±«ÓãÖ±²¥

Quarterly report pursuant to Section 13 or 15(d)

DISCONTINUED OPERATIONS

v3.21.4
DISCONTINUED OPERATIONS
 9 Months Ended
Jan. 01, 2022
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 nine months ended December 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 nine months ended December 2021, and income of $19.6 million and $25.2 million for the three and nine months ended December 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 December Nine Months Ended December
(In thousands) 2021 2020 2021 2020
Net revenues
 $ —Ìý $ 176,464Ìý $ 181,424Ìý $ 464,107Ìý
Cost of goods sold
 —Ìý 115,801Ìý 117,193Ìý 330,418Ìý
Selling, general and administrative expenses
 —Ìý 35,576Ìý 38,735Ìý 103,743Ìý
Interest income, net
 —Ìý 68Ìý 194Ìý 541Ìý
Other income (expense), net
 —Ìý 22Ìý 6Ìý 101Ìý
Income from discontinued operations before income taxes
 —Ìý 25,177Ìý 25,696Ìý 30,588Ìý
Gain on the sale of discontinued operations before income taxes
 —Ìý —Ìý 133,571Ìý —Ìý
Total income from discontinued operations before income taxes
 —Ìý 25,177Ìý 159,267Ìý 30,588Ìý
Income tax expense (benefit) (a)
—Ìý 5,596Ìý (11,006) 5,402Ìý
Income from discontinued operations, net of tax
 $ —Ìý $ 19,581Ìý $ 170,273Ìý $ 25,186Ìý
(a)Income tax benefit for the nine months ended December 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 December 2020.
(In thousands) March 2021 December 2020
Cash and equivalents
 $ 34,132Ìý $ 18,771Ìý
Accounts receivable, net
 103,835Ìý 91,554Ìý
Inventories
 245,227Ìý 242,204Ìý
Other current assets
 8,208Ìý 12,802Ìý
Property, plant and equipment, net
 49,394Ìý 48,605Ìý
Intangible assets, net
 54,471Ìý 54,472Ìý
Goodwill
 43,530Ìý 43,530Ìý
Operating lease right-of-use assets
 43,220Ìý 42,930Ìý
Other assets
 5,561Ìý 5,780Ìý
Total assets of discontinued operations
 $ 587,578Ìý $ 560,648Ìý
Accounts payable
 $ 59,965Ìý $ 50,434Ìý
Accrued liabilities
 38,956Ìý 34,470Ìý
Operating lease liabilities
 31,301Ìý 33,073Ìý
Other liabilities
 3,863Ìý 6,303Ìý
Deferred income tax liabilities (a)
(8,828) (4,095)
Total liabilities of discontinued operations
 $ 125,257Ìý $ 120,185Ìý
(a)Deferred income tax balances reflect ±«ÓãÖ±²¥'s consolidated netting by jurisdiction.