Discontinued Operations

6 Months Ended

Jul. 01, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Note 14 — Discontinued Operations

On May 6, 2011, the Company completed the sale of substantially all of its external storage systems business to NetApp for $480.0 million in cash. The strategic decision to exit the external storage systems 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 external storage systems 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 provided transitional services to NetApp. The purpose of these services was 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 for the three and six months ended July 3, 2011:

	Three Months Ended			Six Months Ended
	July 3, 2011			July 3, 2011
	(In thousands)
Revenues	$	51,675		$	207,365
Loss before gain on sale of external storage systems business and income taxes	$	(14,590	)	$	(22,500	)
Gain on sale of external storage systems business		260,066			260,066
Benefit from income taxes		(19,900	)		(19,418	)
Income from discontinued operations	$	265,376		$	256,984

There was no income from discontinued operations for the three and six months ended July 1, 2012.

During the three and six months ended July 3, 2011, the Company recognized $14.1 million and $37.9 million, respectively, of restructuring expense as the Company terminated employees, closed several office locations, terminated certain contracts, discontinued various development projects and wrote off intangible assets and software due to the cancellation of development programs in connection with the exit of the external storage systems business. Further, the Company released $19.7 million of deferred tax liabilities related to tax deductible goodwill in connection with the sale of the external storage systems business during the three months ended July 3, 2011.