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Assets Held for Sale and Net Gain on Disposition
 3 Months Ended
Apr. 01, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Assets Held for Sale and Net Gain on Disposition
Assets Held for Sale and Net Gain on Disposition
We have designated two unoccupied properties as held for sale, due to strategic initiatives. At the time of designation, we ceased recognizing depreciation expense on these assets. As of April 1, 2017, and December 31, 2016, the net book value of total assets held for sale was $0.8 million and $2.7 million, respectively, and was included in “other current assets” in our Consolidated Balance Sheets. We are actively marketing properties that are designated as held for sale.
During the first quarter of fiscal 2017, we sold non-operating distribution facilities located in Allentown, Pennsylvania, and Virginia Beach, Virginia, and a parcel of excess land located in Ft. Worth, Texas (the “Property Sales”). We recognized a gain of $6.7 million in the Condensed Consolidated Statements of Operations as a result of the Property Sales.
Additionally, we performed sale-leaseback transactions on distribution centers located in Tampa, Florida; Ft. Worth, Texas; and Miami, Florida (the “Sale-Leaseback Transactions”). As a result of the Sale-Leaseback Transactions, we recognized a capital lease asset and obligation totaling $8.0 million on two of these properties. The remaining sale-leaseback property was classified as an operating lease. We recognized a total deferred gain of $13.7 million on the three sale-leaseback properties, which will be amortized over the life of the applicable lease in the case of the capital leases; or, in the case of the operating lease, will be amortized over the life of the applicable lease until our adoption of ASC 842, at which time the remaining deferred gain will be reclassified as a decrease to stockholders’ deficit. The liability for the capital leases and deferred gain is located in “other current liabilities” (for the portion amortizing within the next twelve months) and “other non-current liabilities” on our Condensed Consolidated Balance Sheet.
As a result of the Property Sales and Sale-Leaseback Transactions, we reduced the balance of the mortgage by $27.4 million in fiscal 2017.