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Discontinued Operations
 9 Months Ended
Oct. 01, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
As part of the Company’s acquisition of Pacific Brands, the Company acquired Pacific Brands legacy Tontine Pillow business and Dunlop Flooring business. The Company has concluded that these businesses are not a strategic fit; therefore, the Company has decided not to retain them, and is marketing the businesses to prospective buyers. These two businesses have been classified as assets held for sale and qualify for discontinued operation upon the acquisition date. The Company expects to complete the sale of these businesses within one year of the Pacific Brands acquisition date. Therefore, the operating results and related assets and liabilities have been classified as discontinued operations in the Company’s condensed consolidated financial statements. Discontinued operations does not include any allocation of corporate overhead expense or interest expense.
The operating results of these discontinued operations only reflect revenues and expenses that are directly attributable to these businesses that will be eliminated from ongoing operations. The key components from discontinued operations related to the Tontine Pillow and Dunlop Flooring businesses were as follows:
 
Quarter and Nine Months Ended
 
October 1,
2016
Net sales
$
15,587

Cost of sales
9,996

Gross profit
5,591

Selling, general and administrative expenses
3,570

Operating profit
2,021

Other expenses
495

Income from discontinued operations before income tax expense
1,526

Income tax expense
458

Net income from discontinued operations, net of tax
$
1,068


Preliminary assets and liabilities of discontinued operations classified as held for sale in the condensed consolidated balance sheet as of October 1, 2016 consist of the following:
Trade accounts receivable, net
$
9,511

Inventories
11,155

Property, net
3,913

Trademarks and other identifiable intangibles, net
5,189

Accounts payable and accrued liabilities
(7,134
)
Net other assets and liabilities
(6,573
)
Net assets of discontinued operations
$
16,061


For the quarter and nine months ended October 1, 2016, there were no material amounts of depreciation, amortization, capital expenditures, or significant operating or investing non-cash items related to discontinued operations.