Discontinued Operations

12 Months Ended

Apr. 26, 2014

Discontinued Operations [Abstract]

Discontinued Operations

Note 4: Discontinued Operations

During the fourth quarter of fiscal 2014, we sold substantially all of the assets of our Bauhaus U.S.A. business unit to a group of investors and also classified Lea Industries, a division of La-Z-Boy Greensboro, Inc., as business held for sale as part of a larger restructuring initiative (see Note 3 for additional information).

As a result of the sale of Bauhaus, we recorded an impairment to the value of the assets to be sold of $1.1 million, because the consideration paid was less than the recorded amount of the net assets to be sold. The operating results of our Bauhaus business unit 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 closed 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 were not significant.

The results of the discontinued operations for Bauhaus for the fiscal years ended April 26, 2014, April 27, 2013, and April 28, 2012, were as follows:

	Year Ended
(Amounts in thousands)	4/26/14			4/27/13			4/28/12
Net sales	$	33,608		$	37,282		$	37,043
Income (loss) from discontinued operations (including impairment of $1.1 million in fiscal 2014)	$	(1,560	)	$	1,088			791
Income tax benefit/(expense)		541			(412	)		(303	)
Income (loss) from discontinued operations, net of tax	$	(1,019	)	$	676		$	488

The final working capital adjustment for the sale of Bauhaus of $0.2 million will be paid to the purchaser in the first quarter of fiscal 2015. The assets and liabilities of Bauhaus that were disposed of as part of the sale were as follows:

(Amounts in thousands)	4/26/14
Assets
Receivables, net	$	3,780
Inventories, net		4,231
Other current assets		85
Property, plant, and equipment, net		518
Total assets	$	8,614
Liabilities
Accounts payable	$	1,290
Accrued expenses and other current liabilities		633
Total liabilities	$	1,923

The results of the discontinued operations for Lea Industries for the fiscal years ended April 26, 2014, April 27, 2013, and April 28, 2012, were as follows:

	Year Ended
(Amounts in thousands)	4/26/14			4/27/13			4/28/12
Net sales	$	16,979		$	21,366		$	27,928
Income (loss) from discontinued operations (including restructuring of $3.3 million in fiscal 2014)	$	(4,472	)	$	(1,063	)	$	7,116
Income tax benefit/(expense)		1,695			404			(2,698	)
Income (loss) from discontinued operations, net of tax	$	(2,777	)	$	(659	)	$	4,418

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

(Amounts in thousands)	4/26/14
Assets
Receivables, net	$	1,190
Inventories, net		3,013
Other current assets		87
Total assets	$	4,290
Liabilities
Accounts payable	$	234
Accrued expenses and other current liabilities		576
Other long-term liabilities		22
Total liabilities	$	832

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