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.

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.

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.

In the first quarter of 2026, the Company completed the sale of its remaining non-healthcare operations, which were not part of Sound United, and recognized a gain of $0.9 million, of which $0.6 million was related to the release of foreign currency translation gains from Accumulated Other Comprehensive Loss.

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 zero and $0.5 million in direct costs during each of the three months ended April 4, 2026 and March 29, 2025, 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
(in millions)	April 4, 2026		March 29, 2025
Revenues	$	0.1	$	146.7
Cost of sales	—		99.1
Intangible assets impairment charges	—		44.0
Gross profit	0.1		3.6
Selling, general and administrative expenses	—		40.1
Research and development expenses	0.2		9.3
Intangible assets impairment charges	—		251.0
Operating (loss)	(0.1)		(296.8)
Gain on disposition	0.3		—
Reclass of unrealized foreign currency translation gain upon disposition of discontinued operations	0.6		—
Other non-operating income (loss)	—		(4.2)

Income (loss) from discontinued operations, before income taxes	0.8		(301.0)
Provision (benefit) for income taxes	—		(83.1)
Income (loss) from discontinued operations, net of income taxes	$	0.8	$	(217.9)

Assets and liabilities of the discontinued operations of the non-healthcare business classified as held-for-sale in the condensed consolidated balance sheet as of January 3, 2026 consist of the following, which were disposed of as of April 4, 2026:


(in millions)	January 3, 2026
Cash and cash equivalents	$	1.0



Total current assets, held-for-sale	1.0






Other non-current assets	0.1
Total non-current assets, held-for-sale	0.1
Total assets held-for-sale - discontinued operations	$	1.1
Accounts payable	$	0.5
Accrued compensation	0.9

Other current liabilities	1.1
Total current liabilities, held-for-sale	2.5


Other non-current liabilities	0.1
Total non-current liabilities, held-for-sale	0.1
Total liabilities held-for-sale - discontinued operations	$	2.6