Discontinued Operations

As part of the Company’s acquisition of Hanes Australasia, the Company acquired Hanes Australasia’s legacy Dunlop Flooring and Tontine Pillow businesses. The Company concluded that these businesses were not a strategic fit; therefore, the decision was made to divest of the businesses.

In February 2017, the Company sold its Dunlop Flooring business for AUD$34,564 ($26,219) in net cash proceeds at the time of sale, with an additional AUD$1,334 ($1,012) of proceeds received in April 2017 related to a working capital adjustment, resulting in a pre-tax loss of AUD$2,715 ($2,083). US dollar equivalents are based on exchange rates on the date of the sale transaction. The Dunlop Flooring business was reported as part of discontinued operations since the date of acquisition.

In March 2017, the Company sold its Tontine Pillow business for AUD$13,500 ($10,363) in net cash proceeds at the time of sale. A working capital adjustment of AUD$966 ($742) was paid to the buyer in April 2017, resulting in a net pre-tax gain of AUD$2,415 ($1,856). US dollar equivalents are based on exchange rates on the date of the sale transaction. The Tontine Pillow business was reported as part of discontinued operations since the date of acquisition.

The operating results of these discontinued operations only reflect revenues and expenses that are directly attributable to these businesses that were eliminated from ongoing operations. The key components from discontinued operations related to the Dunlop Flooring and Tontine Pillow businesses were as follows:



	Quarter Ended				Nine Months Ended
	September 30, 2017		October 1, 2016		September 30, 2017			October 1, 2016
Net sales	$	—	$	15,587	$	6,865		$	15,587
Cost of sales	—		9,996		4,507			9,996
Gross profit	—		5,591		2,358			5,591
Selling, general and administrative expenses	—		3,570		3,729			3,570
Operating profit (loss)	—		2,021		(1,371		)	2,021
Other expenses	—		495		303			495
Net loss on disposal of businesses	—		—		242			—
Income (loss) from discontinued operations before income tax expense	—		1,526		(1,916		)	1,526
Income tax expense	—		458		181			458
Net income (loss) from discontinued operations, net of tax	$	—	$	1,068	$	(2,097	)	$	1,068