Peter Gilgen & Co

Essay

Peter Gilgen & Co., (PG & Co.) reports the following footnote relating to its discontinued operations from its 2016 10-K annual report.
Management's Discussion & Analysis
Recent Developments: In May 2016, we completed the divestiture of our snacks business to The K Cereal Company. In accordance with the applicable accounting guidance for the disposal of long-lived assets, the results of our snacks business are presented as discontinued operations and, as such, have been excluded from continuing operations and from segment results for all periods presented. As a result of this change, the pet care business is now included in the Fabric Care and Home Care segment.
A. What are discontinued operations?
B. Describe the accounting treatment in the income statement according to GAAP for discontinued operations.
C. How should the results of the operations of the discontinued segment be interpreted when evaluating the financial performance for PG & Co. for 2015 and 2016?