Discontinued Operations:

9 Months Ended

Oct. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations:

Discontinued Operations: On July 17, 2015, we entered into a sale and purchase agreement with an unrelated party, Ben Sherman UK Acquisition Limited, pursuant to which we sold 100% of the equity interests of our Ben Sherman business, consisting of Ben Sherman Limited and its subsidiaries and Ben Sherman Clothing LLC, for £40.8 million. The final purchase price received by us is subject to adjustment based on, among other things, the actual debt and net working capital of the Ben Sherman business on the closing date, which is expected to be finalized during the Fourth Quarter of Fiscal 2015. The loss on our sale of the Ben Sherman business was estimated for purposes of our October 31, 2015 consolidated financial statements. We do not anticipate significant operations or earnings related to the discontinued operations in future periods, with cash flow attributable to discontinued operations in future periods primarily limited to the post-closing purchase price adjustments and amounts associated with a lease obligation of the Ben Sherman business which we retained in connection with the transaction. Changes to the estimates included in our loss on sale of discontinued operations and liabilities related to discontinued operations as of October 31, 2015, including actual amounts payable in connection with the retained lease obligation, the estimated post-closing purchase price adjustment or accrued expenses related to the transaction may result in an adjustment to our loss on the sale transaction or discontinued operations in future periods.

In connection with the Ben Sherman disposal transaction we, among other things, entered into a transitional services agreement with the purchaser pursuant to which we and our subsidiaries are providing, in exchange for various fees, certain transitional support services (primarily in the United States) to the purchaser in connection with its operation of the Ben Sherman business following the transaction. The duration of the transitional services vary but may continue for a period of up to 12 months following the date of the transaction.

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 its disposal or any transitional services income amounts. Recognizing these expenses and income 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 the sale of Ben Sherman. Interest expense under our prior U.K. revolving credit agreement, which was satisfied in connection with the transaction, is the only interest expense included in discontinued operations in our consolidated financial statements as this represents the interest expense directly attributable to 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):

	October 31, 2015			January 31, 2015		November 1, 2014
Receivables, net	$	—		$	14,517	$	9,918
Inventories, net	—			27,602		27,685
Other current assets, net	—			6,004		3,285
Property and equipment, net	—			9,037		8,029
Intangible assets, net	—			21,635		23,015
Other non-current assets, net	—			1,075		1,155
Total assets	$	—		$	79,870	$	73,087
Accounts payable and other accrued expenses	$	6,208		$	13,253	$	10,393
Short-term debt	—			4,126		4,043
Non-current liabilities	—			1,826		1,537
Deferred income taxes	—			3,745		4,605
Total liabilities	$	6,208		$	22,950	$	20,578
Net (liabilities) assets	$	(6,208	)	$	56,920	$	52,509

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

	Third Quarter Fiscal 2015			Third Quarter Fiscal 2014			First Nine Months Fiscal 2015			First Nine Months Fiscal 2014
Net sales	$	—		$	18,279		$	28,081		$	52,058
Cost of goods sold	—			9,198			17,414			26,877
Gross profit	$	—		$	9,081		$	10,667		$	25,181
SG&A	562			12,100			20,668			36,945
Royalties and other operating income	—			1,237			1,919			2,984
Operating loss	$	(562	)	$	(1,782	)	$	(8,082	)	$	(8,780	)
Interest expense, net	—			58			45			194
Loss from discontinued operations before income taxes	$	(562	)	$	(1,840	)	$	(8,127	)	$	(8,974	)
Income taxes	192			6			(672		)	(819		)
Loss from discontinued operations, net of taxes	$	(754	)	$	(1,846	)	$	(7,455	)	$	(8,155	)
Loss on sale of discontinued operations, net of taxes	—			—			(20,437		)	—
Net loss from discontinued operations, net of taxes	$	(754	)	$	(1,846	)	$	(27,892	)	$	(8,155	)

Certain information pertaining to depreciation and amortization as well as capital expenditures associated with our discontinued operations has been included below (in thousands):

	Third Quarter Fiscal 2015		Third Quarter Fiscal 2014		First Nine Months Fiscal 2015		First Nine Months Fiscal 2014
Depreciation and amortization (1)	$	—	$	783	$	667	$	2,259
Capital expenditures	$	—	$	1,279	$	660	$	2,075

(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 in our consolidated statements of operations subsequent to qualifying as held for sale.