

3.	Discontinued Operations

CMDS

On November 27, 2015, the Company completed the sale of the CMDS business to Guerbet S.A. ("Guerbet") for cash consideration of approximately $270.0 million, subject to net working capital adjustments. The CMDS business was eliminated from the Global Medical Imaging segment, which has been renamed Nuclear Imaging.

Subsequent to the sale of the CMDS business, the Company has and will continue to supply certain products under a supply agreement with Guerbet.

The following table summarizes the financial results of the CMDS discontinued operations for the the three months ended December 25, 2015 and December 26, 2014 as presented in the consolidated statements of operations and comprehensive income:



	Three Months Ended
Major line items constituting income (loss) from discontinued operations	December 25, 2015			December 26, 2014
Net sales	$	59.2		$	106.6
Cost of sales	44.8			72.7
Selling, general and administrative	18.2			27.2
Other	1.1			1.0
(Loss) income from discontinued operations	(4.9		)	5.7
Gain on disposal of discontinued operations	97.0			—
Income from discontinued operations, before income taxes	92.1			5.7
Income tax (benefit) expense	(2.7		)	1.0

Income from discontinued operations net of tax	$	94.8		$	4.7

Income tax benefit of $2.7 million is predominately associated with the $4.9 million loss from discontinued operations. The gain on disposal of discontinued operations resulted in $8.6 million of tax expense, of which $10.0 million tax expense was recognized during the three months ended September 25, 2015, offset by $1.4 million of tax benefit recognized during the three months ended December 25, 2015. The $8.6 million of tax expense was favorably impacted by receiving a benefit from permanently deductible items.

The following table summarizes the assets and liabilities of the CMDS business that are classified as held for sale on the consolidated balance sheets as of December 25, 2015 and September 25, 2015:



	December 25, 2015		September 25, 2015
Carrying amounts of major classes of assets included as part of discontinued operations
Accounts receivable	$	0.7	$	68.5
Inventories	0.1		86.3
Property, plant and equipment, net	—		60.3
Intangible assets, net	—		27.7
Other current and non-current assets	—		57.1
Total assets classified as held for sale in the balance sheet	$	0.8	$	299.9

Carrying amounts of major classes of liabilities included as part of discontinued operations
Accounts payable	$	—	$	22.0
Other current and non-current liabilities	3.4		50.8
Total liabilities classified as held for sale in the balance sheet	$	3.4	$	72.8

The following table summarizes significant cash and non-cash transactions of the CMDS business that are included within the consolidated statements of cash flows for the respective periods:



	Three Months Ended
	December 25, 2015		December 26, 2014
Depreciation	$	—	$	3.1
Amortization	—		0.7
Capital expenditures	1.6		1.7

All other notes to the consolidated financial statements that were impacted by this discontinued operation have been reclassified accordingly.

Mallinckrodt Baker

During fiscal 2010, the Specialty Chemicals business (formerly known as "Mallinckrodt Baker") was sold because its products and customer bases were not aligned with the Company's long-term strategic objectives. This business met the discontinued operations criteria and, accordingly, was included in discontinued operations for all periods presented. During the three months ended December 25, 2015 and December 26, 2014 the Company recorded gains, net of tax, of $0.4 million and $0.6 million, respectively. These gains were primarily related to the indemnification obligations to the purchaser, which are discussed in Note 15.