663 |
Total other income, net |  |  | 238,190 |  |  |  | 1,366 |  |  |  | 2,469 |
Income from discontinued operations before income taxes |  |  | 240,607 |  |  |  | 11,858 |  |  |  | 42,583 |
Income tax provision |  |  | (46,686 | ) |  |  | (2,478 | ) |  |  | (4,391 | )
Income from discontinued operations, net of income taxes |  | $ | 193,921 |  |  | $ | 9,380 |  |  | $ | 38,192 |
Earnings per share from discontinued operations: |  |  |  |  |  |  |  |  |  |  |  |
Basic earnings per share |  | $ | 1.82 |  |  | $ | 0.09 |  |  | $ | 0.37 |
Diluted earnings per share |  | $ | 1.82 |  |  | $ | 0.09 |  |  | $ | 0.28 |
Depreciation expense related to the discontinued operations for the years ended December 28, 2020, December 30, 2019, and December 31, 2018 was $21,375, $73,204, and $71,379, respectively. During the year ended December 28, 2020, the Company’s income tax expense related to the discontinued operations was impacted by a net discrete tax expense of $46,686. The net income tax expense for the year ended December 28, 2020 is related mainly to (i) China withholding tax related to gain on sale, (ii) U.S. income tax related to Global Intangible Low Taxed Income (GILTI) inclusion net of IRC Section 250 deduction and foreign tax credits, and offset by (iii) release of U.S. uncertain tax positions as a result of available excess foreign tax credits. Assets sold and liabilities being assumed by the Purchaser in the sale of the Company’s Mobility business unit include substantially all assets and liabilities, with the exception of certain accounts receivable. The following table summarizes the major categories of assets and liabilities classified as held for sale in the consolidated balance sheet as of December 30, 2019:
|  | As of |
|  | December 30, 2019 |
|  | (In thousands) |
Cash and cash equivalents |  | $ | 20,336 |
Accounts receivable, net |  |  | 66 |
Contract assets |  |  | 33,635 |
Inventories |  |  | 8,266 |
Prepaid expenses and other current assets |  |  | 5,269 |
Property, plant and equipment, net |  |  | 344,728 |
Operating lease right-of-use assets |  |  | 1,983 |
Goodwill |  |  | 68,267 |
Definite-lived intangibles, net |  |  | 6,328 |
Deposits and other non-current assets |  |  | 4,291 |
Total assets classified as held for sale |  | $ | 493,169 |
Accounts payable |  | $ | 153,700 |
Accrued salaries, wages and benefits |  |  | 13,606 |
Other current liabilities |  |  | 18,085 |
Operating lease liabilities |  |  | 1,104 |
Other long-term liabilities |  |  | 426 |
Total liabilities classified as held for sale |  | $ | 186,921 |
Proceeds from the sale of the Company’s Mobility business unit have been presented in the consolidated statements of cash flows within net cash provided by investing activities from discontinued operations. The following is a reconciliation of the gain recorded for the sale of the Company’s Mobility business unit (in thousands):
Net proceeds from the sale of the Mobility business unit (1) |  | $ | 569,246 |
Mobility business unit assets: |  |  |  |
Cash and cash equivalents |  |  | 12,513 |
Restricted cash |  |  | 35,412 |
Accounts receivable, net |  |  | 12 |
Contract assets |  |  | 40,072 |
Inventories |  |  | 4,988 |
Prepaid expenses and other current assets |  |  | 4,593 |
Property, plant and equipment, net |  |  | 328,648 |
Goodwill |  |  | 68,267 |
Definite-lived intangibles, net |  |  | 5,520 |
Deposits and other non-current assets |  |  | 6,291 |
Total Mobility business unit assets |  |  | 506,316 |
Mobility business unit liabilities: |  |  |  |
Accounts payable |  |  | 142,636 |
Accrued salaries, wages and benefits |  |  | 9,392 |
Other current liabilities |  |  | 8,890 |
Other long-term liabilities |  |  | 303 |
Total Mobility business unit liabilities |  |  | 161,221 |
Derecognition of foreign currency translation adjustments and unrealized losses on cash flow hedges recorded in accumulated other comprehensive loss |  |  | 26,957 |
Other transaction costs incurred as part of the sale of the Mobility business unit (2) |  |  | 13,855 |
Gain on sale of the Mobility business unit before income taxes |  | $ | 237,253 |
(1) | Net proceeds from the sale of the Mobility business unit are net of the finalized customary purchase price adjustments.
(2) | Costs directly incurred as a result of the sale of the Company’s Mobility business unit, including bank fees, legal fees, professional fees, and other costs.

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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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