Discontinued Operation

12 Months Ended

Dec. 31, 2019

Discontinued Operation

Discontinued Operation

4. Discontinued Operation

On August 3, 2018, the Company completed the sale of its United Kingdom facilities that comprised the U.K. Limited reporting segment. The Company did not retain significant continuing involvement with the discontinued operation subsequent to the disposal. In connection with the sale, the Company performed a goodwill impairment test and recorded a charge of $6,366 in the second quarter of 2018.  The impairment was a result of continued market softness in the U.K. Limited segment, resulting in lower sales and margins and an expected sales price below the carrying value of the segment. The Company also recorded an impairment charge of $1,249 to customer relationship intangible assets related to the U.K. Limited segment in the second quarter of 2018.

The Company recorded a $7,248 loss on sale of U.K Limited for the year ended December 31, 2018.  In connection with the substantial liquidation of the foreign entity, the Company released the related cumulative translation adjustment from accumulated other comprehensive loss into loss from discontinued operations.  This adjustment was $3,983 and is included in other expense (income), net in the schedule below.

The major line items constituting the loss of the discontinued operation for the year ended December 31, 2019 and 2018 were as follows:

	For the year ended
	December 31,
	2019		2018
Total net sales	$	—	$	10,741
Total cost of sales		—		10,222
Selling, general and administrative		142		4,336
Impairments		—		7,615
Other expense (income), net		—		4,006
Pretax loss from discontinued operation		(142)		(15,438)
Pretax loss on sale of discontinued operation		—		(7,248)
Total pretax loss on discontinued operation		(142)		(22,686)
Income tax benefit		18		23
Net loss from discontinued operation	$	(124)	$	(22,663)