Footnote 3 — Discontinued Operations and Divestitures

Discontinued Operations

The following table provides a summary of amounts included in discontinued operations for the periods indicated (in millions):


	Three Months Ended June 30, 2016			Six Months Ended June 30, 2016
Net sales	$	—		$	—
Loss from discontinued operations before income taxes		(0.7	)		(1.3	)
Income tax benefit		(0.1	)		(0.3	)

Loss from discontinued operations		(0.6	)		(1.0	)
Net gain from sale of discontinued operations, net of tax		—			0.6

Income (loss) from discontinued operations, net of tax	$	(0.6	)	$	(0.4	)

The discontinued operations for 2016 relate to the Company’s Endicia business whose operations were ceased in 2015. The consolidated results of operations for 2017 do not include discontinued operations.

Divestitures

During 2017, the Company sold its Rubbermaid^® consumer storage totes business, its stroller business under the Teutonia^® brand, its Lehigh business, its firebuilding business and its triathlon apparel business under the Zoot^® and Squadra^® brands. The selling prices for these businesses were not significant. Based on the consideration, during the three and six months ended June 30, 2017 the Company recorded impairment charges of $14.9 million related to the write down of the carrying value of the net assets of the firebuilding and Teutonia^® stroller businesses to their estimated fair market value. The Company sold the firebuilding business to Royal Oak Enterprises, LLC (“Royal Oak”). Company directors Martin E. Franklin and Ian G.H. Ashken are affiliates of Royal Oak.

On March 9, 2017 the Company completed the sale of its Tools business, including the Irwin^®, Lenox^® and Hilmor^® brands. The selling price was $1.95 billion, subject to customary working capital adjustments. The net assets of the Tools business were approximately $1.1 billion, including approximately $711 million of goodwill, resulting in a pretax gain of $771 million, which is included in other (income) expense, net in the condensed consolidated statement of operations for the six months ended June 30, 2017. For the three and six months ended June 30, 2017 and 2016, the Tools business generated 0.0% and 5.0%, respectively, and 1.5% and 7.1%, respectively, of the Company’s consolidated net sales.

In June 2016, the Company sold its Décor business, including Levolor^® and Kirsch^® window coverings and drapery hardware, for a selling price of $270 million, subject to customary working capital adjustments, resulting in a pretax gain of $160 million, which is included in other (income) expense, net for the six months ended June 30, 2016. For the three and six months ended June 30, 2016, the Décor business generated 1.7% and 2.7%, respectively, of the Company’s consolidated net sales.

Held for Sale

During 2016, the Company committed to plans to divest several businesses and brands, some of which were disposed of during the six months ended June 30, 2017, to strengthen the portfolio to better align with the long-term growth plan. As of June 30, 2017 the remaining businesses and brands that were held for sale were as follows: the Winter Sports business, including the Völkl^® and K2^® brands in the Other segment and the humidifiers and fans business with related brands in the Live segment, and certain residual inventory of the Rubbermaid consumer storage totes business expected to be divested in the third quarter. These businesses and brands will be reported in future periods continuing operations.

The following table presents information related to the major classes of assets and liabilities that were classified as assets and liabilities held for sale in the condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016 (in millions):


	June 30, 2017		December 31, 2016
Accounts receivable, net	$	41.8	$	164.4
Inventories, net		144.8		311.6
Prepaid expenses and other		23.0		24.3
Property, plant and equipment, net		84.8		224.9
Goodwill		23.7		762.5
Other intangible assets, net		28.0		244.5
Other assets		13.1		13.5

Total Assets	$	359.2	$	1,745.7

Accounts payable	$	24.6	$	88.2
Accrued compensation		21.6		35.3
Other accrued liabilities		56.7		81.6
Short-term debt and current portion long-term debt		—		4.3
Other noncurrent liabilities		14.4		131.1

Total Liabilities	$	117.3	$	340.5

Subsequent Event

On July 14, 2017, the Company sold its Winter Sports business for a selling price of approximately $240 million, subject to working capital adjustments. For the three and six months ended June 30, 2017 and 2016, net sales from the Winter Sports business were not material. During the three and six months ended June 30, 2017, the Company recorded an impairment charge of $59.1 million related to the writedown of the carrying value of the net assets of the Winter Sports business based on the expected proceeds to be received. Of this impairment charge, $12.6 million related to the impairment of goodwill and $46.5 million related to the impairment of other intangible assets (see Footnote 8).