Annual report pursuant to Section 13 and 15(d)

Discontinued Operations (Tables)

v3.19.3.a.u2
Discontinued Operations (Tables)
 12 Months Ended
Dec. 31, 2019
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 year ended December 31, 2019, December 31, 2018 and December 31, 2017 respectively:
(in millions)
2019
 
2018
 
2017
Net sales
$
448.3

 
$
1,038.3

 
$
1,033.7

Cost of sales
334.6

 
764.3

 
720.1

Selling, general and administrative expense (C) (D)
113.3

 
206.1

 
177.9

Research and development expense
12.6

 
27.4

 
34.8

Restructuring, exit and impairment charges
138.3

 
26.1

 
32.8

Other (income), net
(0.3
)
 
(0.1
)
 
(0.2
)
(Loss) earnings from discontinued operations before income taxes (B) (C) (D)
(150.2
)
 
14.5

 
68.3

Income tax (benefit) provision
(32.7
)
 
2.6

 
23.2

(Loss) earnings from discontinued operations, net of tax (B) (C) (D)
(117.5
)
 
11.9

 
45.1

Loss on disposal of discontinued operations, net of tax (A)
(43.9
)
 
—

 
—

Net (loss) earnings from discontinued operations, net of tax
$
(161.4
)
 
$
11.9

 
$
45.1


(A) The Loss on disposal of discontinued operations, net of tax for the year ended December 31, 2019 includes a pre-tax loss of $51.3 million and a net tax benefit of $7.4 million.
(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, (Loss) Earnings from discontinued operations, net of tax, includes a $137.2 million ($103.0 million after tax) goodwill impairment charge for the year ended December 31, 2019.
(C) The Company recorded $16.5 million and $19.3 million for the year ended December 31, 2019 and December 31, 2018, respectively, of net costs incurred in connection with the sale of Fitness.
(D) The Company recorded adjustments to certain liabilities that were retained as part of the sale of the bowling businesses. As a result, (Loss) earnings from discontinued operations, net of tax, includes a gain of $3.0 million ($2.2 million after tax) for the year ended December 31, 2018.
                                                                                                                                                                                                                                                        
There were no assets and liabilities held for sale related to discontinued operations as of December 31, 2019. The following table reflects the summary of assets and liabilities held for sale as of December 31, 2018 primarily related to the Fitness business included in discontinued operations:
(in millions)
December 31,
2018
Accounts and notes receivable, net
$
198.9

Net inventory
169.7

Prepaid expenses and other
8.6

Current assets held for sale
377.2

 
 
Net property (A)
110.9

Goodwill
389.8

Other intangibles, net
60.6

Other assets
49.0

Long-term assets held for sale
610.3

Assets held for sale
$
987.5

 
 
Accounts payable
$
69.7

Accrued expenses
185.3

Current liabilities held for sale
255.0

 
 
Other liabilities
99.6

Long-term liabilities held for sale
99.6

Liabilities held for sale
$
354.6


(A) As of December 31, 2018, 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.