|
Thousands of dollars, except per-share amounts and numbers of shares
| 18 |
Discontinued Operations |
On September 28, 2004, the Company's Board of Directors
approved a plan to sell the Clontech unit of the BD Biosciences
segment. The Company recorded a charge of approximately
$124 million ($115 million after taxes) in connection with the
planned sale. The charge relates to the write down of Clontech
net assets to their estimated fair value. Clontech's results of
operations are now reported as Discontinued Operations for all
periods presented in the accompanying Consolidated Statements
of Income. Clontech's statement of financial position has been
reclassified as Assets held for sale and Liabilities held for
sale, respectively, in the accompanying Consolidated Balance
Sheets for all periods presented.
Results of Discontinued Operations for the years ended
September 30, 2004, 2003 and 2002 are as follows:
| |
|
2004 |
|
|
2003 |
|
|
2002 |
|
 |
| Revenues |
$ |
60,513 |
|
$ |
64,431 |
|
$ |
72,710 |
|
|
Income (loss) from operations |
$ |
1,037 |
|
$ |
(5,278 |
) |
$ |
1,122 |
|
| Loss on write down of net assets |
|
(124,100 |
) |
|
(6,974 |
) |
|
— |
|
|
Loss (income) from discontinued
operations before income taxes |
|
(123,063 |
) |
|
(12,252 |
) |
|
1,122 |
|
| Income tax benefit (provision) |
|
7,961 |
|
|
4,378 |
|
|
(492 |
) |
|
Net (loss) income from
discontinued operations |
$ |
(115,102 |
) |
$ |
(7,874 |
) |
$ |
630 |
|
|
Assets held for sale included the following at September 30:
| |
|
2004 |
|
|
2003 |
|
|
| Current assets |
$ |
26,676 |
|
$ |
30,413 |
|
| Property, plant and equipment |
|
9,562 |
|
|
12,980 |
|
| Goodwill |
|
— |
|
|
90,934 |
|
| Core and developed technology |
|
15,256 |
|
|
49,445 |
|
| Other intangible assets |
|
8,785 |
|
|
9,175 |
|
| Other assets |
|
3,415 |
|
|
2,356 |
|
|
| Assets held for sale |
$ |
63,694 |
|
$ |
195,303 |
|
|
Liabilities held for sale included the following at September 30:
| |
|
2004 |
|
|
2003 |
|
|
| Current liabilities |
$ |
13,522 |
|
$ |
9,046 |
|
| Long-term liabilities |
|
659 |
|
|
16,068 |
|
|
| Liabilities held for sale |
$ |
14,181 |
|
$ |
25,114 |
|
|
The statutory tax rate of 35.0% is reduced in 2004 by
26.3% relating to the non-deductibility of the goodwill writeoff,
and 2.2% of other items, net to arrive at the effective tax
rate of 6.5%.
The (benefit) provision for income taxes related to discontinued
operations is composed of the following charges (benefits):
| |
|
2004 |
|
|
2003 |
|
|
2002 |
|
|
Current:
Domestic:
Federal |
$ |
3,351 |
|
$ |
(356 |
) |
$ |
(1,443 |
) |
State and local, including
Puerto Rico |
|
— |
|
|
— |
|
|
— |
|
| Foreign |
|
4,188 |
|
|
2,928 |
|
|
3,105 |
|
|
| |
|
7,539 |
|
|
2,572 |
|
|
1,662 |
|
|
Deferred:
Domestic |
|
(15,500 |
) |
|
(6,950 |
) |
|
(1,170 |
) |
| Foreign |
|
— |
|
|
— |
|
|
— |
|
|
| |
|
(15,500 |
) |
|
(6,950 |
) |
|
(1,170 |
) |
|
| |
$ |
(7,961 |
) |
$ |
(4,378 |
) |
$ |
492 |
|
|
The components of (Loss) Income from Discontinued
Operations Before Tax follow:
| |
|
2004 |
|
|
2003 |
|
|
2002 |
|
|
| Domestic, including Puerto Rico |
$ |
(134,885 |
) |
$ |
(20,226 |
) |
$ |
(7,257 |
) |
| Foreign |
|
11,822 |
|
|
7,974 |
|
|
8,379 |
|
|
| |
$ |
(123,063 |
) |
$ |
(12,252 |
) |
$ |
1,122 |
|
|
|
