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 its non-healthcare business for an aggregate purchase price of $350 million in cash, subject to certain adjustments. The transaction is subject to the satisfaction or waiver of certain conditions, and is expected to close by the end of 2025, subject to receiving required regulatory approval.

Interest expense from specifically identifiable debt associated with the non-healthcare business has been included in discontinued operations. As a result of the separation of the non-healthcare business, the Company incurred $0.3 million and $0.4 million in direct costs during each of the three months ended June 28, 2025 and June 29, 2024, and $1.1 million and $1.2 million in direct costs during each of the six months ended June 28, 2025 and June 29, 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.


	Three Months Ended				Six Months Ended
(in millions)	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Revenues	$	141.5	$	152.4	$	288.2	$	305.6
Cost of sales	87.2		104.8		186.3		223.0
Intangible assets impairment charges	—		—		44.0		—
Gross profit	54.3		47.6		57.9		82.6
Selling, general and administrative expenses	35.2		51.4		75.2		95.5
Research and development expenses	7.6		9.8		17.0		19.9
Intangible assets impairment charges	—		—		251.0		—
Operating income (loss)	11.5		(13.6)		(285.3)		(32.8)
Non-operating (loss) income	(2.3)		2.6		(6.5)		5.2
Income (loss) from discontinued operations, before income taxes	9.2		(11.0)		(291.8)		(27.6)
Provision (benefit) for income taxes	2.8		(2.2)		(80.3)		(5.6)
Income (loss) from discontinued operations, net of income taxes	$	6.4	$	(8.8)	$	(211.5)	$	(22.0)

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 June 28, 2025 and December 28, 2024 consist of the following:


(in millions)	June 28, 2025		December 28, 2024
Cash and cash equivalents	$	43.5	$	54.0
Trade receivable, net of credit allowances	98.0		143.3
Inventories, net	206.1		164.4
Other current assets	46.2		41.7
Total current assets, held-for-sale	393.8		403.4
Property and equipment, net	47.4		44.6
Intangible assets, net	240.6		496.6



Deferred tax assets	23.0		25.2
Other non-current assets	50.8		48.8
Total non-current assets, held-for-sale	361.8		615.2
Total assets held-for-sale - discontinued operations	$	755.6	$	1,018.6
Accounts payable	$	107.1	$	123.8
Accrued compensation	3.7		4.9
Deferred revenue and other contract liabilities, current	13.2		18.6
Other current liabilities	68.8		70.4
Total current liabilities, held-for-sale	192.8		217.7
Long-term debt	13.0		13.6
Deferred tax liabilities	26.5		99.9
Other non-current liabilities	53.0		57.2
Total non-current liabilities, held-for-sale	92.5		170.7
Total liabilities held-for-sale - discontinued operations	$	285.3	$	388.4

During the first quarter of 2025, the Company determined the non-healthcare business is classified as held-for-sale and is 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. If future actual results adversely deviate from the forecast, assumptions or probabilities in the analysis, there will be a materially different assessment. As such, the Company will continue to monitor events occurring or circumstances changing which may necessitate further impairment assessments for intangibles and other long-lived assets.