 |
Notes to Consolidated Financial Statements
|
|
On August 31, 2005, the Company completed the sale of the Clontech unit of the Biosciences segment for $62,100 and recognized a gain on sale of $13,336 ($28,533 after taxes). In September 2004, the Company recorded a charge of approximately $124 million ($116 million after taxes) to write down the net assets of Clontech to their estimated fair value. Clontech’s results of operations are reported as discontinued operations for all periods presented in the accompanying Consolidated Statements of Income. Clontech’s statement of financial position is reported separately as Assets held for sale and Liabilities held for sale, respectively, in the accompanying Consolidated Balance Sheet at September 30, 2004.
Results of discontinued operations for the years ended September 30 were as follows:
| |
2005(A) |
2004 |
2003 |
|
| Revenues |
$ |
49,670 |
|
$ |
60,513 |
|
$ |
64,431 |
|
|
Income (loss) from discontinued
operations before income taxes |
|
15,541 |
|
|
(123,063 |
) |
|
(12,252 |
) |
| Income tax benefit |
|
14,439 |
|
|
7,961 |
|
|
4,378 |
|
|
Net income (loss) from
discontinued operations |
$ |
29,980 |
|
$ |
(115,102 |
) |
$ |
(7,874 |
) |
|
(A) Includes operations through August 31, 2005.
In 2004, the statutory tax rate of 35.0% was reduced to an effective tax rate benefit of 6.5% as a result of the assumption of an asset sale, which reflected the tax impact of the non-deductibility of a goodwill write-off of 26.3%, as well as other items of 2.2%. In 2005, the effective tax rate benefit of 92.9% reflected the consummation of the sale of Clontech as a sale of stock. In aggregate, the effective tax rate benefit realized of 20.8% on the sale primarily reflected a valuation allowance related to the capital loss on the sale of stock of 35.0%, partially offset by the write-off of deferred tax liabilities of 17.1% associated with basis adjustments and other items of 3.7%.
Assets held for sale at September 30 were as follows:
| |
|
2004 |
|
|
| Current assets |
$ |
26,676 |
|
| Property, plant and equipment |
|
9,562 |
|
| Core and developed technology |
|
15,256 |
|
| Other intangibles |
|
8,785 |
|
| Other assets |
|
3,415 |
|
|
| |
$ |
63,694 |
|
|
Liabilities held for sale at September 30 were as follows:
| |
|
2004 |
|
|
| Current liabilities |
$ |
13,522 |
|
| Other liabilities |
|
659 |
|
|
| |
$ |
14,181 |
|
|
|
