Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The major line items constituting the income (loss) from discontinued operations, net of tax are as follows:

	THREE MONTHS ENDED MARCH 31
	2020			2019
	(In thousands)
Revenue	$	631		$	19,253
Cost of sales	—			10,649
Gross profit	631			8,604
Selling, general and administrative expenses	1,047			12,233
Adjustment of lease termination liability(1)	(16,457		)	—
Adjustment of other current liabilities(2)	(6,608		)	—
Operating income (loss)	22,649			(3,629		)
Interest expense	—			83
Other expense, net	—			9
Income (loss) from discontinued operations before income taxes	22,649			(3,721		)
Income tax benefit	(217		)	(998		)
Income (loss) from discontinued operations, net of tax	$	22,866		$	(2,723	)

(1) Represents an adjustment to the estimated timing and amount of estimated cash flows underlying the lease termination obligation at March 31, 2020, calculated based on the final distribution of KC's remaining assets on April 3, 2020. The lease termination obligation is measured at fair value using significant observable inputs, which is Level 2 as defined in the fair value hierarchy.

(2) Represents an adjustment to the carrying value of substantially all of the other current liabilities at March 31, 2020, calculated based on the final distribution of KC's remaining assets on April 3, 2020.

The major classes of assets and liabilities included as part of discontinued operations are as follows:

	MARCH 31 2020		DECEMBER 31 2019		MARCH 31 2019
	(In thousands)
Assets
Cash and cash equivalents	$	145	$	5,022	$	85
Inventory	—		—		21,554
Prepaid expenses and other current assets	179		361		3,053
Current assets of discontinued operations	$	324	$	5,383	$	24,692
Deferred income taxes	$	—	$	614	$	2,712
Other non-current assets	—		—		1,734
Non-current assets of discontinued operations	$	—	$	614	$	4,446
Liabilities
Accounts payable	$	63	$	4,594	$	6,929
Revolving credit agreement	—		—		7,400
Lease termination liability	791		17,248		—
Other current liabilities	245		7,881		7,144
Current liabilities of discontinued operations	$	1,099	$	29,723	$	21,473
Other long-term liabilities	—		—		3,834
Non-current liabilities of discontinued operations	$	—	$	—	$	3,834