Discontinued Operations and Divestitures

9 Months Ended

Feb. 26, 2012

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					Thirty-nine weeks ended
	February 26, 2012		February 27, 2011			February 26, 2012		February 27, 2011
Net sales	$	—	$	13.4		$	0.5	$	81.0
Long-lived asset impairment charge		—		(16.3	)		—		(16.3	)
Income (loss) from operations of discontinued operations before income taxes		—		(16.4	)		0.1		(11.8	)
Net gain (loss) from disposal of businesses		—		(0.2	)		—		0.2
Income (loss) before income taxes		—		(16.6	)		0.1		(11.6	)
Income tax benefit		—		6.0			—		4.6
Income (loss) from discontinued operations, net of tax	$	—	$	(10.6	)	$	0.1	$	(7.0	)

Operating results from discontinued operations for the third quarter and first three quarters of fiscal 2011 reflect the impact of favorable resolutions of foreign tax matters. Operating results for the first three quarters 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 February 26, 2012 and May 29, 2011.