Discontinued Operations

12 Months Ended

Oct. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

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 $30 million during fiscal 2014, which is included in income from discontinued operations in the table below. The Company’s sale of the Mervin and Hawk businesses generated income tax expense of approximately $19 million within discontinued operations during fiscal 2014. However, as the Company did not expect to pay income tax after application of available loss carry-forwards, an offsetting income tax benefit was recognized within continuing operations.

During fiscal 2014, the Company recorded non-cash impairment charges totaling $19 million in discontinued operations to write-down to their estimated fair value the goodwill and intangible assets of its U.K.-based Surfdome Shop, Ltd., a multi-brand e-commerce retailer, ("Surfdome"). In fiscal 2014, the operations of Surfdome generated a tax benefit of $3 million. In December 2014, the Company sold its majority stake in Surfdome for net proceeds of approximately $16 million, which included payments from Surfdome for all outstanding loans and trade receivables. The sale in fiscal 2015 resulted in an after-tax gain of $7 million, which is included in income from discontinued operations in the table below.

Each of the Company’s Mervin, Hawk and Surfdome businesses were classified as “held for sale” and are presented as discontinued operations in the accompanying consolidated financial statements for all periods presented. The operating results of discontinued operations were as follows:

	Year Ended October 31,
In thousands	2015		2014		2013
Revenues, net	$	13,239	$	60,605	$	83,209
Income before income taxes	6,785		25,355		9,766
Provision for income taxes	53		15,915		3,880
Income from discontinued operations	6,732		9,440		5,886
Less: net loss attributable to non-controlling interest	788		9,530		315
Income from discontinued operations attributable to Quiksilver, Inc.	$	7,520	$	18,970	$	6,201

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

In thousands	October 31, 2014
Assets:
Inventories, net	$	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