Discontinued Operations and Assets Held for Sale (Tables)

9 Months Ended

Jul. 31, 2013

Discontinued Operations and Assets Held for Sale [Abstract]

Schedule of financial information of discontinued operation

The following is selected financial information included in net earnings (loss) from discontinued operations for three divisions classified within the printing segment and the Herald-Dispatch previously classified within the newspaper segment until the sale of this segment. The financial information reflects interest on debt required to be repaid as a result of these disposal transactions and excludes any general corporate overhead allocations. The interest expense allocated to discontinued operations for the three months ended July 31, 2013 and 2012 was $167,000 and $206,000 and for the nine months ended July 31, 2013 and 2012 was $612,000 and $648,000.

	Three Months Ended July 31,
		2013
		Printing		Herald-Dispatch		Total
Net sales	$	295,687	$	2,364,072	$	2,659,759
(Loss) earnings from discontinued operations		(136,306	)	50,994		(85,312	)
Income tax benefit (expense)		46,144		(18,995	)	27,149
Gain (loss) on sale of discontinued operations		(103,802	)	547,106		443,304
Income tax (expense) benefit on sale		35,116		(203,797	)	(168,681	)
Net earnings (loss) from discontinued operations		(158,848	)	375,308		216,460

	Three Months Ended July 31,
		2012
		Printing		Herald-Dispatch		Total
Net sales	$	4,720,994	$	3,300,243	$	8,021,237
Earnings (loss) from discontinued operations		(264,606	)	279,254		14,648
Income tax benefit (expense)		-		-		-
Gain on sale of discontinued operations		905,425		-		905,425
Income tax (expense) on sale		-		-		-
Net earnings from discontinued operations		640,819		279,254		920,073

	Nine Months Ended July 31,
		2013
		Printing		Herald-Dispatch		Total
Net sales	$	2,190,475	$	8,954,006	$	11,144,481
(Loss) earnings from discontinued operations		(738,571	)	491,369		(247,202	)
Income tax benefit (expense)		250,527		(183,035	)	67,492
Gain (loss) on sale of discontinued operations		(103,802	)	547,106		443,304
Income tax (expense) benefit on sale		35,116		(203,797	)	(168,681	)
Net earnings (loss) from discontinued operations		(556,730	)	651,643		94,913

	Nine Months Ended July 31,
		2012
		Printing		Herald-Dispatch		Total
Net sales	$	17,293,622	$	10,586,232	$	27,879,854
(Loss) from discontinued operations		(290,915	)	(8,424,557	)	(8,715,472	)
Income tax benefit (expense)		-		-		-
Gain on sale of discontinued operations		905,425		-		905,425
Income tax (expense) on sale		-		-		-
Net earnings (loss) from discontinued operations		614,510		(8,424,557	)	(7,810,047	)

27

Champion Industries, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited) (continued)

The major classes of assets and liabilities held for sale and of discontinued operations included in the Consolidated Balance Sheets are as follows (see Note 5 for discussion of debt allocated to liabilities held for sale/discontinued operations):

		Held for sale		Discontinued Operations		Total		Held for sale		Discontinued Operations		Total
		July 31, 2013						October 31, 2012
Assets:
Accounts receivable	$	-	$	144,681	$	144,681	$	-	$	2,454,406	$	2,454,406
Inventories		-		-		-		-		706,584		706,584
Other current assets		-		7,158		7,158		-		109,940		109,940
Property and equipment, net		369,073		-		369,073		1,219,073		5,276,348		6,495,421
Other assets		-		-		-		-		5,128,469		5,128,469
Total current assets		369,073		151,839		520,912		1,219,073		13,675,747		14,894,820
Property and equipment, net		-		-		-		-		-		-
Other assets		-		-		-		-		-		-
Total noncurrent assets		-		-		-		-		-		-
Total assets held for sale/discontinued operations	$	369,073	$	151,839	$	520,912	$	1,219,073	$	13,675,747	$	14,894,820
Liabilities:
Accounts payable	$	-	$	27,936	$	27,936	$	-	$	836,869	$	836,869
Deferred revenue		-		-		-		-		663,496		663,496
Accrued payroll and commissions		-		-		-		-		382,550		382,550
Taxes accrued and withheld		-		44,414		44,414		-		335,476		335,476
Accrued expenses		-		-		-		-		76,661		76,661
Debt (see Note 5)		369,073		79,489		448,562		1,219,073		11,603,132		12,822,205
Total current liabilities		369,073		151,839		520,912		1,219,073		13,898,184		15,117,257
Total noncurrent liabilities		-		-		-		-		-		-
Total liabilities held for sale/discontinued operations	$	369,073	$	151,839	$	520,912	$	1,219,073	$	13,898,184	$	15,117,257