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DISCONTINUED OPERATIONS
 9 Months Ended
Mar. 01, 2014
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS
Financial Summary – Discontinued Operations
Summary financial results for the three and nine months ended March 1, 2014, and March 2, 2013, are presented in the following table (in thousands):

Three Months Ended
 
Nine Months Ended

March 1, 2014
 
March 2, 2013
 
March 1, 2014
 
March 2, 2013
Net sales
$
111

 
$
(33
)
 
$
375

 
$
466

Gross loss (1)
(254
)
 
(297
)
 
(357
)
 
(518
)
Selling, general, and administrative expenses
37

 
231

 
186

 
497

Income tax provision (benefit)
129

 
(346
)
 
(5
)
 
(543
)
Loss from discontinued operations, net of tax
$
(420
)
 
$
(182
)
 
$
(538
)
 
$
(472
)

Notes:
(1) Gross loss for fiscal year 2014 and 2013 includes unabsorbed manufacturing labor and overhead expenses and adjustments to inventory reserves related to the Manufacturing Agreement with RFPD which ended March 1, 2014.
Net sales and gross loss for the three and nine months ended March 1, 2014, reflect our financial results relating to the Manufacturing Agreement with Arrow that we entered into in connection with the Transaction. Pursuant to the three-year agreement, we agreed to continue to manufacture certain RFPD products. There was also an income tax provision for the third quarter of fiscal 2014, reflecting the tax reserve for an ongoing income tax audit in Italy. Net sales for the third quarter ended March 2, 2013, reflect a return of inventory from RFPD of approximately $0.1 million.
Assets and liabilities classified as discontinued operations on our consolidated balance sheets as of March 1, 2014, and June 1, 2013, include the following (in thousands):

March 1, 2014
 
June 1, 2013
Inventories
$
85

 
$
303

Receivables - current (1)
63

 
—

Discontinued operations - Assets
$
148

 
$
303

 
 
 
 
Accrued liabilities - current
$
—

 
$
245

Accrued liabilities - non-current (2)
133

 
—

Discontinued operations - Liabilities
$
133

 
$
245


Notes:
(1) Included in receivables as of March 1, 2014, is a receivable from Arrow for cash collections.
(2) Accrued liabilities - non-current as of March 1, 2014 relates to a reserve for an income tax liability due to an ongoing audit in Italy.
In accordance with ASC 230, Statement of Cash Flows, entities are permitted but not required to separately disclose, either in the statement of cash flows or footnotes to the financial statements, cash flows pertaining to discontinued operations. Entities that do not present separate operating cash flow information related to discontinued operations must do so consistently for all periods presented, which may include periods long after the sale or liquidation of the operation. We did not have cash balances that were specific to RFPD and elected not to present separate cash flows from discontinued operations on our statement of cash flows.