Quarterly report pursuant to Section 13 or 15(d)

Sale of Junkfood

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Sale of Junkfood
 9 Months Ended
Jul. 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 scheduled due between June 30, 2017, and March 30, 2018, subject to a final tangible asset adjustment which was made in the quarter. The note receivable was amended on June 29, 2017, to revise the repayment schedule for payments to be made between September 29, 2017, and March 30, 2018. 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.