Discontinued Operations

9 Months Ended

Jan. 25, 2014

Discontinued Operations [Abstract]

Discontinued Operations

Note 14: Discontinued Operations

During the third quarter of fiscal 2014, we agreed in principle to sell our Bauhaus operating unitto a group of investors.  The agreement includes the sale of substantially all of the assets of our Bauhaus business unit.  As a result of the expected sale we recorded an impairment to the value of the assets to be sold of $1.1 million, because the consideration expected to be paid was less than the recorded amount of the net assets to be sold.

Our Bauhaus business unit assets are reported as held for sale as of the end of the third quarter of fiscal 2014, and their operating results are reported as discontinued operations for all periods presented.  We had historically reported the results of our Bauhaus business unit as a component of our Upholstery segment. The transaction is expected to close in the fourth quarter of fiscal 2014, and continuing cash flows from the end of the third quarter of fiscal 2014 through the closing date of the sale are not expected to be significant.

The results of the discontinued operations for Bauhaus for the third quarter and first nine months of fiscal 2014 and fiscal 2013 were as follows:

	Third Quarter Ended						Nine Months Ended
(Unaudited, amounts in thousands)	1/25/14			1/26/13			1/25/14			1/26/13
Net sales	$	9,101		$	8,937		$	27,100		$	27,142
Income (loss) from discontinued operations (including impairment of $1.1 million in fiscal 2014)	$	(1,097	)	$	468		$	(1,323	)	$	747
Income tax benefit (expense)		380			(177	)		459			(282	)
Income (loss) from discontinued operations, net of tax	$	(717	)	$	291		$	(864	)	$	465

The assets and liabilities of Bauhaus that were classified as held for sale are as follows:

(Unaudited, amounts in thousands)	1/25/14
Assets
Receivables, net	$	3,672
Inventories, net		4,683
Other current assets		50
Property, plant, and equipment, net		518
Total assets	$	8,923
Liabilities
Accounts payable	$	1,777
Accrued expenses and other current liabilities		876
Total liabilities	$	2,653

In the Consolidated Statement of Cash Flows, the activity of this operating unit was included along with our activity from continuing operations.