On November 13, 2019, we announced the Separation. On the Distribution Date, at 12:01 a.m. Eastern Time, the Separation of our wholly owned subsidiary, American Outdoor Brands, Inc., a Delaware corporation, or AOUT, from our company was completed. The Separation was achieved through the transfer of all the assets and legal entities, subject to any related liabilities, associated with our outdoor products and accessories business to AOUT, or the Transfer, and the distribution of 100% of the AOUT outstanding capital stock to holders of our common stock, or the Distribution, as of the close of business on August 10, 2020, or the Record Date. In connection with the Distribution, our stockholders received one share of AOUT common stock for every four shares of our common stock held as of the close of business on the Record Date. Following the Distribution, AOUT became an independent, publicly traded company, and we retain no ownership interest in AOUT. For the nine months ended January 31, 2021, we recorded $8.4 million in general and administrative expenses related to the Separation and there was no gain/(loss) recognized for the Separation. In connection with the Separation, we distributed $25.0 million in cash to AOUT.

Our common stock continues to trade on the Nasdaq Global Select Market under the new ticker symbol “SWBI,” and AOUT is now trading shares of common stock listed on the Nasdaq Global Select Market under the ticker symbol “AOUT.” The outdoor products and accessories business historical financial data is recorded as discontinued operations. Please refer to our Current Report on Form 8-K filed on August 26, 2020 for more information regarding the Separation. As a result of the Separation, we divested net assets of $260.4 million, which includes the $25.0 million cash distribution to AOUT.

The results of AOUT were previously reported in our Outdoor Products & Accessories segment. The historical financial data of the outdoor products and accessories business through August 23, 2020 is recorded as discontinued operations in income/(loss) from discontinued operations in the condensed consolidated financial statements. For the three months ended January 31, 2021 and 2020, income from discontinued operations, net of tax was $127,000 and $1.5 million, respectively. For the nine months ended January 31, 2021 and 2020, income/(loss) from discontinued operations, net of tax was $8.3 million and ($1.8) million, respectively.

In connection with the Separation, we entered into several agreements with AOUT that govern the relationship of the parties following the Separation, including the Separation and Distribution Agreement, the Tax Matters Agreement, the Transition Services Agreement, and the Employee Matters Agreement. Under the terms of the Transition Services Agreement, both companies agreed to provide each other certain transitional services, including information technology, information management, human resources, employee benefits administration, facilities, and other limited finance and accounting related services, for periods up to 24 months. Payments and operating expense reimbursements for transition services are recorded accordingly in our condensed consolidated financial statements based on the service provided.

The following table summarizes the major line items for the outdoor products and accessories business that are included in income/(loss) from discontinued operations, net of tax, in the condensed consolidation statements of income/(loss) and comprehensive income/(loss):

	For the Three Months Ended January 31,						For the Nine Months Ended January 31,
	2021			2020			2021			2020
	(In thousands)
Net revenues	$	—		$	39,279		$	61,249		$	108,178
Cost of sales		—			19,763			27,147			58,402
Operating expenses		—			17,420			23,458			52,175
Interest (expense)/income, net		(6	)		—			(6	)		21
Other income/(expense), net		—			(7	)		118			(7	)
(Loss)/income from discontinued operations before income taxes	$	(6	)	$	2,089		$	10,756		$	(2,385	)
Income tax (benefit)/expense		(133	)		585			2,422			(546	)
Income/(loss) from discontinued operations, net of tax	$	127		$	1,504		$	8,334		$	(1,839	)

The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations for each of the periods presented:

	As of:
	January 31, 2021		April 30, 2020
	(In thousands)
Cash and cash equivalents	$	—	$	387
Accounts receivable, net	—			32,554
Inventories	—			60,450
Prepaid expenses and other current assets	—			1,282
Property, plant, and equipment, net	—			9,678
Intangible assets, net	—			69,379
Goodwill	—			64,581
Deferred income taxes	—			2,950
Other assets	—			1,897
Total assets of discontinued operations	$	—	$	243,158
Current liabilities	$	—	$	17,372
Other non-current liabilities		—		2,299
Total liabilities of discontinued operations	$	—	$	19,671