Discontinued OperATIONS

July 25, 2018,

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

$145,000

in cash, subject to post-closing adjustments for changes in working capital compared to target net working capital, excluding cash in certain acquired subsidiaries and certain accrued and unpaid taxes of certain acquired subsidiaries. The net cash proceeds from the sale were approximately

$124,156,

net of transaction costs of approximately

$7,657

and taxes of approximately

$13,187.

The net gain on the Sale was estimated to be

$102,145.

The net gain on the sale was calculated as the sum of the gains on the sale of each of the Electronics Business subsidiaries as determined by the total consideration allocation between the subsidiaries, less the respective tax bases and deductible transaction costs for each of the subsidiaries. The total consideration allocation for Nelco Products Pte. Ltd (Singapore), Neltec, Inc. (US), and Neltec SA (France), was

82%,

16%,

and

2%,

respectively, as agreed upon by the Company and AGC Inc. The Company completed this transaction on

December 4, 2018.

The Company has classified the operating results of its former Electronics Business, together with certain costs related to the transaction, as discontinued operations, net of tax, in the Consolidated Statements of Operations. The Company has income in the U.S., Singapore and France, the blended tax rates for discontinued operations for the

2020,

2019

and

2018

fiscal years were negative

26.4%,

12.0%

and negative

158.9%,

respectively.

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

	Fiscal Year Ended

	March 1,			March 3,		February 25,
	2020			2019		2018

Net sales	$	-		$	57,492	$	70,966
Cost of sales		-			44,361		55,794
Gross profit		-			13,131		15,172
Selling, general and administrative expenses		234			8,826		9,510
Restructuring charges		941			636		4,876
(Loss) earnings from discontinued operations		(1,175	)		3,669		786
Other income		288			118,253		34
(Loss) earnings from discontinued operations before income taxes		(887	)		121,922		820
Income tax (benefit) provision		(234	)		14,683		(1,303	)
Net (loss) earnings from discontinued operations	$	(653	)	$	107,239	$	2,123

The restructuring expenses for discontinued operations were

$108,

$262

and

$4,876

in the

2020,

2019

and

2018

fiscal years, respectively.

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

	Accrual March 3, 2019		Current Period Charges		Cash Payments			Non-Cash Charges		Accrual March 1, 2020		Total Expense Accrued to Date		Total Expected Costs
Facility Lease Costs	$	1,324	$	99	$	(991	)	$	-	$	432	$	2,929	$	3,000
Severance Costs		-		-		-			-		-		1,081		1,081
Equipment Removal		-		586		(586	)		-		-		586		586
Other		-		148		(148	)		-		-		927		950
Total Restructuring Charges	$	1,324	$	833	$	(1,725	)	$	-	$	432	$	5,523	$	5,617

The Company recorded additional restructuring charges for discontinued operations of

$833

and

$374

during the

2020

and

2019

fiscal years, respectively, related to the closure of its electronics manufacturing plant located in Fullerton California in the

2018

fiscal year. The accrual balance of

$432

is included in the consolidated balance sheets as the Company has assumed these obligations.