Discontinued Operations

3 Months Ended

May 05, 2018

Discontinued Operations

Discontinued Operations

4.           Discontinued Operations

The Company’s sales and distribution business for its Hi-Tec portfolio of brands, which operates in Latin America, the Middle East, Russia and Asia Pacific was sold to International Brands Group (“IBG”) during the fourth quarter of Fiscal 2018 for $3.1 million.  Cash proceeds of $1.3 million were received during the fourth quarter of Fiscal 2018, and $1.8 million of cash proceeds were received by the Company in the three months ended May 5, 2018.  The operating assets and liabilities of this business were sold to IBG in conjunction with the execution of a separate license agreement that grants IBG certain sales and distribution rights for Hi-Tec products in those territories.  The discontinued sales and distribution business was previously included in the Company’s Hi-Tec reporting segment. 

The net income from discontinued operations in the condensed consolidated statement of operations for the three months ended April 29, 2017 includes the following:

(In thousands)
Product sales and royalty revenues	$	4,270
Cost of goods sold		2,990
Selling, general and administrative expenses		955
Depreciation and amortization		42
Pretax income from discontinued operations		283
Income tax (benefit) provision		—
Net income from discontinued operations	$	283

The carrying amounts of assets and liabilities included in discontinued operations comprise the following:

	May 5,		February 3,
(In thousands)	2018		2018
Accounts receivable and amounts due from sale of business	$	—	$	1,868
Current liabilities of discontinued operations		275		1,103
Net assets of discontinued operations	$	(275)	$	765