Assets Held for Sale and Discontinued Operations

3 Months Ended

Apr. 04, 2015

Assets Held for Sale and Discontinued Operations

Assets Held for Sale and Discontinued Operations

Note 2.  Assets Held for Sale and Discontinued Operations

Assets Held for Sale

In February 2015, we entered into an agreement to sell certain assets, and transfer certain liabilities, of a product line from our Retail Branding and Information Solutions reportable segment. This transaction, which is subject to customary closing conditions, is expected to be completed in the second quarter of 2015 for a sale price that is subject to working capital and other closing adjustments.  The assets and liabilities of the product line were presented as “held for sale” in the unaudited Condensed Consolidated Balance Sheet as of April 4, 2015.

We recorded an impairment charge of approximately $2 million related to certain long-lived assets of this product line during the three months ended April 4, 2015.  This loss was included in “Other expense, net” in the unaudited Consolidated Statements of Income.

Discontinued Operations

During the three months ended March 29, 2014, loss from discontinued operations, net of tax, included costs related to the resolution of certain post-closing adjustments from the sale of our former Office and Consumer Products (“OCP”) and Designed and Engineered Solutions (“DES”) businesses. We continue to be subject to certain indemnification obligations under the terms of the purchase agreement. In addition, the tax liability associated with the sale is subject to completion of tax return filings in certain foreign jurisdictions where we operated the OCP and DES businesses.