v2.4.0.6
Discontinued Operations
 9 Months Ended
Oct. 27, 2012
Discontinued Operations [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
Discontinued Operations

In September 2012, the Company announced its commitment to pursue the sale of PSD, a component of the Company's International Operations segment, which operates in five countries in Europe and focuses on the sale, rental and servicing of printing machinery. The Company is actively marketing the business and currently expects to complete the sale within one year. The Company does not plan to have continued involvement in the operations of PSD after the completion of the sale, and subsequent to the sale all cash flows related to PSD are expected to be eliminated from the Company's condensed consolidated financial statements. Accordingly, the Company has presented PSD's results of operations as discontinued operations in its condensed consolidated statement of comprehensive income for all periods presented.

The Company has classified certain assets and liabilities of PSD as a disposal group and accounted for the group as held-for-sale in the Company's condensed consolidated balance sheet as of October 27, 2012. Given that the Company expects to complete the sale within one year, the Company has presented the disposal group within current assets and current liabilities on the condensed consolidated balance sheet.

The following table shows the carrying amounts of the major classes of the assets and liabilities included in the disposal group as of October 27, 2012 (in thousands):
 
 
October 27, 2012
 
 
 
ASSETS
 
 
Cash and cash equivalents
 
$
641

Receivables, net
 
119,876

Merchandise inventories, net
 
52,039

Deferred income tax assets
 
3,749

Prepaid expenses and other current assets
 
3,919

Non-current assets
 
5,725

Total assets of discontinued operations
 
$
185,949

 
 
 
LIABILITIES
 
 
Accounts payable
 
$
75,501

Accrued expenses and other current liabilities
 
50,235

Debt maturing within one year
 
2,492

Other long-term obligations
 
15,683

Total liabilities of discontinued operations
 
$
143,911


As discussed in Note C - Restructuring Charges, in connection with the planned sale of PSD, the Company incurred restructuring charges of approximately $18.4 million in the third quarter of 2012 related to costs associated with employee severance and benefit costs, which is included in (Loss) income from discontinued operations, net of income taxes in the condensed consolidated statement of comprehensive income.

The condensed consolidated statements of comprehensive income for the third quarter and year-to-date 2012 and 2011 include certain indirect corporate overhead costs in Selling, general and administrative which had previously been allocated to PSD. These indirect corporate overhead costs do not qualify for classification within discontinued operations, and therefore they continue to be included in Selling, general and administrative in continuing operations on the condensed consolidated statement of comprehensive income.

The following table details PSD's results of operations during the third quarter and year-to-date periods in 2012 and 2011, which have been reported in discontinued operations (in thousands):
 
 
13 Weeks Ended
 
39 Weeks Ended

 
October 27, 2012
 
October 29, 2011
 
October 27, 2012
 
October 29, 2011
Sales
 
$
67,231

 
$
88,904

 
$
211,162

 
$
272,031

 
 
 
 
 
 
 
 
 
Restructuring charges
 
18,433

 
—

 
18,433

 
—

 
 
 
 
 
 
 
 
 
(Loss) income from discontinued operations, before income taxes
 
(23,404
)
 
3,923

 
(38,994
)
 
(5,398
)
Income tax expense (benefit)
 
4,155

 
1,313

 
(910
)
 
(1,903
)
(Loss) income from discontinued operations, net of income taxes
 
$
(27,559
)
 
$
2,610

 
$
(38,084
)
 
$
(3,495
)