Discontinued Operations

6 Months Ended

Oct. 24, 2015

Discontinued Operations

Discontinued Operations

Note 4: Discontinued Operations

During fiscal 2015, we ceased operations and liquidated all the assets, consisting mostly of inventory, of Lea Industries, a division of La-Z-Boy Casegoods, Inc. (formerly La-Z-Boy Greensboro, Inc.). We reported Lea Industries’ operating results as discontinued operations for the period ended October 25, 2014. Historically, we had reported the results of Lea Industries as a component of our Casegoods segment.

In the first quarter of 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 we recorded related to the Continued Dumping and Subsidy Offset Act of 2000, which provides 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. That entity subsequently filed for bankruptcy. The funds were distributed by U.S. Customs to the bankruptcy trustee and by the trustee to be held in trust for us during the first quarter of fiscal 2015 and were received by us early in the second quarter of fiscal 2015.

The results of our discontinued operations for the quarter and six months ended October 25, 2014, were as follows:

	Quarter Ended			Six Months Ended
(Unaudited, amounts in thousands)	10/25/14			10/25/14
Net sales	$	3,301		$	6,788
Operating income from discontinued operations	$	459		$	561
Income from Continued Dumping and Subsidy Offset Act, net	—			3,763
Income tax expense	(174		)	(1,542		)
Income from discontinued operations, net of tax	$	285		$	2,782

We included the activity of these operating units in our consolidated statement of cash flows with our continuing operations for the six months ended October 25, 2014.