Discontinued Operations

9 Months Ended

Nov. 03, 2018

Discontinued Operations And Disposal Groups [Abstract]

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 includes the following:

(In thousands)	Three Months Ended October 28, 2017			Nine Months Ended October 28, 2017
Product sales and royalty revenues	$	3,230		$	13,596
Cost of goods sold		2,310			10,131
Selling, general and administrative expenses		1,008			3,044
Depreciation and amortization		42			125
Pretax income (loss) from discontinued operations		(130	)		296
Income tax (benefit) provision		—			—
Net income (loss) from discontinued operations	$	(130	)	$	296

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

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