Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v3.6.0.2
Discontinued Operations
 12 Months Ended
Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
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 were reported as discontinued operations in the Consolidated Statements of Operations for all periods presented. The Company does not have any significant continuing involvement or continuing cash flows associated with these businesses.

On September 18, 2014, the Company completed the sale of its retail bowling business to AMF Bowling Centers, Inc. and in separate transactions, completed the sale of two retail bowling centers in California. The sales resulted in net cash proceeds of $272.1 million and resulted in an after-tax gain of $55.1 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 Consolidated Statements of Operations 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.
  
On May 22, 2015, the Company completed the sale of its bowling products business which resulted in net cash proceeds of $42.2 million and an after-tax gain of $10.3 million. In connection with the sale of its bowling products business, the Company has retained certain liabilities.

The following table discloses the results of operations of the businesses reported as discontinued operations for the years ended December 31, 2016, 2015 and 2014, respectively:
(in millions)
2016
 
2015
 
2014
Net sales
$
—

 
$
37.5

 
$
236.0

 
 
 
 
 
 
Earnings (loss) from discontinued operations before income taxes
$
2.6

 
$
1.5

 
$
(3.8
)
Income tax provision (benefit)
1.0

 
0.3

 
(2.0
)
Earnings (loss) from discontinued operations, net of tax
1.6

 
1.2

 
(1.8
)
Gain on disposal of discontinued operations, net of tax (A)
—

 
12.8

 
52.6

Net earnings from discontinued operations, net of tax
$
1.6

 
$
14.0

 
$
50.8


(A) The Gain on disposal of discontinued operations, net of tax for 2015 includes a pre-tax and after-tax gain of $12.8 million. The Gain on disposal of discontinued operations, net of tax for 2014 includes a pre-tax gain of $65.6 million and a net tax provision of $13.0 million.

There were no assets or liabilities related to discontinued operations recorded as held-for-sale as of December 31, 2016 or December 31, 2015.