Discontinued Operations

12 Months Ended

Dec. 31, 2022

Discontinued Operations.

Discontinued Operations

3. 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 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 Consolidated Statements of Income (in thousands, except per share data):

	Year Ended
	January 1,		January 2,
	2022		2021
Revenues	$	233,918	$	375,749
Costs of revenues		95,457		143,068
Operating expenses		46,643		87,293
Operating income from discontinued operations		91,818		145,388
Gain on sale of discontinued operations		2,423,161		—
Income from discontinued operations before income taxes		2,514,979		145,388
Provision for income taxes		339,706		17,372
Income from discontinued operations	$	2,175,273	$	128,016
Income from discontinued operations per share:
Basic	$	50.79	$	2.92
Diluted	$	49.09	$	2.89

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 $5.2 million for fiscal 2022.