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Divestitures
9 Months Ended
Oct. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Divestiture
Divestitures
In the first quarter of fiscal year 2016, the Company completed its divestiture of its defense and microwave communications infrastructure business to Jariet Technologies, Inc. (“Jariet”) in exchange for an equity interest in that company. For the three months ended October 25, 2015, the defense and microwave communications infrastructure business accounted for $0.2 million in net revenue and non-recurring engineering (“NRE”) reimbursements. For the nine months ended October 25, 2015, the defense and microwave communications infrastructure business accounted for $4.3 million in net revenue and NRE reimbursements. This business was part of the Sierra Monolithics, Inc. acquisition completed by the Company in December 2009.
Under the terms of the transaction with Jariet, the Company contributed assets, including inventory and equipment with a net book value of $0.6 million in exchange for an equity interest in the form of preferred stock, representing an approximately 21% voting interest in Jariet. Due to the anticipated continuing cash flows from its investment in Jariet, the Company did not account for the divestiture as a discontinued operation. In addition to the contribution of assets, certain contracts were novated with future performance responsibilities being transferred to Jariet. The investment in Jariet was written off in the third quarter of fiscal year 2016.
On August 5, 2016, the Company completed its divestiture of its Snowbush IP business (previously part of the Company’s Systems Innovation Group) to Rambus for a purchase price of $32.0 million in cash along with the opportunity to receive additional payments from Rambus through 2022 based upon a percentage of sales by Rambus of new products expected to be developed by Rambus from the disposed assets. The Company recognized a gain of $25.0 million on the disposition of this business in the third quarter of fiscal year 2017, which is recorded in “Gain on disposition of business operations” within the condensed consolidated statements of income. The Company is accounting for any potential receipt of proceeds a gain contingency; therefore, any additional payments will be recognized as they are received. The cash proceeds from the disposition of this business are included in “Proceeds from disposition of business operations” within the cash flows from investing activities section of the unaudited condensed consolidated statements of cash flows.