Discontinued Operations

During 2018, the Company completed an evaluation of its International segment operations and identified certain Latin American subsidiaries with low profitability and difficult operating environments with higher operational risk and volatility. As a result of this evaluation, the Company decided to divest of the net assets of certain of these subsidiaries in the Latin American region and enter into licensee relationships in these markets. These actions were completed by December 31, 2018 with the sale of certain subsidiaries, including the largest subsidiary in the region. The Company expects to receive royalty payments from these licensee relationships in future years.

The decision to convert these markets in the Latin American region to a licensee model represents a strategic shift in the Company’s business. Accordingly, the Company has classified the results of operations and cash flows for these subsidiaries in the Latin American region as discontinued operations in its Consolidated Statements of Income and Consolidated Statements of Cash Flows for all periods presented. The net assets of the Latin American subsidiaries have been retrospectively reflected as held for sale as of December 31, 2017.

Components of amounts reflected in the Consolidated Statements of Income related to discontinued operations are presented in the following table for the years ended December 31.



	Twelve Months Ended
	December 31,
	2018			2017			2016
Net sales	$	31.1		$	53.8		$	49.2
Cost of sales	23.0			34.1			31.2
Gross profit	8.1			19.7			18.0
Selling and marketing expenses	12.4			15.2			13.0
General, administrative and other expenses	6.8			11.6			8.0
Operating loss	(11.1		)	(7.1		)	21.0

Interest expense, net and other	7.7			19.9			8.8

Loss from discontinued operations before income taxes	(18.8		)	(27.0		)	(11.8		)
Income tax provision	—			(3.9		)	(0.5		)
Loss generated from discontinued operations, net of tax	(18.8		)	(30.9		)	(12.3		)
Gain on disposal of business	1.0			—			—
Loss from discontinued operations, net of tax	$	(17.8	)	$	(30.9	)	$	(12.3	)

The following table presents the captions of assets and liabilities of the subsidiaries that are held for sale and presented as discontinued operations within the Company’s Consolidated Balance Sheets as of December 31, 2017.



	December 31, 2017
Cash and cash equivalents	$	0.8
Accounts receivable, net	6.9
Inventories	3.9
Prepaid expenses and other current assets	1.4
Current assets of discontinued operations	$	13.0

Property, plant and equipment, net	$	1.6
Other non-current assets	1.0
Non-current assets of discontinued operations	$	2.6

Accounts payable	$	12.9
Accrued expenses and other current liabilities	11.9
Income taxes payable	0.9
Current liabilities of discontinued operations	$	25.7

Other non-current liabilities	$	1.3
Non-current liabilities of discontinued operations	$	1.3