XML 31 R9.htm IDEA: XBRL DOCUMENT v2.4.1.9
Discontinued Operations
 9 Months Ended
Dec. 28, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
High-Speed Converter (“HSC”) Business
In the third quarter of fiscal 2014, the Company initiated a project to divest its HSC business. The Company believes that this divestiture would allow it to strengthen its focus on its analog-intensive mixed-signal, timing and synchronization, and interface and connectivity solutions. The Company envisions fully divesting its HSC business before the end of first quarter of fiscal 2016 and has classified these assets as held for sale and accordingly these assets are no longer being depreciated or amortized.
The HSC business includes the assets of NXP B.V.’s Data Converter Business and Alvand Technologies, Inc., which were acquired by the Company during fiscal 2013. On May 30, 2014, the Company completed the sale of certain assets related to the Alvand portion of the HSC business to a buyer pursuant to an Asset Purchase Agreement. Upon the closing of the transaction, the buyer paid the Company $18.0 million in cash consideration, of which $2.7 million will be held in an escrow account for a period of 18 months. The Company recorded a gain of $16.8 million related to this divestiture during the first quarter of fiscal 2015. The following table summarizes the components of the gain (in thousands):

Amount
Cash proceeds from sale (including amounts held in escrow)
$
18,000

Less book value of assets sold and direct costs related to the sale:

Intangible assets
(990
)
Transaction and other costs
(170
)
Gain on divestiture
$
16,840


Following the sale of assets related to the Alvand portion of the HSC business, the business had remaining long-lived assets classified as held for sale amounting to $8.5 million, which consisted of $2.9 million in fixed assets and $5.6 million in intangible assets. The Company evaluated the carrying value of these assets and determined that it exceeded its estimated fair value based on estimated selling price less cost to sell. Accordingly, total impairment charge of $8.5 million was recorded to loss from discontinued operations in the Condensed Consolidated Statement of Operations for the first quarter of fiscal 2015.

The HSC business was included in the Company’s Communications reportable segment. For financial statements purposes, the results of operations for the HSC business have been segregated from those of the continuing operations and are presented in the Company's condensed consolidated financial statements as discontinued operations.
The results of discontinued operations of the HSC business for the three and nine months ended December 28, 2014 and December 29, 2013 were as follows (in thousands):
 
 
Three Months Ended
 
Nine Months Ended
 
 
December 28, 2014
 
December 29, 2013
 
December 28, 2014
 
December 29, 2013
Revenues
 
$
701

 
$
1,811

 
$
3,039

 
$
2,931

Cost of revenues
 
(441
)
 
(1,398
)
 
(1,459
)
 
(2,379
)
Long-lived assets impairment
 
—

 
(4,797
)
 
(8,471
)
 
(4,979
)
Restructuring costs (see Note 13)
 
(11,930
)
 
—

 
(18,705
)
 
—

Operating expenses
 
(2,868
)
 
(5,739
)
 
(10,842
)
 
(13,495
)
Gain on divestiture
 
—

 
—

 
16,840

 
—

Income tax benefit (provision)
 
55

 
(268
)
 
43

 
6

Net loss from discontinued operations
 
$
(14,483
)
 
$
(10,391
)
 
$
(19,555
)
 
$
(17,916
)