

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 was 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 three and nine months ended June 24, 2016 and June 26, 2015 as presented in the consolidated statements of income and comprehensive income:



	Three Months Ended				Nine Months Ended
Major line items constituting income (loss) from discontinued operations	June 24, 2016		June 26, 2015		June 24, 2016			June 26, 2015
Net sales	$	0.7	$	102.2	$	61.0		$	312.1
Cost of sales	0.7		72.5		46.9			222.9
Selling, general and administrative expenses	—		21.8		20.1			71.8
Other	—		1.5		1.1			4.1
(Loss) income from discontinued operations	—		6.4		(7.1		)	13.3
Gain on disposal of discontinued operations	1.7		—		99.0			—
Income from discontinued operations, before income taxes	1.7		6.4		91.9			13.3
Income tax (benefit) expense	—		4.5		(2.9		)	5.4
Income from discontinued operations net of tax	$	1.7	$	1.9	$	94.8		$	7.9

During the three months ended June 24, 2016, the income tax impact was zero on the $1.7 million gain recognized on disposal. During the nine months ended June 24, 2016, there was income tax benefit of $0.7 million associated with the $99.0 million gain recognized on disposal and a $2.2 million benefit associated with the $7.1 million loss from discontinued operations. The tax impact of the gain recognized on disposal 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 June 24, 2016 and September 25, 2015:



	June 24, 2016		September 25, 2015
Carrying amounts of major classes of assets included as part of discontinued operations
Accounts receivable	$	—	$	68.5
Inventories	—		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	$	—	$	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	—		50.8
Total liabilities classified as held for sale in the balance sheet	$	—	$	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:



	Nine Months Ended
	June 24, 2016		June 26, 2015
Depreciation	$	—	$	8.7
Amortization	—		2.0
Capital expenditures	1.6		5.4

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 base 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 June 24, 2016 and June 26, 2015 the Company recorded gains, net of tax, of $1.9 million and $0.5 million, respectively. During the nine months ended June 24, 2016 and June 26, 2015, the Company recorded gains, net of tax, of $2.0 million and $0.9 million, respectively. These gains were primarily related to the indemnification obligations to the purchaser, which are discussed in Note 15.

Other: The Company previously accrued a liability, to the purchaser of a certain legal entity, to indemnify them for tax obligations that may have arisen should the tax basis of certain assets they acquired not be recognized. The Company believes that, under the terms of the agreement between the parties, this indemnification obligation has expired. As such, the Company eliminated this liability and recorded a $22.5 million benefit, during fiscal 2015, in discontinued operations within the consolidated and combined statement of income.