Discontinued Operations (Tables)

12 Months Ended

Jan. 02, 2016

Discontinued Operations [Abstract]

Schedule of Discontinued Operations

For 2014 and 2013, income statement amounts associated with discontinued operations were as follows:

(in thousands)	2014			2013
Net revenue	$	124,256		$	256,717
Cost of sales	94,396			199,961
Gross margin	29,860			56,756
Selling, general and administrative	11,886			23,391
Gain on sale of Private Brands	(222,963		)	—
Other expense/(income), net	205			(3,294		)
Income from Discontinued operations before income taxes	$	240,732		$	36,659
Income tax expense	107,416			13,178
Income from Discontinued operations, net of income tax	$	133,316		$	23,481

During 2014, we recorded a pretax gain in discontinued operations of approximately $223 million on the sale of Private Brands, which was calculated as follows:

(in thousands)	Total
Cash proceeds	$	430,017
Less carrying value of net assets transferred:
Transaction related expenses	6,359
Total current assets	40,219
Fixed assets, net	39,123
Goodwill (1)	141,404
Other intangible assets, net	2,938
Total liabilities	(11,883		)
Derecognition of cumulative translation adjustment (2)	(11,106		)
Gain on sale of Private Brands	$	222,963

(1) The component of goodwill included in the carrying amount of net assets transferred was based on the fair value of Private Brands relative to the fair value of the remaining business in accordance with FASB ASC 350, Intangibles - Goodwill and Other.

(2) The majority of our cumulative translation adjustment was derecognized as a result of the sale of Private Brands due to the sale of substantially all of the assets and liabilities of our Canadian subsidiary. We have no remaining operations in Canada.