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Discontinued Operations | 3 Months Ended
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Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations On August 20, 2019, the Company announced plans to divest the product distribution businesses in Europe, the UK, Mexico, Colombia, Chile, Peru and the Miami-based export operations as these businesses have been performing below management's expectations. The Company will continue to operate its digital business in these countries. Management determined that the Company did not have sufficient scale in these markets to maximize the value-added model for product distribution, leading the Company to focus and invest in its higher-growth, higher margin businesses. Results from the Divestitures were included within each reportable segment; Worldwide Barcode, Networking & Security segment and Worldwide Communications & Services segment. During the quarter ended June 30, 2020, the Company recorded a pre-tax loss on held for sale classification of $88.9 million to reduce the carrying value of the Divestitures to its estimate of fair value (the net proceeds expected to be realized at closing), less estimated costs to sell. As this loss was determined not to be attributable to any individual components in the Divestitures' net assets, it was reflected as a valuation allowance against the total assets of the Divestitures. During the quarter ended September 30, 2020, the Company recorded an additional pre-tax loss on held for sale classification of $10.7 million. This additional loss was attributable primarily to a reduction in the net proceeds expected to be realized at closing for the Divestitures. The Company signed an agreement on July 23, 2020 with Intcomex for its businesses located in Latin America, outside of Brazil. The Company finalized the sale of the Latin America businesses on October 30, 2020. Th e Company is actively working on sales opportunities for businesses in Europe and the UK. Major components of net loss from discontinued operations for the quarters ended September 30, 2020 and 2019 were as follows:
| Quarter ended September 30,
| 2020 |  | 2019
| (in thousands)
Net sales | $ | 145,049 |  |  | $ | 155,716 |
Cost of goods sold | 134,534 |  |  | 142,142 |
Gross profit | 10,515 |  |  | 13,574 |
Selling, general and administrative expenses | 10,913 |  |  | 13,810 |
Depreciation expense | 201 |  |  | 248 |
Intangible amortization expense | — |  |  | 424 |
Operating loss | (599) |  |  | (908) |
Interest expense, net | 125 |  |  | 483 |
Loss on held for sale classification | 10,686 |  |  | — |
Other expense, net | 291 |  |  | (343) |
Loss from discontinued operations before taxes | (11,701) |  |  | (1,048) |
Income tax expense | 3 |  |  | (287) |
Net loss from discontinued operations | $ | (11,704) |  |  | $ | (761) |
The major classes of assets and liabilities classified as held-for-sale in the accompanying consolidated balance sheets, were as follows as of September 30, 2020 and June 30, 2020:
| September 30, 2020 |  | June 30, 2020
| (in thousands)
Assets |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 5,678 |  |  | $ | 4,970 |
Accounts receivable, net | 130,553 |  |  | 117,200 |
Inventories, net | 95,560 |  |  | 106,779 |
Prepaid expenses and other current assets | 27,465 |  |  | 23,808 |
Total current assets | 259,256 |  |  | 252,757 |
Property and equipment, net | 1,724 |  |  | 1,833 |
Deferred income taxes | 9,633 |  |  | 9,349 |
Other non-current assets | 5,899 |  |  | 6,215 |
Total assets, before valuation allowance | 276,512 |  |  | 270,154 |
Less: valuation allowance | (99,609) |  |  | (88,923) |
Total assets, net of valuation allowance (1) | $ | 176,903 |  |  | $ | 181,231 |
Liabilities |  |  |
Current liabilities: |  |  |
Accounts payable | $ | 84,657 |  |  | $ | 56,098 |
Accrued expenses and other current liabilities | 15,834 |  |  | 14,815 |
Other taxes payable | 23,136 |  |  | 20,378 |
Short-term borrowings | — |  |  | 3,524 |
Income tax payable | 1,338 |  |  | 1,085 |
Total current liabilities | 124,965 |  |  | 95,900 |
Borrowings under revolving credit facility | 19,932 |  |  | 24,704 |
Other long-term liabilities | 7,362 |  |  | 7,418 |
Total liabilities(1) | $ | 152,259 |  |  | $ | 128,022 |
(1) Total assets and liabilities of discontinued operations are classified in current assets and liabilities, respectively, in the Company's consolidated balance sheet as of September 30, 2020 and June 30, 2020, as the discontinued operations are expected to be disposed of by June 30, 2021. Significant non-cash operating items and capital expenditures reflected in the cash flows from discontinued operations for the three months ended September 30, 2020 and 2019 were as follows:
| Three months ended September 30,
| 2020 |  | 2019
| (in thousands)
Loss on held for sale classification | $ | 10,686 |  |  | $ | — |
Depreciation and amortization | 201 |  |  | 672 |
Capital expenditures | (36) |  |  | (1) |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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