Discontinued Operations

In December 2017, we completed the divestiture of the Nutritional Supplements segment through the sale of Healthy Directions LLC and its subsidiaries ("Healthy Directions") to Direct Digital, LLC. The purchase price from the sale was comprised of $46.0 million in cash, which was paid at closing, and a supplemental payment with a target value of $25.0 million, payable on or before August 1, 2019. The final amount of the supplemental payment was adjusted based on a settlement with respect to the calculation of the performance of Healthy Directions through February 28, 2018. During the third quarter of fiscal 2019, we reduced the estimated value of the supplemental payment to $10.8 million and recorded a corresponding pre-tax charge of $5.8 million ($4.4 million after tax) to discontinued operations. Also, during fiscal 2019, we recorded additional net charges of $1.5 million ($1.3 million after tax) to discontinued operations, resulting primarily from the resolution of certain contingencies. In conjunction with the sale of the business, we have agreed to provide certain transition services for up to an eighteen-month period following the closing of the transaction.

There were no balance sheet amounts related to discontinued operations for either period presented. The results of operations associated with discontinued operations are presented in the following table:



	Fiscal Years Ended February 28,
(in thousands)	2019			2018 ⁽¹⁾			2017
Sales revenue, net	$	—		$	99,013		$	130,543
Cost of goods sold	—			28,744			37,632
Gross profit	—			70,269			92,911

Selling, general and administrative expense ("SG&A")	—			72,419			88,742
Asset impairment charges ⁽²⁾	—			132,297			9,500
Restructuring charges	—			621			—
Operating loss	—			(135,068		)	(5,331		)

Gain (loss) on sale before income tax	(7,257		)	1,624			—
Interest expense	—			(367		)	(497		)
Loss before income tax	(7,257		)	(133,811		)	(5,828		)
Income tax benefit	1,578			49,375			2,207
Loss from discontinued operations	$	(5,679	)	$	(84,436	)	$	(3,621	)


(1)	Fiscal 2018 includes approximately 9.6 months of operating results prior to the divestiture on December 20, 2017.


(2)	Impairment charges Includes goodwill impairment charges of $96.6 million and trademark impairment charges of $35.7 million during fiscal 2018 and trademark impairment charges of $9.5 million during fiscal 2017. Total after tax asset impairment charges were $83.5 million for fiscal 2018 and $5.9 million for fiscal 2017.