Discontinued Operations

12 Months Ended

Jun. 28, 2014

Discontinued Operations

Discontinued Operations

Note 19. Discontinued Operations

        During the second quarter of fiscal 2013, the Company closed the sale of the hologram business ("Hologram Business"), previously within the OSP reportable segment, to OpSec Security Inc. and received gross proceeds of $11.5 million in cash.

        In accordance with the applicable accounting guidance for the disposal of long-lived assets, the results of the Hologram Business are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented.

        Net revenue of the Hologram Business for fiscal 2013 and 2012 was $5.2 million, and $19.7 million, respectively. Net loss from discontinued operations was zero and $29.5 million for fiscal 2013 and 2012, respectively. Net loss from discontinued operations in fiscal 2012 primarily related to impairment charges on long-lived assets. There was no tax effect associated with the discontinued operation.

        During fiscal 2013 the Company recorded a gain of $0.6 million as a component of Loss from discontinued operations, net of tax on the Consolidated Statement of Operations in connection with the sale of the Hologram Business, calculated as follows (in millions):

Gross Proceeds	$	11.5
Less: carrying value of net assets		(10.6	)
Less: selling costs		(0.3	)
Gain	$	0.6

        The carrying value of the net assets sold as of October 12, 2012 are as follows (in millions):

	October 12, 2012
Accounts receivable, net	$	2.7
Inventories, net		4.4
Property, plant and equipment, net		0.8
Intangibles, net		5.8
Accounts payable and accrued expenses		(1.5	)
Other current and non-current liabilities		(1.6	)
Net assets sold	$	10.6