Discontinued Operations

3 Months Ended

Apr. 02, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On January 19, 2016, the Company completed the sale of the Packaging Business. The Company received total cash proceeds of approximately $88.3 million, net of transaction costs of approximately $6.3 million. This resulted in the recognition of a total loss of $3.0 million, of which a $2.0 million gain was recorded in the first quarter of 2016. In the fourth quarter of 2015, the Company recorded a non-cash loss on sale of $5.0 million. The loss was based on the executed purchase agreement and the net assets of the Packaging Business. During the fourth quarter of 2015, the Company recorded a non-cash goodwill impairment charge of $9.9 million related to this transaction. In addition to the proceeds, $5.0 million of purchase price consideration has been held in escrow (the "Holdback Amount") and will be paid to the Company subject to the satisfaction of certain conditions. Any amount received from the Holdback Amount will be recognized as income when received.

The following table shows the components of assets and liabilities that are classified as discontinued operations in the Company's condensed consolidated balance sheets as of April 2, 2016, and January 2, 2016 (in thousands):

	April 2, 2016			January 2, 2016
Accounts receivable, net	$	—		$	23,244
Inventories	—			18,603
Other current assets	—			6,719
Assets of discontinued operations - current	—			48,566
Property, plant and equipment, net	—			48,244
Goodwill and other long-term assets	913			14,607
Assets of discontinued operations - long-term	913			62,851
Accounts payable	—			17,917
Other current liabilities	1,947			4,351
Liabilities of discontinued operations - current	1,947			22,268
Long-term debt and other liabilities	—			1,153
Liabilities of discontinued operations - long-term	—			1,153
Net (liabilities) assets of discontinued operations	$	(1,034	)	$	87,996

The following table summarizes certain statement of operations information for discontinued operations (in thousands, except per share data):

	For the Three Months Ended
	April 2, 2016			March 28, 2015
Net sales	$	6,637		$	45,428
Cost of sales	6,625			39,141
Selling, general and administrative expenses	2,242			5,104
Amortization of intangible assets	—			539
Restructuring and other charges	1			285
Interest expense, net	7			33
Other expense (income), net	238			(385		)
(Loss) income from discontinued operations before income taxes	(2,476		)	711
Gain on sale of discontinued operations before income taxes	2,031			—
(Loss) income from discontinued operations before income taxes	(445		)	711
Income tax expense	1,372			211
(Loss) income from discontinued operations, net of taxes	$	(1,817	)	$	500
(Loss) income per share - basic	$	(0.02	)	$	0.01
(Loss) income per share - diluted	$	(0.02	)	$	0.01