Discontinued Operations
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Note B — Discontinued Operations
On February 24, 2012, our Board of Directors approved a plan to exit our CIS operation that provided remote cloud hosting and to dispose of the related assets, including the cyber integration center facility in Harrisonburg, Virginia and remote cloud hosting equipment. We concluded that although we believe demand will continue for cyber security and cloud-enabled solutions, our government and commercial customers currently continue to prefer hosting mission-critical information on their own premises rather than remotely. The approved exit plan affects only our CIS operation that provided remote cloud hosting and does not affect our other cyber capabilities, such as advanced cyber security and cloud-enabled software applications and solutions as a service, which we will continue to provide. CIS was part of our Integrated Network Solutions segment and is reported as discontinued operations in this Report. As a result, our historical financial results have been restated to account for CIS as discontinued operations for all periods presented in this Report.
During the third quarter of fiscal 2012, in connection with our approved plan to exit our CIS operation, we recorded pre-tax charges of $142.1 million ($89.8 million after-tax or $.80 per diluted share). These charges were comprised of $138.0 million for impairment of goodwill and other long-lived assets; $1.7 million for one-time employee termination costs, including severance and other benefits; and $2.4 million for other associated exit or disposal costs. See Note O — Fair Value Measurement in these Notes for additional information regarding such impairment charge. We expect to complete these exit and disposal activities by the end of calendar year 2012.
Summarized financial information for our discontinued operations related to CIS is as follows:
Unless otherwise specified, the information set forth in these Notes, other than this Note B — Discontinued Operations, relates solely to our continuing operations. |