DISCONTINUED OPERATIONS

3 Months Ended

Aug. 30, 2014

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

During fiscal year 2011, we completed the sale of the assets primarily used or held for use in, and certain liabilities of, our RF, Wireless and Power Division ("RFPD"), as well as certain other Company assets, including our information technology assets, to Arrow Electronics, Inc. ("Arrow") in exchange for $238.8 million ("the Transaction"). In accordance with Accounting Standards Codification (“ASC”) 205-20, Presentation of Financial Statements- Discontinued Operations (“ASC 205-20”), we reported the financial results of RFPD as a discontinued operation.

Financial Summary – Discontinued Operations

Summary financial results for the three months endedAugust 30, 2014, and August 31, 2013, are presented in the following table (in thousands):

	Three Months Ended
	August 30, 2014		August 31, 2013
Net sales	$	—	$	86
Gross profit (loss) (1)	—		(49		)
Selling, general, and administrative expenses (2)	—		32
Income tax provision (benefit)	—		(70		)
Loss from discontinued operations, net of tax	$	—	$	(11	)

Notes:

(1) Gross profit (loss) for fiscal year 2014 includes unabsorbed manufacturing labor and overhead expenses related to the Manufacturing Agreement with RFPD which ended March 1, 2014.

(2) Selling, General, and Administrative expenses relate primarily to professional fees for tax audits resulting from the Transaction.

Net sales and gross profit (loss) for the three months ended August 31, 2013, reflect our financial results relating to the Manufacturing Agreement with Arrow that we entered into in connection with the Transaction. The Manufacturing Agreement ended on March 1, 2014.

Assets and liabilities classified as discontinued operations on our consolidated balance sheets as of August 30, 2014, and May 31, 2014, include the following (in thousands):

	August 30, 2014		May 31, 2014
Inventories	$	—	$	18
Discontinued operations - Assets	$	—	$	18
Accrued liabilities - current	$	—	$	7
Accrued liabilities - non-current (1)	126		130
Discontinued operations - Liabilities	$	126	$	137

(1) Included in accrued liabilities - non-current is a reserve for an income tax liability due to an ongoing audit.

In accordance with ASC 230, Statement of Cash Flows, entities are permitted but not required to separately disclose, either in the statement of cash flows or footnotes to the financial statements, cash flows pertaining to discontinued operations. Entities that do not present separate operating cash flow information related to discontinued operations must do so consistently for all periods presented, which may include periods long after the sale or liquidation of the operation. We did not have cash balances that were specific to RFPD and elected not to present separate cash flows from discontinued operations on our statement of cash flows.