Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 17 — Discontinued Operations

On May 6, 2011, the Company completed the sale of substantially all of its ESG business to NetApp for $480.0 million in cash. The strategic decision to exit the ESG business was based on the Company's expectation that long-term shareholder value could be maximized by becoming a pure-play semiconductor company. Under the terms of the agreement, NetApp purchased substantially all the assets of the Company's ESG business, which developed and delivered external storage systems products and technology to a wide range of partners who provide storage solutions to end customers. As part of the transaction, the Company is providing transitional services to NetApp for a period of up to 18 months. The purpose of these services is to provide short-term assistance to the buyer in assuming the operations of the purchased business.

Following is selected financial information included in income from discontinued operations:

	Year Ended December 31,
	2011			2010		2009
	(In thousands)
Revenues	$	210,591		$	700,393	$	642,778
(Loss)/income before income taxes and gain on disposal	$	(27,579	)	$	7,818	$	38,794
Gain on disposal of ESG business		260,066			—		—
(Benefit from)/provision for income taxes		(8,992	)		2,250		26,210
Income from discontinued operations	$	241,479		$	5,568	$	12,584

During the years ended December 31, 2011 and 2010, the Company recorded write-downs of $23.0 million and $44.1 million, respectively, of assets relating to the ESG business. The 2011 write-downs primarily consisted of $10.5 million of identified intangible assets, including $9.0 million of current technology, $0.7 million of customer base and $0.8 million of in-process research and development. The 2011 write-downs also included $7.8 million of capitalized software and $3.7 million of inventories and fixed assets. The 2010 write-downs primarily consisted of $25.4 million of capitalized software and $17.1 million of identified intangible assets, including $16.8 million of current technology and $0.3 million of trade names. Further, the Company released $21.0 million of deferred tax liabilities related to tax deductible goodwill in connection with the sale of the ESG business in 2011, which is included in the $9.0 million benefit from income taxes.