| Schedule of Discontinued Operations Presented in Financial Statements |
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) |
|
March 2019 |
|
|
March 2018 |
|
December 2017 |
Cash |
|
$ |
— |
|
|
|
$ |
2,330 |
|
|
$ |
2,592 |
|
Accounts receivable, net |
|
— |
|
|
|
26,298 |
|
|
27,941 |
|
Inventories |
|
— |
|
|
|
55,610 |
|
|
43,297 |
|
Other current assets |
|
— |
|
|
|
1,247 |
|
|
2,497 |
|
Property, plant and equipment, net |
|
— |
|
|
|
15,021 |
|
|
14,914 |
|
Intangible assets |
|
— |
|
|
|
262,202 |
|
|
262,352 |
|
Goodwill |
|
— |
|
|
|
49,005 |
|
|
49,005 |
|
Other assets |
|
— |
|
|
|
3,961 |
|
|
3,631 |
|
Allowance to reduce assets to estimated fair value, less costs to sell |
|
— |
|
|
|
(42,094 |
) |
|
(25,529 |
) |
Total assets of discontinued operations |
|
$ |
— |
|
|
|
$ |
373,580 |
|
|
$ |
380,700 |
|
Accounts payable |
|
$ |
— |
|
|
|
$ |
11,619 |
|
|
$ |
16,993 |
|
Accrued liabilities |
|
— |
|
|
|
10,658 |
|
|
18,203 |
|
Other liabilities |
|
— |
|
|
|
11,912 |
|
|
12,011 |
|
Deferred income tax liabilities (a)
|
|
— |
|
|
|
51,838 |
|
|
53,812 |
|
Total liabilities of discontinued operations |
|
$ |
— |
|
|
|
$ |
86,027 |
|
|
$ |
101,019 |
|
|
|
(a) |
Deferred income tax balances reflect VF's consolidated netting by jurisdiction. |
The following table summarizes depreciation and amortization, capital expenditures and the significant operating noncash items from discontinued operations for the years ended December 2017 and 2016:
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|
|
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|
|
|
Year Ended December |
(In thousands) |
|
2017 |
|
2016 |
Depreciation and amortization |
|
$ |
14,023 |
|
|
$ |
27,360 |
|
Capital expenditures |
|
2,592 |
|
|
4,795 |
|
Impairment of goodwill |
|
104,651 |
|
|
— |
|
The following table summarizes the major line items included for the Nautica® brand business, the Licensing Business and the former Contemporary Brands segment that are included in the income (loss) from discontinued operations, net of tax line item in the Consolidated Statements of Income:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended March |
|
|
Three Months
Ended March
(Transition Period)
|
|
Year Ended December |
(In thousands) |
|
2019 |
|
|
2018 |
|
2017 |
|
2016 |
Net revenues |
|
$ |
21,913 |
|
|
|
$ |
94,362 |
|
|
$ |
588,383 |
|
|
$ |
1,180,677 |
|
Cost of goods sold |
|
14,706 |
|
|
|
48,946 |
|
|
349,382 |
|
|
691,715 |
|
Selling, general and administrative expenses |
|
12,391 |
|
|
|
34,649 |
|
|
191,898 |
|
|
354,773 |
|
Impairment of goodwill |
|
— |
|
|
|
— |
|
|
104,651 |
|
|
— |
|
Interest expense, net |
|
— |
|
|
|
— |
|
|
(27 |
) |
|
(199 |
) |
Other income, net |
|
272 |
|
|
|
— |
|
|
6 |
|
|
2 |
|
(Loss) income from discontinued operations before income taxes |
|
(4,912 |
) |
|
|
10,767 |
|
|
(57,569 |
) |
|
133,992 |
|
Gain (loss) on the sale of discontinued operations before income taxes |
|
4,589 |
|
|
|
(18,065 |
) |
|
(34,019 |
) |
|
(154,275 |
) |
Total loss from discontinued operations before income taxes |
|
(323 |
) |
|
|
(7,298 |
) |
|
(91,588 |
) |
|
(20,283 |
) |
Income tax benefit (expense) (a)
|
|
1,111 |
|
|
|
(1,073 |
) |
|
(14,698 |
) |
|
15,535 |
|
Income (loss) from discontinued operations, net of tax |
|
$ |
788 |
|
|
|
$ |
(8,371 |
) |
|
$ |
(106,286 |
) |
|
$ |
(4,748 |
) |
|
|
(a) |
Income tax expense for the year ended December 2017 was impacted by $8.6 million of tax expense related to GAAP and tax basis differences for the LSG business. Additionally, the goodwill impairment charge and estimated loss on sale related to the Nautica® brand business for the year ended December 2017 were nondeductible for income tax purposes.
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