Discontinued Operations

9 Months Ended

Oct. 01, 2022

Discontinued Operations.

Discontinued Operations

2.Discontinued Operations

On July 26, 2021, the Company sold its infrastructure and automotive business to Skyworks Solutions, Inc. for $2.75 billion in cash. 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		Nine Months Ended
	October 2,		October 2,
	2021		2021
Revenues	$	28,203	$	233,915
Costs of revenues		11,891		95,800
Operating expenses		(496)		46,512
Operating income from discontinued operations		16,808		91,603
Gain on sale of discontinued operations		2,423,161		2,423,161
Income from discontinued operations before income taxes		2,439,969		2,514,764
Provision for income taxes		333,173		330,880
Income from discontinued operations	$	2,106,796	$	2,183,884
Income from discontinued operations per share:
Basic	$	48.56	$	49.52
Diluted	$	47.20	$	48.11

2.Discontinued Operations (Continued)

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 after the close of the transaction, 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 have not been nor are expected to be material to the ongoing operations of either entity. Fees received by the Company under the TSA were approximately $4.8 million for the nine months ended October 1, 2022.