Discontinued Operations

9 Months Ended

Sep. 27, 2025

Discontinued Operations and Disposal Groups [Abstract]

18. Discontinued Operations

In the third quarter of 2024, the Company announced that the Board remained committed to the previously announced review of alternatives for both the consumer audio and consumer healthcare businesses, and that the Board had engaged Centerview Partners and Morgan Stanley as financial advisors and Sullivan & Cromwell as a legal advisor. As of December 28, 2024, the Company’s non-healthcare consumer business segment remained part of the Company’s continuing operations. The sale process progressed in 2025, and during the first quarter of 2025, the non-healthcare business was classified as held-for-sale and reported in discontinued operations.

The accounting criteria for reporting the non-healthcare business as a discontinued operation were met when the Board resolved to sell the non-healthcare business during the first quarter of 2025. Furthermore, there was a strategic shift that is expected to have a major effect on the Company’s overall operations and financial results. Accordingly, the accompanying condensed consolidated financial statements for all periods presented, effective as of the first quarter of 2025, reflect the non-healthcare business as a discontinued operation. Applicable amounts in the prior year have been recast to conform to this discontinued operations presentation.

On May 6, 2025, the Company entered into a definitive agreement with Harman International Industries, Incorporated, a wholly-owned subsidiary of Samsung Electronics Co., Ltd., to sell Sound United for an aggregate purchase price of $350 million in cash, subject to certain adjustments. On September 23, 2025, the Company completed the sale and received net cash of approximately $328 million, pending final customary adjustments.

Interest expense from specifically identifiable debt associated with the non-healthcare business has been included in discontinued operations. No interest expense from the healthcare business was allocated to discontinued operations. As a result of the separation of the non-healthcare business, the Company incurred $0.4 million and $0.6 million in direct costs during each of the three months ended September 27, 2025 and September 28, 2024, and $1.5 million and $1.8 million in direct costs during each of the nine months ended September 27, 2025 and September 28, 2024, respectively, which are reflected in earnings from discontinued operations, net of income taxes in the accompanying condensed consolidated statements of operations. These costs primarily relate to professional fees incurred in connection with the separation.

The key components of income from the non-healthcare business discontinued operations were as follows:


	Three Months Ended				Nine Months Ended
(in millions)	September 27, 2025		September 28, 2024		September 27, 2025		September 28, 2024
Revenues	$	126.7	$	161.3	$	414.9	$	466.9
Cost of sales	78.2		110.3		264.5		333.2
Intangible assets impairment charges	—		—		44.0		—
Gross profit	48.5		51.0		106.4		133.7
Selling, general and administrative expenses	32.9		48.0		108.0		143.6
Research and development expenses	9.2		11.1		26.2		31.0
Intangible assets impairment charges	—		—		251.0		—
Operating income (loss)	6.4		(8.1)		(278.8)		(40.9)
Loss on disposition	(111.0)		—		(111.0)		—
Reclass of unrealized foreign currency translation losses upon disposition of discontinued operations	(44.5)		—		(44.5)		—
Other non-operating income (loss)	2.3		(9.5)		(4.3)		(4.3)

Loss from discontinued operations, before income taxes	(146.8)		(17.6)		(438.6)		(45.2)
Provision (benefit) for income taxes	7.3		(3.1)		(73.0)		(8.7)
Loss from discontinued operations, net of income taxes	$	(154.1)	$	(14.5)	$	(365.6)	$	(36.5)

Assets and liabilities of the discontinued operations of the non-healthcare business classified as held-for-sale in the condensed consolidated balance sheets as of September 27, 2025 and December 28, 2024 consist of the following:


(in millions)	September 27, 2025		December 28, 2024
Cash and cash equivalents	$	0.6	$	54.0
Trade receivable, net of credit allowances	—		143.3
Inventories, net	0.2		164.4
Other current assets	0.1		41.7
Total current assets, held-for-sale	0.9		403.4
Property and equipment, net	—		44.6
Intangible assets, net	1.3		496.6



Deferred tax assets	—		25.2
Other non-current assets	0.1		48.8
Total non-current assets, held-for-sale	1.4		615.2
Total assets held-for-sale - discontinued operations	$	2.3	$	1,018.6
Accounts payable	$	—	$	123.8
Accrued compensation	0.7		4.9
Deferred revenue and other contract liabilities, current	—		18.6
Other current liabilities	0.6		70.4
Total current liabilities, held-for-sale	1.3		217.7
Long-term debt	—		13.6
Deferred tax liabilities	—		99.9
Other non-current liabilities	0.1		57.2
Total non-current liabilities, held-for-sale	0.1		170.7
Total liabilities held-for-sale - discontinued operations	$	1.4	$	388.4

During the first quarter of 2025, the Company determined the non-healthcare business was classified as held-for-sale and was accordingly measured at the lower of its carrying amount or fair value less cost to sell in accordance with ASC 360: Impairment Testing: Long-lived Assets Classified as Held and Used (ASC 360); furthermore, the carrying amount of any assets not covered by ASC 360 included in this disposal group is adjusted in accordance with other applicable GAAP before measuring the fair value less cost to sell of the disposal group. All initial or subsequent adjustments to the carrying amount of a component as a result of such measurement is classified in discontinued operations. During the first quarter 2025, the Company recorded intangible asset write-downs of approximately $44.0 million within cost of sales, and approximately $251.0 million within operating expenses.

Determining the fair value of a reporting unit is judgmental and involves the use of significant estimates and assumptions, which include the discount rate and forecasted revenue growth rates and operating margins, to calculate projected future discounted cash flows. The non-healthcare forecasted revenue growth rates and operating margins assume recovery from the current business downturn while also employing strategies to expand in key market segments.

These fair value measurements require significant judgments using Level 3 inputs, such as discounted projected cash flows, which are not observable from the market, directly or indirectly