Divestitures

The Company continually assesses the strategic fit of its various businesses and from time to time divests businesses which do not align with its long-term strategy.

During fiscal 2014, the Company concluded that several businesses in the ROW Installation & Services segment it intends to sell met the criteria to be classified as held for sale. The businesses are accounted for as held for sale on the Consolidated Balance Sheets as of December 26, 2014 and September 26, 2014, and their results of operations have been presented as discontinued operations on the Consolidated Statements of Operations during the quarters ended December 26, 2014 and December 27, 2013. The Company expects to complete the sale of these businesses by the end of the third quarter of fiscal 2015.

On May 22, 2014, the Company, together with its wholly-owned subsidiary Tyco Far East Holdings Ltd. completed the sale of Tyco Fire & Security Services Korea Co. Ltd. and its subsidiaries that form and operate the Company’s ADT Korea business to an affiliate of The Carlyle Group pursuant to a stock purchase agreement for an aggregate purchase price of $1.93 billion. The Company recognized a gain of $1.0 billion, net of a $212 million charge related to the indemnification at fair value for certain tax related matters borne by the buyer that are probable of being paid, which was recorded in Income from discontinued operations, net of income taxes, on the Consolidated Statements of Operations during fiscal 2014. Its results of operations have been presented within discontinued operations on the Consolidated Statements of Operations during the quarter ended December 27, 2013.

During the quarter ended December 27, 2013, the Company completed the sale of its Armourguard business in New Zealand and its fire and security business in Fiji, both of which were in its ROW Installation & Services segment, for an immaterial amount. The assets and liabilities have not been presented separately as held-for-sale in the Consolidated Balance Sheets as the amounts were not material to the presentation of all periods. This business has not been presented in discontinued operations as the amounts were not material to the Consolidated Financial Statements.

Discontinued Operations

The components of income from discontinued operations, net of income taxes are as follows ($ in millions):



	For the Quarters Ended
	December 26, 2014			December 27, 2013
Net revenue	$	4		$	154
Pre-tax (loss) income from discontinued operations	(2		)	30
Pre-tax gain on sale of discontinued operations	1			—
Income tax expense	—			(6		)
(Loss) income from discontinued operations, net of income taxes	$	(1	)	$	24

Balance sheet information for the discontinued operations as of December 26, 2014 and September 26, 2014 was as follows ($ in millions):



	As of
	December 26, 2014		September 26, 2014
Accounts receivable, net	$	11	$	11
Inventories	2		3
Prepaid expenses and other current assets	5		5
Other assets	2		2
Total assets	$	20	$	21
Accounts payable	2		2
Accrued and other current liabilities	11		9
Other liabilities	1		2
Total liabilities	$	14	$	13