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 has been 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 the third quarter of fiscal 2019, we recorded an additional charge of $0.5 million (before and after tax) to discontinued operations, resulting 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:



	Three Months Ended November 30,						Nine Months Ended November 30,
(in thousands)	2018			2017			2018			2017
Sales revenue, net	$	—		$	29,337		$	—		$	92,213
Cost of goods sold	—			8,568			—			26,860
Gross profit	—			20,769			—			65,353

Selling, general and administrative expense ("SG&A")	—			21,394			—			69,324
Asset impairment charges (1)	—			82,227			—			132,297
Restructuring charges	—			118			—			118
Operating loss	—			(82,970		)	—			(136,386		)

Gain (loss) on sale before income tax (2)	(6,325		)	—			(6,809		)	—
Interest expense	—			(114		)	—			(343		)
Loss before income tax	(6,325		)	(83,084		)	(6,809		)	(136,729		)

Income tax benefit (expense)	1,475			(5,976		)	1,578			590
Loss from discontinued operations	$	(4,850	)	$	(89,060	)	$	(5,231	)	$	(136,139	)


(1)	Included pre-tax non-cash asset impairment charges consisting of $70.6 million to goodwill and $11.6 million to indefinite-lived brand assets for the three months ended November 30, 2017. Included pre-tax non-cash asset impairment charges consisting of $96.6 million to goodwill and $35.7 million to indefinite-lived brand assets for the nine months ended November 30, 2017.


(2)	Includes adjustments recorded during fiscal 2019 to the initial estimated gain on sale before income tax recorded in the fourth quarter of fiscal 2018.