Discontinued Operations

12 Months Ended

Jun. 28, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

Discontinued operations include the operating results and other adjustments related to our Direct Sale Program Business ("Program Business") and Ireland business ("Ireland Business"), both of which had previously been included in our United States operating segment. We concluded that both the Program Business and Ireland Business meet the requirements to be presented as discontinued operations and, accordingly, the results of these operations have been reclassified to discontinued operations for all periods presented on the Consolidated Statements of Operations.

On December 31, 2013, we sold our Program Business. As a result of this agreement, we reduced the carrying value of the Program Business net assets as of December 28, 2013 to equal the estimated net proceeds from the transaction and recorded a corresponding pretax loss on the sale of $12,319 in the three months ended December 28, 2013, which is included in "Loss on sale and other adjustments, net of tax" in the table below. The loss on the sale was based on a preliminary estimate, which was finalized during the three months ended March 29, 2014. Separately, we completed the sale of our Ireland Business during the second quarter of fiscal year 2014 and recognized a pretax loss on the sale of $603, which has also been included in "Loss on sale and other adjustments, net of tax" in the table below. Total aggregate gross proceeds from the sales were $6,641.

In fiscal year 2013, as part of our annual fourth quarter impairment test and changes in our Program Business, we identified certain impairment indicators that required us to perform an assessment of the recoverability of the long-lived assets related to the business. As part of this assessment, we determined that the carrying value of certain long-lived assets exceeded their fair values. The estimated fair values were determined using a discounted cash flow approach. This analysis resulted in the impairment of certain long-lived assets, including computer software, customer contracts and other property and equipment of $3,601. In addition, the changes to our Program Business noted above resulted in an evaluation of the recoverability of related inventory. As part of this evaluation we established $3,046 of additional reserves to reduce inventory to its net realizable value based on our updated business plan. We also incurred professional services costs of $25 related to the changes.

Summarized financial information for discontinued operations is shown below:

	For the Fiscal Years
	2014			2013			2012
Rental and direct sale revenue from discontinued operations	$	17,844		$	41,710		$	40,984
Loss before income taxes	(279		)	(5,982		)	(465		)
Loss, net of tax	(141		)	(3,786		)	(340		)
Loss on sale and other adjustments, net of tax	(8,252		)	—			—
Net loss from discontinued operations, net of tax	$	(8,393	)	$	(3,786	)	$	(340	)

	For the Fiscal Year
	2014
Loss in excess of carrying value of Program Business	$	(11,559	)
Transaction and related costs	(675		)
Loss on sale of Program Business	(12,234		)
Loss on sale of Ireland Business	(603		)
Pretax loss on sale of businesses	(12,837		)
Income tax benefit	4,585
Loss on sale and other adjustments, net of tax	$	(8,252	)

The carrying amount of the major classes of assets and liabilities related to the Program Business as of June 29, 2013 were as follows:

	June 29, 2013
Accounts receivable, net	$	4,557
Inventory	16,591
Other current assets	554
Total current assets	$	21,702
Accounts payable	$	964
Accrued expenses and other current liabilities	2,982
Total current liabilities	$	3,946