Discontinued Operations

6 Months Ended

Mar. 25, 2016

Discontinued Operations

Discontinued Operations

4. Discontinued Operations

        During the fourth quarter of fiscal 2015, we sold our Broadband Network Solutions ("BNS") business for $3.0 billion in cash and recognized a pre-tax gain of $1.1 billion on the transaction. During the six months ended March 25, 2016, we recognized an additional pre-tax gain of $20 million on the divestiture, related primarily to pension and net working capital adjustments. The BNS business met the discontinued operations criteria and was reported as such in all periods presented on the Condensed Consolidated Financial Statements. Prior to reclassification to discontinued operations, the BNS business was included in the former Network Solutions segment.

        The following table presents certain components of income (loss) from discontinued operations related to BNS and prior divestitures:

	For the Quarters Ended					For the Six Months Ended
	March 25, 2016			March 27, 2015		March 25, 2016			March 27, 2015
	(in millions)
Net sales from discontinued operations	$	—		$	425	$	—		$	842
Pre-tax income (loss) from discontinued operations	$	—		$	55	$	(2	)	$	106
Pre-tax gain (loss) on sale of discontinued operations		(18	)		—		20			—
Income tax benefit		9			228		2			214
Income (loss) from discontinued operations, net of income taxes	$	(9	)	$	283	$	20		$	320

        The income tax benefit from discontinued operations for the quarter ended March 27, 2015 primarily reflects an income tax benefit related to the recognition of certain deferred tax assets that were expected to be realized upon the sale of the BNS business, partially offset by income tax expense related to the impacts of legal entity restructurings made in connection with the anticipated sale of the BNS business.