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DISCONTINUED OPERATIONS
6 Months Ended
Nov. 29, 2014
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS
During fiscal year 2011, we completed the sale of the assets primarily used or held for use in, and certain liabilities of, our RF, Wireless and Power Division ("RFPD"), as well as certain other Company assets, including our information technology assets, to Arrow Electronics, Inc. ("Arrow") in exchange for $238.8 million ("the Transaction"). In accordance with Accounting Standards Codification (“ASC”) 205-20, Presentation of Financial Statements - Discontinued Operations (“ASC 205-20”), we reported the financial results of RFPD as a discontinued operation.
Financial Summary – Discontinued Operations
Summary financial results for the three and six months ended November 29, 2014, and November 30, 2013, are presented in the following table (in thousands):

Three Months Ended
 
Six Months Ended

November 29, 2014
 
November 30, 2013
 
November 29, 2014
 
November 30, 2013
Net sales
$

 
$
178

 
$

 
$
264

Gross profit (loss) (1)

 
(55
)
 

 
(103
)
Selling, general, and administrative expenses (2)

 
117

 

 
149

Other expense

 

 

 
1

Income tax benefit (3)
(87
)
 
(65
)
 
(87
)
 
(135
)
Income (Loss) from discontinued operations, net of tax
$
87

 
$
(107
)
 
$
87

 
$
(118
)

Notes:
(1) Gross profit (loss) for fiscal year 2014 includes unabsorbed manufacturing labor and overhead expenses related to the Manufacturing Agreement with RFPD which ended March 1, 2014.
(2) Selling, General, and Administrative expenses relate primarily to professional fees for tax audits resulting from the Transaction.
(3) Income tax benefit relates to the reversal of tax reserves.
Net sales and gross profit (loss) for the three and six months ended November 30, 2013, reflect our financial results relating to the Manufacturing Agreement with Arrow that we entered into in connection with the Transaction. The Manufacturing Agreement ended on March 1, 2014.
Assets and liabilities classified as discontinued operations on our consolidated balance sheets as of November 29, 2014, and May 31, 2014, include the following (in thousands):

November 29, 2014
 
May 31, 2014
Inventories
$

 
$
18

Discontinued operations - Assets
$

 
$
18

 
 
 
 
Accrued liabilities - current
$

 
$
7

Accrued liabilities - non-current

 
130

Discontinued operations - Liabilities
$

 
$
137