Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Tables)

v3.20.1
Discontinued Operations (Tables)
 3 Months Ended
Mar. 28, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations [Table Text Block]
The following table discloses the results of operations of the business reported as discontinued operations for the three months ended March 28, 2020 and March 30, 2019, respectively:
(in millions)
March 28, 2020
 
March 30, 2019
Net sales
$
—

 
$
225.2

Cost of sales
—

 
167.1

Selling, general and administrative expense (A)
0.8

 
56.4

Research and development expense
—

 
6.2

Restructuring, exit and impairment charges (B)
—

 
138.3

Loss from discontinued operations before income taxes (A) (B)
$
(0.8
)
 
$
(142.8
)
Income tax benefit
(0.2
)
 
(30.3
)
Loss from discontinued operations, net of tax (B) (A)
(0.6
)
 
(112.5
)
Loss on disposal of discontinued operations, net of tax (C)
(1.1
)
 
—

Net loss from discontinued operations, net of tax
$
(1.7
)
 
$
(112.5
)

(A) The Company recorded $7.8 million for the three months ended March 30, 2019 of net costs incurred in connection with the sale of the Fitness business.
(B) In the first quarter of 2019, the Company re-evaluated the fair value of the Fitness reporting unit and determined the fair value of the business was less than its carrying value. As a result, the Company recorded a $137.2 million ($103.0 million after tax) goodwill impairment charge for the three months ended March 30, 2019.
(C) Loss on disposal of discontinued operations, net of tax, for the three months ended March 28, 2020 includes a pre-tax loss of $1.5 million and a tax benefit of $0.4 million.

There were no assets and liabilities held for sale related to discontinued operations as of March 28, 2020. The following table reflects the summary of assets and liabilities held for sale as of March 30, 2019 primarily related to the Fitness business included in discontinued operations:
(in millions)
March 30,
2019
Accounts and notes receivable, net
$
184.5

Net inventory
173.8

Prepaid expenses and other
11.1

Current assets held for sale
369.4

 
 
Net property (A)
107.6

Goodwill
252.3

Other intangibles, net
58.6

Other long-term assets
74.0

Long-term assets held for sale 
492.5

Assets held for sale
$
861.9

 
 
Accounts payable
$
52.7

Accrued expenses
188.2

Current liabilities held for sale
240.9

 
 
Other liabilities
119.3

Long-term liabilities held for sale
119.3

Liabilities held for sale
$
360.2


(A) As of March 30, 2019, the Company had $8.9 million of net long-term assets classified as held for sale that were not related to the business reported as discontinued operations.