Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v2.4.0.8
Discontinued Operations
 6 Months Ended
Jun. 30, 2014
Discontinued Operations [Abstract]  
Discontinued Operations

NOTE 2.  DISCONTINUED OPERATIONS

 

As discussed above, on June 18, 2014, the Company entered into a definitive agreement with Samsonite to sell certain assets, which closed on July 23, 2014, and the assets and liabilities of Gregory are classified as held for sale at June 30, 2014.  The sale transaction was completed during our third fiscal quarter ending September 30, 2014 and we expect to recognize a gain on the sale of the Gregory assets.

 

 

The carrying amounts of the assets and liabilities of Gregory, which were classified as held for sale in our June 30, 2014 condensed consolidated balance sheet were as follows:

 

 

 

 

 

 

 

 

June 30, 2014

 

 

 

 

Accounts receivable

 

$
7,340 

Inventories

 

 
7,324 

Prepaid and other current assets

 

 
167 

Property and equipment, net

 

 
179 

Definite lived intangible assets, net

 

 
4,283 

Indefinite lived intangible assets

 

 
13,050 

Goodwill

 

 
11,955 

Assets held for sale

 

$
44,298 

 

 

 

 

Accounts payable and accrued liabilities

 

$
3,373 

Liabilities held for sale

 

$
3,373 

 

 

Summarized results of discontinued operations are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30, 2014

 

June 30, 2013

 

June 30, 2014

 

June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$
8,502 

 

 
9,693 

 

 
18,609 

 

 
20,076 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income tax

 

 
622 

 

 
2,896 

 

 
2,442 

 

 
5,257 

Income tax expense

 

 
1,162 

 

 
983 

 

 
907 

 

 
2,525 

(Loss) income from discontinued operations, net of tax

 

$
(540)

 

$
1,913 

 

$
1,535 

 

$
2,732 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest related to debt that is required to be repaid as a result of a disposition is allocated to discontinued operations.  All interest from the revolving credit facility and term note with Zions First National Bank is allocated to discontinued operations.  Total interest expense allocated to discontinued operations for the three months ended June  30, 2014 and 2013 was $332 and $200, respectively, and for the six months ended June 30, 2014 and 2013 was $601 and $395, respectively.