Discontinued Operations

12 Months Ended

Mar. 29, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

High-Speed Converter (“HSC”) Business

In 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 has classified the assets related to the HSC business as held for sale. In fiscal 2014, the Company recorded total impairment charge of $4.8 million to discontinued operations, which consisted of $2.2 million in goodwill and $2.6 million in intangible assets.

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 in discontinued operations related to this divestiture during 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 the disposal group 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 Consolidated Statement of Operations for fiscal 2015.

As of March 29, 2015, all long-lived assets related to the HSC business were fully impaired. Refer to Note 21 for the sale of HSC business subsequent to March 29, 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 consolidated financial statements as discontinued operations.

The results of the HSC business discontinued operations for the fiscal years 2015, 2014 and 2013 were as follows (in thousands):

	For the Twelve Months Ended,
	March 29, 2015			March 30, 2014			March 31, 2013
Revenues	$	3,803		$	3,466		$	2,784
Cost of revenue	1,939			2,935			2,908
Goodwill and long-lived assets impairment	8,471			4,797			—
Restructuring charges (see Note 14)	18,305			—			—
Operating expenses	12,325			18,622			18,398
Gain on divestiture	16,840			—			—
Other income	—			(50		)	—
Income tax expense	275			11			113
Net loss from discontinued operations	$	(20,672	)	$	(22,949	)	$	(18,635	)

Video Business

On August 1, 2012, the Company completed the transfer of the remaining assets of its video business to Synaptics for $5.0 million in cash pursuant to an Asset Purchase Agreement. In connection with the divestiture, 47 employees were transferred to Synaptics. In the second quarter of fiscal 2013, the Company recorded a gain of $0.9 million related to this divestiture. The following table summarizes the components of the gain (in thousands):

	Amount
Cash proceeds from sale	$	5,000
Less book value of assets sold and direct costs related to the sale:
Fixed assets	(1,963		)
Goodwill	(700		)
Inventories	(1,288		)
Transaction and other costs	(163		)
Gain on divestiture	$	886

Prior to fiscal 2013, the video business was part of the Company’s Computing and Consumer reportable segment. For financial statement purposes, the results of operations for the video business for fiscal 2013 are presented in the Company's consolidated financial statements as discontinued operations.

The results of discontinued operations for fiscal 2013 are as follows (in thousands):

	March 31, 2013
Revenues	$	2,429
Cost of revenue	3,006
Operating expenses	4,554
Gain on divestiture	886
Income tax expense	3
Net loss from discontinued operations	$	(4,248	)