Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v2.4.1.9
Discontinued Operations
 3 Months Ended
Apr. 04, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Note 2 – Discontinued Operations

On July 17, 2014, the Company entered into an agreement to sell its retail bowling business to AMF Bowling Centers, Inc. In connection with its decision to sell its bowling centers, the Company also announced its intention to divest its bowling products business. As a result of these actions, these businesses, which were previously recorded in the Company's Bowling & Billiards segment are being reported as discontinued operations in the Condensed Consolidated Statements of Comprehensive Income for all periods presented. The Company does not have or anticipate having any significant continuing involvement or continuing cash flows associated with these businesses. The assets and liabilities of these businesses met the accounting criteria to be classified as held for sale and have been aggregated and reported on separate lines of the Condensed Consolidated Balance Sheets for all periods presented.

On September 18, 2014, the Company completed the sale of its retail bowling business to AMF Bowling Centers, Inc. as well as, in separate transactions, completed the sale of two retail bowling centers in California. The sales resulted in net cash proceeds of $264.3 million, subject to a working capital adjustment, and an after-tax gain of $52.6 million. In connection with the sale of its retail bowling business, the Company entered into a trademark licensing agreement allowing AMF Bowling Centers, Inc. to use the Company's bowling retail related trademarks and trade names over a five year period from the date of acquisition. As a result, the Company recorded deferred income of $20.7 million related to this agreement, which will be recognized as Other income in the Condensed Consolidated Statements of Comprehensive Income over five years. In connection with the sale of its retail bowling business, the Company has retained certain liabilities and provided guarantees on the leases of certain bowling centers.

The following table discloses the results of operations of the bowling products business reported as discontinued operations for the three months ended April 4, 2015 and for the retail bowling and bowling products businesses reported as discontinued operations for the three months ended March 29, 2014:
 
Three Months Ended
(in millions)
April 4,
2015
 
March 29,
2014
Net sales
$
25.2

 
$
74.3

 
 
 
 
Earnings from discontinued operations before income taxes
0.6

 
12.3

Income tax provision
0.2

 
4.4

Net earnings from discontinued operations, net of tax
$
0.4

 
$
7.9


The following table reflects the summary of assets and liabilities held for sale for the bowling products business as of April 4, 2015 and December 31, 2014 and for the retail bowling and bowling products businesses as of March 29, 2014:
(in millions)
April 4
2015
 
December 31,
2014
 
March 29
2014
Accounts and notes receivable, net
$
13.6

 
$
14.0

 
$
16.9

Net inventory
16.8

 
15.3

 
18.6

Prepaid expenses and other
0.6

 
0.7

 
2.8

Current assets held for sale
31.0

 
30.0

 
38.3

 
 
 
 
 
 
Net property
8.6

 
8.8

 
194.7

Other long-term assets
3.3

 
3.8

 
6.5

Long-term assets held for sale
11.9

 
12.6

 
201.2

Assets held for sale
$
42.9

 
$
42.6

 
$
239.5

 
 
 
 
 
 
Accounts payable
$
5.7

 
$
4.5

 
$
22.9

Accrued expenses
9.8

 
11.2

 
28.4

Current liabilities held for sale
15.5

 
15.7

 
51.3

 
 
 
 
 
 
Other liabilities
7.3

 
8.2

 
9.1

Long-term liabilities held for sale
7.3

 
8.2

 
9.1

Liabilities held for sale
$
22.8

 
$
23.9

 
$
60.4