Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v2.4.0.6
Discontinued Operations
 6 Months Ended
Mar. 25, 2012
Notes to Financial Statements [Abstract]  
Note 8 - Discontinued Operations
Note 8 — Discontinued Operations
On December 27, 2011, the Company completed the sale of substantially all of its 700 MHz spectrum for $1.9 billion, and as a result, the Company recognized a gain in discontinued operations of $1.2 billion during the three months ended March 25, 2012. Since the shut down of the FLO TV business and network on March 27, 2011, the Company has been working to sell the remaining assets and exit contracts. All remaining assets have been considered disposed of since March 27, 2011. Accordingly, the results of operations of the FLO TV business are presented as discontinued operations. Income (loss) from discontinued operations includes share-based payments and excludes certain general corporate expenses allocated to the FLO TV business during the periods presented.
Summarized results from discontinued operations were as follows (in millions):
 
Three Months Ended
 
Six Months Ended
 
March 25, 2012
 
March 27, 2011
 
March 25, 2012
 
March 27, 2011
Revenues
$
—


$
4


$
—


$
4

Income (loss) from discontinued operations
$
1,175


$
(361
)

$
1,167


$
(502
)
Income tax (expense) benefit
(414
)

92


(411
)

151

Discontinued operations, net of income taxes
$
761


$
(269
)

$
756


$
(351
)
At March 25, 2012, total assets and liabilities of the discontinued operations in the condensed consolidated balance sheet were $135 million and $209 million, respectively, consisting primarily of capital lease assets and liabilities of $119 million and $137 million, respectively. The Company has a significant number of site leases, and the Company has corresponding capital lease assets, capital lease liabilities and asset retirement obligations (Note 6).
Restructuring activities under the Company’s plan related to discontinued operations are expected to be substantially complete by the end of fiscal 2012 as the Company continues to negotiate the exit of certain contracts and removes certain of its equipment from the network sites. The restructuring liability, which is reported as a component of other liabilities, consisted of contract termination costs of $37 million and other costs of $2 million at March 25, 2012. During the six months ended March 25, 2012, the Company made payments on amounts previously accrued of $4 million.