±«ÓãÖ±²¥

Quarterly report pursuant to Section 13 or 15(d)

DISCONTINUED OPERATIONS

v3.21.2
DISCONTINUED OPERATIONS
 6 Months Ended
Oct. 02, 2021
Discontinued Operations and Disposal Groups [Abstract] Ìý
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS
The Company continuously assesses the composition of its portfolio to ensure it is aligned with its strategic objectives and positioned to maximize growth and return to shareholders.
Occupational Workwear Business
On January 21, 2020, ±«ÓãÖ±²¥ announced its decision to explore the divestiture of its Occupational Workwear business. The Occupational Workwear business was comprised primarily of the following brands and businesses: Red Kap®, ±«ÓãÖ±²¥ Solutions®, Bulwark®, Workrite®, Walls®, Terra®, Kodiak®, Work Authority® and Horace Small®. The business also included the license of certain Dickies® occupational workwear products that have historically been sold through the business-to-business channel. As of March 28, 2020, the Occupational Workwear business met the held-for-sale and discontinued operations accounting criteria. Accordingly, the Company has reported the results of the Occupational Workwear business and the related cash flows as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows, respectively, through the date of sale. The related held-for-sale assets and liabilities have been reported as assets and liabilities of discontinued operations in the Consolidated Balance Sheets, through the date of sale.
On June 28, 2021, ±«ÓãÖ±²¥ completed the sale of the Occupational Workwear business. The Company received proceeds of $616.5Ìýmillion, net of cash sold, resulting in an estimated after-tax gain on sale of $145.6Ìýmillion, which is included in the income from discontinued operations, net of tax line item in the Consolidated Statement of Operations for the six months ended September 2021, and is subject to working capital and other adjustments.
The results of the Occupational Workwear business were previously reported in the Work segment. The results of the Occupational Workwear business recorded in the income from discontinued operations, net of tax line item in the Consolidated Statements of Operations were income of $170.3 million (including an estimated after-tax gain on sale of $145.6Ìýmillion) for the six months ended September 2021, and income of $13.5 million and $5.6 million for the three and six months ended September 2020, respectively.
Under the terms of a transition services agreement, the Company will provide certain support services for periods generally up to 12 months from the closing date of the transaction.
Summarized Discontinued Operations Financial Information
The following table summarizes the major line items for the Occupational Workwear business that are included in the income from discontinued operations, net of tax line item in the Consolidated Statements of Operations:
Ìý Three Months Ended September Six Months Ended September
(In thousands) 2021 2020 2021 2020
Net revenues
 $ —Ìý $ 162,310Ìý $ 181,424Ìý $ 287,643Ìý
Cost of goods sold
 —Ìý 113,147Ìý 117,193Ìý 214,617Ìý
Selling, general and administrative expenses
 —Ìý 34,911Ìý 38,735Ìý 68,167Ìý
Interest income, net
 —Ìý 180Ìý 194Ìý 473Ìý
Other income (expense), net
 —Ìý 79Ìý 6Ìý 79Ìý
Income from discontinued operations before income taxes
 —Ìý 14,511Ìý 25,696Ìý 5,411Ìý
Gain on the sale of discontinued operations before income taxes
 —Ìý —Ìý 133,571Ìý —Ìý
Total income from discontinued operations before income taxes
 —Ìý 14,511Ìý 159,267Ìý 5,411Ìý
Income tax expense (benefit) (a)
—Ìý 1,035Ìý (11,006) (194)
Income from discontinued operations, net of tax
 $ —Ìý $ 13,476Ìý $ 170,273Ìý $ 5,605Ìý
(a)Income tax benefit for the six months ended September 2021 includes $12.0Ìýmillion of deferred tax benefit related to capital and other losses realized upon the sale of the Occupational Workwear business.
The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations as of March 2021 and September 2020.
(In thousands) March 2021 September 2020
Cash and equivalents
 $ 34,132Ìý $ 26,846Ìý
Accounts receivable, net
 103,835Ìý 82,520Ìý
Inventories
 245,227Ìý 241,519Ìý
Other current assets
 8,208Ìý 7,773Ìý
Property, plant and equipment, net
 49,394Ìý 47,964Ìý
Intangible assets, net
 54,471Ìý 54,471Ìý
Goodwill
 43,530Ìý 43,530Ìý
Operating lease right-of-use assets
 43,220Ìý 42,445Ìý
Other assets
 5,561Ìý 5,609Ìý
Total assets of discontinued operations
 $ 587,578Ìý $ 552,677Ìý
Accounts payable
 $ 59,965Ìý $ 46,493Ìý
Accrued liabilities
 38,956Ìý 32,322Ìý
Operating lease liabilities
 31,301Ìý 34,688Ìý
Other liabilities
 3,863Ìý 5,177Ìý
Deferred income tax liabilities (a)
(8,828) (4,324)
Total liabilities of discontinued operations
 $ 125,257Ìý $ 114,356Ìý
(a)Deferred income tax balances reflect ±«ÓãÖ±²¥'s consolidated netting by jurisdiction.