Discontinued Operations

3 Months Ended

Jan. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

One of the elements of the Company’s strategy to improve profitability involves divesting or exiting certain non-core businesses. In November 2013, the Company completed the sale of Mervin Manufacturing, Inc, a manufacturer of snowboards and related products under the "Lib-Technologies" and "GNU" brands, ("Mervin") for $58 million. In January 2014, the Company completed the sale of substantially all of the assets of Hawk Designs, Inc. ("Hawk"), its subsidiary that owned and operated the "Hawk" brand, for $19 million. These transactions resulted in an after-tax gain of approximately $38 million during the first quarter of fiscal 2014, which is included in income from discontinued operations in the table below. In December 2014, the Company sold its majority stake in U.K.-based Surfdome Shop, Ltd., a multi-brand e-commerce retailer, ("Surfdome") for net proceeds of approximately $16 million, which included payments from Surfdome for all outstanding loans and trade receivables. The sale resulted in an after-tax gain of $7 million in the first quarter of fiscal 2015, which is included in income from discontinued operations in the table below. Accordingly, each of the Company's Mervin, Hawk and Surfdome businesses were classified as "held for sale" as of October 31, 2014 and are presented as discontinued operations in the accompanying condensed consolidated financial statements for all periods presented. The Company’s sale of the Mervin and Hawk businesses generated income tax expense of approximately $10 million within discontinued operations during the first quarter of fiscal 2014. However, as the Company does not expect to pay income tax after application of available loss carry-forwards, an offsetting income tax benefit was recognized within continuing operations.

The operating results of discontinued operations for the three months endedJanuary 31,2015 and 2014 are as follows:

	Three Months Ended January 31,
In thousands	2015		2014
Revenues, net	$	13,239	$	20,162
Income before income taxes	6,785		48,094
Provision for income taxes	53		10,477
Income from discontinued operations	6,732		37,617
Less: net loss attributable to non-controlling interest	788		103
Income from discontinued operations attributable to Quiksilver, Inc.	$	7,520	$	37,720

There were no assets classified as held for sale at January 31, 2015. The components of major assets and liabilities held for sale at October 31, 2014 were as follows:

In thousands	October 31, 2014
Assets:
Inventories	$	19,659
Other	6,000
Total	$	25,659
Liabilities:
Accounts payable	$	12,520
Accrued liabilities	120
Deferred tax liabilities	626
Total	$	13,266

Total assets held for sale as of October 31, 2014 by segment were as follows:

In thousands	October 31, 2014
Americas	$	28
EMEA	25,631
APAC	—
Total	$	25,659