Discontinued Operations

3 Months Ended

Sep. 28, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Note B—Discontinued Operations

In the third quarter of fiscal 2012, our Board of Directors approved a plan to exit CIS, which provided remote cloud hosting, and to dispose of the related assets, and we reported CIS as discontinued operations beginning with our financial results presented in our Quarterly Report on Form 10-Q for the third quarter of fiscal 2012. We expect to complete the disposition of assets of CIS during fiscal 2013. In the fourth quarter of fiscal 2012, our Board of Directors approved a plan to divest Broadcast Communications, which provides digital media management solutions in support of broadcast customers, and we reported Broadcast Communications as discontinued operations beginning with our financial results presented in our Fiscal 2012 Form 10-K. We expect to complete the divestiture of Broadcast Communications during fiscal 2013. Both CIS and Broadcast Communications were formerly part of our Integrated Network Solutions segment. Our historical financial results, except for disclosures related to our cash flows, have been restated to account for CIS and Broadcast Communications as discontinued operations.

Based on recent indicators of value during the first quarter of fiscal 2013, including market, financial performance and indications of value from interested parties, we recorded additional non-cash impairment charges for CIS and Broadcast Communications (both reported as discontinued operations) totaling $222.3 million as follows: (1) total assets of CIS with a carrying amount of $44.0 million were written down to their fair value of $39.0 million, less estimated costs to sell of $0.8 million (or $38.2 million), resulting in a non-cash impairment charge of $5.8 million; and (2)net assets, or carrying value, of Broadcast Communications with a carrying amount of $503.7 million were written down to their estimated fair value of $300.0 million, less estimated costs to sell of $12.8 million (or $287.2 million), resulting in a non-cash impairment charge of $216.5 million.All of the Broadcast Communications impairment related to goodwill, a minor amount of which was deductible for tax purposes. These impairments do not impact covenant compliance under our credit arrangements and we do not expect these impairments to impact our ongoing financial performance, although no assurance can be given.

Summarized financial information for our discontinued operations related to CISand Broadcast Communications is as follows:

	Quarter Ended
	September 28,		September 30,
	2012		2011
	(In millions)
Revenue from product sales and services	$	116.9	$	124.2
Loss before income taxes	$	(218.7)	$	(16.0)
Income taxes		4.4		6.5
Discontinued operations, net of income taxes	$	(214.3)	$	(9.5)

	September 28,		June 29,
	2012		2012
	(In millions)
Receivables	$	114.0	$	103.6
Inventories		142.6		128.0
Other current assets		8.6		9.4
Total current assets		265.2		241.0
Property, plant and equipment		85.2		89.0
Goodwill		57.6		267.7
Other non-current assets		37.9		35.0
Total assets		445.9		632.7
Accounts payable		16.9		26.9
Accrued and other liabilities		109.1		109.3
Total liabilities		126.0		136.2
Net assets of discontinued operations	$	319.9	$	496.5