Note 16 — Discontinued Operations
On May 6, 2011, the Company completed the sale of substantially all of its external storage systems business to NetApp for $480.0 million in cash. The strategic decision to exit the external storage systems business was based on the Company’s expectation that long-term shareholder value could be maximized by becoming a pure-play semiconductor company. Under the terms of the agreement, NetApp purchased substantially all the assets of the Company’s external storage systems business, which developed and delivered external storage systems products and technology to a wide range of partners who provide storage solutions to end customers. As part of the transaction, the Company provided transitional services to NetApp. The purpose of these services was to provide short-term assistance to the buyer in assuming the operations of the purchased business.
Following is selected financial information included in income from discontinued operations:
| Year Ended December 31, 2011 |
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| (In thousands) | ||||
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Revenues |
$ | 210,591 | ||
|
Loss before gain on sale of external storage systems business and income taxes |
$ | (27,579 | ) | |
|
Gain on sale of external storage systems business |
260,066 | |||
|
Benefit from income taxes |
(8,992 | ) | ||
|
|
|
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Income from discontinued operations |
$ | 241,479 | ||
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|
|
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There was no income or loss from discontinued operations for the years ended December 31, 2013 or 2012.
During the year ended December 31, 2011, the Company recognized $40.9 million of restructuring expense related to the external storage systems business as the Company terminated employees, closed several office locations, terminated contracts, discontinued various development projects and wrote off intangible assets and software due to the cancellation of development programs. Further, the Company released $21.0 million of deferred tax liabilities related to tax deductible goodwill in connection with the sale of the external storage systems business in 2011, which is included in the $9.0 million benefit from income taxes.
In 2011, stock-based compensation expense related to the external storage systems business was a benefit of $0.6 million due to the reversal of previously recognized expense for awards that did not vest as a result of the external storage systems business disposition.