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Discontinued Operations, Exit Activities, and Clinic Obligations
 12 Months Ended
Dec. 31, 2017
Discontinued Operations, Exit Activities, and Clinic Obligations [Abstract]  
Discontinued Operations, Exit Activities, and Clinic Obligations

16. DISCONTINUED OPERATIONS, EXIT ACTIVITIES, AND CLINIC OBLIGATIONS

In 2014, the Company exited the Medifast Weight Control corporate 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 closure of 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 year ended December 31, 2015 (in thousands):



 

 

 

 

 



 

 

 

2015



 

 

 

 

 

Revenue

 

 

 

$

 -



 

 

 

 

 

Income from discontinued operations before income taxes

 

 

 

$

 878 

Provision for income taxes on discontinuing operations

 

 

 

 

 387 

Income from discontinued operations, net of tax

 

 

 

$

 491 



The following table presents the aggregate carrying amounts of the major classes of assets and liabilities included in discontinued operations as of December 31, 2016 (in thousands):





 

 

 

 

 



 

 

 

December 31, 2016

ASSETS

 

 

 

 

 

Long term assets

 

 

 

 

 

Other assets

 

 

 

$

 4 



 

 

 

 

 

TOTAL ASSETS

 

 

 

$

 4 



 

 

 

 

 

LIABILITIES

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable and accrued expenses

 

 

 

$

 121 



 

 

 

 

 

     Total liabilities

 

 

 

$

 121 



 

 

 

 

 

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 December 31, 2017 and 2016 (in thousands):







 

 

 

Accrued balance as of December 31, 2015

 

$

 1,129 

Adjustments recorded during the year (1)

 

 

 134 

Payments during the year

 

 

 (1,142)

Accrued balance as of December 31, 2016

 

 

 121 

Payments during the period

 

 

 (121)

Accrued balance as of December 31, 2017

 

$

 -



 

 

 

(1) - The adjustments to the accrual recorded relate primarily to agreements reached with

        franchisees related to lease obligations for previously owned MWCC Corporate Centers.