| Schedule of Discontinued Operations Presented in Financial Statements |
The following table summarizes the major line items for the Nautica® brand business and the Licensing Business that are included in the loss from discontinued operations, net of tax line item in the Consolidated Statements of Income:
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Three Months Ended March |
(In thousands) |
|
2018 |
|
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2017 |
Revenues |
|
$ |
94,362 |
|
|
|
$ |
202,667 |
|
Cost of goods sold |
|
48,946 |
|
|
|
131,301 |
|
Selling, general and administrative expenses |
|
34,649 |
|
|
|
62,073 |
|
Interest expense, net |
|
— |
|
|
|
(17 |
) |
Income from discontinued operations before income taxes |
|
10,767 |
|
|
|
9,276 |
|
Loss on the sale of discontinued operations before income taxes |
|
(18,065 |
) |
|
|
(3,531 |
) |
Total income (loss) from discontinued operations before income taxes |
|
(7,298 |
) |
|
|
5,745 |
|
Income tax expense (a)
|
|
(1,073 |
) |
|
|
(9,858 |
) |
Loss from discontinued operations, net of tax |
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$ |
(8,371 |
) |
|
|
$ |
(4,113 |
) |
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(a) |
The 2018 adjustment to the estimated loss on sale related to the Nautica® brand business was nondeductible for income tax purposes. Income tax expense for the three months ended March 2017 includes $7.5 million of deferred tax expense related to GAAP and tax basis differences for LSG.
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The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented:
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(In thousands) |
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March 2018 |
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December 2017 (c)
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March 2017 (c)
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Cash |
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$ |
2,330 |
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$ |
2,592 |
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$ |
1,182 |
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Accounts receivable, net |
|
26,298 |
|
|
|
27,941 |
|
|
56,208 |
|
Inventories |
|
55,610 |
|
|
|
43,297 |
|
|
146,768 |
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Other current assets |
|
1,247 |
|
|
|
2,497 |
|
|
15,778 |
|
Property, plant and equipment, net |
|
15,021 |
|
|
|
14,914 |
|
|
28,495 |
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Intangible assets |
|
262,202 |
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|
|
262,352 |
|
|
305,509 |
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Goodwill |
|
49,005 |
|
|
|
49,005 |
|
|
182,292 |
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Other assets |
|
3,961 |
|
|
|
3,631 |
|
|
3,835 |
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Allowance to reduce assets to estimated fair value, less costs to sell |
|
(42,094 |
) |
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(25,529 |
) |
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— |
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Total assets of discontinued operations (a)
|
|
$ |
373,580 |
|
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$ |
380,700 |
|
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$ |
740,067 |
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Accounts payable |
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$ |
11,619 |
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$ |
16,993 |
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$ |
34,197 |
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Accrued liabilities |
|
10,658 |
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|
|
18,203 |
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|
15,726 |
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Other liabilities |
|
11,912 |
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|
|
12,011 |
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|
13,184 |
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Deferred income tax liabilities (b)
|
|
51,838 |
|
|
|
53,812 |
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|
73,651 |
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Total liabilities of discontinued operations (a)
|
|
$ |
86,027 |
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$ |
101,019 |
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$ |
136,758 |
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(a) |
Amounts at March 2017 have been classified as current and long-term in the Consolidated Balance Sheets. |
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(b) |
Deferred income tax balances reflect VF’s consolidated netting by jurisdiction. |
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(c) |
Certain assets and liabilities previously reported as discontinued operations will be retained by VF based on the terms of the definitive sale agreement, and thus have been removed from discontinued operations for all periods presented. The impact was not material to any periods presented. |
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