Discontinued Operations

12 Months Ended

Jan. 28, 2017

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

Our discontinued operations for 2016, 2015, and 2014, were comprised of the following:

(In thousands)	2016			2015			2014
Canadian operations	$	91		$	165		$	(35,998	)
Other	(32		)	(165		)	(239		)
Total income (loss) from discontinued operations, pretax	$	59		$	—		$	(36,237	)

Canadian Operations

During the fourth quarter of 2013, we announced our intention to wind down our Canadian operations. We began the wind down activities during the fourth quarter of 2013, which included the closing of our Canadian distribution centers. We completed the wind down activities during the first quarter of 2014, which included the closure of our Canadian stores and corporate offices. Therefore, we determined the results of our Canadian operations should be reported as discontinued operations. The results of our Canadian operations historically consisted of sales of product to retail customers, the costs associated with those products, and selling and administrative expenses, including personnel, purchasing, warehousing, distribution, occupancy and overhead costs. In the first quarter of 2014, the results of our Canadian operations also included contract termination costs of $23.0 million, severance charges of $2.2 million and a loss on the realization of our cumulative translation adjustment on our investment in our Canadian operations of $5.1 million.

In addition to the costs associated with our Canadian operations, we reclassified to discontinued operations the direct expenses incurred by our U.S. operations to facilitate the wind down. These costs primarily consist of professional fees. We also reclassified the income tax benefit that our U.S. operations was expected to, and did, generate as a result of the wind down of our Canadian operations, based principally on our ability to recover a worthless stock deduction in the foreseeable future. During 2016, 2015, and 2014, the amount of this income tax expense (benefit) that we recognized was approximately $0.0 million, $0.2 million, and $(13.8) million, respectively.

The loss from discontinued Canadian operations presented in our consolidated statements of operations was comprised of the following:

(In thousands)	2016			2015			2014
Net sales	$	—		$	—		$	6,040
Cost of sales (exclusive of depreciation expense shown separately below)	—			3			3,356
Gross margin	—			(3		)	2,684
Selling and administrative expenses	(62		)	(224		)	33,419
Depreciation expense	—			—			2
Operating profit (loss)	62			221			(30,737		)
Interest expense	—			—			(18		)
Other income (expense)	29			(56		)	(5,243		)
Income (loss) from discontinued operations before income taxes	91			165			(35,998		)
Income tax expense (benefit)	14			206			(13,771		)
Income (loss) from discontinued operations	$	77		$	(41	)	$	(22,227	)