Quarterly report pursuant to Section 13 or 15(d)

Sale of Junkfood

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Sale of Junkfood
 6 Months Ended
Apr. 01, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Sale of Junkfood
Sale of Junkfood
On March 31, 2017, we completed the sale of our Junkfood business to JMJD Ventures, LLC, for $27.9 million, with cash received at closing of $25.0 million and the recording of a $2.9 million note receivable with payments due between June 30, 2017, and March 30, 2018, subject to the final tangible asset adjustment. The business sold consisted of vintage-inspired Junk Food branded and private label products sold in the United States and internationally.
The $1.3 million pre-tax gain on the sale of the Junkfood business resulted from the proceeds of $27.9 million less the costs of assets sold and other expenses, and less direct selling costs associated with the transaction. The pre-tax gain was recorded in the Condensed Consolidated Statement of Operations as Gain on sale of business. For income tax purposes, the gain on the sale was treated as a discrete item and resulted in $0.4 million in income tax expense recorded during our 2017 second quarter.