Discontinued Operations

6 Months Ended

Jun. 29, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

As part of the Company’s continuing efforts to focus on higher growth opportunities, the Company has discontinued certain businesses. 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 for all periods presented. Any remaining assets and liabilities of these businesses have been presented separately, and are reflected within the assets and liabilities from discontinued operations in the accompanying condensed consolidated balance sheets as of June 29, 2014 and December 29, 2013.

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:

	Three Months Ended					Six Months Ended
	June 29, 2014			June 30, 2013		June 29, 2014			June 30, 2013
	(In thousands)
Loss on disposition of microarray-based diagnostic testing laboratory	$	(257	)	$	—	$	(257	)	$	—
Gain on disposition of Photoflash business	—			369		—			493
(Loss) gain on disposition of other discontinued operations	(45		)	244		(117		)	28
(Loss) gain on disposition of discontinued operations before income taxes	$	(302	)	$	613	$	(374	)	$	521

In May 2014, the Company’s management approved the shutdown of its microarray-based diagnostic testing laboratory in the United States, which has been reported within the Human Health segment. The Company determined that, with the lack of adequate reimbursement from health care payers, the microarray-based diagnostic testing laboratory in the United States would need significant investment in its operations to reduce costs in order to effectively compete in the market. The shutdown of the microarray-based diagnostic testing laboratory in the United States resulted in a $0.3 million pre-tax loss related to the disposal of fixed assets and inventory during the three months ended June 29, 2014.

In June 2010, the Company sold its Photoflash business, which was included in the Company's Environmental Health segment, for $13.5 million, including an adjustment for net working capital, plus potential additional contingent consideration. During the six months ended June 30, 2013, the Company recognized a pre-tax gain of $0.5 million for contingent consideration related to this sale. This gain was recognized as a gain on disposition of discontinued operations.

During the first six months of both fiscal years 2014 and 2013, the Company settled various commitments related to the divestiture of other discontinued operations. The Company recognized pre-tax gains and losses in the first six months of both fiscal years 2014 and 2013. These gains and losses were recognized as a (loss) gain on disposition of discontinued operations.

Summary pre-tax operating results of the discontinued operations for the periods prior to disposition, which included a $1.0 million pre-tax charge related to workforce reductions in the microarray-based diagnostic testing laboratory in the United States during the second quarter of fiscal year 2014, were as follows:

	Three Months Ended						Six Months Ended
	June 29, 2014			June 30, 2013			June 29, 2014			June 30, 2013
	(In thousands)
Sales	$	426		$	2,624		$	1,720		$	5,059
Costs and expenses	2,510			3,176			4,834			6,404
Loss from discontinued operations before income taxes	$	(2,084	)	$	(552	)	$	(3,114	)	$	(1,345	)

The Company recorded a tax benefit of $0.9 million and a tax benefit of $1.2 million on discontinued operations and dispositions for the three and six months ended June 29, 2014, respectively. The Company recorded a tax benefit of $0.6 million and a tax benefit of $0.9 million on discontinued operations and dispositions for the three and six months ended June 30, 2013, respectively.