Discontinued Operations

12 Months Ended

Dec. 29, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Disposition of Businesses and Assets

As part of the Company’s continuing efforts to focus on higher growth opportunities, the Company has discontinued certain businesses. When the discontinued operations represented a strategic shift that will have a major effect on the Company's operations and financial statements, the Company has accounted for these businesses as discontinued operations and accordingly, has presented the results of operations and related cash flows as discontinued operations. Any business deemed to be a discontinued operation prior to the adoption of Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of An Entity, continues to be reported as a discontinued operation, and the results of operations and related cash flows are presented as discontinued operations for all periods presented. Any remaining assets and liabilities of these businesses have been presented separately, and are reflected within assets and liabilities from discontinued operations in the accompanying consolidated balance sheets as of December 29, 2019 and December 30, 2018.

The Company recorded the following pre-tax gains and losses, which have been reported as a net gain or loss on disposition of discontinued operations during the three fiscal years ended:

 

	December 29, 2019		December 30, 2018			December 31, 2017
	(In thousands)
(Loss) gain on disposition of the Medical Imaging business	$	—	$	(793	)	$	179,615
Loss on disposition of Fluid Sciences business	—		(66		)	—
(Loss) gain on disposition of discontinued operations before income taxes	$	—	$	(859	)	$	179,615

On May 1, 2017 (the "Closing Date"), the Company completed the sale of its Medical Imaging business to Varex Imaging Corporation ("Varex") pursuant to the terms of the Master Purchase and Sale Agreement, dated December 21, 2016 (the “Agreement”), by and between the Company and Varian Medical Systems, Inc. ("Varian") and the subsequent Assignment and Assumption Agreement, dated January 27, 2017, between Varian and Varex, pursuant to which Varian assigned its rights under the Agreement to Varex. On the Closing Date, the Company received consideration of approximately $277.4 million for the sale of the Medical Imaging business. During fiscal year 2017, the Company paid Varex $4.2 million to settle a post-closing

working capital adjustment. During fiscal year 2017, the Company recorded a pre-tax gain of $179.6 million and income tax expense of $43.1 million related to the sale of the Medical Imaging business in discontinued operations and dispositions. The corresponding tax liability was recorded within the other tax liabilities in the consolidated balance sheet, and the Company expects to utilize tax attributes to minimize the tax liability. Following the closing, the Company provided certain customary transitional services during a period of up to 12 months. Commercial transactions between the parties following the closing of the transaction were not significant.

During fiscal year 2018, the Company completed the sale of substantially all of the assets and liabilities related to its multispectral imaging business for aggregate consideration of $37.3 million, recognizing a pre-tax gain of $13.0 million. The pre-tax gain is included in interest and other expense, net in the consolidated statement of operations. The multispectral imaging business was a component of the Company's DAS segment. The divestiture of the multispectral imaging business has not been classified as a discontinued operation in this Form 10-K because the disposition does not represent a strategic shift that will have a major effect on the Company's operations and financial statements.

During fiscal year 2017, the Company sold Suzhou PerkinElmer Medical Laboratory Co., Ltd. ("Suzhou") for aggregate consideration of $2.3 million, recognizing a pre-tax loss of $1.1 million. The pre-tax loss is included in interest and other expense, net in the consolidated statement of operations. Suzhou was a component of the Company's Diagnostics segment. The divestiture of Suzhou has not been classified as a discontinued operation in this Form 10-K because the disposition does not represent a strategic shift that will have a major effect on the Company's operations and financial statements.

The summary pre-tax operating results of the discontinued operations were as follows during the three fiscal years ended:

	December 29, 2019		December 30, 2018		December 31, 2017
	(In thousands)
Revenue	$	—	$	—	$	44,343
Cost of revenue	—		—		32,933
Selling, general and administrative expenses	—		—		5,869
Research and development expenses	—		—		4,891
Restructuring and other costs, net	—		—		—
Income from discontinued operations before income taxes	$	—	$	—	$	650

The Company recorded a provision for (benefit from) income taxes of $0.2 million, $(1.3) million and $44.5 million on discontinued operations and dispositions in fiscal years 2019, 2018 and 2017, respectively.