Discontinued Operations

3 Months Ended

Apr. 02, 2022

Discontinued Operations.

Discontinued Operations

2. Discontinued Operations

On April 22, 2021, the Company entered into an Asset Purchase Agreement to sell its infrastructure and automotive business to Skyworks Solutions, Inc. for $2.75 billion in cash. The transaction closed on July 26, 2021. The financial results of the infrastructure and automotive business, which are readily distinguishable from other components of the Company, have been presented as discontinued operations in the Condensed Consolidated Financial Statements because the sale represented a strategic shift for the Company.

The following table presents the financial results of the infrastructure and automotive business (the “discontinued operations”) in the Company’s Condensed Consolidated Statements of Income (in thousands, except per share data):

	Three Months Ended
	April 3,
	2021
Revenues	$	97,649
Costs of revenues		38,819
Operating expenses		21,956
Income from discontinued operations before income taxes		36,874
Provision (benefit) for income taxes		(1,791)
Income from discontinued operations	$	38,665
Income from discontinued operations per share:
Basic	$	0.88
Diluted	$	0.84

Continuing Involvement

In connection with the closing of the sale, the Company entered into certain ancillary agreements with Skyworks, including a Transition Services Agreement (“TSA”). Through the TSA, the Company has subleased certain premises to Skyworks and will provide or provides various temporary support services for three to eighteen months, depending on the service provided. Although the services provided under the TSA will generate continuing cash flows between the Company and Skyworks for the duration of the TSA, the amounts are not expected to be material to the ongoing operations of either entity. In addition, the Company has no contractual ability through the TSA or any other agreement to significantly influence the operating or financial policies of Skyworks. Fees received by the Company under the TSA were approximately $1.9 million for the three months ended April 2, 2022.