DISCONTINUED OPERATIONS

9 Months Ended

Oct. 02, 2016

Discontinued Operations And Disposal Groups [Abstract]

Disposal Groups Including Discontinued Operations Disclosure [TextBlock]

(13) Discontinued Operations

On December 14, 2015, Famous Dave’s of America, Inc. and certain of its subsidiaries (collectively, the “Company”) entered into an Asset Purchase Agreement and related Real Estate Purchase Agreement (the “Purchase Agreements”) with Windy City Restaurant Holdings LLC and its affiliate (together, the “Purchaser”) pursuant to which the Company agreed to sell the assets comprising its seven Chicago, Illinois area Company-owned restaurants located in Addison, Algonquin, Bolingbrook, Evergreen Park, North Riverside, Orland Park and Oswego (collectively, “Purchased Restaurants”) to the Purchaser.

Pursuant to the terms of this agreement, the Company received a total purchase price of $1.15 million during the quarter ended April 3, 2016, plus approximately $315,000 for the purchase of inventory on hand on the closing date. The Purchaser also assumed specified liabilities of the Company, including the Company’s existing leases for the Purchased Restaurants located in Bolingbrook, North Riverside and Orland Park, Illinois.

As a result of this asset sale, the Company recognized a pretax $1.1 million gain during the quarter ended April 3, 2016, primarily due to the write-off of the remaining $1.3 million deferred rent liability associated with the leases assumed by the Purchaser, discussed above.

The net assets and liabilities of the Purchased Restaurants associated with this transaction were included in assets and liabilities held for sale on the accompanying Consolidated Balance Sheets at January 3, 2016. No related assets or liabilities remained at October 2, 2016.The carrying value of the assets and liabilities included in the asset sale was as follows (in thousands):

(in thousands)		January 3,
		2016
Accounts receivable, net	$	65
Inventories		344
Prepaid expenses and other current assets		30
Total current assets		439
Property, equipment and leasehold improvements, net		991
Total assets	$	1,430
Accounts payable	$	10
Accrued compensation and benefits		96
Other current liabilities		389
Total current liabilities		495
Other liabilities		1,252
Total liabilities	$	1,747

The operating results of the Purchased Restaurants for the three and nine months ended October 2, 2016 and September 27, 2015 are summarized below. These results include costs directly attributable to the components of the businesses which were divested. Interest expense of $32,000 and $21,000 were allocated to discontinued operations for the nine months ended October 2, 2016 and September 27, 2015, respectively, based upon the portion of the borrowing base associated with discontinued operations. Income tax expense (benefit) of $378,000 and ($111,000) for the nine months ended October 2, 2016 and September 27, 2015, respectively have also been allocated to discontinued operations. These adjustments have been made for all periods presented.

	Three Months Ended				Nine Months Ended
(in thousands)	October 2, 2016		September 27, 2015		October 2, 2016		September 27, 2015
Revenue	$	---	$	3,919	$	2,365	$	12,975
(Loss) income from operations	$	(23)	$	(304)	$	1,019	$	85
(Loss) income from discontinued operations, net of income taxes	$	(81)	$	(249)	$	627	$	79