Discontinued Operations

12 Months Ended

Apr. 29, 2017

Discontinued Operations

Discontinued Operations

Note 3: Discontinued Operations

During the fourth quarter of fiscal 2014, we classified Lea Industries, a division of La-Z-Boy Casegoods, Inc. (formerly La-Z-Boy Greensboro, Inc.), as held for sale while we marketed that business for sale. We were unable to find a buyer for our Lea Industries business, and consequently, we ceased its operations and liquidated all the assets, consisting mostly of inventory, and ceased operations of Lea Industries during the third quarter of fiscal 2015. The operating results of Lea Industries are reported as discontinued operations for fiscal 2015. We had historically reported the results of our Lea Industries business unit as a component of our Casegoods segment.

In fiscal 2015, we recorded $3.8 million of income in discontinued operations related to our previously owned subsidiary, American Furniture Company, Incorporated. We sold this subsidiary in fiscal 2007, and reported it as discontinued operations at that time. The income related to the Continued Dumping and Subsidy Offset Act of 2000 ("CDSOA"), which provided for distribution of duties, collected by U.S. Customs and Border Protection from antidumping cases, to domestic producers that supported the antidumping petition related to wooden bedroom furniture imported from China. When we sold American Furniture Company, Incorporated our contract provided that we would receive a portion of any such duties to which that entity was entitled. The remainder of the CDSOA income reported in discontinued operations in fiscal 2015 related to Lea Industries.

The results of our discontinued operations for the fiscal year ended April 25, 2015, was as follows:

(Amounts in thousands)	4/25/2015
Net sales	$	7,850
Operating income from discontinued operations	$	869
Interest expense		8
Income from Continued Dumping and Subsidy Offset Act, net		4,211
Income tax expense		(1,775	)
Income from discontinued operations, net of tax	$	3,297

In the consolidated statement of cash flows, the activity of these operating units was included along with our activity from continuing operations for fiscal 2015.