Discontinued Operations

12 Months Ended

Dec. 31, 2013

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

Note 4: Discontinued Operations

In 2012, we sold our Thermax and Raydex cable business for $265.6 million in cash and recognized a pre-tax gain of $211.6 million ($124.7 million after-tax). At the time the transaction closed, we received $265.6 million in cash, subject to a working capital adjustment. In 2013, we recognized a $1.4 million loss from discontinued operations for income tax expense related to this disposed business. As of December 31, 2012, we had a net current liability of discontinued operations on our consolidated balance sheet of $86.9 million related to our tax obligations from the gain on disposal of Thermax and Raydex.

In 2010, we completed the sale of Trapeze Networks, Inc. (Trapeze) for $152.1 million and recognized a pre-tax gain of $88.3 million ($44.8 million after-tax). At the time the transaction closed, we received $136.9 million in cash, and the remaining $15.2 million was placed in escrow as partial security for our indemnity obligations under the sale agreement. In 2012, based on the status of negotiations with the buyer regarding the amounts in escrow, we recognized a loss of $7.0 million ($4.3 million net of tax) due to a reduction of the carrying value of our escrow receivable. The loss is included in our gain (loss) from disposal of discontinued operations. As of December 31, 2013, we have collected a partial settlement of $4.2 million from the escrow, and we remain in negotiations with the buyer of Trapeze regarding the status of the escrow and certain claims raised by the buyer. Based on the current status of the negotiations, the amount of the escrow receivable on our Condensed Consolidated Balance Sheet is $3.8 million, which is our best estimate of the remaining amount to be collected.

During 2005, we completed the sale of our discontinued communications cable operation in Phoenix, Arizona. In connection with this sale and related tax deductions, we established a reserve for uncertain tax positions. The statute of limitations associated with the tax positions expired during our fiscal third quarter of 2012. In 2012, we recognized a net gain of $14.1 million due to the reversal of the uncertain tax positions, which is included in our gain from disposal of discontinued operations. In 2012, we recognized a gain of $4.0 million ($2.6 million net of tax) due to the reversal of the accrued interest and penalties, which is included in our income (loss) from discontinued operations.

Operating results from discontinued operations for 2012 and 2011 included the following revenues and income (loss) before taxes:

	2012				2011
			Income (Loss)				Income (Loss)
	Revenues		before Taxes		Revenues		before Taxes
	(In thousands)
Thermax and Raydex	$	95,668	$	21,479	$	99,766	$	21,792
Trapeze		—		—		—		(196	)
Phoenix Communications		—		3,980		—		(949	)
Total	$	95,668	$	25,459	$	99,766	$	20,647