Discontinued Operations

12 Months Ended

Jun. 27, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

In fiscal year 2014, we sold our Direct Sale Program business ("Program Business") and Ireland business ("Ireland Business"), which met the requirements to be presented as discontinued operations and accordingly, the results of these operations have been reclassified to discontinued operations for fiscal years 2014 and 2013 in the Consolidated Statements of Operations. Both of these businesses were previously included in our United States operating segment. There were no discontinued operations for fiscal year 2015.

On December 31, 2013, we sold our Program Business. As a result of this agreement, we reduced the carrying value of the Program Business net assets as of December 28, 2013 to equal the estimated net proceeds from the transaction and recorded a corresponding pretax loss on the sale of $12,319 in the three months ended December 28, 2013, which is included in "Loss on sale and other adjustments, net of tax" in the table below. The loss on the sale was based on a preliminary estimate, which was finalized during the three months ended March 29, 2014. Separately, we completed the sale of our Ireland Business during the second quarter of fiscal year 2014 and recognized a pretax loss on the sale of $603, which has also been included in "Loss on sale and other adjustments, net of tax" in the table below. Total aggregate gross proceeds from the sales were $6,641.

In fiscal year 2013, as part of our annual fourth quarter impairment test and changes in our Program Business, we identified certain impairment indicators that required us to perform an assessment of the recoverability of the long-lived assets related to the business. As part of this assessment, we determined that the carrying value of certain long-lived assets exceeded their fair values. The estimated fair values were determined using a discounted cash flow approach. This analysis resulted in the impairment of certain long-lived assets, including computer software, customer contracts and other property and equipment of $3,601. In addition, the changes to our Program Business noted above resulted in an evaluation of the recoverability of related inventory. As part of this evaluation we incurred a charge of $3,046 to reduce inventory to its net realizable value based on our updated business plan. We also incurred professional services costs of $25 related to the changes.

Summarized financial information for discontinued operations is shown below:

	For the Fiscal Years
	2014			2013
Rental and direct sale revenue from discontinued operations	$	17,844		$	41,710
Loss before income taxes	(279		)	(5,982		)
Loss, net of tax	(141		)	(3,786		)
Loss on sale and other adjustments, net of tax	(8,252		)	—
Net loss from discontinued operations, net of tax	$	(8,393	)	$	(3,786	)

	For the Fiscal Year
	2014
Loss in excess of carrying value of Program Business	$	(11,559	)
Transaction and related costs	(675		)
Loss on sale of Program Business	(12,234		)
Loss on sale of Ireland Business	(603		)
Pretax loss on sale of businesses	(12,837		)
Income tax benefit	4,585
Loss on sale and other adjustments, net of tax	$	(8,252	)