Business Divestiture

3 Months Ended

Apr. 01, 2017

Discontinued Operations and Disposal Groups [Abstract]

Business Divestiture

Business Divestiture

On September 13, 2016, the Company entered into an Asset Purchase Agreement with Extreme Networks, Inc. to dispose of its wireless LAN (“WLAN”) business (“Divestiture Group”) for a gross purchase price of $55 million. The Company recorded net proceeds of $39 million as of December 31, 2016. Final working capital adjustments are expected to be completed in 2017.

WLAN operating results are reported in the Enterprise segment through the closing date of the WLAN divestiture of October 28, 2016. Within the quarter ended April 2, 2016 Consolidated Statement of Operations, the Company generated revenue and gross profit from these assets of $33 million and $14 million, respectively.

On October 28, 2016, the Company completed the disposition of the Divestiture Group. There are no remaining held for sale assets or liabilities on the Company’s Consolidated Balance Sheet related to the Divestiture Group as of April 1, 2017.