Discontinued Operations

On February 13, 2013, we announced our plans to divest our XtremeMac and Memorex consumer electronics businesses.

On January 31, 2014, we completed the sale of our XtremeMac consumer electronics business. Total cash consideration was originally estimated at $3.1 million which consisted of $0.3 million of cash consideration, an interest-bearing note receivable of $0.3 million (maturing in December 2015) and $2.5 million to be received based on the proceeds the purchaser was 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 by $1.2 million based on the purchaser's proceeds from selling the acquired inventory and, accordingly, recognized a loss of $1.2 million as a component of discontinued operations for the nine months ended September 30, 2014. The $1.3 million of remaining proceeds due Imation from the purchaser's disposition of acquired inventory were received during the second and third quarters of 2014. There were no results for discontinued operations for XtremeMac for the three and nine months ended September 30, 2015.

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 $1.5 million during the nine months ended September 30, 2015, $1.9 million during 2014 and $0.9 million during 2013. The remaining receivable balance associated with the disposition of this business is recorded at an estimated fair value of $4.4 million as of September 30, 2015. Based on all the evidence available to us, including the payments received to date, we believe the remaining receivable to be collectible and have not provided an allowance. However, the collectability of this amount is not certain and it is reasonably possible that an allowance for a portion of this amount may be provided for in a future period. There were no results for discontinued operations for the Memorex consumer electronics business for the three and nine months ended September 30, 2015.

The operating results for these businesses 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 were eliminated from our ongoing operations.

The key components of the results of discontinued operations were as follows:



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2015		2014		2015		2014
Net revenue	$	—	$	—	$	—	$	0.5

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