Discontinued Operations

12 Months Ended

Mar. 03, 2012

Discontinued Operations

3. Discontinued Operations

On June 21, 2009, The Finish Line, Inc. and its wholly-owned subsidiary The Finish Line Man Alive, Inc. (“Man Alive”) entered into a definitive asset purchase agreement (the “Purchase Agreement”) with an unaffiliated buyer, Man Alive Acquisitions, LLC (“the Buyer”), under which the Buyer assumed certain assets and liabilities of Man Alive. The transaction closed on July 3, 2009 with an effective date of July 4, 2009.

The results of operations of Man Alive have been classified in discontinued operations for all periods presented. The financial results of the Man Alive operations, which are included in discontinued operations in the accompanying Consolidated Statements of Income, were as follows (in thousands):

	2012		2011			2010
Net sales	$	—	$	—		$	10,925
Loss from discontinued operations	$	—	$	(55	)	$	(23,911	)
Income tax benefit		—		22			8,672
Loss from discontinued operations, net of income tax benefit	$	—	$	(33	)	$	(15,239	)

For 2010, the loss from discontinued operations of Man Alive included operating losses of $5,627,000 as well as $18,284,000 related to the loss on sale of Man Alive. The $18,284,000 was made up of a $7,705,000 purchase price rebate, $7,359,000 inventory write-off, $6,726,000 property and equipment write-off and $2,370,000 in other charges, partially offset by the reversal of “Deferred credits from landlords” of $5,876,000. The $18,284,000 loss was comprised of $10,195,000 of cash payments and $8,089,000 of non-cash net charges.