Discontinued Operations

As part of the Company’s acquisition of Hanes Australasia in 2016, the Company acquired Hanes Australasia’s legacy Dunlop Flooring and Tontine Pillow businesses. The Company concluded that these businesses were not a strategic fit; therefore, the decision was made to divest of the businesses.

In February 2017, the Company sold its Dunlop Flooring business for AUD$34,564 ($26,219) in net cash proceeds at the time of sale, with an additional AUD$1,334 ($1,012) of proceeds received in April 2017 related to a working capital adjustment, resulting in a pre-tax loss of AUD$2,715 ($2,083). US dollar equivalents are based on exchange rates on the date of the sale transaction. The Dunlop Flooring business was reported as part of discontinued operations since the date of acquisition.

In March 2017, the Company sold its Tontine Pillow business for AUD$13,500 ($10,363) in net cash proceeds at the time of sale. A working capital adjustment of AUD$966 ($742) was paid to the buyer in April 2017, resulting in a net pre-tax gain of AUD$2,415 ($1,856). US dollar equivalents are based on exchange rates on the date of the sale transaction. The Tontine Pillow business was reported as part of discontinued operations since the date of acquisition.

The operating results of these discontinued operations only reflect revenues and expenses that are directly attributable to these businesses that were eliminated from ongoing operations. The key components from discontinued operations related to the Dunlop Flooring and Tontine Pillow businesses were as follows:



	Years Ended
	December 30, 2017			December 31, 2016
Net sales	$	6,865		$	34,698
Cost of sales	4,507			22,554
Gross profit	2,358			12,144
Selling, general and administrative expenses	3,729			8,632
Operating profit (loss)	(1,371		)	3,512
Other expenses	303			1,106
Net loss on disposal of business	242			—
Income (loss) from discontinued operations before income tax expense	(1,916		)	2,406
Income tax expense (benefit)	181			(49		)
Net income (loss) from discontinued operations, net of tax	$	(2,097	)	$	2,455

All assets and liabilities of discontinued operations were sold in 2017. Assets and liabilities of discontinued operations classified as held for sale in the consolidated balance sheet as of December 31, 2016 consisted of the following:



Trade accounts receivable, net	$	10,139
Inventories	10,691
Property, net	3,630
Trademarks and other identifiable intangibles, net	14,929
Goodwill	10,479
Accounts payable and accrued liabilities	(8,257		)
Net other assets and liabilities	(5,180		)
Net assets of discontinued operations	$	36,431

For the years ended December 30, 2017 and December 31, 2016, there were no material amounts of depreciation, amortization, capital expenditures, or significant operating or investing non-cash items related to discontinued operations.