Divestitures
On October 5, 2013, the Company completed the sale of PSD, a former component of the Company's International Operations segment, which operated in five countries in Europe and focused on the sale, rental and servicing of printing machinery. The Company recognized a preliminary loss on disposal of $80.9 million in the third quarter of 2013, which was included in Loss from discontinued operations, net of income taxes in the consolidated statements of income, and which is subject to a working capital adjustment, which has not yet been finalized. The loss reflects an insignificant amount of curtailment and settlement gains and losses associated with the defined benefit pension plans related to PSD.
The following table details PSD's results of operations for 2013, 2012 and 2011, which have been reported in discontinued operations (in thousands):
|
| | | | | | | | | | | | |
| | 35 Weeks Ended | | 53 Weeks Ended | | 52 Weeks Ended |
| | October 5, 2013 | | February 2, 2013 | | January 28, 2012 |
Sales | | $ | 199,224 |
| | $ | 291,428 |
| | $ | 357,440 |
|
| | | | | | |
Restructuring Charges | | — |
| | 20,064 |
| | — |
|
| | | | | | |
Loss from discontinued operations, before income taxes (including loss on disposal of $80.9 million in 2013) | | (88,301 | ) | | (51,074 | ) | | (5,503 | ) |
Income tax benefit | | (1,366 | ) | | (1,096 | ) | | (1,939 | ) |
Loss from discontinued operations, net of income taxes | | $ | (86,935 | ) | | $ | (49,978 | ) | | $ | (3,564 | ) |
During the fourth quarter of 2013, the Company classified certain assets and liabilities of one of its business units as a disposal group and accounted for the group as held-for-sale in the consolidated balance sheet as of February 1, 2014. The results of operations for this business unit have not been material to the Company's consolidated results of operations nor to its segment reporting, and therefore this business has not been presented as a discontinued operation in the Company's consolidated financial statements. Given the Company expects to complete the sale within one year, the Company has presented the assets and liabilities of this disposal group within Prepaid expenses and other current assets and Accrued expenses and other current liabilities, respectively, on the consolidated balance sheet. The following table shows the carrying amounts of the major classes of the assets and liabilities included in the disposal group held for sale as of February 1, 2014 (in thousands):
|
| | | | |
| | February 1, 2014 |
ASSETS | | |
Cash and cash equivalents | | $ | 7,868 |
|
Receivables, net | | 3,375 |
|
Merchandise inventories, net | | 6,123 |
|
Prepaid expenses and other current assets | | 1,398 |
|
Goodwill | | 11,163 |
|
Intangible assets, net of accumulated amortization | | 743 |
|
Property and equipment, net | | 4,058 |
|
Total assets | | $ | 34,728 |
|
| | |
LIABILITIES | | |
Accounts payable | | $ | 815 |
|
Accrued expenses and other current liabilities | | 883 |
|
Other long-term obligations | | 50 |
|
Total liabilities | | $ | 1,748 |
|
