Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 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 June 30,						SIX MONTHS ENDED June 30,
	2020			2019			2020			2019
	(In thousands)
Revenue	$	—		$	18,283		631			37,536
Cost of sales	—			10,212			—			20,861
Gross profit	—			8,071			631			16,675
Selling, general and administrative expenses	299			11,235			1,346			23,468
Adjustment of lease termination liability(1)	—			—			(16,457		)	—
Adjustment of other current liabilities(2)	—			—			(6,608		)	—
Operating income (loss)	(299		)	(3,164		)	22,350			(6,793		)
Interest expense	—			115						198
Other expense, net	88			6			88			15
Income (loss) from discontinued operations before income taxes	(387		)	(3,285		)	22,262			(7,006		)
Income tax benefit	(82		)	(769		)	(299		)	(1,767		)
Income (loss) from discontinued operations, net of tax	$	(305	)	$	(2,516	)	$	22,561		$	(5,239	)

(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:

	DECEMBER 31 2019		JUNE 30 2019
Assets
Cash and cash equivalents	$	5,022	$	102
Inventory	—		19,345
Prepaid expenses and other current assets	361		1,808
Current assets of discontinued operations	$	5,383	$	21,255
Property, plant and equipment, net	—		1,555
Deferred income taxes	$	614	$	2,733
Other non-current assets	—		132
Non-current assets of discontinued operations	$	614	$	4,420
Liabilities
Accounts payable	$	4,594	$	5,538
Revolving credit agreement	—		7,450
Lease termination liability	17,248		—
Other current liabilities	7,881		7,060
Current liabilities of discontinued operations	$	29,723	$	20,048
Other long-term liabilities	—		3,697
Non-current liabilities of discontinued operations	$	—	$	3,697