Discontinued Operations
As part of the Company’s continuing efforts to focus on higher growth opportunities, the Company has discontinued certain businesses. The Company has accounted for these businesses as discontinued operations and, accordingly, has presented the results of operations and related cash flows as discontinued operations for all periods presented. Any remaining liabilities of these businesses have been presented separately, and are reflected within liabilities from discontinued operations in the accompanying consolidated balance sheets as of December 29, 2013 and December 30, 2012.
The Company recorded the following pre-tax gains and losses, which have been reported as a net gain or loss on disposition of discontinued operations during the three fiscal years ended:
|
| | | | | | | | | | | |
| December 29,
2013 | | December 30,
2012 | | January 1,
2012 |
| (In thousands) |
Gain (loss) on disposition of Photoflash business | $ | 493 |
| | $ | 2,459 |
| | $ | (134 | ) |
Loss on disposition of Technical Services business | (2,100 | ) | | — |
| | — |
|
Net (loss) gain on disposition of other discontinued operations | (203 | ) | | (54 | ) | | 2,133 |
|
Net (loss) gain on disposition of discontinued operations before income taxes | $ | (1,810 | ) | | $ | 2,405 |
| | $ | 1,999 |
|
In June 2010, the Company sold its Photoflash business, which was included in the Company's Environmental Health segment, for $13.5 million, including an adjustment for net working capital, plus potential additional contingent consideration. The Company recognized a pre-tax gain of $0.5 million in fiscal year 2013 and a pre-tax gain of $2.5 million in fiscal year 2012 for contingent consideration related to this sale.
In August 1999, the Company sold the assets of its Technical Service business for approximately $250.0 million in cash and the assumption by the buyer of certain liabilities of the Technical Services business. During fiscal year 2013, the Company recorded a pre-tax loss of $2.1 million for a contingency related to this business.
During fiscal years 2013, 2012, and 2011, the Company settled various commitments related to the divestiture of other discontinued operations. The Company recognized a pre-tax gain of $2.1 million in fiscal year 2011. The fiscal year 2011 pre-tax gain included a $4.0 million gain for contingent consideration related to the sale of the Company's semiconductor business in fiscal year 2006, which was partially offset by a pre-tax loss of $1.8 million related to updating the net working capital adjustment associated with the sale of the Company's Illumination and Detection Solutions ("IDS") business in fiscal year 2010.
The Company recognized a tax benefit of $1.1 million on discontinued operations in fiscal year 2013, a tax provision of $0.9 million on discontinued operations in fiscal year 2012 and a tax benefit of $4.5 million in fiscal year 2011 on discontinued operations. The recognition of $4.5 million income tax benefit in fiscal year 2011 was primarily the result of a change in estimate related to the federal income tax liability associated with the repatriation of the unremitted earnings of the IDS and Photoflash businesses, as further described in Note 6, below, partially offset by the tax provision on the contingent consideration received in fiscal year 2011 related to the sale of the Company's semiconductor business in fiscal year 2006.
