Discontinued Operations

12 Months Ended

Oct. 02, 2020

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DIVESTED BUSINESS AND DISCONTINUED OPERATIONS

Divested Business

On May 10, 2018, we completed the sale and transfer of the LR4 business, pursuant to an Asset Purchase and Intellectual Property License Agreement, dated April 30, 2018 (the “LR4 Agreement”). As a result of the transaction, during fiscal year 2018 we recorded a loss on disposal of $34.3 million associated with LR4 business as other expense, comprised of expected proceeds of $17.2 million less the carrying value of assets sold. The transaction did not meet the criteria of discontinued operations.

During the quarter ended July 3, 2020, we received payment of $13.2 million for our outstanding net receivable with the buyer, inclusive of $11.0 million related to the sale of the LR4 business.

Discontinued Operations

On October 27, 2017, we entered into a purchase agreement to sell the Compute business. In consideration for the transfer and sale of the Compute business, we received an equity interest in the buyer valued at approximately $36.5 million, representing the carrying value of the assets divested and representing less than 20.0% of the buyer's total outstanding equity. The operations of the Compute business were accounted for as discontinued operations through the date of divestiture.

The accompanying Consolidated Statements of Operations includes the following operating results related to these discontinued operations (in thousands):

	Fiscal Year
	2018
Revenue	$	—
Cost of revenue	(596)
Gross profit (loss)	596
Operating expenses:
Research and development	5,251
Selling, general and administrative	1,560
Total operating expenses	6,811
Loss from discontinued operations	(6,215)
Loss income before income taxes	(6,215)
Income tax provision (benefit)	—
Loss income from discontinued operations	(6,215)
Cash flow used in Operating Activities	(10,734)