DISCONTINUED OPERATIONS

9 Months Ended

Feb. 28, 2015

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 and nine months endedFebruary 28, 2015, and March 1, 2014, are presented in the following table (in thousands):

	Three Months Ended					Nine Months Ended
	February 28, 2015		March 1, 2014			February 28, 2015			March 1, 2014
Net sales	$	—	$	111		$	—		$	375
Gross profit (loss) (1)	—		(254		)	—			(357		)
Selling, general, and administrative expenses (2)	—		37			—			186
Income tax provision (benefit) (3)	—		129			(87		)	(5		)
Income (loss) from discontinued operations, net of tax	$	—	$	(420	)	$	87		$	(538	)

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.

(3) Income tax benefit relates to the reversal of tax reserves.

Assets and liabilities classified as discontinued operations on our consolidated balance sheets as of February 28, 2015, and May 31, 2014, include the following (in thousands):

	February 28, 2015		May 31, 2014
Inventories	$	—	$	18
Discontinued operations - Assets	$	—	$	18
Accrued liabilities - current	$	—	$	7
Accrued liabilities - non-current	—		130
Discontinued operations - Liabilities	$	—	$	137