DISCONTINUED OPERATIONS

July 25, 2018,

the Company entered into a definitive agreement to sell its Electronics Business for

$145,000

in cash. The Company completed this transaction on

December 4, 2018.

The Company has classified the operating results of its Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statements of Operations.

The following table shows the summary operating results of the discontinued operations:

	13 Weeks Ended (Unaudited)						39 Weeks Ended (Unaudited)
	November 25,			November 26,			November 25,		November 26,
	2018			2017			2018		2017

Net sales	$	16,680		$	15,910		$	55,232	$	53,082
Cost of sales		13,962			12,805			42,899		41,983
Gross profit		2,718			3,105			12,333		11,099
Selling, general and administrative expenses		2,597			2,098			7,643		6,213
Restructuring charges		836			662			1,593		5,300
Earnings (loss) from discontinued operations		(715	)		345			3,097		(414	)
Other income		2,945			-			2,945		-
Earnings (loss) from discontinued operations before income taxes		2,230			345			6,042		(414	)
Income tax provision (benefit)		617			(27	)		1,201		(1,769	)
Net earnings from discontinued operations	$	1,613		$	372		$	4,841	$	1,355

The following table shows the summary assets and liabilities of the discontinued operations:

	November 25, 2018		February 25, 2018*
	(unaudited)
Carrying Amount of Major Classes of Assets Included as Part of Discontinued Operations:
Accounts Receivable, Net	$	12,261	$	12,801
Inventories		9,950		7,201
Fixed Assets, Net		6,041		6,727
Prepaid Expenses and Other Current Assets		899		646
Total Major Assets Included as Part of Discontinued Operations		29,151		27,375

Other Assets		5,368		5,072
Total Assets Included as Part of Discontinued Operations	$	34,519	$	32,447

Carrying Amount of Major Classes of Liabilities Included as Part of Discontinued Operations:
Accounts Payable	$	3,717	$	2,200
Accrued Liabilities		4,460		4,360
Deferred Income Taxes		618		618
Income Taxes Payable		1,334		1,364
Total Major Liabilities Included as Part of Discontinued Operations		10,129		8,542

Other Liabilities		229		229
Total Liabilities Included as Part of Discontinued Operations	$	10,358	$	8,771

* These amounts have

not

been audited and are based on the audited financial statements.

During the

2018

fiscal year, the Company consolidated its Nelco Products, Inc. Business Unit located in Fullerton, California and its Neltec, Inc. Business Unit located in Tempe, Arizona. The Company estimates the remaining pre-tax charge in connection with the consolidation to be approximately

$840,

which the Company expects to incur primarily during the fiscal year ending

February 28, 2021.

The restructuring expenses were

$61

and

$231

during the

-week and

-week periods ended

November 25, 2018,

respectively, and

$360

and

$4,423

during the

-week and

-week periods ended

November 26, 2017,

respectively.

The following table sets forth the charges and accruals related to the consolidation:

	Accrual August 26, 2018		Current Period Charges		Cash Payments			Non-Cash Charges		Accrual November 25, 2018		Total Expense Accrued to Date		Total Expected Costs
Facility Lease Costs	$	1,835	$	18	$	(273	)	$	-	$	1,580	$	2,818	$	2,818
Severance Costs		-		-		-			-		-		1,081		1,081
Equipment Removal		-		-		-			-		-		-		700
Other		-		43		(43	)		-		-		760		901
Total Restructuring Charges	$	1,835	$	61	$	(316	)	$	-	$	1,580	$	4,659	$	5,500

The Company recorded additional restructuring charges of

$101

and

$357

during the

-week and

-week periods ended

November 25, 2018,

respectively, and

$112

and

$312

during the

-week and

-week periods ended

November 26, 2017,

respectively, related to the closure in the

2009

fiscal year of the Company’s New England Laminates Co., Inc. Business Unit located in Newburgh, New York. The New England Laminates Co., Inc. building in Newburgh, New York was sold on

November 15, 2018;

the gain on the sale was

$2,945

and was recorded in the

-week and

-week periods ended

November 25, 2018.