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Note 2 - Dispositions and Exit Activities | 6 Months Ended
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Jul. 01, 2012
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] |
2. | DISPOSITIONS AND EXIT ACTIVITIES
RedBlack Communications, Inc. On February 15, 2012, our senior management, as authorized by our Board of Directors, decided to divest our RedBlack Communications business. As a result of management’s ongoing review of our business portfolio, management had determined that RedBlack offers limited opportunities to achieve the operating margin thresholds of our business and decided to refocus our operations on profitable growth opportunities presented in the other product lines that comprise our business segments, Battery & Energy Products and Communications Systems. Since 2008, our RedBlack Communications business has incurred significant operating losses. We are actively seeking to sell our RedBlack business as a going concern and have engaged appropriate professionals to assist in that effort. We have received non-binding letters of intent and interest from several interested parties and have executed one of them. We anticipate that the actions taken to divest the RedBlack Communications business will result in the elimination of approximately 30 jobs and the transfer of the RedBlack facility located in Hollywood, Maryland. We expect the RedBlack divestiture to occur within the next nine months. Commencing with the first quarter of 2012 and concluding with the ultimate closing of the transaction, the results of the RedBlack operations and related divestiture costs will be reported as a discontinued operation. As a result, the Condensed Consolidated Statements of Comprehensive Income (Loss) herein exclude the RedBlack operations from the results of continuing operations. The following amounts have been reported as discontinued operations for the three- and six-month periods ended July 1, 2012 and July 3, 2011:
|  | Three-Month Periods Ended |  |  | Six-Month Periods Ended |
|  | July 1, 2012 |  |  | July 3, 2011 |  |  | July 1, 2012 |  |  | July 3, 2011 |
Net sales |  | $ | 951 |  |  | $ | 443 |  |  | $ | 2,137 |  |  | $ | 984 |
Income (Loss) from discontinued operations |  |  | 68 |  |  |  | (174 | ) |  |  | 56 |  |  |  | (358 | )
Provision for income taxes |  |  | 12 |  |  |  | 12 |  |  |  | 23 |  |  |  | 24 |
Income (Loss) from discontinued operations, net of tax |  |  | 56 |  |  |  | (186 | ) |  |  | 33 |  |  |  | (382 | )
We cannot at this time determine an estimate or a range of estimates of the extent of the restructuring charges we will incur in connection with the RedBlack divestiture. Energy Services Business On March 8, 2011, our senior management, as authorized by our Board of Directors, decided to exit our Energy Services business, which included standby power and systems design, installation and maintenance activities. As a result of management’s review of our business segments and products, and taking into account the lack of growth and profitability potential of the Energy Services segment as well as its sizeable operating losses, we determined it was appropriate to refocus our operations on profitable growth opportunities presented in our other segments, Battery & Energy Products and Communications Systems. In the fourth quarter of 2010, we recorded a non-cash impairment charge of $13,793 to write-off the goodwill and intangible assets and certain fixed assets associated with the standby power portion of our Energy Services business. The actions taken to exit our Energy Services segment resulted in the elimination of approximately 40 jobs and the closing of five facilities, primarily in California, Florida and Texas, over several months. As of the end of the second quarter of 2011, all exit activities with respect to our Energy Services segment were completed. As a result, the presentation of results herein excludes the Energy Services segment from the results of continuing operations. The following amounts have been reported as discontinued operations for the three- and six-month periods ended July 1, 2012 and July 3, 2011:
|  | Three-Month Periods Ended |  |  | Six-Month Periods Ended |
|  | July 1, 2012 |  |  | July 3, 2011 |  |  | July 1, 2012 |  |  | July 3, 2011 |
Net sales |  | $ | - |  |  | $ | 1,607 |  |  | $ | - |  |  | $ | 3,895 |
Loss from discontinued operations |  |  | (7 | ) |  |  | (2,139 | ) |  |  | (55 | ) |  |  | (3,796 | )
Provision for income taxes |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Loss from discontinued operations, net of tax |  |  | (7 | ) |  |  | (2,139 | ) |  |  | (55 | ) |  |  | (3,796 | )
Included in the Loss from discontinued operations described above, we recorded the following exit charges:
|  | Three-Month Periods Ended |  |  | Six-Month Periods Ended |
|  | July 1, 2012 |  |  | July 3, 2011 |  |  | July 1, 2012 |  |  | July 3, 2011 |
Inventory and fixed asset write-downs |  | $ | - |  |  | $ | 472 |  |  | $ | - |  |  | $ | 941 |
Employee related, including termination benefits |  |  | - |  |  |  | 437 |  |  |  | - |  |  |  | 703 |
Lease termination costs |  |  | - |  |  |  | 250 |  |  |  | - |  |  |  | 250 |
Other costs |  |  | - |  |  |  | 980 |  |  |  | - |  |  |  | 1,030 |
Total Exit Costs |  | $ | - |  |  | $ | 2,139 |  |  | $ | - |  |  | $ | 2,924 |
Cash Component |  | $ | - |  |  | $ | 1,666 |  |  | $ | - |  |  | $ | 1,984 |

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- Definition The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 43-48 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759 + Details
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