

3.	Discontinued Operations

Discontinued Operations

Nuclear Imaging: During the fourth quarter of fiscal 2016, the Company announced that it had entered into a definitive agreement to sell its Nuclear Imaging business to IBAM. The Nuclear Imaging business was deemed to be held for sale and the financial results of this business are presented as a discontinued operation. The sale was completed on January 27, 2017.

The following table summarizes the financial results of the Nuclear Imaging business for the three months ended December 30, 2016 and December 25, 2015 as presented in the consolidated statements of income:



	Three Months Ended
Major line items constituting income from discontinued operations	December 30, 2016		December 25, 2015
Net sales	$	99.4	$	103.6
Cost of sales	44.7		62.8
Selling, general and administrative	16.4		19.2
Restructuring charges, net	—		2.2
Other	0.2		2.1
Income from discontinued operations	38.1		17.3
Income tax expense	15.3		5.2
Income from discontinued operations, net of income taxes	$	22.8	$	12.1

The income tax expense for the three months ended December 30, 2016 of $15.3 million was impacted by tax expense of $4.4 million associated with the rate difference between United Kingdom ("U.K.") and non-U.K. jurisdictions, $3.3 million of tax expense associated with accrued income tax liabilities and uncertain tax positions, and $0.1 million of tax expense associated with permanently nondeductible, nontaxable, and other items. The income tax expense for the three months ended December 25, 2015 of $5.2 million was impacted by $1.9 million of tax expense associated with the rate difference between U.K. and non-U.K. jurisdictions and $0.2 million of tax expense associated with permanently nondeductible, nontaxable, and other items. The three months ended December 30, 2016 reflects $15.8 million of non-U.K. current income tax expense and $0.5 million of non-U.K. deferred income tax benefit. The three months ended December 25, 2015 reflects $5.6 million of non-U.K. current income tax expense and $0.4 million of non-U.K. deferred income tax expense.

The following table summarizes the assets and liabilities of the Nuclear Imaging business that are classified as held for sale on the consolidated balance sheets as of December 30, 2016 and September 30, 2016:



	December 30, 2016		September 30, 2016
Carrying amounts of major classes of assets included as part of discontinued operations
Accounts receivable	$	49.6	$	53.7
Inventories	20.0		19.0
Property, plant and equipment, net	188.7		189.0
Other current and non-current assets	52.6		47.1
Total assets classified as held for sale in the balance sheet	$	310.9	$	308.8

Carrying amounts of major classes of liabilities included as part of discontinued operations
Accounts payable	$	19.7	$	17.7
Other current and non-current liabilities	100.6		103.1
Total liabilities classified as held for sale in the balance sheet	$	120.3	$	120.8

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



	Three Months Ended
	December 30, 2016		December 25, 2015
Depreciation	$	—	$	6.6
Capital expenditures	2.0		1.9

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

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.

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 months ended December 30, 2016 and December 25, 2015 as presented in the consolidated statements of income and comprehensive income:



	Three Months Ended
Major line items constituting income from discontinued operations	December 30, 2016		December 25, 2015
Net sales	$	—	$	59.2
Cost of sales	—		44.8
Selling, general and administrative expenses	—		18.2
Other	—		1.1
(Loss) from discontinued operations	—		(4.9		)
Gain on disposal of discontinued operations	—		97.0
Income from discontinued operations, before income taxes	—		92.1
Income tax benefit	—		(2.7		)
Income from discontinued operations net of tax	$	—	$	94.8

The income tax benefit for the three months ended December 25, 2015 of $2.7 million was impacted by a $0.7 million benefit to adjust the fiscal 2015 accrual for taxes paid in connection with the $97.0 million gain on the disposition and a $2.0 million benefit related to the $4.9 million loss from discontinued operations.

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 30, 2016		December 25, 2015
Depreciation	$	—	$	—
Amortization	—		—
Capital expenditures	—		1.6

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