Discontinued Operations
 9 Months Ended
Sep. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued operations

Sale of Tridien

On September 21, 2016, the Company sold its majority owned subsidiary, Tridien, based on an enterprise value of $25 million. After the allocation of the sale proceeds to non-controlling equity holders and the payment of transaction expenses, the Company received approximately $22.7 million in net proceeds at closing related to its debt and equity interests in Tridien. The Company recognized a gain of $1.5 million for the three and nine months ended September 30, 2016 as a result of the sale of Tridien. Approximately $1.6 million of the proceeds received by the Company from the sale of Tridien have been reserved to support the Company’s indemnification obligations for future claims against Tridien that the Company may be liable for under the terms of the Tridien sale agreement.

The following table presents summary balance sheet information of the Tridien business that is presented as discontinued operations as of December 31, 2015 (in thousands):

 
 
 
December 31, 2015
Assets:
 
 
 
Cash
 
$
629

 
Accounts receivable
 
8,410

 
Inventories
 
8,466

 
Prepaid expenses and current assets
 
1,267

 
Current assets of discontinued operations
 
$
18,772

 
Property, plant and equipment, net
 
2,103

 
Goodwill
 
7,833

 
Intangible assets, net
 
2,717

 
Other noncurrent assets
 
170

 
Noncurrent assets of discontinued operations
 
$
12,823

Liabilities
 
 
 
Accounts payable
 
4,263

 
Accrued expenses and other current liabilities
 
4,192

 
Current liabilities of discontinued operations
 
$
8,455

 
Noncurrent liabilities of discontinued operations
 
$
110

Noncontrolling interest of discontinued operations
 
$
916




Sale of CamelBak

On August 3, 2015, the Company sold its majority owned subsidiary, CamelBak, based on a total enterprise value of $412.5 million. The CamelBak purchase agreement contains customary representations, warranties, covenants and indemnification provisions, and the transaction is subject to customary working capital adjustments.

The Company received approximately $367.8 million in cash related to its debt and equity interests in CamelBak after payments to noncontrolling shareholders and payment of all transaction expenses. The Company recognized a gain of $164.0 million, net of tax, during 2015 as a result of the sale of CamelBak. During the third quarter of 2016, the Company settled the outstanding working capital adjustments related to CamelBak, resulting in the recognition of additional gain on the sale of business of $0.6 million during the quarter ended September 30, 2016.

Sale of AFM

On October 5, 2015, the Company sold its majority owned subsidiary, American Furniture, for a sale price of $24.1 million. The Company received approximately $23.5 million in net proceeds related to its debt and equity interests in American Furniture after payment of all transaction expenses. The Company recognized a loss on the sale of American Furniture of $14.3 million during 2015.

Operating results of discontinued operations

Summarized operating results of discontinued operations for the three and nine months ended September 30, 2016 and 2015 are as follows:
 
Three months ended September 30, 2016 (1)
 
Nine months ended September 30, 2016 (1)
(in thousands)
Tridien
 
Tridien
Net sales
$
15,978

 
$
45,951

Gross profit
3,223

 
7,917

Operating income
967

 
437

Income (loss) from continuing operations before income taxes
(440
)
 
488

Provision for income taxes
15

 
15

Income (loss) from discontinued operations (2)
$
(455
)
 
$
473


(1) The results of operations of Triden for the three and nine months ended September 30, 2016 include the results from July 1, 2016 through the date of disposition and January 1, 2016 through the date of disposition, respectively.

(2) The results for the three and nine months ended September 30, 2016 exclude $0.4 million and $1.1 million of intercompany interest expense.

 
Three months ended September 30, 2015
 
Nine months ended September 30, 2015
(in thousands)
CamelBak (1)
 
American Furniture
 
Tridien
 
Total discontinued operations
 
CamelBak (1)
 
American Furniture
 
Tridien
 
Total discontinued operations
Net sales
$
17,023

 
$
39,068

 
$
23,318

 
$
79,409

 
$
96,519

 
$
122,420

 
$
58,850

 
$
277,789

Gross profit
7,282

 
3,656

 
4,409

 
15,347

 
41,415

 
11,613

 
11,807

 
64,835

Operating income (loss)
2,713

 
901

 
1,183

 
4,797

 
14,348

 
4,126

 
(6,504
)
 
11,970

Income (loss) from continuing operations before income taxes
4,315

 
902

 
1,183

 
6,400

 
16,607

 
4,134

 
(6,503
)
 
14,238

Provision for income taxes
1,355

 
43

 
68

 
1,466

 
5,010

 
81

 
68

 
5,159

Income (loss) from discontinued operations (2)
$
2,960

 
$
859

 
$
1,115

 
$
4,934

 
$
11,597

 
$
4,053

 
$
(6,571
)
 
$
9,079


(1) The results of operations of Camelbak for the three and nine months ended September 30, 2015 include the results from July 1, 2015 through the date of disposition and January 1, 2015 through the date of disposition, respectively.

(2) The results for the three and nine months ended September 30, 2015 exclude $2.9 million and $7.7 million of intercompany interest expense.