Discontinued Operations

6 Months Ended

Jun. 02, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations Disclosure [Text Block]

Note 18: Discontinued Operations

On May 7, 2012 we reached an agreement to sell our Central America Paints business, a combination of our Latin America Paints operating segment and other company assets and liabilities related to the operating segment, to Compania Global de Pinturas S.A., a company of Inversiones Mundial S.A. The sale is expected to be finalized during our third quarter of 2012.

In accordance with ASC 205-20,we have reclassified the results of this businessas discontinued operations by restating previously reported results to reflect the reclassification on a comparable basis. The operational results of this business are presented in the “Income (loss) from discontinued operations, net of tax” line item on the Condensed Consolidated Statements of Income. Also in accordance with ASC 205-20, we have not allocated general corporate charges to this business. The assets and liabilities of this business are presented on the Condensed Consolidated Balance Sheets as assets and liabilities of discontinued operations.

Revenue and income (loss) from discontinued operations for the periods ended June 2, 2012 and May 28, 2011 were as follows:

	13 Weeks Ended				26 Weeks Ended
	June 2, 2012		May 28, 2011		June 2, 2012		May 28, 2011
Net revenue	$	26,321	$	25,361	$	56,129	$	53,800
Income before income taxes		3,819		2,109		6,662		5,842
Income taxes		(6,872)		(1,485)		(7,992)		(2,642)
Net Income (loss) from discontinued operations	$	(3,053)	$	624	$	(1,330)	$	3,200

Income taxes for the 13 weeks and the 26 weeks ended June 2, 2012 include the expected tax expense in the amount of $5,766 due to specific changes in our corporate structure as a result of our agreement to sell our Central America Paints business.

The major classes of assets and liabilities of discontinued operations as of June 2, 2012 and December 3, 2011 were as follows:

	June 2, 2012		December 3, 2011
Cash and cash equivalents	$	1,500	$	1,500
Trade receivables, net		19,299		26,852
Inventories		20,512		19,549
Other current assets		3,338		4,583
Current assets of discontinued operations		44,649		52,484
Property, plant and equipment, net		13,119		13,296
Other assets		3,625		3,563
Long-term assets of discontinued operations		16,744		16,859
Trade payables		7,867		11,936
Income taxes payable		6,086		4,567
Other accrued expenses		4,907		6,097
Current liabilities of discontinued operations		18,860		22,600
Accrued pension liabilities		1,310		1,288
Other liabilities		2,368		1,456
Long-term liabilities of discontinued operations		3,678		2,744