Discontinued Operations:

3 Months Ended

May 02, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations:

Discontinued Operations: On March 24, 2015, our Board of Directors authorized our management to pursue a sale of the Ben Sherman business.  We have engaged Financo, Ltd. as our financial advisor to assist in the transaction process. We plan to operate the Ben Sherman business during the process, and although we expect to complete a sale during Fiscal 2015, no specific timetable has been set for consummation of a transaction. There can be no assurance that a transaction will take place, and our Board of Directors may consider other alternatives for the Ben Sherman business that it believes are in the best interest of shareholders. We considered the criteria for assets and liabilities to be classified as held for sale and determined that the criteria for held for sale was met as of March 24, 2015. Additionally, we considered the criteria for qualification as discontinued operations and determined the criteria for discontinued operations was met as of March 24, 2015 as well.

We have not classified as discontinued operations any corporate or shared service expenses historically charged to Ben Sherman which we determined may not be eliminated as a result of the disposal of Ben Sherman. This approach to recognize these expenses as continuing operations in Corporate and Other reflects the uncertainty of whether there will be a reduction in such corporate or shared service expenses in the future as a result of any sale of Ben Sherman. At the time that a group of assets is classified as held for sale, which occurred on March 24, 2015 for Ben Sherman, we cease depreciation and amortization on the assets, even if the disposal group is still generating revenues. Discontinued operations includes only interest directly attributable to the discontinued operations. Income taxes for discontinued operations reflect the residual income tax after calculating the income taxes for continuing operations, excluding the discontinued operations.

The following represents major classes of assets and liabilities related to the discontinued operations included in our consolidated balance sheets as of the following dates (in thousands):

	May 2, 2015		January 31, 2015		May 3, 2014
Receivables, net	$	9,158	$	14,517	$	10,369
Inventories, net	21,535		27,602		22,508
Other current assets, net	8,058		6,004		4,939
Property and equipment, net	8,946		9,037		8,057
Intangible assets, net	21,910		21,635		24,394
Other non-current assets, net	1,013		1,075		1,217
Total assets	$	70,620	$	79,870	$	71,484
Accounts payable	$	5,174	$	8,071	$	3,621
Other accrued expenses and liabilities	2,136		5,182		6,893
Short-term debt	5,259		4,126		3,382
Non-current liabilities	1,848		1,826		1,675
Deferred income taxes	3,791		3,745		4,295
Total liabilities	$	18,208	$	22,950	$	19,866
Net assets	$	52,412	$	56,920	$	51,618

Operating results of the discontinued operations are shown below (in thousands):

	First Quarter Fiscal 2015			First Quarter Fiscal 2014
Net sales	$	14,976		$	15,083
Cost of goods sold	8,590			8,127
Gross profit	6,386			6,956
SG&A	11,736			12,391
Royalties and other operating income	1,130			1,171
Operating loss	(4,220		)	(4,264		)
Interest expense, net	72			103
Loss from discontinued operations before income taxes	(4,292		)	(4,367		)
Income taxes	(224		)	(278		)
Loss from discontinued operations, net of taxes	$	(4,068	)	$	(4,089	)

Certain information pertaining to depreciation, amortization and capital expenditures of our discontinued operations has been included below (in thousands):

	First Quarter Fiscal 2015		First Quarter Fiscal 2014
Depreciation (1)	$	639	$	674
Amortization (1)	$	28	$	51
Capital expenditures	$	427	$	358

(1) For Fiscal 2015, amounts reflect expense recognized prior to classification as held for sale, which occurred on March 24, 2015. No expense for depreciation or amortization was recognized subsequent to qualifying as held for sale.