Annual report pursuant to Section 13 and 15(d)

Deconsolidation

v3.5.0.2
Deconsolidation
12 Months Ended
Sep. 30, 2016
Equity [Abstract]  
Deconsolidation
Deconsolidation

In fiscal 2015, the Company deconsolidated Kingstone, eliminating the assets, liabilities and non-controlling interests recorded for Kingstone from the Company's Consolidated Balance Sheet, thereby reducing its ownership to 15% of the Hong Kong holding company. In fiscal 2015, the Company recorded a gain of $8.8 million as a result of the deconsolidation. The gain was computed as follows: the fair value of consideration received, plus the fair values of the retained non-controlling interest and the sales and service rights, less the carrying value of Kingstone's net assets. Based on the terms of the transaction agreements, in fiscal 2016, the Company received a payment of $4.9 million from Kingstone for its exclusive sale and service rights in the solar ion implant equipment. The Company recognized a gain on the sale of $2.6 million for the year ended September 30, 2016, which is included in our Consolidated Statement of Operations in Gain on sale of other assets.

The Company's remaining investment in Kingstone is accounted for using the equity method for periods subsequent to the deconsolidation due to the Company's ability to exert significant influence over the financial and operating policies of Kingstone, primarily through our representation on the board of directors. See Note 15 - Investment for additional details.