Discontinued Operations

9 Months Ended

Jun. 24, 2016

Discontinued Operations

Discontinued Operations

4. Discontinued Operations

        The following table presents certain components of income (loss) from discontinued operations, net of income taxes:

	For the Quarters Ended					For the Nine Months Ended
	June 24, 2016		June 26, 2015			June 24, 2016		June 26, 2015
	(in millions)
Net sales from discontinued operations	$	—	$	471		$	—	$	1,313
Pre-tax income (loss) from discontinued operations	$	32	$	(37	)	$	30	$	69
Pre-tax gain on sale of discontinued operations		1		—			21		—
Income tax (expense) benefit		15		(5	)		17		209
Income (loss) from discontinued operations, net of income taxes	$	48	$	(42	)	$	68	$	278

        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 nine months ended June 24, 2016, we recognized an additional pre-tax gain of $21 million on the divestiture, related primarily to pension and net working capital adjustments.

        The income tax benefit from discontinued operations for the nine months ended June 26, 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.

        Pre-tax income (loss) from discontinued operations for the quarters ended June 24, 2016 and June 26, 2015 included pre-tax credits of $30 million and charges of $126 million, respectively, recorded in connection with the Com-Net case related to our former Wireless Systems business which was sold in fiscal 2009. See Note 10 for additional information regarding the Com-Net case.

        The BNS and Wireless Systems businesses met the discontinued operations criteria and were reported as such in all periods presented on the Condensed Consolidated Financial Statements. Prior to reclassification to discontinued operations, the BNS and Wireless Systems businesses were included in the former Network Solutions and Wireless Systems segments, respectively.