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Discontinuation of Business Unit, Sales of Assets and Business Units, and Goodwill
12 Months Ended
Dec. 29, 2018
Discontinuation of Business Units, Sales of Assets and Business Units, and Goodwill [Abstract]  
Discontinuation of Business Unit, Sales of Assets and Business Units, and Goodwill
Discontinuation of Business Unit, Sales of Assets and Business Units, and Goodwill

Discontinuation of Business Unit

In the second quarter of 2018, we made the strategic decision to discontinue our millimeter wave business, which included certain assets related to our Wireless products, and our Board of Directors approved a related internal restructuring plan. This action was designed to improve profitability, reduce our infrastructure costs, and re-focus on our core business activities. Approximately $24.1 million of total expense was recorded in our Consolidated Statements of Operations in fiscal 2018, including $11.9 million charged to Impairment of acquired intangible assets, $8.0 million charged to Cost of product revenue for inventory reserves, and $4.2 million charged to Restructuring charges for severance and other personnel costs, and for other asset restructuring. See "Note 6 - Inventories," "Note 10 - Impairment of Acquired Intangible Assets," and "Note 15 - Restructuring" for further details on the charges and costs related to the discontinuation of our millimeter wave business.

Sales of Assets and Business Units

On September 30, 2017, in conjunction with our June 2017 restructuring plan (see "Note 15 - Restructuring"), we sold 100% of the equity of our Hyderabad, India subsidiary and transferred certain assets related to our Simplay Labs testing and certification business to Invecas, Inc. The fair value of purchase price consideration was $5.3 million, which was comprised of $2.3 million of cash and a $3.0 million note receivable. In the third quarter of fiscal 2017, we recorded a $1.8 million loss on the sale, including a $2.2 million disposal of a relative fair value share of our Goodwill, which is included in Other (expense) income, net in the Consolidated Statements of Operations.

In April 2016, we sold Qterics to an unrelated third party for net proceeds of $2.0 million, net of cash sold, resulting in a gain of $2.6 million. The gain was included in Other (expense) income, net in the Consolidated Statements of Operations in the period of sale. In the second quarter of fiscal 2017, we received a final escrow payment of $0.3 million related to the sale of Qterics, which was included as a gain in Other (expense) income, net in the Consolidated Statements of Operations for the period of receipt.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. Goodwill is not amortized, but is instead tested for impairment annually or more frequently if certain indicators of impairment are present. We do not expect goodwill impairment to be tax deductible for income tax purposes.

We determined that the strategic decision to discontinue our millimeter wave business in the second quarter of 2018 constituted a triggering event related to goodwill, and we evaluated our goodwill balance as of June 30, 2018. We concluded that goodwill was not impaired, and no impairment charges relating to goodwill were recorded for fiscal 2018. No impairment charges relating to goodwill were recorded for either fiscal 2017 or fiscal 2016 as no indicators of impairment were present.

Our asset sale to Invecas, Inc. in September 2017 included a $2.2 million disposal of a relative fair value share of our Goodwill, which is included in Other (expense) income, net in the Consolidated Statements of Operations.