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Assets Held for Sale, Discontinued Operations and Disposals | 6 Months Ended
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Mar. 31, 2020
Discontinued Operations And Disposal Groups [Abstract] |
Assets Held for Sale, Discontinued Operations and Disposals | 4. Assets Held for Sale, Discontinued Operations and Disposals In April 2019, we announced that our Board of Directors (the “Board”) determined that it was in the long-term best interest of the Company to exit the solar business segment and focus our strategic efforts on our semiconductor and silicon carbide/polishing business segments in order to more fully realize the opportunities the Company believes are presented in those areas. The anticipated divestitures of our solar business included our Tempress and SoLayTec subsidiaries, which comprised substantially all of our Solar segment. We adopted a plan to sell our Solar operations on or before March 31, 2020. As such, we classified substantially all of the Solar segment as held for sale in our Condensed Consolidated Balance Sheets and reported its results as discontinued operations in our Condensed Consolidated Statements of Operations. On June 7, 2019 (“SoLayTec Sale Date”), we completed the sale of our subsidiary, SoLayTec, to a third party located in the Netherlands. Upon the sale, we recognized a gain of approximately $1.6 million, which we reported as gain on sale of subsidiary in our Consolidated Statements of Operations for the three months ended June 30, 2019. Effective on the SoLayTec Sale Date, SoLayTec is no longer included in our consolidated financial statements. SoLayTec was not material to Amtech’s results of operations or financial position. On December 13, 2019 (“R2D Sale Date”), we finalized the sale of our subsidiary, R2D Automation SAS (“R2D”), to certain members of R2D’s management team. Upon the sale, we recognized a loss of approximately $2.8 million, which we reported as loss on sale of subsidiary in our Condensed Consolidated Statements of Operations for the six months ended March 31, 2020. Effective on the R2D Sale Date, R2D is no longer included in our consolidated financial statements. R2D does not meet the discontinued operations or held-for-sale criteria and is not material to Amtech’s results of operations or financial position. Effective January 22, 2020 (“Tempress Sale Date”), we completed the sale of our subsidiary, Tempress Group Holding B.V. (“Tempress”) for nominal consideration to a third party located in the Netherlands. In connection with this sale transaction, we provided an unsecured term loan to Tempress in the principal sum of $2.25 million, to be used to fund Tempress’ working capital requirements and to facilitate the restructuring of Tempress’ operations. To date, we have received repayment of $0.5 million of the loan balance. We have forgiven $0.5 million of the loan in accordance with the terms of the loan agreement and expect the remaining $1.25 million to be paid in the next 12 months. Therefore, we have recorded the note receivable within current assets on our Condensed Consolidated Balance Sheet as of March 31, 2020. We recorded a pre-tax loss on deconsolidation of approximately $10.9 million, of which approximately $7.2 million was the recognition of previously recorded accumulated foreign currency translation losses. The total pre-tax loss does not have a material effect on our cash balances at our continuing operations. We also recognized a significant tax benefit relating to this loss, which can be carried over to future years. Effective on the Tempress Sale Date, Tempress is no longer included in our consolidated financial statements. Operating results of our discontinued solar operations were as follows, in thousands:
|  | Three Months Ended March 31, |  |  | Six Months Ended March 31, |
|  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Revenues, net of returns and allowances |  | $ | 2,155 |  |  | $ | 8,153 |  |  | $ | 7,442 |  |  | $ | 14,381 |
Cost of sales |  |  | 1,830 |  |  |  | 9,229 |  |  |  | 5,969 |  |  |  | 15,352 |
Gross profit (loss) |  |  | 325 |  |  |  | (1,076 | ) |  |  | 1,473 |  |  |  | (971 | )
Selling, general and administrative |  |  | 476 |  |  |  | 4,082 |  |  |  | 1,814 |  |  |  | 5,677 |
Research, development and engineering |  |  | 91 |  |  |  | 831 |  |  |  | 540 |  |  |  | 1,911 |
Restructuring charges |  |  | 37 |  |  |  | 591 |  |  |  | 37 |  |  |  | 601 |
Operating loss |  |  | (279 | ) |  |  | (6,580 | ) |  |  | (918 | ) |  |  | (9,160 | )
Loss on sale of subsidiary |  |  | (10,916 | ) |  |  | — |  |  |  | (10,916 | ) |  |  | — |
Interest expense and other, net |  |  | (22 | ) |  |  | (48 | ) |  |  | (29 | ) |  |  | (70 | )
Loss from discontinued operations before income taxes |  |  | (11,217 | ) |  |  | (6,628 | ) |  |  | (11,863 | ) |  |  | (9,230 | )
Income tax (benefit) provision |  |  | (66 | ) |  |  | 19 |  |  |  | (47 | ) |  |  | 37 |
Net loss from discontinued operations, net of tax |  | $ | (11,151 | ) |  | $ | (6,647 | ) |  | $ | (11,816 | ) |  | $ | (9,267 | )
The following table presents a summary of the solar assets and liabilities held for sale included in our Condensed Consolidated Balance Sheets, in thousands:
Assets |  | September 30, 2019 |
Total current assets |  | $ | 17,591 |
Property, plant and equipment - net |  |  | 5,164 |
Total assets included in the disposal group |  |  | 22,755 |
Total current liabilities |  |  | 18,272 |
Long-term debt |  |  | 275 |
Total liabilities included in the disposal group |  |  | 18,547 |
Net assets included in the disposal group |  | $ | 4,208 |
Amtech’s Condensed Consolidated Statements of Cash Flows combines cash flows from discontinued operations with cash flows from continuing operations within each cash flow statement category. The following table summarizes selected cash flow information for discontinued operations, in thousands:
|  | Six Months Ended March 31, |
|  | 2020 |  |  | 2019 |
Loss from discontinued operations, net of tax |  | $ | (11,816 | ) |  | $ | (9,267 | )
Depreciation and amortization |  | $ | 180 |  |  | $ | 287 |
(Reversal of) provision for allowance for doubtful accounts, net |  | $ | (66 | ) |  | $ | 981 |
Purchases of property, plant and equipment |  | $ | 1 |  |  | $ | 96 |

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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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