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Discontinued Operations, Exit Activities, And Clinic Obligations
 6 Months Ended
Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations, Exit Activities, and Clinic Obligations
11.
Discontinued Operations, Exit Activities, and Clinic Obligations
 
In 2014, the Company exited the corporate Medifast Weight Control center model by selling 41 company owned 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 corporate Medifast Weight Control Center business unit 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 June 30,
 
Six Months Ended June 30,
 
 
 
2016
 
2015
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes from discontinued operations
 
$
-
 
$
649
 
$
-
 
$
694
 
Income tax provision
 
 
-
 
 
248
 
 
-
 
 
265
 
Income from discontinued operations, net of tax
 
$
-
 
$
401
 
$
-
 
$
429
 
 
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities included in discontinued operations as of:
 
 
 
June 30, 2016
 
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Other assets
 
$
19
 
 
 
 
 
 
Total assets
 
$
19
 
 
 
 
 
 
LIABILITIES
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable and accrued expenses
 
$
482
 
Total current liabilities
 
 
482
 
 
 
 
 
 
Long-term lease obligations
 
 
22
 
 
 
 
 
 
Total liabilities
 
$
504
 
 
The following table summarizes the exit obligations, primarily for lease obligations related to closed corporate Medifast Weight Control Centers, severance accruals, and customer refunds incurred as of June 30, 2016:
 
Ending accrued balance as of December 31, 2015
 
$
1,129
 
Adjustments recorded during the period (1)
 
 
213
 
Payments during the period
 
 
(838)
 
Ending accrued balance as of June 30, 2016
 
$
504
 
 
(1)- The adjustments to the accrual recorded in 2016 relate primarily to agreements reached with franchisees related to lease obligations for previously owned MWCC Corporate Centers.
 
These charges were recorded in the balance sheet as of June 30, 2016 as follows:  
 
Total current liabilities of discontinued operations
 
$
482
 
Total long-term liabilities of discontinued operations
 
 
22
 
Ending accrued balance as of June 30, 2016
 
$
504