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Discontinued Operations, Exit Activities, and Clinic Obligations | 3 Months Ended
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Mar. 31, 2015
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations, Exit Activities, and Clinic Obligations | 12. Discontinued Operations, Exit Activities, and Clinic Obligations In 2014, the Company exited the MWCC corporate center model by selling 41 centers to existing franchise partners (24 centers were sold in June 2014 and the remaining 17 centers were sold in December 2014) and closing the remaining 34 corporate centers. In accordance with ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity the assets, liabilities, operating results, and cash flows of the MWCC corporate center channel have been presented separately as discontinued operations in the Consolidated Financial Statements for all periods presented. The following is a summary of the Company’s operating results for discontinued operations for the three months ended March 31, 2015 and 2014:
|  | 2015 |  | 2014 |
Revenue |  | $ | - |  | $ | 7,296,000 |
Income/(loss) before income taxes from discontinued operations |  |  | 45,000 |  |  | (924,000) |
Income tax/(benefit) provision |  |  | 17,000 |  |  | (346,000) |
Income/(loss) from discontinued operations, net of tax |  | $ | 28,000 |  | $ | (578,000) |
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested as of March 31, 2015 included in discontinued operations:
|  | 2015 |
ASSETS |  |  |  |
Current assets: |  |  |  |
Receivables, net |  | $ | 14,000 |
Inventory |  |  | - |
Prepaid expenses and other current assets |  |  | 4,000 |
Total current assets |  |  | 18,000 |
Other assets |  |  | 19,000 |
Total assets |  | $ | 37,000 |
LIABILITIES |  |  |  |
Current liabilities: |  |  |  |
Accounts payable and accrued expenses |  | $ | 2,348,000 |
Total current liabilities |  |  | 2,348,000 |
Long-term lease obligations |  |  | 1,712,000 |
Total liabilities |  | $ | 4,060,000 |
The following table summarizes the exit obligations primarily closed clinic lease obligations, severance accruals, and customer refunds incurred as of March 31, 2015:
Ending accrued balance as of December 31, 2014 |  | $ | 6,534,000 |
Charges incurred during the period |  |  | - |
Adjustments recorded during the period (1) |  |  | (549,000) |
Payments during the period |  |  | (2,042,000) |
Ending accrued balance as of March 31, 2015 |  | $ | 3,943,000 |
(1)- The adjustments to the accrual recorded in the first quarter of 2015 relate primarily to favorable termination agreements reached with landlords of closed Corporate Medifast Weight Control Centers. |
These charges were recorded in the balance sheet as of March 31, 2015 as follows: |  |  |  |
Total current liabilities of discontinued operations |  | $ | 2,231,000 |
Total long-term liabilities of discontinued operations |  |  | 1,712,000 |
Ending accrued balance as of December 31, 2014 |  | $ | 3,943,000 |

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- Definition The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228 + Details
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