Divestitures

9 Months Ended

Sep. 27, 2019

Discontinued Operations and Disposal Groups [Abstract]

Divestitures

Note 8–Divestitures

Health Staff Augmentation Business

On September 12, 2019, the Company's Health segment disposed of its health staff augmentation business that was primarily focused on implementation and optimization services to hospital customers. The Company recorded an immaterial loss, which is primarily comprised of the $15 million sales price less the $12 million carrying value of net assets divested, preliminary net working capital adjustments and transaction related costs. This disposition did not meet the criteria to be classified as a discontinued operation in the Company's financial statements.

Commercial Cybersecurity Business

On February 20, 2019, the Company's Civil segment disposed of its commercial cybersecurity business in order to focus on providing solutions, including cybersecurity, to the Company's core markets of governments and highly regulated industries. In February 2019, the Company received initial proceeds of $171 million. During the quarter ended June 28, 2019, working capital adjustments were finalized, resulting in a final sales price of $166 million. The Company recorded a pre-tax gain on sale of $87 million, net of assets divested of $69 million and $10 million in transaction related costs. The gain was recorded in "Other (expense) income, net" on the condensed consolidated statements of income. This disposition did not meet the criteria to be classified as a discontinued operation in the Company's financial statements.

The major classes of assets and liabilities divested were as follows (in millions):

Receivables, net	$	14
Other current assets	5
Property, plant and equipment, net	3
Intangible assets, net	5
Goodwill	57
Deferred tax assets	6
Total assets divested	$	90
Accounts payable and accrued liabilities	$	(13	)
Accrued payroll and employee benefits	(5		)
Other long-term liabilities	(3		)
Total liabilities divested	$	(21	)