Acquisitions and Divestitures

Discontinued Operations

On January 31, 2014, we completed the sale of our XtremeMac consumer electronics business for an estimated $3.1 million of total consideration consisting of $0.3 million of cash consideration, an interest-bearing note receivable consisting of $0.3 million (which matures in 2015) and $2.5 million estimated to be received based on the proceeds the purchaser is able to achieve from selling the acquired inventory. The sale of this business resulted in a loss of $0.5 million which was recorded in discontinued operations during the first quarter of 2014. During the second quarter of 2014 we revised downward our estimate of the consideration we expected to receive based on the purchaser's proceeds from selling the acquired inventory by $1.2 million and, accordingly, recognized a loss of $1.2 million as a component of discontinued operations for the nine months ended September 30, 2014. The remaining balance of the receivable associated with the proceeds from the purchaser's inventory sales was fully collected as of September 30, 2014.

On October 15, 2013, we completed the sale of the Memorex consumer electronics business for $9.3 million of total consideration. We received payments of $1.3 million during the second quarter of 2014 and $0.9 million during the fourth quarter of 2013. The remaining receivable balance associated with the disposition of this business is recorded at an estimated fair value of $5.9 million of which $2.1 million is due during the next twelve months.

These divestitures are part of the acceleration of our strategic transformation that we announced during the fourth quarter of 2012. The operating results for the businesses sold are presented in our Condensed Consolidated Statements of Operations as discontinued operations for all periods presented and reflect revenues and expenses that are directly attributable to these businesses that have been eliminated from ongoing operations. The consumer storage business under the Memorex and TDK Life on Record^TM brands and the consumer electronics business under the TDK Life on Record brand have been retained.

The key components of discontinued operations were as follows:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(In millions)	2014		2013			2014			2013
Net revenue	$	—	$	10.5		$	0.5		$	33.9

Loss on sale of discontinued businesses, before income taxes	—		(5.5		)	(1.7		)	(5.5		)
Loss from operations of discontinued businesses, before income taxes	—		(3.2		)	(0.6		)	(12.0		)
Income tax provision (benefit)	—		—			—			—
Loss from discontinued operations, net of income taxes	$	—	$	(8.7	)	$	(2.3	)	$	(17.5	)