Discontinued Operations (Tables)

9 Months Ended

Sep. 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 SEPTEMBER 30				NINE MONTHS ENDED SEPTEMBER 30
	2020		2019		2020		2019
	(In thousands)
Revenue	$	—	$	20,288	631		57,824
Cost of sales	—		10,632		—		31,493
Gross profit	—		9,656		631		26,331
Selling, general and administrative expenses	—		12,590		1,346		36,058
Adjustment of lease termination liability(1)	—		—		(16,457)		—
Adjustment of other current liabilities(2)	—		—		(6,608)		—
Operating income (loss)	—		(2,934)		22,350		(9,727)
Interest expense	—		108		—		306
Other expense, net	—		7		88		22
Income (loss) from discontinued operations before income taxes	—		(3,049)		22,262		(10,055)
Income tax benefit	—		(296)		(299)		(2,063)
Income (loss) from discontinued operations, net of tax	$	—	$	(2,753)	$	22,561	$	(7,992)

(1)    Represents an adjustment to the lease termination obligation 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 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 in prior periods are as follows:

	DECEMBER 31 2019		SEPTEMBER 30 2019
Assets
Cash and cash equivalents	$	5,022	$	307
Inventory	—		20,804
Prepaid expenses and other current assets	361		1,719
Current assets of discontinued operations	$	5,383	$	22,830
Property, plant and equipment, net	—		460
Deferred income taxes	$	614	$	1,155
Other non-current assets	—		129
Non-current assets of discontinued operations	$	614	$	1,744
Liabilities
Accounts payable	$	4,594	$	7,211
Revolving credit agreement	—		9,550
Lease termination liability	17,248		—
Other current liabilities	7,881		7,952
Current liabilities of discontinued operations	$	29,723	$	24,713
Other long-term liabilities	—		1,585
Non-current liabilities of discontinued operations	$	—	$	1,585