Discontinued Operations and Divestitures

6 Months Ended

Nov. 27, 2011

Discontinued Operations and Divestitures [Abstract]

DISCONTINUED OPERATIONS AND DIVESTITURES

3. DISCONTINUED OPERATIONS AND DIVESTITURES

Discontinued Operations

Frozen Handhelds Operations

During the fourth quarter of fiscal 2011, we completed the sale of substantially all of the assets of our frozen handhelds operations for $8.8 million in cash. We reflected the results of these operations as discontinued operations for all periods presented.

Gilroy Foods & Flavors ^TM Operations

During the first quarter of fiscal 2011, we completed the sale of substantially all of the assets of Gilroy Foods & Flavors™ dehydrated garlic, onion, capsicum and Controlled Moisture™, GardenFrost^®, Redi-Made™, and fresh vegetable operations for $245.7 million in cash. We reflected the results of these operations as discontinued operations for all periods presented.

In connection with the sale of this business, we entered into agreements to purchase certain ingredients, at prices approximating market rates, from the divested business for a period of five years. The continuing cash flows related to these agreements are not significant, and, accordingly, are not deemed to be direct cash flows of the divested business.

Summary of Operational Results

The summary comparative financial results of the discontinued operations were as follows:

	Thirteen weeks ended					Twenty-six weeks ended
	November 27, 2011		November 28, 2010			November 27, 2011		November 28, 2010
Net sales	$	—	$	13.6		$	0.5	$	67.6
Income (loss) from operations of discontinued operations before income taxes		—		(0.6	)		0.1		4.6
Net gain (loss) from disposal of businesses		—		(0.5	)		—		0.4
Income (loss) before income taxes		—		(1.1	)		0.1		5.0
Income tax benefit (expense)		—		1.7			—		(1.4	)
Income from discontinued operations, net of tax	$	—	$	0.6		$	0.1	$	3.6

Operating results from discontinued operations for the second quarter and first half of fiscal 2011 reflect the impact of favorable resolutions of foreign tax matters. Operating results for the first half of fiscal 2011 also include the reversal of an accrual of $3.0 million related to certain legal matters of divested businesses.

There were no assets and liabilities classified as held for sale as of November 27, 2011 and May 29, 2011.