Discontinued Operations

3 Months Ended

Jul. 03, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 3 – Discontinued Operations

In February 2009, we agreed to sell our inventory and entered into a marketing agreement regarding the business of our Pharmaceutical segment, which provided pharmaceutical chemicals to retail pharmacies and small-scale pharmaceutical manufacturers. The agreement provides for annual payments based on a percentage of gross profit on future sales up to a maximum of approximately $3.7 million. We have no significant remaining obligations to fulfill under the agreement. Initially we recorded a receivable of approximately $1.7 million, equal to the carrying value of the assets that were related to this business. The first year payment under the agreement of $0.8 million was received in the second quarter of fiscal 2011. Amounts received in future periods in excess of the approximately $0.9 million remaining receivable will be recorded as a gain on sale of discontinued operations in those periods. In July 2011 we received the second year payment of $1.4 million and, accordingly, recorded a gain of approximately $0.6 million before taxes. The results of the Pharmaceutical segment have been reported as discontinued operations for all periods presented.