|6 Months Ended|
Jul. 04, 2015
|Discontinued Operations and Disposal Groups [Abstract]|
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 were reported as discontinued operations in the Condensed Consolidated Statements of Comprehensive Income for all periods presented. The Company does not have 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 were 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.
On May 22, 2015, the Company completed the sale of its bowling products business which resulted in net cash proceeds of $42.8 million, subject to a working capital adjustment, and an after-tax gain of $10.0 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 bowling products business reported as discontinued operations for the three months and six months ended July 4, 2015 and for the retail bowling and bowling products businesses for the three months and six months ended June 28, 2014:
(A) The Gain on disposal of discontinued operations for both the three months and six months ended July 4, 2015 includes a pre-tax gain of $8.4 million and a net tax benefit of $1.6 million.
There were no assets and liabilities held for sale as of July 4, 2015. The following table reflects the summary of assets and liabilities held for sale for the bowling products business as of December 31, 2014 and for the retail bowling and bowling products businesses as of June 28, 2014:
The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.
Reference 1: http://www.xbrl.org/2003/role/presentationRef