Assets Held for Sale

3 Months Ended

Mar. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale

Note 2. Assets Held for Sale

The Company classifies its long-lived assets or disposal groups to be sold as held for sale in the period in which all of the held for sale criteria are met. The Company initially measures a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the transaction is closed.

To align the value of the silicon photonics intellectual property and enable broader market access to innovative technologies, on March 24, 2022, the Company entered into a definitive agreement to divest 75% of its silicon photonics business for $90 million. The transaction was closed on April 4, 2022. The related assets and liabilities to be sold have been presented as held for sale in the Condensed Consolidated Balance Sheet as of March 31, 2022.

The following table presents the carrying value of the major components of assets and liabilities held for sale as of March 31, 2022 (in millions):

	As of
	March 31, 2022
Assets:
Total current assets	$	0.1
Property and equipment, net	3.6
Deferred tax assets	3.9
Purchased intangible assets, net	49.0
Goodwill	28.9
Total assets held for sale	$	85.5
Liabilities:
Accounts payable	$	0.4
Total liabilities held for sale(*)	$	0.4

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(*)      $0.4 million of liabilities held for sale was included in other accrued liabilities on the Condensed Consolidated Balance Sheet as of March 31, 2022.