XML 52 R26.htm IDEA: XBRL DOCUMENT
v3.21.2

Discontinued Operations | 12 Months Ended
--- | ---
Jun. 30, 2021
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 our value-added model for product distribution, leading us to focus and invest in our higher-growth, higher margin businesses. Results from the Divestitures were included within each of our reportable segments; 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 sale classification of $88.9 million to reduce the carrying value of the Divestitures to its estimate of fair value (the net proceeds received 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 fiscal year ended June 30, 2021, the Company recorded an additional pre-tax loss on disposal group of $34.6 million. This loss includes the realization of cumulative translation adjustments of $11.6 million for the fiscal year ended June 30, 2021. Additional losses for the fiscal year ended June 30, 2021 are primarily attributable to a reduction in the net proceeds received for the Divestitures. The Company finalized the sale of the Latin America businesses, outside of Brazil, on October 30, 2020. The Company also finalized the sale of the Europe and the UK business on November 12, 2020. Total cash received for the sale of divestitures was $34.4 million. Major components of net loss from discontinued operations for the years ended June 30, 2021, 2020 and 2019 were as follows:
| Fiscal Year Ended June 30,
| 2021 |  | 2020 |  | 2019
| (in thousands)
Net sales | $ | 213,373 |  |  | $ | 561,496 |  |  | $ | 623,312 |
Cost of goods sold | 198,512 |  |  | 513,003 |  |  | 563,543 |
Gross profit | 14,861 |  |  | 48,493 |  |  | 59,769 |
Selling, general and administrative expenses | 17,291 |  |  | 53,946 |  |  | 61,574 |
Depreciation expense | — |  |  | 975 |  |  | 1,127 |
Intangible amortization expense | — |  |  | 1,403 |  |  | 1,839 |
Impairment charges | — |  |  | 13,747 |  |  | — |
Operating loss | (2,430) |  |  | (21,578) |  |  | (4,771) |
Interest expense, net | 394 |  |  | 1,399 |  |  | 195 |
Loss on held for sale classification | 34,597 |  |  | 88,923 |  |  | — |
Other expense, net | 310 |  |  | 1,124 |  |  | 763 |
Loss from discontinued operations before taxes | (37,731) |  |  | (113,024) |  |  | (5,729) |
Income tax (benefit) expense | (3,137) |  |  | 403 |  |  | 1,533 |
Net loss from discontinued operations | $ | (34,594) |  |  | $ | (113,427) |  |  | $ | (7,262) |
For fiscal year ended June 30, 2020, the Company allocated goodwill to discontinued operations based on relative fair value of the discontinued operations compared to the consolidated reporting units and impaired such goodwill totaling $1.0 million for the Worldwide Barcode, Networking & Security segment and $7.5 million for the Worldwide Communications & Services segment. Identifiable intangible assets, including customer relationships and distributor agreements, were impaired for discontinued operations totaling $5.2 million for fiscal year ended June 30, 2020. The impairment charges are included in net loss from discontinued operations in the Consolidated Income Statements. The major classes of assets and liabilities classified as held-for-sale in the accompanying consolidated balance sheets, were as follows as of June 30, 2021 and 2020:
| June 30, 2021 |  | June 30, 2020
| (in thousands)
Assets |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | — |  |  | $ | 4,970 |
Accounts receivable, net | — |  |  | 117,200 |
Inventories, net | — |  |  | 106,779 |
Prepaid expenses and other current assets | — |  |  | 23,808 |
Total current assets | — |  |  | 252,757 |
Property and equipment, net | — |  |  | 1,833 |
Goodwill | — |  |  | — |
Identifiable intangible assets, net | — |  |  | — |
Deferred income taxes | — |  |  | 9,349 |
Other non-current assets | — |  |  | 6,215 |
Total assets, before valuation allowance | — |  |  | 270,154 |
Less: valuation allowance | — |  |  | (88,923) |
Total assets, net of valuation allowance (1) | $ | — |  |  | $ | 181,231 |
Liabilities |  |  |
Current liabilities: |  |  |
Accounts payable | $ | — |  |  | $ | 56,098 |
Accrued expenses and other current liabilities | — |  |  | 14,815 |
Other taxes payable | — |  |  | 20,378 |
Short-term borrowings | — |  |  | 3,524 |
Income tax payable | — |  |  | 1,085 |
Total current liabilities | — |  |  | 95,900 |
Borrowings under revolving credit facility | — |  |  | 24,704 |
Other long-term liabilities | — |  |  | 7,418 |
Total liabilities(1) | $ | — |  |  | $ | 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 June 30, 2020. The discontinued operations were disposed of during the quarter ended December 31, 2020. Significant non-cash operating items and capital expenditures reflected in the cash flows from discontinued operations for the fiscal years ended June 30, 2021, 2020 and 2019 were as follows:
| Fiscal Year Ended June 30,
| 2021 |  | 2020 |  | 2019
| (in thousands)
Loss on held for sale classification | $ | 34,597 |  |  | $ | 88,923 |  |  | $ | — |
Impairment charges | — |  |  | 13,747 |  |  | — |
Depreciation and amortization | — |  |  | 2,378 |  |  | 2,966 |
Capital expenditures | (58) |  |  | (77) |  |  | (1,416) |

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration